""Over the past three years, we have transformed Eni into a leaner and more resilient company. We have built a high margin portfolio consisting of a large number of mature projects, which will secure our production growth over the medium and long term, and a huge amount of reserves, which will give us flexibility and value."
Eni: second quarter and first half of 2016 resultsEni
Claudio Descalzi, Eni’s Chief Executive Officer, commented:
“Eni has achieved significant results in the first half of 2016, despite the weak but slowly improving market environment. Hydrocarbon production beat expectations, offsetting the suspension of activity in Val d’Agri and the disruptions in Nigeria. Our main developments are proceeding on time and on budget, allowing us to confirm our expected production growth of more than 5% in 2017. Our exploration, which is focused on near field activity, has allowed us to revise upwards our expectations for new discoveries in just six months. In mid and downstream, we have achieved positive results across all of our operations due to restructuring and efficiency measures which will continue as planned. Our strategy, including the optimization initiatives and a reduced cost base, has allowed us to absorb part of the impact of a low oil price scenario with a positive contribution of €1 billion to EBIT. We are maintaining our strong balance sheet, funding capex with our cash flow at a Brent price of 50$/bl. On this basis I will propose an interim dividend of €0.40 per share to the Board.”
Eni: results for the third quarter and the nine months of 2017Eni
The key messages for 2017 that we presented today:
E&P will reach its highest ever level of production and will continue to add high value barrels;
G&P is structurally positive;
Chemicals is beating new records and R&M is further enhancing its resilience;
At less than $45/bbl Brent we have one of the lowest levels of cash neutrality to cover capex and a full cash dividend; and
Gearing is expected to fall to 20% at year end.
“Eni has markedly improved its financial and operational performance, driven by the ongoing execution of Eni strategy across all business segments. We expect that in 2017 organic cash generation, coupled with proceeds from disposals, will allow us to fully fund our capex and dividend requirements at an oil price well below the current level.”
Eni: second quarter and first half of 2016 resultsEni
Claudio Descalzi, Eni’s Chief Executive Officer, commented:
“Eni has achieved significant results in the first half of 2016, despite the weak but slowly improving market environment. Hydrocarbon production beat expectations, offsetting the suspension of activity in Val d’Agri and the disruptions in Nigeria. Our main developments are proceeding on time and on budget, allowing us to confirm our expected production growth of more than 5% in 2017. Our exploration, which is focused on near field activity, has allowed us to revise upwards our expectations for new discoveries in just six months. In mid and downstream, we have achieved positive results across all of our operations due to restructuring and efficiency measures which will continue as planned. Our strategy, including the optimization initiatives and a reduced cost base, has allowed us to absorb part of the impact of a low oil price scenario with a positive contribution of €1 billion to EBIT. We are maintaining our strong balance sheet, funding capex with our cash flow at a Brent price of 50$/bl. On this basis I will propose an interim dividend of €0.40 per share to the Board.”
Eni: results for the third quarter and the nine months of 2017Eni
The key messages for 2017 that we presented today:
E&P will reach its highest ever level of production and will continue to add high value barrels;
G&P is structurally positive;
Chemicals is beating new records and R&M is further enhancing its resilience;
At less than $45/bbl Brent we have one of the lowest levels of cash neutrality to cover capex and a full cash dividend; and
Gearing is expected to fall to 20% at year end.
“Eni has markedly improved its financial and operational performance, driven by the ongoing execution of Eni strategy across all business segments. We expect that in 2017 organic cash generation, coupled with proceeds from disposals, will allow us to fully fund our capex and dividend requirements at an oil price well below the current level.”
Eni: trasformata in società forte e solida, punta all’espansione. L'Italia è ...Eni
L’AD Claudio Descalzi illustra il Piano strategico 2018-2021 alla comunità finanziaria italiana e fa il punto sulla sicurezza e sullo stato delle attività della compagnia in Italia.
Today, Eni’s Board of Directors approved the Group results for the first quarter of 2019 (unaudited). Commenting on the results, Claudio Descalzi, CEO of Eni, remarked:
“I am very pleased of the excellent industrial and financial performance delivered by Eni in IQ 2019. Particularly, in light of a substantially unchanged market scenario, the E&P business has improved its operating profit by 25% compared to the first quarter of 2018, confirming our expectations of the business growing cash generation for the full year. The results of the G&P segment also improved; the 16% increase in operating profit to €372 million puts us on the path to achieving our €500 million profit target for the full year. The performance of the Downstream R&M and Chemicals business offset the effect of weaker margins and we expect to see a broad recovery over the next nine months, particularly in oil Refining and Marketing. Overall, first quarter operations generated a cash flow of €3.42 billion, up 8% and €1.5 billion greater than the investments for the period of around €1.9 billion, which is in line with the expectations of €8 billion for the whole year. The Group confirms that it can leverage on the quality and robustness of its asset portfolio, capable of covering costs, investments and dividends at a Brent price of US$ 55, in addition to generating a cash surplus in the event of higher prices, as in current trading conditions.”
Our performance in the third quarter, which allowed us to record cash flow from operations of €4.1 billion, double what we achieved in the same period last year and, even more remarkable, 35% higher than the
previous quarter. All the businesses have performed well, with the Upstream division showing that it can thrive in an
environment of either flat or increasing oil prices. The Mid and Downstream businesses continue their recovery,
demonstrating sustainable profitability despite an unfavorable environment."
In conclusion, this new Plan is characterized by the strong growth of all business lines, sustainable even in challenging scenarios, thanks to the consistency of the actions taken, the boosting integration and financial discipline. The Plan aims to further strengthen the portfolio of Eni’s activities and accelerate the generation of value for shareholders. The remuneration for shareholders will mainly take place through the distribution of dividends, while buy backs will be evaluated in the instance of cash exceeding our leverage target of 20-25%.
In this quarter, we continued to perform in line with our strategy, progressing in all our businesses and delivering positive operating results in each of them.
Excellent Results which underline how the process of intense change started in 2014 has transformed Eni into a company able to grow and create value even in difficult market conditions.
Short and medium term strategy updated: costs and capex optimization increased; energy transition targets confirmed, and investments in businesses linked to decarbonization raised. New shareholders’ remuneration policy put in place.
Eni: trasformata in società forte e solida, punta all’espansione. L'Italia è ...Eni
L’AD Claudio Descalzi illustra il Piano strategico 2018-2021 alla comunità finanziaria italiana e fa il punto sulla sicurezza e sullo stato delle attività della compagnia in Italia.
Today, Eni’s Board of Directors approved the Group results for the first quarter of 2019 (unaudited). Commenting on the results, Claudio Descalzi, CEO of Eni, remarked:
“I am very pleased of the excellent industrial and financial performance delivered by Eni in IQ 2019. Particularly, in light of a substantially unchanged market scenario, the E&P business has improved its operating profit by 25% compared to the first quarter of 2018, confirming our expectations of the business growing cash generation for the full year. The results of the G&P segment also improved; the 16% increase in operating profit to €372 million puts us on the path to achieving our €500 million profit target for the full year. The performance of the Downstream R&M and Chemicals business offset the effect of weaker margins and we expect to see a broad recovery over the next nine months, particularly in oil Refining and Marketing. Overall, first quarter operations generated a cash flow of €3.42 billion, up 8% and €1.5 billion greater than the investments for the period of around €1.9 billion, which is in line with the expectations of €8 billion for the whole year. The Group confirms that it can leverage on the quality and robustness of its asset portfolio, capable of covering costs, investments and dividends at a Brent price of US$ 55, in addition to generating a cash surplus in the event of higher prices, as in current trading conditions.”
Our performance in the third quarter, which allowed us to record cash flow from operations of €4.1 billion, double what we achieved in the same period last year and, even more remarkable, 35% higher than the
previous quarter. All the businesses have performed well, with the Upstream division showing that it can thrive in an
environment of either flat or increasing oil prices. The Mid and Downstream businesses continue their recovery,
demonstrating sustainable profitability despite an unfavorable environment."
In conclusion, this new Plan is characterized by the strong growth of all business lines, sustainable even in challenging scenarios, thanks to the consistency of the actions taken, the boosting integration and financial discipline. The Plan aims to further strengthen the portfolio of Eni’s activities and accelerate the generation of value for shareholders. The remuneration for shareholders will mainly take place through the distribution of dividends, while buy backs will be evaluated in the instance of cash exceeding our leverage target of 20-25%.
In this quarter, we continued to perform in line with our strategy, progressing in all our businesses and delivering positive operating results in each of them.
Excellent Results which underline how the process of intense change started in 2014 has transformed Eni into a company able to grow and create value even in difficult market conditions.
Short and medium term strategy updated: costs and capex optimization increased; energy transition targets confirmed, and investments in businesses linked to decarbonization raised. New shareholders’ remuneration policy put in place.
Presentation of the Strategy & Outlook by Patrick Pouyanné, Chairman and Chief Executive Officer and Patrick de La Chevardière, Chief Financial Officer.
September 2017
Eni Results for the Second Quarter and Half Year 2018Eni
Eni recorded another period of strong profitability in the second quarter. In the context of a 38% rise in the price of Brent, Eni reported a 152% increase in operating profit, driven by the performance of the Exploration & Production business, which more than tripled its contribution. Our cash generation also grew significantly, driven by the price of Brent and increased production levels, contributing to $20 per barrel, allowing us to confirm the lowering of our cash neutrality to $55 per barrel for 2018. The Gas & Power segment also reported excellent results, thanks to the strong integration of the LNG business with upstream activities and the positive impact of the restructuring carried out over the last years. A deterioration in Refining and Chemicals environment – which runs counter-cyclically to the price of Brent – meant a reduction in the contribution of these businesses, albeit remaining positive thanks to recent restructuring. There was significant progress in our portfolio management this quarter with the creation of Vår Energi in Norway as well as the funds received for the sale of Eni’s 10% stake in the Zohr field to Mubadala. As a result, net debt fell below €10 billion – the lowest level in 11 years. Consequently I will propose an interim dividend of €0.42 per share at the Board meeting on 13 September.
A presentation delivered by Cabot Oil & Gas at the Scotia Howard Weil Energy Conference in New Orleans in March 2016. During the presentation we learn Cabot plans to complete 40 wells in the Marcellus in 2016 and grow production slightly--up to 7% in 2016 over 2015.
We operate in 71 different countries around the globe, with more than 32.000 men and women working for us.
Our work is based on passion and innovation, on our unique strengths and skills, on the quality of our people and in recognising that diversity across all aspects of our operations and organisation is something to be cherished.
Operiamo in 71 Paesi - oltre 32.000 donne e uomini lavorano per noi in tutto il mondo.
Fondiamo il nostro lavoro sulla passione e l'innovazione. Sulla forza e lo sviluppo delle nostre competenze. Sul valore della persona, riconoscendo la diversità come risorsa.
3. 3
Highlights 2016: a year of records
Exit rate at 1.86 Mboe/d
Exp: 1.1 Bboe @UEC $0.6/boe
Organic RRR: 193%
Zohr 40% disposal
2017 startups ahead of
schedule
MID-DOWNSTREAM
BEATING TARGETS AND FUELLING GROWTH
FINANCIALSUPSTREAM MID-DOWNSTREAM FINANCIALS
FCF: €2.3 bln
EBIT adj. R&M+Chem €0.6 bln
G&P set to breakeven in 2017
CFFO: € 8.3 bln
CFFO = CAPEX @ $46 /bbl
Leverage 24%*
EFFICIENCY
€ 3 bln saving (vs 2015) :
Capex: - € 2.2 bln (-19%)
Opex: $ 6.2 /boe (-14%)
G&A: -€ 150 mln
* proforma including
40% of Zohr disposal
4. 0
2,000
4,000
6,000
8,000
10,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
0
1
2
3
4
5
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
4
HSE performance
Upstream Methane Emissions|MtCO2 eq. Flaring down | MSmc
-57%
2016 vs. 2007
-73%
2016 vs. 2007
0
1
2
3
2009 2010 2011 2012 2013 2014 2015 2016
Industry
average
People Safety – TRIR
-21%
2016 vs 2015
Eni top performer since 2013 -9% TCO2eq/Tep: on track to reach 2025 target (-43% since 2014)
HSE OUR TOP PRIORITY
5. 5
Exploration successes fuelling future production
AVG 2014-2016 UEC < $1 /BOE
Long life
production
assets
Short cycles
assets
70%
30%
Cumulative discovered resources 2014-2016| bln boe 2016 RRR | %
25%
25%
50%
0
1
2
3
4
2014
2015
2016
FID/
Under FID
in 4YP
Disposed/
under
disposal
P2/P3 +
contingent
193
35
0
20
40
60
80
100
120
140
160
180
200
eni Peers
*
Avg
2014-16
150% 55%
*139%, considering 40% of Zohr disposal
Peers: Total, Chevron, Statoil, BP, Shell, Conoco Philips, Exxon
3.4
6. 100% 95%85%
2017 start ups ahead of schedule
Execution Time 39 months
FIDFID Start-up
IN PRODUCTION
8th February 2017
Project details
Eni working interest: 37%
Hydrocarbon: oil
Gross Volumes in place Block 15/06
(West + East) > 1.2 bln boe
Peak production Bl 15/06 (West + East)
100%: 150 kboe/d
Execution Time 30 months
FIDFID Start-up
June 2017
Project details
Eni working interest: 44%
Hydrocarbon: oil & gas
Gross Volumes in place: 750 mln boe
Peak production 100%: 85 kboe/d
Execution Time 42 months
FID
FID Start-up
June 2017
Project details
Eni working interest: 55%
Hydrocarbon: gas
Gross Volumes in place: 470 mln boe
Peak production 100%: 80 kboe/d
East Hub – Angola OCTP – Ghana JANGKRIK - Indonesia
6
7. 7
Zohr: countdown to first gas
December
2017
2.3 years from discovery
Aug. 2015
FIRST
GAS
Feb. 2016
Zohr 1 Zohr 2 Zohr 3 Zohr 4 Zohr 5 Zohr 6
Exploration & development
FIDDiscovery
Feb. 2016 – Site preparation
Feb.
2017
Zohr 7
Feb. 2017 – Onshore Plant Feb. 2017 – Platform
Site
preparation
Start
piling
Long Lead Items
Progress 50%
Engineering & Proc.
Construction & Installation
Reservoir studies
Start
sealine
laying
Onshore
9. 9
Relentless focus on cost efficiency
11.5
9.3
2015 2016
-19%
1296
2015 2016
-10%
1445
OVERALL COST OPTIMISATION 2016 vs 2015 € 3 BLN
7.2
6.2
2015 2016
-14%
* Including JV financing
Group Capex*| € bln Opex| $/boe G&A| € Mln
10. 10
2016 leverage and change vs 2013
-5
0
5
10
15
20
25
30
35
40
45
20 30 40 50 60 70
Changesince2013(%points)
2016 Leverage [%]
Eni
11.7
13.0
1.0
2.6 2.9
0
2
4
6
8
10
12
14
16
YE 2015
pro-forma
Saipem
YE 2016
pro-forma
Zohr
Net debt| € bln
Net Cash
Flow Dividends
Disposals
pre tax
(incl Zohr)
24%24%22%
Leverage
24
Peers adopting scrip dividend
Peers: Total, Chevron, Statoil, BP, Shell, Conoco Philips,Exxon
Best-in-class for financial discipline
11. 11
An outstanding result in 2016
CFFO = CAPEX
$ 46 /bbl
CFFO* Capex*
8.3
8.7
* pro-forma, considering the sale of 40% of Zohr and Val d’Agri effect
2016 Cash balance| € bln
vs targets $ 50 /bbl
SLASHING CASH NEUTRALITY SINCE 2013
14. Exploration and long term organic growth are the engine of our strategy
Resources Operations
BUILDING A HIGH MARGIN PORTFOLIO
High impact and conventional
exploration
Long term organic growth
Integrated with E&P assets and close
to final market
Value
Upstream and G&P integration
Enhancement in the downstream
Active portfolio management
High level of operatorship
Design to cost
Fast track
14
15. Best positioned to capture upside
Upstream
Production growth CAGR 3%
Exploration resources 2-3 bln boe
2016 Avg. 2017-2020
46
Free cash
flow
<45
Capex cash neutrality*
7070
Mid downstream
G&P breakeven in 2017
Refining breakeven at $3/bbl margin in 2018
Efficiency
Capex vs previous plan: -8%
New projects BEP around $30/bbl
Financials
New 4YP disposal target ~€ 5-7 bln
4YP CFFO € 47 bln
*CFFO capex coverage
4YP avg
capex cash neutrality
< $ 45 /bbl
2017-2020targets
70Brent $/Bl 43.7
*
20202016
15
16. A rich set of exploration opportunities
Gas – 55%
Oil – 45%
Organic
growth and
replacement
Flexibility
and
low break-even
Early
monetization
EXPLORATION
2-3 BLN BOE EQUITY RESOURCES
16
17. 17
A large portfolio for the long term
New EXPLORATION successes…
FID before 2020
…to
PRODUCTION
FID 2020+
Bouri ph2 Evan
Shoal
Nyonie
Kashagan ph2
Coral ph2
Karachaganak EP
Baltim SW
Merakes
Etan &Zabazaba
Eldfisk ph2
Bonga North
Bonga SW
Perla Ph.2
Johan Castberg
Loango
A&E structures Libya
Kashagan CC01
Nenè ph2B
MambaT1-2
Coral FLNG
Argo cluster
Mamba T3-4
IDD
18. L i b y a
Bahr Essalam Ph.2
A&E structures
18
An unrivalled inventory
I t a l y
Argo Cluster
N o r w a y
Johan Castberg
K a z a k h s t a n
- Kashagan CC01
- Karachaganak Ph. 3
I n d o n e s i a
Jangkrik
MerakesM o z a m b i q u e
- Coral
- Mamba T1-T2
- Coral & Mamba
future phases
E g y p t
- Zohr
- Baltim SW
C o n g o
Nenè Ph.2A
G h a n a
OCTP
V e n e z u e l a
Perla Ph.2
CAGR 2016-2020
3%
CAGR 2020-2025
3%
2016 2017 2020 2025
New projects/ramp ups
A n g o l a
- West hub
- Ochigufu
- Vandumbu
- East hub
20. 20
Gas demand continuous growth and market rebalancing
0
100
200
300
400
500
2015 2020 2025 2030
Spot or renewals of existing contracts Contracted LNG
LNG Demand Output LNG
~ 55 Mtpa
(12-15 LNG trains)
~ 135 Mtpa
(30-40 LNG trains)
0
2
4
6
8
10
12
14
2017 2018 2019 2020 2025 2030
TTF HH JAP
Supply/Demand LNG |Mtpa International prices|$/MMbtu
NEW LNG REQUIRED EARLY NEXT DECADE
21. 21
A turning point for G&P
avg 2017-18 avg 2019-20 2025
~300
> 600
Gas supply contracts aligned to the market
Logistic costs reduction
Equity gas/LNG monetization
Ebit adj| € mln 4YP Action plan
CUMULATIVE CFFO € 2.6 BLN IN THE 4YP
22. Extracting value from integration
A PORTFOLIO PLAYER INTEGRATED WITH UPSTREAM
3.5
10
2017 2025
Upstream gas productions
22
Midstream Positions
Maximizing value of equity gas
Developing a competitive LNG
portfolio
Leadership position in European
and emerging markets
Targets
Focus on LNG sales | Mtpa
23. 23
Downstream: building on the restructuring
2016 4YP avg./y2016 4YP avg
300
300
600
2016 2020
3
7.5
2013 2018
onwards
2016
4.2
Scenario
upside
Breakeven Refining margin | $/bl
EBIT +€ 300
Mln
self help
@ constant scenario
300
EBIT 2020
€ 900 Mln
4.2 5.5SERM
Refining & Marketing EBIT Chemicals | € Mln
4YP CUMULATIVE CFFO > € 4.5 BLN
24. Capex plan
-8%
0
5
10
15
20
25
30
35
plan 2016-2019 plan 2017-2020
Other
E&P**
34.4*
31.6
Other
E&P
€ Bln
Upstream
-13%
Production optimization
Mandatory
Development of new
production
Exploration
IRR (%)
average 2017-20
> 20
15-20
* Excluding JV financing and post SEM application @ constant FX;
** E&P post portfolio
Mid-downstream
+ New energies
≈10
Capex allocation 2017-20
CAPEX 2017 VS 2016 -18% 55% UNSANCTIONED IN 2019-20
24
30. 30
New energy solutions
Significant growth of installed capacity
Technology neutral, with focus on hybrid
projects
Technological and geographical synergy
with other Eni business lines
0
100
200
300
400
500
2017 2018 2019 2020
Energy Solutions installed capacity
2017-2030 Guidelines
MW