Eni Interim Update and 2010 Q2 Results, July 29th 2011

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Eni Interim Update and 2010 Q2 Results, July 29th 2011

  1. 1. interim update and Q2 resultsJuly 29th, 2011eni.com
  2. 2. H1 results: impacted by two uncertainties…Libya: suspended production and Greenstream closure  E&P: full impact in Q2, reduced volumes by >230kboe/d  G&P: impact on ebit from lower shipper volumes and supply source substitution  Refining & Petchem: higher costs from replacing Libyan feedstocksOngoing gas supply contract renegotiations Expected benefits from renegotiations not included in H1 ebit Negotiations with Gazprom and Sonatrach progressing constructively Closure expected before year end with retroactive effects 2
  3. 3. … but showing good progress on strategic drivers Excellent exploration performance  Skrugard: new potential hub in Barents Sea  Jangkrik: substantial upside in Indonesia  Sankofa and Gye Nyame: significant gas discoveries in Ghana  Additional resources in new giants (Perla, Block 15/06) Progress on main projects  Venezuela: defined technical and commercial agreements for Junin-5 and Perla  Russia: GSA close to finalisation (Samburgskoye and Urengoskoye FID in H2) Strengthening our leading position in the European gas market Confirmed objective of delivering value from non-core shareholdings
  4. 4. market environment Average European Brent €/$ exchange rate refining margin*$/bl €/bl $/bl €/bl USD Euro * Brent/Ural FOB Mediterranean market. Eni calculations on Platt’s Oilgram data 4
  5. 5. Q2 consolidated results Adj. operating profit Adj. net profitMillion € Million € 4,128 4,003 1,667 1,436 5
  6. 6. E&P performance Oil & gas production Adj. operating profitkboe/d Million € 4,120 1,954 4,028 3,826 1,758 1,705 1,684 3,442 3,296 1,489 Oil Gas 6
  7. 7. G&P performance Gas sales Adj. operating profitBcm Million € 31.6 27.2 958 20.3 17.8 17.4 777 629 446 251 Italy International* * Including associates 7
  8. 8. G&P: ebitda proforma adjusted*million € 1,432 1,159 1,054 921 825 675 338 International Regulated Marketing Transport businesses in Italy * Ebitda pro forma includes: pro-quota ebitda contribution from SRG and associates 8
  9. 9. R&M performance Process utilization index Adj. operating profit% Million € 86 14 84 82 77 73 -39 -52 -114 -176 Q2 10 Q3 10 Q410 Q1 11 Q2 11 9
  10. 10. other businesses: adjusted operating profitmillion € Q2 Q2 Δ% 2010 2011  Petrochemicals (11) (30) -173  Engineering & Construction 343 378 10  Other activities (51) (60) -18  Corporate (75) (69) 8 10
  11. 11. sources and uses of cashbillion € 6.9 0.4 Sources 6.0 Uses 0.1 2.2 5.0 Cash flow from 4.6 Capex 0.6 2.2 operations Dividends Divestments and others Exchange differences and others 4.6 4.3 4.4 3.7 Q2 2010 Q2 2011 11
  12. 12. financial debt: high quality Debt by instrument Debt by maturity Commercial >5 yrs paper 10% 3-5 yrs Bonds 51% 2-3 yrs Banks 39%  Extension of debt maturity: >80% long term  Over 50% of long term debt at fixed interest rates  No bonds due to expire in 2011 Data @ June 2011 12
  13. 13. 2011 Outlook E&P  Production in line with 2010 at $100/bbl and net of Libya impact (ca – 200kboe/d) G&P  Ebit broadly in line with 2010 including renegotiation benefits and net of Libya impact (ca - €300m) R&M  Ongoing focus on cost optimization and increase flexibility of refining system Leverage  Confirmed objective of lower net debt/equity ratio at year end Confirmed dividend policy: interim proposal €0.52/sh 13
  14. 14. Appendix29 July 2011eni.com
  15. 15. results of operationsmillion € Q2 10 Q2 11 1H 10 1H 11 Δ% 22.902 24.596 Net sales from operations 47.706 53.375 4.305 3.810 Operating Profit 9.152 9.448 3.2 (368) (240) Inventory holding gains (losses) (777) (909) 3.937 3.570 Replacement Cost Operating Profit 8.375 8.539 2.0 191 433 Special items 84 563 4.128 4.003 Adjusted Profit 8.459 9.102 7.6 (309) (292) Net financial income (expense) (554) (375) 311 414 Net share of profit from associates (expense) 521 679 4.130 4.125 Profit before income taxes 8.426 9.406 11.6 (2.348) (2.443) Taxation (4.625) (5.114) 56.9% 59.2% Tax rate 54.9% 54.4% (115) (246) Minority interest (312) (658) 1.667 1.436 Net Profit 3.489 3.634 4.2 (93) (352) Special items 27 (477) 250 170 Inventory holding gains (losses) 530 644 1.824 1.254 Adjusted Net Profit 4.046 3.801 (6.1) 2
  16. 16. G&P: adjusted operating profit by activitiesmillion € -60.1% 629 251 International Transport Regulated business in Italy Marketing 3
  17. 17. unrealized profit in stocks (UPIS)million € Q2 10 Q2 11 E&P vs R&M (78) (150) E&P vs G&P (14) (14) E&C vs Eni Group (6) (14) Total UPIS (98) (178) 4
  18. 18. eni share of profit from associates Q2 2010 2011 Equity method accounted for 114 145  Gas transportation abroad 24 36  EnBw (GVS) 0 (2)  Union Fenosa 25 36  Blue Stream 11 10  Others 54 65 Dividends 200 268 Disposals 1 - Others (4) 1 Net income from associates 311 414 5
  19. 19. G&P share of profit from associatesmillion € 8.8% 98 90 Marketing Regulated business in Italy International Transport 6
  20. 20. main operating dataQ2 10 Q2 11 H1 10 H1 11 Δ% 1,758 1,489  Hydrocarbon prod. (kboe/d) 1,800 1,586 (11.9) 154.1 129.1  Production sold* (mmboe) 312.7 274.8 (12.1) 6.3 7.1  Natural gas sales in Italy**(bcm) 17.1 19.1 11.4 10.9 11.6  Natural gas sales in Europe*** (bcm) 28.5 29.9 4.9 9.6 9.7  Power production sold (TWh) 18.6 19.3 3.9 6.4 6.2  Refined product sales (mmtonnes) 12.0 11.9 (0.8) 1.2 1.0  Petrochemical sales (mmtonnes) 2.5 2.7 8 * Including Eni’s share of production of joint venture accounted for with the equity method ** Including self-consumption *** Consolidated sales 7
  21. 21. production growth by geographical areakboe/d -15.3% 1,758 1,489 8
  22. 22. oil & gas productionkboe/d -15.3% 1,758 1,758 1,489 1,489 793 1,638 1,498 9
  23. 23. capexmillion € -13.6% 4,328 246 3,740 137 3,186 2,767 10
  24. 24. eni consolidated results -31% -14% EPS 0.50 0.46 0.40 Euro per share* 0.35 Q2 10 Q2 11 Q2 10 Q2 11 Adjusted Adjusted -17% -14% 1.13 1.07 0.94 0.92 CFPS Euro per share* Q2 10 Q2 11 Q2 10 Q2 11 Adjusted Adjusted * Average shares: Q2 10 3,622.4 million; Q2 11 3,622.4 million Note: Cash Flow calculated as net profit+amortization & depreciation 11

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