(1) calculated on Eni avg share price in Dec 2013
(2) Peer Group: BP, Chevron, Conoco, Exxon, Shell, Total
WHO ...
Production of oil and natural gas (kboe/d)
Eni adj. operating profit (€ million)
Eni adj. net profit (€ mil...
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Fact Sheet (August 2014)


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Fact Sheet (August 2014)

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Fact Sheet (August 2014)

  1. 1. FACT SHEET (1) calculated on Eni avg share price in Dec 2013 (2) Peer Group: BP, Chevron, Conoco, Exxon, Shell, Total WHO WE ARE INVESTMENT CASE Dividend (€/share) and Dividend Yield(1) (%) Share Performance H1 2014(€) Last update August 2014 pag. 1 Exploration & Production Gas & Power Italian Gov30 % Market70 % Engineering & Construction (Saipem) 43 % Chemicals (Versalis)100 % Major equity holdings Snam 8 % Galp 8 % Eni is one of the largest integrated energy com- panies in the world, operating in the sectors of oil and gas exploration & production, international gas transportation and marketing, power generation, re- fining and marketing, chemicals and oilfield services. Eni is active in 85 countries with 82,300 employees. Our commitment to sustainable development means that we grow and retain our people, contribute to the development and wellbeing of the communities in which we operate, protect the environment, and in- vest in technological innovation and energy efficiency, mitigating the risks of climate change. eni.com FTMIB: ENI US ADR: E Unbeatable exploration success Between 2008 and 2013, Eni has discovered over 9.5 billion boe, equivalent to 2.5 times its production over the same period. The average explo- ration cost was 1.2$/boe. In the next four years, Eni’s target is to discover an additional 3.2 billion boe at a unit cost of 2.2 dollars. In the first half of 2014, Eni discovered more than 400 million boe. These discoveries will fuel future growth and accelerate cash generation through the dilution of shares in the discoveries in which Eni holds a large working interest. Production growth resulting in strong cash generation The E&P portfolio is mainly composed of conventional assets with low costs and high profitability. Cash flow per barrel was 30 dollars in 2013 and will rise in the coming years thanks to the growing contribution of oil vs gas in our production mix (from 52% in 2013 to 57% in 2017). Eni is targeting a 3% CAGR in the 2014-17 period. Over the plan period, 26 start-ups will contribute over 500 kboe per day, with an additional 200 kboe per day will come from ramp-ups currently underway. The portfolio of new projects has a breakeven of 45 $/bbl, and an average IRR of over 20% at 90 $/boe. Return to profitability of the G&P, R&M and Chemicals businesses Eni holds a leading position in the European gas sector, where it sells over 80 billion cubic metres a year, and it has begun a transformation process of its midstream activities, with supply contract renegotiations, transport capacity reductions and a focus on high value segments (LNG, trading and retail). These actions will bring the G&P sector to breakeven already in 2014. Capacity cuts are ongoing also in the refining business, with a target of a more than 50% reduction in capacity compared to 2012. This optimization will contribute to bringing the R&M sector to break- even by end of 2015, even in the current weak scenario. Versalis is reconverting the Porto Torres and Porto Marghera sites into “green” chemical plants and is expanding its international footprint with joint ventures in Asia. Portofolio flexibility and additional cash generation In 2012-13, Eni has completed divestments totaling 13 billion euro and has deconsolidated over 12 billion euro related to Snam’s debt. The sales did not meaningfully impact long term production prospects and helped reduce exposure to exploration assets or non-core holdings. Over the course of the plan, Eni will complete 11 billion euro in divestments (more than 3 billion of which already achieved in the first half of 2014), with the sale of the residual shares in Snam and Galp, divestment of certain assets in the mid/downstream, as well as the dilution of large stakes in exploration successes. In addition, Eni’s results will benefit from over 1.7 billion euro related to the incisive cost saving program recently launched. In 2014-2015, operating cash flow generation will increase by more than 40% versus 2013 and free cash flow generation, also thanks to a policy of flat capex, by 20%. Progessive dividends and buyback Eni has a generous distribution policy. For 2014, a dividend of 1.12 euro per share (6.1% expected yield) will be proposed, representing an almost 2% increase versus the previous year. In addition, Eni has launched a buy back program: a flexible tool that will support the remuneration policy over the coming years, with the target or repurchasing up to 10% of outstanding shares. Leader in sustainability Eni is a leader in the FTSE4Good and Dow Jones sustainability indices. Dividend Dividend Yeld Proposed 0.0 1% 0% 0.2 2% 0.4 3% 0.6 4% 0.8 5% 1.0 6% 1.2 7% 1.4 8% 2006 2007 2008 2009 2010 2011 2012 2013 2014 Dec-13 Mar-14 Peer group(2) FTMIBENI Jun-14
  2. 2. ENI IN NUMBERS Production of oil and natural gas (kboe/d) Eni adj. operating profit (€ million) Eni adj. net profit (€ million) Capital expenditure (€ million) Net cash flow from operations ( € million) Net debt (€ million) Leverage 1,815 17,304 6,869 13,870 14,694 26,119 0.47 1,581 17,974 6,969 13,438 14,382 28,032 0.46 1,701 19,010 7,130 12,761 12,356 15,511 0.25 Eni spa Investor Relations - Piazza Vanoni, 1 - 20097 San Donato Milanese (MI) Italy Telephone: +39 02 52 05 16 51 Fax: +39 02 52 03 19 29 Email: investor.relations@eni.com Website: www.eni.com Latest announcements and accomplishments CONTACTS G&P is engaged in all phases of the gas value chain: supply, trading and marketing of gas and electricity, gas infrastructures, and LNG supply and marketing. Eni sells more than 60% of its gas outside Italy and its leading position in the European gas market is supported by competitive advantages, including its multicountry approach, long-term gas availability, access to infrastructure, market knowledge, wide product range and strong customer base. R&M refines and markets fuels and other oil products primarily in Italy and Central-Eastern European countries. Our R&M division is relatively small compared to the R&M segment of our peers. Eni is the largest refiner in Italy and the leading operator in retail marketing of fuels with a market share of around 30%. Eni’s strategy in R&M is to cut costs and enhance margins to return to profitability. E&P is our main division. It is currently present in 42 coun- tries and is focused on finding and producing oil and gas. Eni’s strategy is to deliver organic production growth with increasing returns over the medium to long term, leveraging on a high-quality portfolio of assets, exposure to competi- tive giant projects and long-standing relationships with host countries. Our strategy combines geographical diversifica- tion with scale benefits and project synergies. More than 75% of our production will come from either onshore or shallow water, with a positive impact in terms of risks and operat- ing costs. Main projects start up € -0.66 B adj operating profit € 0.23 B capex 93 bcm gas sold worldwide 35 Twh electricity sold 10 million customers in Europe, of which 8 in Italy € -0.48 B adj operating profit € 0.62 B capex 787 kbbl/d capacity 27.4 Mtonnes throughput 6,400 fuel stations 1.62 Mboe/d of production 6.5 mmboe proved reserves with a life index of 11.1 y 105% organic reserve replacement ratio € 14.6 B adj operating profit € 10.5 B capex 2010 2011 2012 (1) 2013 H1 2014 eni.com FTMIB: ENI US ADR: E 2013 HIGHLIGHTS 2013 HIGHLIGHTS 2013 HIGHLIGHTS Exploration and Production GAS & POWER Refining & Marketing (1) Following the announcement of Snam divestment, figures are represented as continuing operations FACT SHEET Last update August 2014 pag. 2 2014 - Eni strengthens its strategic objectives 2014 - Eni: second quarter and first half of 2014 results 2014 - Eni: Report on the purchase of treasury shares 2014 - Eni completes the sale of 1% of Galp’s share capital 2014 - Eni signs a strategic agreement with KazMunayGas 2014 - Eni Shareholders approve 2013 Financial Statements and appoints the Company Officers at Annual Meeting 2014 - Eni signs agreements for the sale of Refining & Marketing activities in the Czech Republic, Slovakia and Romania to MOL Group 2014 - Eni makes a new offshore oil and gas discovery in the Norwegian Barents Sea 2014 - Eni: first quarter results of 2014 2014 - Eni signs final agreement with Statoil on revision of terms in long-term gas supply contracts • 31 July • 31 July • 30 July • 23 June • 12 June • 08 May • 07 May • 02 May • 29 April • 31 March 1,583 6,219 2,055 5,524 5,740 14,601 0.24 2014-2015 2016-2017 Mafumeira Sul 15/06 West Hub Kizomba Sat. Ph.2 Litchendjili gas CAFC oil Asgard Mikkel Eldfisk II Ph.1 West Franklin Ph. 2 Goliat Perla EP Junin 5 EP Perla FF Hadrian South Longhorn Ph.3 Lucius Heidelberg Jangkrik Wafa compression Bonaccia NW 15/06 East Hub 1,619 12,620 4,433 12,750 10,969 15,428 0.25