Pursuant to the requirements of
the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto
duly authorised.
Eni's Board of Directors, chaired by Lucia Calvosa,
yesterday approved the unaudited consolidated results for the first quarter of 2021. Having examined the results, Eni CEO Claudio Descalzi
said:
The first quarter 2021 EBIT was
unchanged from the first quarter 2020 notwithstanding 86 kboe/d of lower production, mainly in liquids, and the negative performances
of R&M (down by €240 million) driven by an unfavourable refining scenario (the SERM was negative) and lower sales volumes due
to regional lockdowns (a 10% decrease at the network of service stations), and of the GGP business which was down by €263 million
mainly due to one-off positive contributions from portfolio optimization in the year-ago quarter and narrowing spreads between the PSV
vs. the TTF spot gas prices.
The E&P segment EBIT was up
by €341 million due to higher crude oil prices. Versalis (up by €104 million) responded to the unusual industry-wide disruption
from extreme winter weather in the US by leveraging on higher plant availability against the backdrop of an improving demand for commodities.
Global Gas & LNG Portfolio
Sales
IVQ
|
|
|
IQ
|
|
2020
|
|
2021
|
2020
|
% Ch.
|
153
|
Spot Gas price at Italian PSV
|
€/kcm
|
198
|
120
|
65
|
154
|
TTF
|
|
195
|
103
|
89
|
(1)
|
Spread PSV vs. TTF
|
|
3
|
17
|
(82)
|
|
Natural gas sales
|
bcm
|
|
|
|
8.65
|
Italy
|
|
8.66
|
8.97
|
(3)
|
8.26
|
Rest of Europe
|
|
7.59
|
6.67
|
14
|
0.94
|
of which: Importers in Italy
|
|
0.80
|
0.96
|
(17)
|
7.32
|
European markets
|
|
6.79
|
5.71
|
19
|
1.66
|
Rest of World
|
|
1.23
|
0.95
|
29
|
18.57
|
Worldwide gas sales ⁽*⁾
|
|
17.48
|
16.59
|
5
|
2.90
|
of which: LNG sales
|
|
2.20
|
2.50
|
(12)
|
|
|
|
|
|
|
(*) Data include intercompany sales.
|
|
·
|
In the first quarter 2021, natural gas sales
of 17.48 bcm increased by 5% compared to the same period of 2020, mainly due to the higher gas volumes marketed outside Italy (Turkey).
|
Results
IVQ
|
|
IQ
|
|
2020
|
(€ million)
|
2021
|
2020
|
% Ch.
|
(290)
|
Operating profit (loss)
|
71
|
101
|
(30)
|
189
|
Exclusion of special items
|
(101)
|
132
|
|
(101)
|
Adjusted operating profit (loss)
|
(30)
|
233
|
..
|
|
Net finance (expense) income
|
(3)
|
|
|
(4)
|
Net income (expense) from investments
|
(3)
|
(9)
|
|
26
|
Income taxes
|
6
|
(52)
|
|
(79)
|
Adjusted net profit (loss)
|
(30)
|
172
|
..
|
3
|
Capital expenditure
|
|
5
|
..
|
|
·
|
In the first quarter of 2021, the Global Gas
& LNG Portfolio segment reported an adjusted operating loss of €30 million, representing a sharp contraction compared
to the strong performance of the first quarter of 2020, due to one-off positive contributions from portfolio optimization in the year-ago
quarter and narrowing spreads between the PSV vs. the TTF spot gas prices.
|
For the disclosure on business segment special charges, see page 12.
Refining & Marketing and Chemicals
Production and sales
IVQ
|
|
|
IQ
|
|
2020
|
|
2021
|
2020
|
% Ch.
|
0.2
|
Standard Eni Refining Margin (SERM)
|
$/bbl
|
(0.6)
|
3.6
|
..
|
3.93
|
Throughputs in Italy
|
mmtonnes
|
3.85
|
4.06
|
(5)
|
2.48
|
Throughputs in the rest of World
|
|
2.55
|
1.97
|
29
|
6.41
|
Total throughputs
|
|
6.40
|
6.03
|
6
|
74
|
Average refineries utilization rate
|
%
|
71
|
74
|
|
183
|
Bio throughputs
|
ktonnes
|
163
|
188
|
(13)
|
64
|
Average bio refineries utilization rate
|
%
|
65
|
67
|
|
|
Marketing
|
|
|
|
|
1.63
|
Retail sales in Europe
|
mmtonnes
|
1.47
|
1.64
|
(10)
|
1.14
|
Retail sales in Italy
|
|
1.04
|
1.12
|
(7)
|
0.49
|
Retail sales in the rest of Europe
|
|
0.43
|
0.52
|
(17)
|
23.0
|
Retail market share in Italy
|
%
|
22.9
|
23.3
|
|
2.11
|
Wholesale sales in Europe
|
mmtonnes
|
1.72
|
2.08
|
(17)
|
1.50
|
Wholesale sales in Italy
|
|
1.29
|
1.51
|
(15)
|
0.61
|
Wholesale sales in the rest of Europe
|
|
0.43
|
0.57
|
(25)
|
|
Chemicals
|
|
|
|
|
1.33
|
Sales of petrochemical products
|
mmtonnes
|
1.18
|
0.89
|
33
|
75
|
Average plant utilization rate
|
%
|
72
|
58
|
|
|
·
|
In the first quarter of 2021, the Eni Standard
Refining Margin was in negative territory at minus 0.6 $/barrel compared to 3.6 $/barrel in the comparative period, due to a significant
recovery in the cost of the crude oil feedstock not reflected in the prices of derivative products, particularly the middle distillates,
which remained at depressed values due to the low demand. Refining margins were also negatively affected by narrowing spreads between
sour crudes like the Ural vs. light-sweet crudes, such as the Brent, due to the lower availability of sour crudes due to OPEC+ cuts, which
resulted in low margins at conversion plants.
|
|
·
|
Throughputs on own account at Eni’s
refineries in Italy were 3.85 mmtonnes, 5% lower than the first quarter 2020 in response to a sharply depressed refining scenario. Throughputs
elsewhere increased by a large amount because the year-ago performance was negatively affected by a prolonged plant standstill of ADNOC
Refining’s plants.
|
|
·
|
In the first quarter of 2021, bio throughputs
were 163 ktonnes, down by 13% compared to the same period of 2020, due to a less favorable scenario than in 2020.
|
|
·
|
In the first quarter of 2021, retail sales
in Italy were 1.04 mmtonnes, down by 7% particularly at the service stations along the national highways. The decline was driven by
lower consumption due to effects associated with the pandemic, with negative impacts mainly in gasoil and gasoline segments. The market
share in the first quarter 2021 was 22.9% (23.3% in the first quarter 2020).
|
|
·
|
In the first quarter of 2021, wholesale sales
in Italy were 1.29 mmtonnes, down by 15% compared to the same period of 2020, driven by weak industrial activity and in particular
by lower sales of jet fuel to the airline sector, which was severely affected by the pandemic.
|
|
·
|
In the first quarter of 2021, retail sales
in the rest of Europe of 0.43 mmtonnes decreased by 17% compared to the first quarter of 2020, due to pandemic which negatively affected
the quarter.
|
|
·
|
In the first quarter of 2021, wholesale sales
in the rest of Europe were 0.43 mmtonnes, down by 25% vs. the same period of 2020, following lower product availability from refineries
in Germany due to the unfavorable scenario.
|
|
·
|
Sales of petrochemical products were 1.18
mmtonnes in the first quarter, up by 33% compared to the same period of 2020, driven by unusual industry-wide disruption from extreme
winter weather in the US to which the Company responded by increasing production of monomers and basic petrochemicals and sales volumes
leveraging on better plant availability. Sales volumes of polyethylene were also supported by a growing European demand, while the elastomers
also benefitted from higher demand at the automotive sector.
|
|
·
|
Petrochemical product margins improved
significantly driven by a sharp increase in spot prices of commodities due to the above-mentioned supply disruption. Significant increases
were recorded in the polyethylene and styrenics/elastomers segment, driven by lower monomers prices.
|
Results
IVQ
|
|
IQ
|
|
2020
|
(€ million)
|
2021
|
2020
|
% Ch.
|
(139)
|
Operating profit (loss)
|
309
|
(1,910)
|
..
|
(110)
|
Exclusion of inventory holding (gains) losses
|
(482)
|
1,691
|
|
145
|
Exclusion of special items
|
53
|
235
|
|
(104)
|
Adjusted operating profit (loss)
|
(120)
|
16
|
..
|
(59)
|
- Refining & Marketing
|
(159)
|
81
|
..
|
(45)
|
- Chemicals
|
39
|
(65)
|
..
|
(1)
|
Net finance (expense) income
|
(12)
|
(8)
|
|
(71)
|
Net income (expense) from investments
|
(31)
|
(10)
|
|
(58)
|
of which: ADNOC R>
|
(35)
|
(18)
|
|
(29)
|
Income taxes
|
32
|
(62)
|
|
(205)
|
Adjusted net profit (loss)
|
(131)
|
(64)
|
..
|
256
|
Capital expenditure
|
127
|
235
|
(46)
|
|
·
|
In the first quarter of 2021, the Refining
& Marketing business reported an adjusted operating loss of €159 million, a significant contraction
from the first quarter 2020 due to the persistent low fuel demand in the reference markets (mainly in Italy and Western Europe) due to
the restrictive measures adopted against the COVID-19 pandemic, which drove down the Eni benchmark refining margin (SERM) in negative
territory. The throughputs were reduced by 5% in response to the depressed trading environment. The result of the marketing business was
negatively affected by lower sales volumes due to the pandemic-related restrictions. The optimization of the industrial setup allowed
to recover part of the scenario.
|
|
·
|
In the first quarter of 2021, the Chemical
business, managed by Versalis, reported an adjusted operating profit of €39 million, significantly better than the first quarter
of 2020 when an adjusted operating loss of €65 million was incurred. The business took advantage from unusual industry-wide disruption
from extreme winter weather in the US by higher plants availability, which translated into higher sales volumes (up 33%) and better margins
for polymers and elastomers. Global demand for plastics has improved thanks to a broadening economic recovery, with many end-markets like
consumer durables and the automotive and packaging sector performing well, which sustained volumes.
|
|
·
|
Adjusted net loss of €131 million
in the first quarter, compared to the net loss of €64 million in the same period of 2020, following the worse result of R&M,
including the investment in ADNOC Refining & Global Trading (a loss of €35 million in the first quarter of 2021 vs a loss of
€18 million in the comparative period).
|
For the disclosure on business segment special charges, see page 12.
Eni gas e luce, Power & Renewables
Production and sales
IVQ
|
|
|
IQ
|
|
2020
|
|
2021
|
2020
|
% Ch.
|
|
EGL & Renewables
|
|
|
|
|
2.51
|
Retail gas sales
|
bcm
|
3.52
|
3.63
|
(3)
|
3.40
|
Retail power sales to end customers
|
TWh
|
3.65
|
3.28
|
11
|
9.57
|
Retail customers (POD)
|
mln pod
|
9.56
|
9.48
|
1
|
87
|
Energy production from renewable sources
|
GWh
|
117
|
44
|
..
|
307
|
Installed capacity from renewables at period end
|
MW
|
307
|
251
|
22
|
77
|
of which: - photovoltaic
|
%
|
77
|
78
|
|
20
|
- wind
|
|
20
|
19
|
|
3
|
- installed storage capacity
|
|
3
|
3
|
|
|
Power
|
|
|
|
|
6.58
|
Power sales in the open market
|
TWh
|
6.42
|
6.50
|
(1)
|
5.18
|
Thermoelectric production
|
|
5.12
|
5.46
|
(6)
|
|
·
|
Retail gas sales amounted to 3.52 bcm
in the first quarter of 2021, down by 3% compared to the same period of 2020 as result of reduced consumption in Italy, particularly in
the small and medium-sized enterprises segment, due to the economic downturn following the restrictive measures to contain the COVID-19
pandemic, partly offset by higher volumes sold in the European markets.
|
|
·
|
Retail power sales to end customers were
3.65 TWh in the first quarter of 2020, increasing by 11%, benefitting from the growth of the retail customers portfolio.
|
|
·
|
Energy production from renewable sources amounted
to 117 GWh in the first quarter of 2021, almost a three-fold increase from the same period of 2020 (44 GWh in the first quarter of 2020)
due to the entry into production of new plants in Italy and abroad, as well as the contribution of the U.S. assets acquired in the fourth
quarter of 2020.
|
|
·
|
As of March 31, 2021, the installed capacity
from renewables was 307 MW, in line with December 31, 2020. Compared to March 31, 2020 the capacity increased by 56 MW thanks to the
completion of Batchelor and Manton Dam plants in Australia (up by 25 MW), as well as the acquisition of the U.S. assets, already fully
in operation (up by 30 MW).
|
|
·
|
As of March 31, 2020, the capacity under construction/advanced
stage of development amounted to over 0.6 GW mainly relating to the Dogger Bank A and B project in the UK (480 MW in Eni share, wind
offshore) and to new capacity in Kazakhstan (98 MW, of which 48 MW wind onshore and 50 MW PV solar).
|
|
·
|
Power sales in the open market were 6.42
TWh in the first quarter of 2021, slightly decreased by 1% from the comparative period, due to the economic downturn.
|
Results
IVQ
|
|
IQ
|
|
2020
|
(€ million)
|
2021
|
2020
|
% Ch.
|
404
|
Operating profit (loss)
|
230
|
100
|
..
|
(272)
|
Exclusion of special items
|
(28)
|
91
|
|
132
|
Adjusted operating profit (loss)
|
202
|
191
|
6
|
96
|
- Eni gas e luce & Renewables
|
176
|
150
|
17
|
36
|
- Power
|
26
|
41
|
(37)
|
|
Net finance (expense) income
|
|
|
|
2
|
Net income (expense) from investments
|
6
|
8
|
|
(39)
|
Income taxes
|
(55)
|
(60)
|
|
95
|
Adjusted net profit (loss)
|
153
|
139
|
10
|
89
|
Capital expenditure
|
84
|
71
|
18
|
|
·
|
In the first quarter of 2021, the retail gas
and power and renewables business reported an adjusted operating profit of €176 million, up by 17% from the first quarter
of 2020, notwithstanding the fact that the Italian economy was still undergoing a contraction. The performance was supported by gains
in the extra-commodity business, also leveraging the integration of the distributed photovoltaic business (Evolvere) acquired last year,
a growth in the customer base, particularly in the power segment, and lower expected credit losses, following an improving trend in collecting
invoiced amounts.
|
|
·
|
The power generation business from gas-fired
plants reported lower results down by 37% to €26 million, driven by a lowered crack spread of power against the backdrop of weak
demand and reduced plant availability.
|
For the disclosure on business segment special charges, see page 12.
IVQ
|
|
IQ
|
|
2020
|
(€ million)
|
2021
|
2020
|
% Ch.
|
11,631
|
Sales from operations
|
14,494
|
13,873
|
4
|
280
|
Operating profit (loss)
|
1,862
|
(1,095)
|
..
|
(69)
|
Exclusion of inventory holding (gains) losses
|
(464)
|
1,577
|
|
277
|
Exclusion of special items ⁽ᵃ⁾
|
(77)
|
825
|
|
488
|
Adjusted operating profit (loss)
|
1,321
|
1,307
|
1
|
|
Breakdown by segment:
|
|
|
|
802
|
Exploration & Production
|
1,378
|
1,037
|
33
|
(101)
|
GGP
|
(30)
|
233
|
..
|
(104)
|
Refining & Marketing and Chemicals
|
(120)
|
16
|
..
|
132
|
EGL, Power & Renewables
|
202
|
191
|
6
|
(84)
|
Corporate and other activities
|
(146)
|
(204)
|
28
|
(157)
|
Impact of unrealized intragroup profit elimination and other consolidation adjustments
|
37
|
34
|
|
|
Utile (perdita) operativo adjusted - continuing operations
|
|
|
#DIV/0!
|
|
|
|
|
|
(797)
|
Net profit (loss) attributable to Eni's shareholders
|
856
|
(2,929)
|
|
(49)
|
Exclusion of inventory holding (gains) losses
|
(329)
|
1,118
|
|
896
|
Exclusion of special items ⁽ᵃ⁾
|
(257)
|
1,870
|
|
50
|
Adjusted net profit (loss) attributable to Eni's shareholders
|
270
|
59
|
|
(a) For further information see table "Breakdown of special items".
|
|
|
|
Adjusted results
|
·
|
In the first quarter of 2021, the Group reported
an adjusted operating profit of €1,321 million, unchanged from the same period in 2020 due to a strengthening upstream scenario
in line with the recovery in crude oil prices (Brent price up by 21% in USD). This positive trend was offset by the appreciation of the
euro over the US dollar (up by 9%), lower production volumes due to OPEC+ cuts and capital discipline in the development of hydrocarbons
reserves as well as the negative results suffered by the GGP and the R&M businesses. The chemical business rebounded strongly driven
by higher plant availability and improved product margins due to higher demand and unusual industry supply conditions. A positive result
was also reported in the retail gas and power and renewables segment. The Group result compared strongly with the fourth quarter 2020,
reporting an approximately threefold increase due to a recovery in the oil price scenario, while maintaining a flat hydrocarbons production
level.
|
|
·
|
The Group reported an adjusted net result
of €270 million in the first quarter 2021, a noticeable improvement compared to first quarter 2020 (up by 358%) due to lower finance
expenses, higher results at equity-accounted JVs and associates, in particular the positive performance of the Vår Energi JV, as
well as a lower tax rate (down by approximately 17 p.p.).
|
Review of the Group’s tax rate
The first quarter 2021 result was affected
by a consolidated tax rate which decreased to 75% from about 90% in the first quarter of 2020. The main driver of this reduction was the
E&P tax rate which landed at about 50% vs 75% in the year-ago quarter, reflecting an improved geographical mix of profits on the back
of a better scenario, which lowered the relative weigh of jurisdictions characterized by higher tax rates, like Libya, Egypt, Algeria
and UAE. The higher average Group tax rate was due to the circumstance that the Group did not recognize deferred tax assets for its operating
losses at Italian businesses due to uncertainty about their future recoverability. A normalized measure of tax rate which normalizes this
latter trend is disclosed below:
(€ million)
|
First Quarter 2021
|
|
reported (ex-special items)
|
unrecognized
deferred tax assets
on losses for the
period
|
normalized tax rate
|
Pre-tax profit
|
1,096
|
|
1,096
|
|
|
|
|
Accrued income taxes
|
(822)
|
186
|
(636)
|
|
|
|
|
Tax rate
|
75.0%
|
|
58.0%
|
Special items
The breakdown of special items recorded in
operating profit by segment (a net gain of €77 million in the first quarter 2021) is as follows:
|
·
|
E&P: reported net gains of €76
million related to disposal of non-strategic assets in Nigeria as well as provisions for extraordinary credit losses (€15 million);
|
|
·
|
GGP: net gains of €101 million included
the accounting effect of certain fair-valued commodity derivatives lacking the formal criteria to be classified as hedges or to be elected
under the own use accounting (€154 million); a gain due to the difference between the gas inventories value accounted for under the
weighted-average cost method provided by IFRS and management’s own measure of inventories which moves forward at the time of inventory
drawdown the margins captured on volumes in inventories above their normal levels leveraging the seasonal spread in gas prices net of
the effects of the associated commodity derivatives (€31 million); and the reclassification to adjusted operating profit of the positive
balance of €83 million related to derivative financial instruments used to manage margin exposure to foreign currency exchange rate
movements and exchange translation differences of commercial payables and receivables;
|
|
·
|
R&M and Chemicals: net charges of
€53 million included the write down (€24 million) of capital expenditures made for compliance to safety rules and stay-in-business
at certain Cash Generating Units with expected negative cash flows. Other special items related to environmental charges (€24 million),
as well as the accounting effect of certain fair-valued commodity derivatives lacking the formal criteria to be classified as hedges (charge
of €22 million);
|
|
·
|
EGL, Power & Renewables: net gain
of €28 million included the accounting effect of certain fair-valued commodity derivatives lacking the formal criteria to be classified
as hedges.
|
Special tax items essentially included the offset
of the notional tax debt on the profit on stock (€ 135 million).
Net borrowings and cash flow from operations
IVQ
|
|
IQ
|
|
2020
|
(€ million)
|
2021
|
2020
|
Change
|
(795)
|
Net profit (loss)
|
860
|
(2,927)
|
3,787
|
|
Adjustments to reconcile net profit (loss) to net cash provided by operating activities:
|
|
|
|
2,476
|
- depreciation, depletion and amortization and other non monetary items
|
1,463
|
3,335
|
(1,872)
|
(3)
|
- net gains on disposal of assets
|
(82)
|
(3)
|
(79)
|
627
|
- dividends, interests and taxes
|
1,047
|
721
|
326
|
(632)
|
Changes in working capital related to operations
|
(1,191)
|
685
|
(1,876)
|
96
|
Dividends received by equity investments
|
150
|
156
|
(6)
|
(625)
|
Taxes paid
|
(663)
|
(738)
|
75
|
(156)
|
Interests (paid) received
|
(208)
|
(254)
|
46
|
988
|
Net cash provided by operating activities
|
1,376
|
975
|
401
|
(1,187)
|
Capital expenditure
|
(1,139)
|
(1,590)
|
451
|
(33)
|
Investments
|
(520)
|
(222)
|
(298)
|
15
|
Disposal of consolidated subsidiaries, businesses, tangible and intangible assets and investments
|
169
|
8
|
161
|
(12)
|
Other cash flow related to investing activities
|
5
|
(93)
|
98
|
(229)
|
Free cash flow
|
(109)
|
(922)
|
813
|
186
|
Net cash inflow (outflow) related to financial activities
|
(551)
|
(735)
|
184
|
(164)
|
Changes in short and long-term financial debt
|
(96)
|
(452)
|
356
|
(193)
|
Repayment of lease liabilities
|
(219)
|
(249)
|
30
|
(8)
|
Dividends paid and changes in non-controlling interests and reserves
|
|
|
|
2,975
|
Net issue (repayment) of perpetual hybrid bond
|
(10)
|
|
(10)
|
(33)
|
Effect of changes in consolidation and exchange differences of cash and cash equivalent
|
36
|
5
|
31
|
2,534
|
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT
|
(949)
|
(2,353)
|
1,404
|
1,582
|
Cash flow from operations before changes in working capital at replacement cost
|
1,960
|
2,222
|
(262)
|
|
|
|
|
IVQ
|
|
IQ
|
|
2020
|
(€ million)
|
2021
|
2020
|
Change
|
(229)
|
Free cash flow
|
(109)
|
(922)
|
813
|
(193)
|
Repayment of lease liabilities
|
(219)
|
(249)
|
30
|
|
Net borrowings of acquired companies
|
(170)
|
(66)
|
(104)
|
412
|
Exchange differences on net borrowings and other changes
|
(163)
|
(206)
|
43
|
(8)
|
Dividends paid and changes in non-controlling interest and reserves
|
|
|
|
2,975
|
Net issue (repayment) of perpetual hybrid bond
|
(10)
|
|
(10)
|
2,957
|
CHANGE IN NET BORROWINGS BEFORE LEASE LIABILITIES
|
(671)
|
(1,443)
|
772
|
193
|
Repayment of lease liabilities
|
219
|
249
|
(30)
|
117
|
Inception of new leases and other changes
|
(469)
|
(362)
|
(107)
|
310
|
Change in lease liabilities
|
(250)
|
(113)
|
(137)
|
3,267
|
CHANGE IN NET BORROWINGS AFTER LEASE LIABILITIES
|
(921)
|
(1,556)
|
635
|
Net cash provided by operating activities
for the first quarter 2021 was €1,376 million. This benefitted from a higher amount of trade receivables due in subsequent reporting
periods divested to financing institutions compared to the fourth quarter 2020 (+€0.46 billion).
Cash flow from operations before changes
in working capital at replacement cost was €1,960 million. This non-GAAP measure includes net cash provided by operating activities
before changes in working capital excluding inventory holding gains or losses and provisions for extraordinary credit losses and other
charges, as well as the fair value of commodity derivatives lacking the formal criteria to be designated as hedges and the fair value
of forward gas sale contracts with physical delivery which were not accounted in accordance with the own use exemption.
A reconciliation of cash flow from operations
before changes in working capital at replacement cost to net cash provided by operating activities for the first quarter of 2020 and
2021 is provided below:
|
IQ 2021
|
(€ million)
|
Reported
|
Stock profit
|
FV derivatives
|
Provisions for
extraordinary credit
losses and other charges
|
Adjusted
|
Cash flow before working capital
|
2,567
|
(464)
|
(158)
|
15
|
1,960
|
|
|
|
|
|
|
Changes in working capital
|
(1,191)
|
464
|
158
|
(15)
|
(584)
|
|
|
|
|
|
|
CFFO
|
1,376
|
|
|
|
1,376
|
|
IQ 2020
|
(€ million)
|
Reported
|
Stock profit
|
FV derivatives
|
Provisions for
extraordinary credit losses and other charges
|
Adjusted
|
Cash flow before working capital
|
290
|
1,577
|
269
|
86
|
2,222
|
|
|
|
|
|
|
Changes in working capital
|
685
|
(1,577)
|
(269)
|
(86)
|
(1,247)
|
|
|
|
|
|
|
CFFO
|
975
|
|
|
|
975
|
Cash outflows for capital expenditure,
investments and business combinations were €1.6 billion, including the acquisition of a 20% interest in the Dogger Bank A/B offshore
wind project in the North Sea. The restructuring of the UFG joint venture resulted in an overall net cash inflow to Eni, accounted for
in the “disposals” item of the statement. Disposals also included the consideration on the sale of certain non-strategic assets
in the E&P segment. Net of the above-mentioned non-organic items and of utilization of trade advances cashed by Egyptian partners
in previous reporting periods in relation to the financing of the Zohr project (€0.27 billion), net capital expenditures amounted
to €1.4 billion, 30% lower than the same period of 2020 leveraging the curtailments implemented by the management following a review
of the industrial plan 2020-2021 in response to the pandemic COVID-19 crisis.
Summarized Group Balance Sheet
(€ million)
|
March 31, 2021
|
Dec. 31, 2020
|
Change
|
|
|
|
|
|
|
|
|
Fixed assets
|
|
|
|
Property, plant and equipment
|
55,869
|
53,943
|
1,926
|
Right of use
|
4,804
|
4,643
|
161
|
Intangible assets
|
3,117
|
2,936
|
181
|
Inventories - Compulsory stock
|
1,196
|
995
|
201
|
Equity-accounted investments and other investments
|
8,153
|
7,706
|
447
|
Receivables and securities held for operating purposes
|
1,058
|
1,037
|
21
|
Net payables related to capital expenditure
|
(1,380)
|
(1,361)
|
(19)
|
|
72,817
|
69,899
|
2,918
|
Net working capital
|
|
|
|
Inventories
|
4,414
|
3,893
|
521
|
Trade receivables
|
9,106
|
7,087
|
2,019
|
Trade payables
|
(9,565)
|
(8,679)
|
(886)
|
Net tax assets (liabilities)
|
(3,806)
|
(2,198)
|
(1,608)
|
Provisions
|
(13,659)
|
(13,438)
|
(221)
|
Other current assets and liabilities
|
(631)
|
(1,328)
|
697
|
|
(14,141)
|
(14,663)
|
522
|
Provisions for employee post-retirements benefits
|
(1,257)
|
(1,201)
|
(56)
|
Assets held for sale including related liabilities
|
45
|
44
|
1
|
CAPITAL EMPLOYED, NET
|
57,464
|
54,079
|
3,385
|
|
|
|
|
Eni's shareholders equity
|
39,875
|
37,415
|
2,460
|
Non-controlling interest
|
82
|
78
|
4
|
Shareholders' equity
|
39,957
|
37,493
|
2,464
|
Net borrowings before lease liabilities ex IFRS 16
|
12,239
|
11,568
|
671
|
Lease liabilities
|
5,268
|
5,018
|
250
|
- of which Eni working interest
|
3,571
|
3,366
|
205
|
- of which Joint operators' working interest
|
1,697
|
1,652
|
45
|
Net borrowings after lease liabilities ex IFRS 16
|
17,507
|
16,586
|
921
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
57,464
|
54,079
|
3,385
|
Leverage before lease liabilities ex IFRS 16
|
0.31
|
0.31
|
..
|
Leverage after lease liabilities ex IFRS 16
|
0.44
|
0.44
|
..
|
Gearing
|
0.30
|
0.31
|
..
|
|
·
|
As of March 31, 2021, fixed assets increased
by approximately €3 billion mainly due to the appreciation of the US dollar vs. the EURO (the EUR vs. USD exchange rate was 1.17
as of March 31, 2021 vs. 1.22 as of December 31, 2020), while capital expenditures and acquisitions made in the period were offset by
DD&A.
|
|
·
|
Net working capital (-€14 billion)
was broadly unchanged y-o-y. A higher balance between trade payables and trade receivables (approximately up by €1.1 billion) and
an increased value of oil and products inventories due to the weighted-average cost method accounting in an environment of rising prices
(+€0.5 billion) were offset by increased tax liabilities due to indirect taxes in Italy (payment of excise duties for the month of
December in the same month).
|
|
·
|
Shareholders’ equity (€40 billion)
increased by approximately €2.5 billion compared to December 31, 2020 due to the net profit for the period (€0.86 billion) and
positive foreign currency translation differences (+€1.5 billion).
|
|
·
|
Net borrowings before lease liabilities[1]
as of March 31, 2021 were €12.2 billion increasing by €0.67 billion from 2020 mainly due to the financing of M&A transactions
and exchange rate differences.
|
|
·
|
Leverage[2] – the ratio
of the borrowings to total equity - was 0.31 at March 31, 2021 unchanged compared to December 31, 2020.
|
1 Details on net borrowings are furnished on page
23.
2 Non-GAAP financial measures
and other alternative performance indicators disclosed throughout this press release are accompanied by explanatory notes and tables in
line with guidance provided by ESMA guidelines on alternative performance measures (ESMA/2015/1415), published on October 5, 2015. For
further information, see the section “Non-GAAP measures” of this press release. See pages 17 and subsequent.
Other information, basis
of presentation and disclaimer
This press release on Eni’s results for the
first quarter of 2021 has been prepared on a voluntary basis according to article 82-ter, Regulations on issuers (CONSOB Regulation No.
11971 of May 14, 1999 and subsequent amendments and inclusions). The disclosure of results and business trends on a quarterly basis is
consistent with Eni’s policy to provide the market and investors with regular information about the Company’s financial and
industrial performances and business prospects considering the reporting policy followed by oil&gas peers who are communicating results
on quarterly basis.
Results and cash flow are presented for the first
quarter of 2021 and of 2020 as well as the fourth quarter of 2020. Information on the Company’s financial position relates to end
of the periods as of March 31, 2021 and December 31, 2020.
Accounts set forth herein have been prepared in accordance
with the evaluation and recognition criteria set by the International Financial Reporting Standards (IFRS) issued by the International
Accounting Standards Board (IASB) and adopted by the European Commission according to the procedure set forth in Article 6 of the European
Regulation (CE) No. 1606/2002 of the European Parliament and European Council of July 19, 2002.
These criteria are unchanged from the 2020 Annual Report on Form
20-F filed with the US SEC on April 2, 2021, which investors are urged to read.
* * *
Non-GAAP financial measures and other alternative
performance indicators disclosed throughout this press release are accompanied by explanatory notes and tables in line with guidance provided
by ESMA guidelines on alternative performance measures (ESMA/2015/1415), published on October 5, 2015. For further information, see the
section “Alternative performance measures (Non-GAAP measures)” of this press release.
The manager responsible for the preparation of
the Company’s financial reports, Francesco Esposito, declares pursuant to rule 154-bis paragraph 2 of Legislative Decree No. 58/1998
that data and information disclosed in this press release correspond to the Company’s evidence and accounting books and records.
* * *
Disclaimer
This press release, in particular the statements
under the section “Outlook”, contains certain forward-looking statements particularly those regarding capital expenditure,
development and management of oil and gas resources, dividends, share repurchases, allocation of future cash flow from operations, future
operating performance, gearing, targets of production and sales growth, new markets and the progress and timing of projects. By their
nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will
or may occur in the future. Actual results may differ from those expressed in such statements, depending on a variety of factors, including
the impact of the pandemic disease, the timing of bringing new fields on stream; management’s ability in carrying out industrial
plans and in succeeding in commercial transactions; future levels of industry product supply; demand and pricing; operational issues;
general economic conditions; political stability and economic growth in relevant areas of the world; changes in laws and governmental
regulations; development and use of new technology; changes in public expectations and other changes in business conditions; the actions
of competitors and other factors discussed elsewhere in this document. Due to the seasonality in demand for natural gas and certain refined
products and the changes in a number of external factors affecting Eni’s operations, such as prices and margins of hydrocarbons
and refined products, Eni’s results from operations and changes in net borrowings for the quarter of the year cannot be extrapolated
on an annual basis.
* * *
Company Contacts
Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +80011223456
Switchboard: +39-0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
website: www.eni.com
* * *
Eni
Società per Azioni, Rome, Piazzale Enrico
Mattei, 1
Share capital: €4,005,358,876 fully paid.
Tax identification number 00484960588
Tel.: +39 0659821 - Fax: +39 0659822141
This press release for the first quarter of 2021 (unaudited)
is also available on Eni’s website eni.com.
Alternative
performance indicators (Non-GAAP measures)
|
|
|
Management evaluates underlying business performance
on the basis of Non-GAAP financial measures, which are not provided by IFRS (“Alternative performance measures”), such as
adjusted operating profit, adjusted net profit, which are arrived at by excluding from reported results certain gains and losses, defined
special items, which include, among others, asset impairments, including impairments of deferred tax assets, gains on disposals, risk
provisions, restructuring charges, the accounting effect of fair-valued derivatives used to hedge exposure to the commodity, exchange
rate and interest rate risks, which lack the formal criteria to be accounted as hedges, and analogously evaluation effects of assets and
liabilities utilized in a relation of natural hedge of the above mentioned market risks. Furthermore, in determining the business segments’
adjusted results, finance charges on finance debt and interest income are excluded (see below). In determining adjusted results, inventory
holding gains or losses are excluded from base business performance, which is the difference between the cost of sales of the volumes
sold in the period based on the cost of supplies of the same period and the cost of sales of the volumes sold calculated using the weighted
average cost method of inventory accounting as required by IFRS, except in those business segments where inventories are utilized as a
lever to optimize margins.
Finally, the same special charges/gains are excluded
from the Eni’s share of results at JVs and other equity accounted entities, including any profit/loss on inventory holding.
Management is disclosing Non-GAAP measures of performance
to facilitate a comparison of base business performance across periods, and to allow financial analysts to evaluate Eni’s trading
performance on the basis of their forecasting models.
Non-GAAP financial measures should be read
together with information determined by applying IFRS and do not stand in for them. Other companies may adopt different
methodologies to determine Non-GAAP measures.
Follows the description of the main alternative performance
measures adopted by Eni. The measures reported below refer to the performance of the reporting periods disclosed in this press release:
Adjusted operating and net profit
Adjusted operating profit and adjusted net profit
are determined by excluding inventory holding gains or losses, special items and, in determining the business segments’ adjusted
results, finance charges on finance debt and interest income. The adjusted operating profit of each business segment reports gains and
losses on derivative financial instruments entered into to manage exposure to movements in foreign currency exchange rates, which impact
industrial margins and translation of commercial payables and receivables. Accordingly, also currency translation effects recorded through
profit and loss are reported within business segments’ adjusted operating profit. The taxation effect of the items excluded from
adjusted operating or net profit is determined based on the specific rate of taxes applicable to each of them.
Finance charges or income related to net
borrowings excluded from the adjusted net profit of business segments are comprised of interest charges on finance debt and interest
income earned on cash and cash equivalents not related to operations. Therefore, the adjusted net profit of business segments
includes finance charges or income deriving from certain segment operated assets, i.e., interest income on certain receivable
financing and securities related to operations and finance charge pertaining to the accretion of certain provisions recorded on a
discounted basis (as in the case of the asset retirement obligations in the Exploration & Production segment).
Inventory holding gain or loss
This is the difference between the cost of sales of
the volumes sold in the period based on the cost of supplies of the same period and the cost of sales of the volumes sold calculated using
the weighted average cost method of inventory accounting as required by IFRS.
Special items
These include certain significant income or
charges pertaining to either: (i) infrequent or unusual events and transactions, being identified as non-recurring items under such
circumstances; (ii) certain events or transactions which are not considered to be representative of the ordinary course of business,
as in the case of environmental provisions, restructuring charges, asset impairments or write ups and gains or losses on divestments
even though they occurred in past periods or are likely to occur in future ones. Exchange rate differences and derivatives relating
to industrial activities and commercial payables and receivables, particularly exchange rate derivatives to manage commodity pricing
formulas which are quoted in a currency other than the functional currency are reclassified in operating profit with a corresponding
adjustment to net finance charges, notwithstanding the handling of foreign currency exchange risks is made centrally by netting off
naturally-occurring opposite positions and then dealing with any residual risk exposure in the derivative market. Finally, special
items include the accounting effects of fair-valued commodity derivatives relating to commercial exposures, in addition to those
which lack the criteria to be designed as hedges, also those which are not eligible for the own use exemption, including the
ineffective portion of cash flow hedges, as well as the accounting effects of settled commodity and exchange rates derivatives
whenever it is deemed that the underlying transaction is expected to occur in future reporting periods.
Correspondently, special charges/gains also include
the evaluation effects relating to assets/liabilities utilized in a natural hedge relation to offset a market risk, as in the case of
accrued currency differences at finance debt denominated in a currency other than the reporting currency, where the cash outflows for
the reimbursement are matched by highly probable cash inflows in the same currency. The deferral of both the unrealized portion of fair-valued
commodity and other derivatives and evaluation effects are reversed to future reporting periods when the underlying transaction occurs.
As provided for in Decision No. 15519 of July 27,
2006 of the Italian market regulator (CONSOB), non-recurring material income or charges are to be clearly reported in the management’s
discussion and financial tables.
Leverage
Leverage is a Non-GAAP measure of the Company’s
financial condition, calculated as the ratio between net borrowings and shareholders’ equity, including non-controlling interest.
Leverage is the reference ratio to assess the solidity and efficiency of the Group balance sheet in terms of incidence of funding sources
including third-party funding and equity as well as to carry out benchmark analysis with industry standards.
Gearing
Gearing is calculated as the ratio between net borrowings
and capital employed net and measures how much of capital employed net is financed recurring to third-party funding.
Cash flow from operations before changes in working capital
at replacement cost
This is defined as net cash provided from operating
activities before changes in working capital at replacement cost. It also excludes certain non-recurring charges such as extraordinary
credit allowances and, considering the high market volatility, changes in the fair value of commodity derivatives lacking the formal criteria
to be designed as hedges, including derivatives which were not eligible for the own use exemption, the ineffective portion of cash flow
hedges, as well as the effects of certain settled commodity derivatives whenever it is deemed that the underlying transaction is expected
to occur in future reporting periods.
Free cash flow
Free cash flow represents the link existing
between changes in cash and cash equivalents (deriving from the statutory cash flows statement) and in net borrowings (deriving from
the summarized cash flow statement) that occurred from the beginning of the period to the end of period. Free cash flow is the cash
in excess of capital expenditure needs. Starting from free cash flow it is possible to determine either: (i) changes in cash and
cash equivalents for the period by adding/deducting cash flows relating to financing debts/receivables (issuance/repayment of debt
and receivables related to financing activities), shareholders’ equity (dividends paid, net repurchase of own shares, capital
issuance) and the effect of changes in consolidation and of exchange rate differences; (ii) changes in net borrowings for the period
by adding/deducting cash flows relating to shareholders’ equity and the effect of changes in consolidation and of exchange
rate differences.
Net borrowings
Net borrowings is calculated as total finance
debt less cash, cash equivalents and certain very liquid investments not related to operations, including among others non-operating
financing receivables. Financial activities are qualified as “not related to operations” when these are not strictly
related to the business operations.
Reconciliation tables of Non-GAAP results to the
most comparable measures of financial performance determined in accordance to GAAPs
(€ million)
|
|
|
|
|
|
|
|
|
First Quarter 2021
|
Exploration & Production
|
Global Gas & LNG Portfolio
|
Refining & Marketing and Chemicals
|
Eni gas e luce, Power & Renewables
|
Corporate and other activities
|
Impact of unrealized
intragroup profit
elimination
|
|
GROUP
|
|
|
|
|
Reported operating profit (loss)
|
1,396
|
71
|
309
|
230
|
(163)
|
19
|
|
1,862
|
Exclusion of inventory holding (gains) losses
|
|
|
(482)
|
|
|
18
|
|
(464)
|
Exclusion of special items:
|
|
|
|
|
|
|
|
|
environmental charges
|
|
|
24
|
|
|
|
|
24
|
impairment losses (impairment reversals), net
|
6
|
|
24
|
|
3
|
|
|
33
|
net gains on disposal of assets
|
(76)
|
|
(6)
|
(1)
|
|
|
|
(83)
|
risk provisions
|
|
|
|
|
|
|
|
|
provision for redundancy incentives
|
7
|
|
10
|
1
|
13
|
|
|
31
|
commodity derivatives
|
|
(154)
|
22
|
(26)
|
|
|
|
(158)
|
exchange rate differences and derivatives
|
6
|
83
|
(9)
|
(2)
|
|
|
|
78
|
other
|
39
|
(30)
|
(12)
|
|
1
|
|
|
(2)
|
Special items of operating profit (loss)
|
(18)
|
(101)
|
53
|
(28)
|
17
|
|
|
(77)
|
Adjusted operating profit (loss)
|
1,378
|
(30)
|
(120)
|
202
|
(146)
|
37
|
|
1,321
|
Net finance (expense) income ⁽ᵃ⁾
|
(96)
|
(3)
|
(12)
|
|
(139)
|
|
|
(250)
|
Net income (expense) from investments ⁽ᵃ⁾
|
90
|
(3)
|
(31)
|
6
|
(37)
|
|
|
25
|
Income taxes ⁽ᵃ⁾
|
(642)
|
6
|
32
|
(55)
|
(153)
|
(10)
|
|
(822)
|
Tax rate (%)
|
|
|
|
|
|
|
|
75.0
|
Adjusted net profit (loss)
|
730
|
(30)
|
(131)
|
153
|
(475)
|
27
|
|
274
|
of which:
|
|
|
|
|
|
|
|
|
- Adjusted net profit (loss) of non-controlling interest
|
|
|
|
|
|
|
|
4
|
- Adjusted net profit (loss) attributable to Eni's shareholders
|
|
|
|
|
|
|
|
270
|
Reported net profit (loss) attributable to Eni's shareholders
|
|
|
|
|
|
|
|
856
|
Exclusion of inventory holding (gains) losses
|
|
|
|
|
|
|
|
(329)
|
Exclusion of special items
|
|
|
|
|
|
|
|
(257)
|
Adjusted net profit (loss) attributable to Eni's shareholders
|
|
|
|
|
|
|
|
270
|
(a) Excluding special items.
|
(€ million)
|
|
|
|
|
|
|
|
|
First Quarter 2020
|
Exploration & Production
|
Global Gas & LNG Portfolio
|
Refining & Marketing and Chemicals
|
Eni gas e luce, Power & Renewables
|
Corporate and other activities
|
Impact of unrealized
intragroup profit
elimination
|
|
GROUP
|
|
|
|
|
Reported operating profit (loss)
|
715
|
101
|
(1,910)
|
100
|
(249)
|
148
|
|
(1,095)
|
Exclusion of inventory holding (gains) losses
|
|
|
1,691
|
|
|
(114)
|
|
1,577
|
Exclusion of special items:
|
|
|
|
|
|
|
|
|
environmental charges
|
|
|
15
|
|
|
|
|
15
|
impairment losses (impairment reversals), net
|
197
|
|
139
|
1
|
4
|
|
|
341
|
net gains on disposal of assets
|
1
|
|
(3)
|
|
|
|
|
(2)
|
risk provisions
|
27
|
|
|
|
(1)
|
|
|
26
|
provision for redundancy incentives
|
5
|
1
|
3
|
1
|
12
|
|
|
22
|
commodity derivatives
|
|
92
|
85
|
92
|
|
|
|
269
|
exchange rate differences and derivatives
|
(1)
|
49
|
(7)
|
(3)
|
|
|
|
38
|
other
|
93
|
(10)
|
3
|
|
30
|
|
|
116
|
Special items of operating profit (loss)
|
322
|
132
|
235
|
91
|
45
|
|
|
825
|
Adjusted operating profit (loss)
|
1,037
|
233
|
16
|
191
|
(204)
|
34
|
|
1,307
|
Net finance (expense) income ⁽ᵃ⁾
|
(115)
|
|
(8)
|
|
(337)
|
|
|
(460)
|
Net income (expense) from investments ⁽ᵃ⁾
|
(59)
|
(9)
|
(10)
|
8
|
(3)
|
|
|
(73)
|
Income taxes ⁽ᵃ⁾
|
(651)
|
(52)
|
(62)
|
(60)
|
121
|
(9)
|
|
(713)
|
Tax rate (%)
|
|
|
|
|
|
|
|
92.1
|
Adjusted net profit (loss)
|
212
|
172
|
(64)
|
139
|
(423)
|
25
|
|
61
|
of which:
|
|
|
|
|
|
|
|
|
- Adjusted net profit (loss) of non-controlling interest
|
|
|
|
|
|
|
|
2
|
- Adjusted net profit (loss) attributable to Eni's shareholders
|
|
|
|
|
|
|
|
59
|
Reported net profit (loss) attributable to Eni's shareholders
|
|
|
|
|
|
|
|
(2,929)
|
Exclusion of inventory holding (gains) losses
|
|
|
|
|
|
|
|
1,118
|
Exclusion of special items
|
|
|
|
|
|
|
|
1,870
|
Adjusted net profit (loss) attributable to Eni's shareholders
|
|
|
|
|
|
|
|
59
|
(a) Excluding special items.
|
(€ million)
|
|
|
|
|
|
|
|
|
Fourth Quarter 2020
|
Exploration & Production
|
Global Gas & LNG Portfolio
|
Refining & Marketing and Chemicals
|
Eni gas e luce, Power & Renewables
|
Corporate and other activities
|
Impact of unrealized
intragroup profit
elimination
|
|
GROUP
|
|
|
|
|
Reported operating profit (loss)
|
554
|
(290)
|
(139)
|
404
|
(51)
|
(198)
|
|
280
|
Exclusion of inventory holding (gains) losses
|
|
|
(110)
|
|
|
41
|
|
(69)
|
Exclusion of special items:
|
|
|
|
|
|
|
|
|
environmental charges
|
18
|
|
11
|
1
|
(130)
|
|
|
(100)
|
impairment losses (impairment reversals), net
|
231
|
2
|
201
|
(4)
|
8
|
|
|
438
|
net gains on disposal of assets
|
|
|
(3)
|
|
|
|
|
(3)
|
risk provisions
|
7
|
|
5
|
10
|
14
|
|
|
36
|
provision for redundancy incentives
|
17
|
|
18
|
(7)
|
4
|
|
|
32
|
commodity derivatives
|
|
389
|
(60)
|
(278)
|
|
|
|
51
|
exchange rate differences and derivatives
|
6
|
(83)
|
25
|
|
|
|
|
(52)
|
other
|
(31)
|
(119)
|
(52)
|
6
|
71
|
|
|
(125)
|
Special items of operating profit (loss)
|
248
|
189
|
145
|
(272)
|
(33)
|
|
|
277
|
Adjusted operating profit (loss)
|
802
|
(101)
|
(104)
|
132
|
(84)
|
(157)
|
|
488
|
Net finance (expense) income ⁽ᵃ⁾
|
(45)
|
|
(1)
|
|
(130)
|
|
|
(176)
|
Net income (expense) from investments ⁽ᵃ⁾
|
161
|
(4)
|
(71)
|
2
|
(26)
|
|
|
62
|
Income taxes ⁽ᵃ⁾
|
(290)
|
26
|
(29)
|
(39)
|
(20)
|
30
|
|
(322)
|
Tax rate (%)
|
|
|
|
|
|
|
|
86.1
|
Adjusted net profit (loss)
|
628
|
(79)
|
(205)
|
95
|
(260)
|
(127)
|
|
52
|
of which:
|
|
|
|
|
|
|
|
|
- Adjusted net profit (loss) of non-controlling interest
|
|
|
|
|
|
|
|
2
|
- Adjusted net profit (loss) attributable to Eni's shareholders
|
|
|
|
|
|
|
|
50
|
Reported net profit (loss) attributable to Eni's shareholders
|
|
|
|
|
|
|
|
(797)
|
Exclusion of inventory holding (gains) losses
|
|
|
|
|
|
|
|
(49)
|
Exclusion of special items
|
|
|
|
|
|
|
|
896
|
Adjusted net profit (loss) attributable to Eni's shareholders
|
|
|
|
|
|
|
|
50
|
(a) Excluding special items.
|
Breakdown of special items
IVQ
|
|
IQ
|
2020
|
(€ million)
|
2021
|
2020
|
(100)
|
Environmental charges
|
24
|
15
|
438
|
Impairment losses (impairment reversals), net
|
33
|
341
|
(3)
|
Net gains on disposal of assets
|
(83)
|
(2)
|
36
|
Risk provisions
|
|
26
|
32
|
Provisions for redundancy incentives
|
31
|
22
|
51
|
Commodity derivatives
|
(158)
|
269
|
(52)
|
Exchange rate differences and derivatives
|
78
|
38
|
(125)
|
Other
|
(2)
|
116
|
277
|
Special items of operating profit (loss)
|
(77)
|
825
|
68
|
Net finance (income) expense
|
(77)
|
(52)
|
|
of which:
|
|
|
52
|
- exchange rate differences and derivatives reclassified to operating profit (loss)
|
(78)
|
(38)
|
399
|
Net income (expense) from investments
|
(47)
|
817
|
|
of which:
|
|
|
370
|
- impairment/revaluation of equity investments
|
(47)
|
595
|
152
|
Income taxes
|
(56)
|
280
|
896
|
Total special items of net profit (loss)
|
(257)
|
1,870
|
Analysis
of Profit and Loss account items
|
|
|
Sales from operations
IVQ
|
|
IQ
|
|
2020
|
(€ million)
|
2021
|
2020
|
% Ch.
|
3,495
|
Exploration & Production
|
4,231
|
4,194
|
1
|
2,198
|
Global Gas & LNG Portfolio
|
2,915
|
2,480
|
18
|
6,557
|
Refining & Marketing and Chemicals
|
7,887
|
7,450
|
6
|
2,122
|
EGL, Power & Renewables
|
2,730
|
2,649
|
3
|
446
|
Corporate and other activities
|
386
|
383
|
1
|
(3,187)
|
Consolidation adjustments
|
(3,655)
|
(3,283)
|
|
11,631
|
|
14,494
|
13,873
|
4
|
Operating expenses
IVQ
|
|
IQ
|
|
2020
|
(€ million)
|
2021
|
2020
|
% Ch.
|
8,834
|
Purchases, services and other
|
10,260
|
11,669
|
(12)
|
12
|
Impairment losses (impairment reversals) of trade and other receivables, net
|
134
|
72
|
86
|
644
|
Payroll and related costs
|
791
|
838
|
(6)
|
32
|
of which: provision for redundancy incentives and other
|
31
|
22
|
|
9,490
|
|
11,185
|
12,579
|
(11)
|
DD&A, impairments, reversals and write-off
IVQ
|
|
IQ
|
|
2020
|
(€ million)
|
2021
|
2020
|
% Ch.
|
1,407
|
Exploration & Production
|
1,442
|
1,621
|
(11)
|
31
|
Global Gas & LNG Portfolio
|
35
|
32
|
9
|
142
|
Refining & Marketing and Chemicals
|
138
|
149
|
(7)
|
61
|
EGL, Power & Renewables
|
58
|
50
|
16
|
37
|
Corporate and other activities
|
35
|
36
|
(3)
|
(8)
|
Impact of unrealized intragroup profit elimination
|
(8)
|
(8)
|
|
1,670
|
Total depreciation, depletion and amortization
|
1,700
|
1,880
|
(10)
|
438
|
Impairment losses (impairment reversals) of tangible and intangible and right of use assets, net
|
33
|
341
|
(90)
|
2,108
|
Depreciation, depletion, amortization, impairments and reversals
|
1,733
|
2,221
|
(22)
|
18
|
Write-off of tangible and intangible assets
|
5
|
118
|
(96)
|
2,126
|
|
1,738
|
2,339
|
(26)
|
Income (expense) from investments
(€ million)
|
|
|
|
|
|
|
First Quarter 2021
|
Exploration &
Production
|
Global Gas &
LNG Portfolio
|
Refining &
Marketing and
Chemicals
|
Eni gas e luce,
Power &
Renewables
|
Corporate and
other activities
|
Group
|
Share of profit (loss) from equity-accounted investments
|
68
|
(3)
|
13
|
6
|
(42)
|
42
|
Dividends
|
24
|
|
3
|
|
|
27
|
Other income (expense), net
|
|
3
|
|
|
|
3
|
|
92
|
|
16
|
6
|
(42)
|
72
|
Leverage
and net borrowings
|
|
|
Leverage is a measure used by management
to assess the Company’s level of indebtedness. It is calculated as a ratio of net borrowings to shareholders’ equity, including
non-controlling interest. Management periodically reviews leverage in order to assess the soundness and efficiency of the Group balance
sheet in terms of optimal mix between net borrowings and net equity, and to carry out benchmark analysis with industry standards.
(€ million)
|
March 31, 2021
|
Dec. 31, 2020
|
Change
|
Total debt
|
27,026
|
26,686
|
340
|
- Short-term debt
|
4,654
|
4,791
|
(137)
|
- Long-term debt
|
22,372
|
21,895
|
477
|
Cash and cash equivalents
|
(8,460)
|
(9,413)
|
953
|
Securities held for trading
|
(6,158)
|
(5,502)
|
(656)
|
Financing receivables held for non-operating purposes
|
(169)
|
(203)
|
34
|
Net borrowings before lease liabilities ex IFRS 16
|
12,239
|
11,568
|
671
|
Lease Liabilities
|
5,268
|
5,018
|
250
|
- of which Eni working interest
|
3,571
|
3,366
|
205
|
- of which Joint operators' working interest
|
1,697
|
1,652
|
45
|
Net borrowings after lease liabilities ex IFRS 16
|
17,507
|
16,586
|
921
|
Shareholders' equity including non-controlling interest
|
39,957
|
37,493
|
2,464
|
Leverage before lease liability ex IFRS 16
|
0.31
|
0.31
|
|
Leverage after lease liability ex IFRS 16
|
0.44
|
0.44
|
|
Pro-forma leverage
(€ million)
|
Reported measure
|
Lease liabilities of
Joint operators'
working interest
|
Pro-forma
measure
|
Net borrowings after lease liabilities ex IFRS 16
|
17,507
|
1,697
|
15,810
|
|
|
|
|
Shareholders' equity including non-controlling interest
|
39,957
|
|
39,957
|
|
|
|
|
Pro-forma leverage
|
0.44
|
|
0.40
|
Pro-forma leverage is net of followers’
lease liabilities which are recovered through a cash call mechanism.
Net borrowings are calculated under CONSOB
provisions on Net Financial Position (Com. no. DEM/6064293 of 2006).
Condolidated
financial statements
|
|
|
BALANCE SHEET
(€ million)
|
|
|
|
March 31, 2021
|
Dec. 31, 2020
|
ASSETS
|
|
|
Current assets
|
|
|
Cash and cash equivalents
|
8,460
|
9,413
|
Other financial activities held for trading
|
6,158
|
5,502
|
Other financial assets
|
219
|
254
|
Trade and other receivables
|
13,391
|
10,926
|
Inventories
|
4,414
|
3,893
|
Income tax assets
|
190
|
184
|
Other assets
|
2,975
|
2,686
|
|
35,807
|
32,858
|
Non-current assets
|
|
|
Property, plant and equipment
|
55,869
|
53,943
|
Right of use assets
|
4,804
|
4,643
|
Intangible assets
|
3,117
|
2,936
|
Inventory - compulsory stock
|
1,196
|
995
|
Equity-accounted investments
|
7,171
|
6,749
|
Other investments
|
982
|
957
|
Other financial assets
|
1,031
|
1,008
|
Deferred tax assets
|
4,123
|
4,109
|
Income tax assets
|
145
|
153
|
Other assets
|
1,235
|
1,253
|
|
79,673
|
76,746
|
Assets held for sale
|
154
|
44
|
TOTAL ASSETS
|
115,634
|
109,648
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
Current liabilities
|
|
|
Short-term debt
|
3,118
|
2,882
|
Current portion of long-term debt
|
1,536
|
1,909
|
Current portion of long-term lease liabilities
|
892
|
849
|
Trade and other payables
|
13,754
|
12,936
|
Income taxes payable
|
429
|
243
|
Other liabilities
|
5,994
|
4,872
|
|
25,723
|
23,691
|
Non-current liabilities
|
|
|
Long-term debt
|
22,372
|
21,895
|
Long-term lease liabilities
|
4,376
|
4,169
|
Provisions for contingencies
|
13,659
|
13,438
|
Provisions for employee benefits
|
1,257
|
1,201
|
Deferred tax liabilities
|
5,759
|
5,524
|
Income taxes payable
|
358
|
360
|
Other liabilities
|
2,064
|
1,877
|
|
49,845
|
48,464
|
Liabilities directly associated with assets held for sale
|
109
|
|
TOTAL LIABILITIES
|
75,677
|
72,155
|
Share capital
|
4,005
|
4,005
|
Retained earnings
|
25,394
|
34,043
|
Cumulative currency translation differences
|
5,426
|
3,895
|
Other reserves and equity instruments
|
4,775
|
4,688
|
Treasury shares
|
(581)
|
(581)
|
Net profit (loss)
|
856
|
(8,635)
|
Total Eni shareholders' equity
|
39,875
|
37,415
|
Non-controlling interest
|
82
|
78
|
TOTAL SHAREHOLDERS' EQUITY
|
39,957
|
37,493
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
115,634
|
109,648
|
GROUP PROFIT AND LOSS ACCOUNT
|
|
|
|
IVQ
|
|
IQ
|
2020
|
(€ million)
|
2021
|
2020
|
11,631
|
Sales from operations
|
14,494
|
13,873
|
306
|
Other income and revenues
|
305
|
213
|
11,937
|
Total revenues
|
14,799
|
14,086
|
(8,834)
|
Purchases, services and other
|
(10,260)
|
(11,669)
|
(12)
|
Impairment reversals (impairment losses) of trade and other receivables, net
|
(134)
|
(72)
|
(644)
|
Payroll and related costs
|
(791)
|
(838)
|
(41)
|
Other operating (expense) income
|
(14)
|
(263)
|
(1,670)
|
Depreciation, Depletion and Amortization
|
(1,700)
|
(1,880)
|
(438)
|
Impairment reversals (impairment losses) of tangible, intangible and right of use assets, net
|
(33)
|
(341)
|
(18)
|
Write-off of tangible and intangible assets
|
(5)
|
(118)
|
280
|
OPERATING PROFIT (LOSS)
|
1,862
|
(1,095)
|
355
|
Finance income
|
1,239
|
1,345
|
(857)
|
Finance expense
|
(1,149)
|
(1,518)
|
13
|
Net finance income (expense) from financial assets held for trading
|
8
|
(99)
|
245
|
Derivative financial instruments
|
(271)
|
(136)
|
(244)
|
FINANCE INCOME (EXPENSE)
|
(173)
|
(408)
|
(355)
|
Share of profit (loss) of equity-accounted investments
|
42
|
(876)
|
18
|
Other gain (loss) from investments
|
30
|
(14)
|
(337)
|
INCOME (EXPENSE) FROM INVESTMENTS
|
72
|
(890)
|
(301)
|
PROFIT (LOSS) BEFORE INCOME TAXES
|
1,761
|
(2,393)
|
(494)
|
Income taxes
|
(901)
|
(534)
|
(795)
|
Net profit (loss)
|
860
|
(2,927)
|
|
attributable to:
|
|
|
(797)
|
- Eni's shareholders
|
856
|
(2,929)
|
2
|
- Non-controlling interest
|
4
|
2
|
|
|
|
|
|
Earnings per share (€ per share)
|
|
|
(0.22)
|
- basic
|
0.24
|
(0.82)
|
(0.22)
|
- diluted
|
0.24
|
(0.82)
|
|
Weighted average number of shares outstanding (million)
|
|
|
3,572.5
|
- basic
|
3,572.5
|
3,572.5
|
3,576.8
|
- diluted
|
3,579.0
|
3,574.8
|
COMPREHENSIVE INCOME (LOSS)
|
IQ
|
(€ million)
|
2021
|
2020
|
Net profit (loss)
|
860
|
(2,927)
|
Items that are not reclassified to profit or loss in later periods
|
(7)
|
(4)
|
Change in the fair value of interests with effects on other comprehensive income
|
(7)
|
(4)
|
Items that may be reclassified to profit in later periods
|
1,636
|
407
|
Currency translation differences
|
1,531
|
578
|
Change in the fair value of cash flow hedging derivatives
|
172
|
(427)
|
Share of other comprehensive income on equity-accounted entities
|
(18)
|
133
|
Taxation
|
(49)
|
123
|
|
|
|
Total other items of comprehensive income (loss)
|
1,629
|
403
|
Total comprehensive income (loss)
|
2,489
|
(2,524)
|
attributable to:
|
|
|
- Eni's shareholders
|
2,485
|
(2,526)
|
- Non-controlling interest
|
4
|
2
|
CHANGES IN SHAREHOLDERS’ EQUITY
(€ million)
|
|
|
|
Shareholders' equity at January 1, 2020
|
|
|
47,900
|
Total comprehensive income (loss)
|
|
(2,524)
|
|
Other changes
|
|
9
|
|
Total changes
|
|
|
(2,515)
|
Shareholders' equity at March 31, 2020
|
|
|
45,385
|
attributable to:
|
|
|
|
- Eni's shareholders
|
|
|
45,277
|
- Non-controlling interest
|
|
|
108
|
|
|
|
|
Shareholders' equity at January 1, 2021
|
|
|
37,493
|
Total comprehensive income (loss)
|
|
2,489
|
|
Payments on perpetual subordinated bonds
|
|
(10)
|
|
Other changes
|
|
(15)
|
|
Total changes
|
|
|
2,464
|
Shareholders' equity at March 31, 2021
|
|
|
39,957
|
attributable to:
|
|
|
|
- Eni's shareholders
|
|
|
39,875
|
- Non-controlling interest
|
|
|
82
|
GROUP CASH FLOW STATEMENT
IVQ
|
|
IQ
|
2020
|
(€ million)
|
2021
|
2020
|
(795)
|
Net profit (loss)
|
860
|
(2,927)
|
|
Adjustments to reconcile net profit (loss) to net cash provided by operating activities:
|
|
|
1,670
|
Depreciation, depletion and amortization
|
1,700
|
1,880
|
438
|
Impairment losses (impairment reversals) of tangible, intangible and right of use, net
|
33
|
341
|
18
|
Write-off of tangible and intangible assets
|
5
|
118
|
355
|
Share of (profit) loss of equity-accounted investments
|
(42)
|
876
|
(3)
|
Gains on disposal of assets, net
|
(82)
|
(3)
|
(46)
|
Dividend income
|
(27)
|
(16)
|
(30)
|
Interest income
|
(21)
|
(28)
|
209
|
Interest expense
|
194
|
231
|
494
|
Income taxes
|
901
|
534
|
(1)
|
Other changes
|
(263)
|
83
|
(632)
|
Cash flow from changes in working capital
|
(1,191)
|
685
|
(24)
|
- inventories
|
(604)
|
1,777
|
(177)
|
- trade receivables
|
(1,688)
|
225
|
1,077
|
- trade payables
|
513
|
(1,624)
|
(580)
|
- provisions for contingencies
|
(77)
|
(96)
|
(928)
|
- other assets and liabilities
|
665
|
403
|
(4)
|
Net change in the provisions for employee benefits
|
30
|
37
|
96
|
Dividends received
|
150
|
156
|
21
|
Interest received
|
12
|
23
|
(177)
|
Interest paid
|
(220)
|
(277)
|
(625)
|
Income taxes paid, net of tax receivables received
|
(663)
|
(738)
|
988
|
Net cash provided by operating activities
|
1,376
|
975
|
(1,312)
|
Cash flow from investing activities
|
(1,702)
|
(1,957)
|
(1,099)
|
- tangible assets
|
(1,093)
|
(1,529)
|
(88)
|
- intangible assets
|
(46)
|
(61)
|
|
- consolidated subsidiaries and businesses net of cash and cash equivalent acquired
|
|
(99)
|
(33)
|
- investments
|
(520)
|
(123)
|
(37)
|
- securities and financing receivables held for operating purposes
|
(27)
|
(50)
|
(55)
|
- change in payables in relation to investing activities
|
(16)
|
(95)
|
95
|
Cash flow from disposals
|
217
|
60
|
5
|
- tangible assets
|
88
|
4
|
|
- consolidated subsidiaries and businesses net of cash and cash equivalent disposed of
|
81
|
|
10
|
- investments
|
|
4
|
37
|
- securities and financing receivables held for operating purposes
|
58
|
52
|
43
|
- change in receivables in relation to disposals
|
(10)
|
|
186
|
Net change in receivables and securities not held for operating purposes
|
(551)
|
(735)
|
(1,031)
|
Net cash used in investing activities
|
(2,036)
|
(2,632)
|
GROUP CASH FLOW STATEMENT (continued)
IVQ
|
|
IQ
|
2020
|
(€ million)
|
2021
|
2020
|
146
|
Increase in long-term debt
|
221
|
999
|
(479)
|
Repayments of long-term debt
|
(448)
|
(1,035)
|
(193)
|
Repayment of lease liabilities
|
(219)
|
(249)
|
169
|
Increase (decrease) in short-term financial debt
|
131
|
(416)
|
(8)
|
Dividends paid to Eni's shareholders
|
|
|
2,975
|
Issue of perpetual subordinated bonds
|
|
|
|
Payments on perpetual subordinated bonds
|
(10)
|
|
2,610
|
Net cash used in financing activities
|
(325)
|
(701)
|
(33)
|
Effect of exchange rate changes on cash and cash equivalents and other changes
|
36
|
5
|
2,534
|
Net increase (decrease) in cash and cash equivalent
|
(949)
|
(2,353)
|
6,879
|
Cash and cash equivalents - beginning of the period
|
9,413
|
5,994
|
9,413
|
Cash and cash equivalents - end of the period ⁽ᵃ⁾
|
8,464
|
3,641
|
(a) Cash and cash equivalents as of March 31, 2021, include €4 million of cash and cash equivalents of consolidated subsidiaries held for sale that were reported in the item Assets held for sale in the balance sheet.
|
SUPPLEMENTAL INFORMATION
IVQ
|
|
IQ
|
2020
|
(€ million)
|
2021
|
2020
|
|
Investment of consolidated subsidiaries and businesses
|
|
|
|
Current assets
|
|
14
|
11
|
Non-current assets
|
|
171
|
|
Cash and cash equivalents (net borrowings)
|
|
(63)
|
(6)
|
Current and non-current liabilities
|
|
(9)
|
5
|
Net effect of investments
|
|
113
|
(5)
|
Non-controlling interest
|
|
(11)
|
|
Purchase price
|
|
102
|
|
less:
|
|
|
|
Cash and cash equivalents
|
|
(3)
|
|
Investment of consolidated subsidiaries and businesses net of cash and cash equivalent acquired
|
|
99
|
|
|
|
|
|
Disposal of consolidated subsidiaries and businesses
|
|
|
|
Disposal of non-current assets
|
240
|
|
|
less:
|
|
|
|
Investments in consolidated subsidiaries and businesses
|
|
|
|
Current assets
|
371
|
|
|
Non-current assets
|
394
|
|
|
Net borrowings
|
(128)
|
|
|
Current and non-current liabilities
|
(436)
|
|
|
Net effect of investments
|
201
|
|
|
Net effect of disposals
|
39
|
|
|
Cash and cash equivalents acquired
|
42
|
|
|
Disposal of consolidated subsidiaries and businesses net of cash and cash equivalent divested
|
81
|
|
Capital expenditure
IVQ
|
|
IQ
|
|
2020
|
(€ million)
|
2021
|
2020
|
% Ch.
|
781
|
Exploration & Production
|
856
|
1,258
|
(32)
|
6
|
- acquisition of proved and unproved properties
|
13
|
|
..
|
9
|
- exploration
|
34
|
171
|
(80)
|
754
|
- development
|
801
|
1,070
|
(25)
|
12
|
- other expenditure
|
8
|
17
|
(53)
|
3
|
Global Gas & LNG Portfolio
|
|
5
|
..
|
256
|
Refining & Marketing and Chemicals
|
127
|
235
|
(46)
|
214
|
- Refining & Marketing
|
95
|
169
|
(44)
|
42
|
- Chemicals
|
32
|
66
|
(52)
|
89
|
EGL, Power & Renewables
|
84
|
71
|
18
|
71
|
- EGL & Renewables
|
66
|
65
|
2
|
18
|
- Power
|
18
|
6
|
..
|
58
|
Corporate and other activities
|
74
|
23
|
..
|
|
Impact of unrealized intragroup profit elimination
|
(2)
|
(2)
|
|
1,187
|
Capital expenditure
|
1,139
|
1,590
|
(28)
|
In the first quarter of 2021, capital expenditure
amounted to €1,139 million (€1,590 million in the first quarter of 2020), decreasing by 28% from the same period of the previous
year, and mainly related to:
- development activities (€801 million)
mainly in Indonesia, the United States, Egypt, the United Arab Emirates, Mexico and Iraq;
- refining activity in Italy and outside Italy
(€87 million) mainly relating to the activities to maintain plants’ integrity and stay-in-business, as well as HSE initiatives;
marketing activity (€8 million) for regulation compliance and stay-in-business initiatives in the retail network in Italy and in
the rest of Europe;
- initiatives relating to gas and power marketing
in the retail business (€39 million).
Exploration & Production
PRODUCTION OF OIL AND NATURAL GAS BY REGION
|
|
|
|
|
|
|
|
IVQ
|
|
|
IQ
|
2020
|
|
|
2021
|
2020
|
1,713
|
Production of oil and natural gas ⁽ᵃ⁾⁽ᵇ⁾
|
(kboe/d)
|
1,704
|
1,790
|
103
|
Italy
|
|
99
|
112
|
228
|
Rest of Europe
|
|
238
|
256
|
264
|
North Africa
|
|
272
|
252
|
304
|
Egypt
|
|
355
|
303
|
347
|
Sub-Saharan Africa
|
|
310
|
372
|
168
|
Kazakhstan
|
|
153
|
174
|
167
|
Rest of Asia
|
|
148
|
193
|
114
|
Americas
|
|
112
|
110
|
18
|
Australia and Oceania
|
|
17
|
18
|
144
|
Production sold ⁽ᵃ⁾⁽ᶜ⁾
|
(mmboe)
|
140
|
145
|
|
|
|
|
|
PRODUCTION OF LIQUIDS BY REGION
|
|
|
|
|
|
|
|
IVQ
|
|
|
IQ
|
2020
|
|
|
2021
|
2020
|
809
|
Production of liquids
|
(kbbl/d)
|
814
|
892
|
47
|
Italy
|
|
45
|
49
|
134
|
Rest of Europe
|
|
142
|
149
|
112
|
North Africa
|
|
130
|
116
|
61
|
Egypt
|
|
68
|
74
|
207
|
Sub-Saharan Africa
|
|
192
|
232
|
111
|
Kazakhstan
|
|
101
|
117
|
82
|
Rest of Asia
|
|
78
|
94
|
55
|
Americas
|
|
58
|
61
|
|
Australia and Oceania
|
|
|
|
|
|
|
|
|
PRODUCTION OF NATURAL GAS BY REGION
|
|
|
|
|
|
|
|
IVQ
|
|
|
IQ
|
2020
|
|
|
2021
|
2020
|
4,800
|
Production of natural gas
|
(mmcf/d)
|
4,726
|
4,768
|
298
|
Italy
|
|
288
|
334
|
499
|
Rest of Europe
|
|
515
|
567
|
808
|
North Africa
|
|
753
|
723
|
1,290
|
Egypt
|
|
1,521
|
1,217
|
741
|
Sub-Saharan Africa
|
|
624
|
740
|
303
|
Kazakhstan
|
|
274
|
304
|
451
|
Rest of Asia
|
|
374
|
527
|
316
|
Americas
|
|
287
|
263
|
94
|
Australia and Oceania
|
|
90
|
93
|
|
|
|
(a) Includes Eni’s share of production of equity-accounted entities.
|
|
|
(b) Includes volumes of hydrocarbons consumed in operation (113 and 125 kboe/d in the first quarter of 2021 and 2020, respectively and 126 kboe/d in the fourth quarter of 2020).
|
Eni’s Board of Directors approves launch of
strategic project
to list or sell a minority stake in new business unit formed by
Eni gas e luce and renewables
San Donato Milanese (Milan), 30 April 2021 - The
Board of Eni, chaired yesterday by Lucia Calvosa, has approved the launch of a strategic project to define and evaluate the industrial
and financial plans of the new corporate entity that will result from the union between the retail and renewable energy activities.
The study also envisages the evaluation of multiple
options to extrapolate the maximum value from this new entity during the course of 2022, subject to market conditions. Options under consideration
include a stock exchange listing through an initial public offering (IPO), or the sale or exchange of a minority stake in the new entity.
Today, Eni can count on about 10 million customers,
which are an important source of value for the company. The merger of the retail and the renewables businesses, whose development plan
envisages a significant growth in installed capacity, will foster value generation, broadening the direct offer of services, infrastructure
and green energy to customers.
The objective of the new company will be to develop
renewable generation capacity in excess of 5 gigawatts by 2025. This capacity will be offered to the company’s growing customer
base, which is expected to include over 11 million customers by that time, with an overall EBITDA expected to grow from 600 million euros
in 2021 to over 1 billion euros in 2025.
The project, for which Eni has formed an internal
team supported by strategic and financial advisors, is part of the Company’s wider commitment to delivering value through the energy
transition. It will contribute to reaching scope 3 emission reduction targets, which are a key part of the broader strategy that will
turn Eni into a carbon neutral company by 2050.
Company contacts:
Press Office: Tel. +39.0252031875 – +39.0659822030
Freephone for stockholders (from Italy): 800940924
Freephone for stockholders (from abroad): + 80011223456
Switchboard: +39.0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
Website: www.eni.com