SIGNATURES
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.p.A. |
|
|
|
/s/ Paola Mariani |
|
Name: |
Paola Mariani |
|
Title: |
Head of Corporate |
|
|
Secretary’s Staff Office |
Date: March 18, 2022
Eni:
2021 Consolidated Financial Statements
and
Draft Financial Statements of the Parent Company
Convening of the Annual
Shareholders’ Meeting
| · | Consolidated
and separate financial statements |
| · | 2021
Dividend proposal (as previously announced): €0.86 per share, of which €0.43 paid
as interim dividend in September 2021 |
San
Donato Milanese (Milan), March 17, 2022 – Today, the Board of Directors, chaired by Lucia Calvosa, approved Eni’s consolidated
financial statements and the separate draft financial statements of the parent company for the year ending December 31, 2021. Consolidated
net profit amounted to €5,821 million and net profit of the parent company amounted to €7,675 million.
The
Group consolidated result has been updated to factor in certain minor adjustments that occurred subsequently to the release of the Group
2021 preliminary results on February 18, 2022. Those adjustments are due to the finalization of the Group industrial and strategic plans
and to the estimation of Eni’s share of the fourth quarter result of the JV Saipem’s following the postponement of the approval
of the investee's financial statements. As a result, consolidated net profit redetermines to €5,821 million vs. €6,128 million
reported in the preliminary results.
The
Board of Directors intends to submit a proposal for the distribution of a cash dividend of €0.86 per share at the Annual Shareholders’
Meeting. Included in this annual distribution is the €0.43 per share interim dividend, that was paid in September 2021. The final
dividend of €0.431 per share will be payable on May 25, 2022 with May 23, 2022 being the ex-dividend date.
In
addition, the Board of Directors also approved the consolidated financial statements prepared in accordance with the new European provisions
on the standardization of financial languages (ESEF – European Single Electronic Format regulation) providing for the adoption
of the "inline XBRL" standard and the labelling of the consolidated financial statements as defined by the IFRS taxonomy adopted
by ESMA.
An
Annual Report on Form 20-F will be filed with the U.S. SEC and Italian market authorities by the first ten days of April 2022. This report
will be disseminated via the Company’s headquarters, and on Eni's website (eni.com) and through other sources provided by the current
regulation. Enclosed are the 2021 IFRS consolidated statements and those of the parent company Eni SpA.
The
2021 Annual Report (Italian version), in accordance with Article 154-ter of the TUF, has been made available to the Board of Statutory
Auditors and the Independent Auditors. The Report will be made available to the public within the first ten days of April 2022, at the
registered office, on the company's website, eni.com and in the other manner provided for by current legislation together with the reports
of the Board of Statutory Auditors and the Independent Auditors. Attached are the IFRS consolidated financial statements of Eni Group
and the parent company Eni SpA.
1
Dividends, depending on the receiver, are subject to a withholding tax on distribution or are partially cumulated to the receiver’s
taxable income.
The
Board of Directors also approved the “Consolidated report on non-financial information” included in the management discussion
of the 2021 Annual Report. This report, prepared in conformity with the Italian Legislative Decree No. 254/2016, discloses Eni group’s
activities, the performances achieved and the outcomes in environmental, reduction of carbon footprint, social, employees matters, respect
for human rights, as well as anti-corruption and bribery matters.
The
Board of Directors also approved the Report on Corporate Governance and Shareholding Structure and the Remuneration Report prepared according
to article No. 123-bis and 123-ter of the Italian comprehensive code for exchanges and securities, respectively. These reports will be
made available at the Company's headquarters and published on Eni’s website, in the “Publications” section and in accordance
with current regulation, together with the 2021 Annual Report on Form 20-F.
The
Board of Directors also convened the Annual Shareholders' Meeting on May 11, 2022 (single call). The meeting is set to approve the 2021
financial statements of the parent company and the allocation of net profit.
*
* *
Francesco
Esposito, in his position as Eni’s manager responsible for the preparation of the Company’s financial reports, certifies
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.
*
* *
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
Web
site: www.eni.com
*
* *
Eni
Società
per Azioni Roma, 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 is also available on the Eni web site eni.com.
Attachments
IFRS
Consolidated Financial Statements
PROFIT
AND LOSS ACCOUNT
|
Full
Year |
(€
million) |
2021 |
2020 |
Sales
from operations |
76,575 |
43,987 |
Other
income and revenues |
1,196 |
960 |
Total
revenues |
77,771 |
44,947 |
Purchases,
services and other |
(55,549) |
(33,551) |
Impairment
reversals (impairment losses) of trade and other receivables, net |
(279) |
(226) |
Payroll
and related costs |
(2,888) |
(2,863) |
Other
operating (expense) income |
903 |
(766) |
Depreciation,
Depletion and Amortization |
(7,063) |
(7,304) |
Impairment
reversals (impairment losses) of tangible, intangible and right of use assets, net |
(167) |
(3,183) |
Write-off
of tangible and intangible assets |
(387) |
(329) |
OPERATING
PROFIT (LOSS) |
12,341 |
(3,275) |
Finance
income |
3,723 |
3,531 |
Finance
expense |
(4,216) |
(4,958) |
Net
finance income (expense) from financial assets held for trading |
11 |
31 |
Derivative
financial instruments |
(306) |
351 |
FINANCE
INCOME (EXPENSE) |
(788) |
(1,045) |
Share
of profit (loss) of equity-accounted investments |
(1,091) |
(1,733) |
Other
gain (loss) from investments |
223 |
75 |
INCOME
(EXPENSE) FROM INVESTMENTS |
(868) |
(1,658) |
PROFIT
(LOSS) BEFORE INCOME TAXES |
10,685 |
(5,978) |
Income
taxes |
(4,845) |
(2,650) |
Net
profit (loss) |
5,840 |
(8,628) |
attributable
to: |
|
|
-
Eni's shareholders |
5,821 |
(8,635) |
-
Non-controlling interest |
19 |
7 |
|
|
|
Earnings
per share (€ per share) |
|
|
-
basic |
1.61 |
(2.42) |
-
diluted |
1.60 |
(2.42) |
Weighted
average number of shares outstanding (million) |
|
|
-
basic |
3,566.0 |
3,572.5 |
-
diluted |
3,573.6 |
3,572.5 |
BALANCE
SHEET
(€
million) |
|
|
|
Dec.
31, 2021 |
Dec.
31, 2020 |
ASSETS |
|
|
Current
assets |
|
|
Cash
and cash equivalents |
8,254 |
9,413 |
Other
financial activities held for trading |
6,301 |
5,502 |
Other
financial assets |
4,308 |
254 |
Trade
and other receivables |
18,850 |
10,926 |
Inventories |
6,072 |
3,893 |
Income
tax assets |
195 |
184 |
Other
assets |
13,634 |
2,686 |
|
57,614 |
32,858 |
Non-current
assets |
|
|
Property,
plant and equipment |
56,299 |
53,943 |
Right
of use assets |
4,821 |
4,643 |
Intangible
assets |
4,799 |
2,936 |
Inventory
- compulsory stock |
1,053 |
995 |
Equity-accounted
investments |
5,887 |
6,749 |
Other
investments |
1,294 |
957 |
Other
financial assets |
1,885 |
1,008 |
Deferred
tax assets |
2,713 |
4,109 |
Income
tax assets |
108 |
153 |
Other
assets |
1,029 |
1,253 |
|
79,888 |
76,746 |
Assets
held for sale |
263 |
44 |
TOTAL
ASSETS |
137,765 |
109,648 |
LIABILITIES
AND SHAREHOLDERS' EQUITY |
|
|
Current
liabilities |
|
|
Short-term
debt |
2,299 |
2,882 |
Current
portion of long-term debt |
1,781 |
1,909 |
Current
portion of long-term lease liabilities |
948 |
849 |
Trade
and other payables |
21,720 |
12,936 |
Income
taxes payable |
648 |
243 |
Other
liabilities |
15,756 |
4,872 |
|
43,152 |
23,691 |
Non-current
liabilities |
|
|
Long-term
debt |
23,714 |
21,895 |
Long-term
lease liabilities |
4,389 |
4,169 |
Provisions
for contingencies |
13,593 |
13,438 |
Provisions
for employee benefits |
819 |
1,201 |
Deferred
tax liabilities |
4,835 |
5,524 |
Income
taxes payable |
374 |
360 |
Other
liabilities |
2,246 |
1,877 |
|
49,970 |
48,464 |
Liabilities
directly associated with assets held for sale |
124 |
|
TOTAL
LIABILITIES |
93,246 |
72,155 |
Share
capital |
4,005 |
4,005 |
Retained
earnings |
22,750 |
34,043 |
Cumulative
currency translation differences |
6,530 |
3,895 |
Other
reserves and equity instruments |
6,289 |
4,688 |
Treasury
shares |
(958) |
(581) |
Net
profit (loss) |
5,821 |
(8,635) |
Total
Eni shareholders' equity |
44,437 |
37,415 |
Non-controlling
interest |
82 |
78 |
TOTAL
SHAREHOLDERS' EQUITY |
44,519 |
37,493 |
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY |
137,765 |
109,648 |
CASH
FLOW STATEMENT
|
Full
Year |
(€
million) |
2021 |
2020 |
Net
profit (loss) |
5,840 |
(8,628) |
Adjustments
to reconcile net profit (loss) to net cash provided by operating activities: |
|
|
Depreciation,
depletion and amortization |
7,063 |
7,304 |
Impairment
losses (impairment reversals) of tangible, intangible and right of use, net |
167 |
3,183 |
Write-off
of tangible and intangible assets |
387 |
329 |
Share
of (profit) loss of equity-accounted investments |
1,091 |
1,733 |
Gains
on disposal of assets, net |
(102) |
(9) |
Dividend
income |
(230) |
(150) |
Interest
income |
(75) |
(126) |
Interest
expense |
794 |
877 |
Income
taxes |
4,845 |
2,650 |
Other
changes |
(194) |
92 |
Cash
flow from changes in working capital |
(3,146) |
(18) |
-
inventories |
(2,033) |
1,054 |
-
trade receivables |
(7,888) |
1,316 |
-
trade payables |
7,744 |
(1,614) |
-
provisions for contingencies |
(406) |
(1,056) |
-
other assets and liabilities |
(563) |
282 |
Net
change in the provisions for employee benefits |
54 |
|
Dividends
received |
857 |
509 |
Interest
received |
28 |
53 |
Interest
paid |
(792) |
(928) |
Income
taxes paid, net of tax receivables received |
(3,726) |
(2,049) |
Net
cash provided by operating activities |
12,861 |
4,822 |
Cash
flow from investing activities |
(7,815) |
(5,959) |
-
tangible assets |
(4,950) |
(4,407) |
-
prepaid right of use |
(2) |
|
-
intangible assets |
(284) |
(237) |
-
consolidated subsidiaries and businesses net of cash and cash equivalent acquired |
(1,901) |
(109) |
-
investments |
(837) |
(283) |
-
securities and financing receivables held for operating purposes |
(227) |
(166) |
-
change in payables in relation to investing activities |
386 |
(757) |
Cash
flow from disposals |
536 |
216 |
-
tangible assets |
207 |
12 |
-
intangible assets |
1 |
|
-
consolidated subsidiaries and businesses net of cash and cash equivalent disposed of |
76 |
|
-
tax on disposals |
(35) |
|
-
investments |
155 |
16 |
-
securities and financing receivables held for operating purposes |
141 |
136 |
-
change in receivables in relation to disposals |
(9) |
52 |
Net
change in receivables and securities not held for operating purposes |
(4,743) |
1,156 |
Net
cash used in investing activities |
(12,022) |
(4,587) |
(continued)
CASH FLOW STATEMENT
|
Full
Year |
(€
million) |
2021 |
2020 |
Increase
in long-term debt |
3,556 |
5,278 |
Payment
of long-term debt |
(2,890) |
(3,100) |
Payment
of lease liabilities |
(939) |
(869) |
Increase
(decrease) in short-term financial debt |
(910) |
937 |
Dividends
paid to Eni's shareholders |
(2,358) |
(1,965) |
Dividends
paid to non-controlling interests |
(5) |
(3) |
Acquisition
of additional interests in consolidated subsidiaries |
(17) |
|
Net
purchase of treasury shares |
(400) |
|
Issue
of perpetual subordinated bonds |
1,985 |
2,975 |
Coupon
of perpetual subordinated bonds |
(61) |
|
Net
cash used in financing activities |
(2,039) |
3,253 |
Effect
of exchange rate changes on cash and cash equivalents and other changes |
52 |
(69) |
Net
increase (decrease) in cash and cash equivalents |
(1,148) |
3,419 |
Cash
and cash equivalents - beginning of the year |
9,413 |
5,994 |
Cash
and cash equivalents - end of the year |
8,265 |
9,413 |
IFRS
Financial Statements of the parent company
PROFIT
AND LOSS ACCOUNT
|
Full
Year |
(€
million) |
2021 |
2020 |
Net
sales from operations |
38,249 |
18,017 |
Other
income and revenues |
474 |
405 |
Total
revenues |
38,723 |
18,422 |
Purchases,
services and other |
(33,127) |
(18,397) |
Impairment
reversals (impairment losses) of trade and other receivables, net |
(77) |
(10) |
Payroll
and related costs |
(1,286) |
(1,238) |
Other
operating (expense) income |
(2,278) |
(176) |
Depreciation,
Depletion and Amortization |
(930) |
(1,013) |
Impairment
reversals (impairment losses) of tangible, intangible and right of use, net |
(455) |
(1,573) |
Write-off
of tangible and intangible assets |
(1) |
|
OPERATING
PROFIT (LOSS) |
569 |
(3,985) |
Finance
income |
2,049 |
2,213 |
Finance
expense |
(2,066) |
(2,749) |
Net
finance income (expense) from financial assets held for trading |
11 |
26 |
Derivative
financial instruments |
(201) |
211 |
FINANCE
INCOME (EXPENSE) |
(207) |
(299) |
INCOME
(EXPENSE) FROM INVESTMENTS |
6,918 |
6,519 |
PROFIT
(LOSS) BEFORE INCOME TAXES |
7,280 |
2,235 |
Income
taxes |
395 |
(628) |
NET
PROFIT (LOSS) |
7,675 |
1,607 |
BALANCE
SHEET
(€
million) |
|
|
|
Dec.
31, 2021 |
Dec.
31, 2020 |
ASSETS |
|
|
Current
assets |
|
|
Cash
and cash equivalents |
6,630 |
8,111 |
Other
financial activities held for trading |
5,855 |
5,020 |
Other
financial assets |
4,214 |
4,822 |
Trade
and other receivables |
12,992 |
3,756 |
Inventories |
2,582 |
1,099 |
Tax
assets |
23 |
22 |
Other
assets |
12,851 |
1,322 |
|
45,147 |
24,152 |
Non-current
assets |
|
|
Property,
plant and equipment |
5,213 |
6,569 |
Right
of use |
1,691 |
1,888 |
Intangible
assets |
247 |
101 |
Inventory
- compulsory stock |
1,104 |
994 |
Investments |
56,010 |
46,855 |
Other
financial assets |
3,257 |
4,355 |
Deferred
tax assets |
814 |
113 |
Tax
assets |
78 |
78 |
Other
assets |
2,057 |
909 |
|
70,471 |
61,862 |
Assets
held for sale |
3 |
2 |
TOTAL
ASSETS |
115,621 |
86,016 |
LIABILITIES
AND SHAREHOLDERS' EQUITY |
|
|
Current
liabilities |
|
|
Short-term
debt |
5,866 |
3,929 |
Current
portion of long-term debt |
1,555 |
1,848 |
Current
portion of long-term lease liabilities |
383 |
423 |
Trade
and other payables |
9,521 |
4,153 |
Income
taxes payable |
117 |
4 |
Other
liabilities |
16,305 |
2,615 |
|
33,747 |
12,972 |
Non-current
liabilities |
|
|
Long-term
debt |
20,619 |
20,066 |
Long-term
lease liabilities |
1,939 |
2,157 |
Provisions
for contingencies |
4,992 |
4,890 |
Provisions
for employee benefits |
393 |
376 |
Income
taxes payable |
|
9 |
Other
liabilities |
2,892 |
839 |
|
30,835 |
28,337 |
TOTAL
LIABILITIES |
64,582 |
41,309 |
Share
capital |
4,005 |
4,005 |
Legal
reserve |
959 |
959 |
Other
reserves and equity instruments |
39,358 |
38,717 |
Treasury
shares |
(958) |
(581) |
Net
profit (loss) |
7,675 |
1,607 |
TOTAL
SHAREHOLDERS' EQUITY |
51,039 |
44,707 |
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY |
115,621 |
86,016 |
CASH
FLOW STATEMENT
|
Full
Year |
(€
million) |
2021 |
2020 |
Net
profit (loss) |
7,675 |
1,607 |
Adjustments
to reconcile net profit (loss) to net cash provided by operating activities: |
|
|
Depreciation,
depletion and amortization |
930 |
1,013 |
Impairment
losses (impairment reversals) of tangible, intangible and right of use, net |
455 |
1,573 |
Write-off
of tangible and intangible assets |
1 |
|
Share
of (profit) loss of investments |
(894) |
2,395 |
Gains
on disposal of assets, net |
(23) |
(7) |
Dividend
income |
(6,006) |
(8,914) |
Interest
income |
(176) |
(204) |
Interest
expense |
520 |
550 |
Income
taxes |
(395) |
628 |
Other
changes |
(63) |
3 |
Cash
flow from changes in working capital |
(401) |
1,185 |
-
inventories |
(1,602) |
966 |
-
trade receivables |
(6,097) |
1,033 |
-
trade payables |
5,468 |
(1,236) |
-
provisions for contingencies |
(170) |
113 |
-
other assets and liabilities |
2,000 |
309 |
Net
change in the provisions for employee benefits |
63 |
5 |
Dividends
received |
2,893 |
8,853 |
Interest
received |
179 |
210 |
Interest
paid |
(517) |
(533) |
Income
taxes paid, net of tax receivables received |
33 |
62 |
Net
cash provided by operating activities |
4,274 |
8,426 |
Cash
flow from investing activities |
(9,361) |
(8,045) |
-
tangible assets |
(848) |
(791) |
-
intangible assets |
(188) |
(21) |
-
investments |
(8,145) |
(6,752) |
-
financing receivables held for operating purposes |
(293) |
(404) |
-
change in payables in relation to investing activities |
113 |
(77) |
Cash
flow from disposals |
2,063 |
208 |
-
tangible assets |
5 |
9 |
-
investments |
479 |
2 |
-
financing receivables held for operating purposes |
1,579 |
193 |
-
change in receivables in relation to disposals |
|
4 |
Net
change in receivables and securities not held for operating purposes |
(110) |
778 |
Net
cash used in investing activities |
(7,408) |
(7,059) |
(continued)
CASH FLOW STATEMENT
|
Full
Year |
(€
million) |
2021 |
2020 |
Increase
(Reypaments) in long-term debt |
955 |
2,020 |
Repayment
of lease liabilities |
(374) |
(337) |
Increase
(decrease) in short-term financial debt |
1,933 |
(699) |
Dividends
paid |
(2,358) |
(1,965) |
Net
purchase of treasury shares |
(400) |
|
Issue
of perpetual subordinated bonds |
1,985 |
2,975 |
Coupon
of perpetual subordinated bonds |
(61) |
|
Net
cash used in financing activities |
1,680 |
1,994 |
Effect
of exchange rate changes on cash and cash equivalents and other changes |
(27) |
(2) |
Net
increase (decrease) in cash and cash equivalent |
(1,481) |
3,359 |
Cash
and cash equivalents - beginning of the year |
8,111 |
4,752 |
Cash
and cash equivalents - end of the year |
6,630 |
8,111 |
![](https://content.edgar-online.com/edgar_conv_img/2022/03/22/0001104659-22-036336_tm229742d1_6kimg001.jpg)
ENI CAPITAL MARKETS
DAY
Strategic plan
2022-2025
| - | Focused
on delivering energy security and emissions reduction for customers through a distinctive
approach: proprietary technologies, new business models, stakeholder alliances |
| - | Securing
supply to premium markets through global gas portfolio |
| - | Enhanced
path towards net zero, including a 35% reduction by 2030, 80% by 2040 of Net Absolute Scope
1+2+3 emissions vs 2018 |
| - | 30%
of investment in new energies by 2025, 60% by 2030 |
| - | Creating
a sustainable mobility business combining biofuels and fuel stations |
| - | Strong
CFFO of €14 billion underpins an enhanced remuneration policy in 2022: with an annual
total dividend raised to €0.88 per share, a €1.1 billion buyback and buyback upside
for scenarios over 90 $/bbl. |
“The war in Ukraine is forcing us to
reconsider the world as we know it. It is a humanitarian tragedy and has created new threats to energy security which we must meet without
abandoning our ambitions for a just transition.
Our strategy has made us well prepared to address
these challenges. Our immediate response to the current crisis has been to leverage our established alliances with producing countries
to find replacement energy sources for Europe’s energy needs. We can make available to the market more than 14 TCF of additional
gas resources for the short to medium term.
This complements our work to develop new decarbonised
products and services which can help deliver both energy security and carbon reduction by providing to our customers a full set of decarbonized
energy products and services. The result of this strategic approach underpins our decision to accelerate our pathway to net zero with
a 35% cut to scope 1+2+3 emissions by 2030, and 80% by 2040 compared to 2018.
To fast track our transition and serve our
customers better, we have created a series of dedicated satellite companies that draw on our proprietary technology, lean operational
model and strong stakeholder alliances. The creation of Plenitude, Vår Energi, Azule (our JV with BP in Angola) and the recent listing
of Energy One (London’s first SPAC focused on the energy transition) illustrates how we are seeking to draw new investment into
Eni and strike the right balance in cash allocation and returns.
We are now merging our biorefining, fuel stations
and ride sharing businesses into a dedicated, focused on sustainable mobility entity consistent with this strategy.
Our industrial plan, supported by the continued
strengthening of our financial position, through efficient capital management and portfolio optimization, allows us today to further enhance
our competitive shareholder distribution”.
Claudio Descalzi, Eni CEO
San Donato Milanese (Milan), 18 March 2022
– Claudio Descalzi, Chief Executive Officer of Eni, today presented the company’s Strategic Plan for 2022-2025.
Eni’s strategy aims to deliver security
and sustainability of the energy system, while keeping a sharp focus on a just energy transition and value creation for our stakeholders.
The Company is pursuing these objectives by:
| • | leveraging its global upstream and partnerships with producing countries to find alternative and additional
gas supply opportunities; and |
| • | accelerating its decarbonization targets, working to offer progressively decarbonized services
and products to our clients, in order to effectively tackle scope 1+2+3 emissions. |
Eni has developed a distinctive strategic approach
based on:
| • | Proprietary
and Breakthrough Technology – part of Eni DNA, the Company commitment to technology
leadership underpins the development of new businesses to respond to the specific decarbonization
challenges of our clients in different markets; |
| • | New
business models – to support growth we are creating dedicated entities with tailored
business models focused on their customers and the capability to independently access the
capital markets. Such entities continue to benefit from Eni’s R&D, HSE culture,
project management and financial strengths; |
| • | Stakeholder
alliances - working alongside a wide range of stakeholders we develop mutually beneficial
solutions, synergies and new regulatory frameworks to transform the energy system and deliver
a just and inclusive transition. |
ACCELERATED
EMISSIONS REDUCTION
Targeting
a faster emissions reduction path toward net zero program.
| • | Net
zero scope 1+2+3: 35% reduction by 2030 and -80% by 2040 vs 2018 levels (compared to
previous targets of -25% and -65%). |
| • | Net
zero scope 1+2 emissions cut by 40% cut by 2025 (vs 2018 levels) on the way to net zero
by 2035 – five years earlier than previously planned. |
| • | Net
zero scope 1+2 upstream: -65% by 2025 vs 2018 confirming on track for net zero by 2030. |
While
reducing emissions, Eni will develop a growing offer of full decarbonized Energy solutions to customers:
| • | Plenitude
is expected to offer all retail power customers green electricity as it grows its customer
base to 15 million and develops more than 15GW Renewable Capacity by 2030; |
| • | Biorefining
capacity will growth up to 6 MTPA in the next decade; |
| • | Hydrogen
will contribute in our plan for around 4 MTPA by 2050. |
In
the next decade the first Magnetic Fusion commercial plant will be developed, potentially opening the route for a limitless source
of clean, safe and secure energy.
To
fund this growth, Eni will increase the share of investments directed at new energy solutions to almost 30% by 2025, doubling to 60%
by 2030, and up to 80% around 2040.
In
a decade, these businesses will be Free Cash Flow positive and increasing to around 75% of group Free Cash Flow from 2040.
ENLARGED
INTEGRATED GAS PORTFOLIO
Securing
supply to premium markets through global gas portfolio:
| • | 50TCF
of global portfolio of reserves and resources; |
| • | 14TCF
of additional gas available to the market in the short-medium term; |
| • | 15MTPA
of contracted LNG volume by 2025, of which 80% equity. |
Eni’s
portfolio and global investments over the last decade put the Company in a very strong position to significantly grow its natural gas
business, with around 50 TCF of reserves and resources.
Eni’s
gas projects are well-positioned to serve key markets and are expected to reach more than 15 MTPA of contracted LNG volumes by the end
of the plan.
The
Company can make available to the market, in the short-medium term, more than 14 TCF of additional gas resources.
NATURAL
RESOURCES: DECARBONIZING AND ENHANCING THE UPSTREAM PORTFOLIO
Eni’
commitments in the upstream are grounded on enhancing the sustainability and value of the portfolio, increasing profitability and lowering
carbon footprint.
| • | Production:
growing at average of 3% per year (1.7Mboe/d in 2022; 1.66Mboe/d in 1Q22) to a plateau of
around 1.9Mboe/d in 2025. Progressively increasing the share of gas to 60% by 2030 and up
to more than 90% beyond 2040, while the oil volumes will reduce in the medium-long term. |
| • | Upstream
Net Carbon Footprint (Scope 1+2): decreasing of 65% by 2025 compared to 2018 on the way
to net zero by 2030. |
| • | Reducing
methane emissions: plan in line with the Global Methane Pledge. |
| • | Exploration:
2.2 bln boe of new resources in the four-year plan (UEC <$1.5/boe). |
| • | CCS:
total storage target of around 10MTPA at 2030, with an overall gross capacity of around 30MTPA. |
| • | Capex:
around €4.9bln in 2022; €4.5bln on average during the Plan (excluding equity accounted
entities). |
| • | Cumulative
upstream organic FCF post working capital: around €29bln in the plan. |
| • | Cumulative
GGP FCF post working capital of around €2.7bln in the Plan with 2022 EBIT seen
at €0.9bln, but with significant quarterly volatility. |
During
the plan we will bring on-stream 11 major projects including Baleine in Cote d’Ivoire, Marine XII LNG in Congo, Coral in Mozambique,
Dalma Gas in UAE and other gas projects in Italy, Indonesia and Norway. These together with ramp-ups will add almost 800kboe/d to
the baseline upstream production in 2025.
Our
upstream will also be more sustainable and valuable with a net carbon footprint scope 1+2 falling by 65% by 2025 (vs 2018), on-track
to our 2030 net-zero target. At the same time average upstream cash neutrality will fall to around $25/boe ($30/boe in 2021).
We
will continue focus on fast time to market projects, limiting idle capital and maximizing IRR. Equity capex will be at around €4.9bln
in 2022 and €4.5bln on average during the plan (capex in the plan does not include equity accounted entities).
Over
the four-year plan, Exploration activities will continue to be a distinctive factor and the main source of Eni’s diversification
towards a gas weighted, fast time-to-market and low breakeven portfolio with an average unit exploration cost below $1.5/bbl. Exploration
will focus on infrastructure lead and near field opportunities in proven basins, with a high gas potential, targeting 2.2bln boe of overall
resources.
Contractual
LNG volumes are expected to exceed 15MTPA by 2025.This growth will be driven by new projects in Congo, Angola, Egypt, Indonesia,
Nigeria and Mozambique where we are fast-tracking gas valorization developments. In Congo, the export project consists of two modular
and flexible LNG liquefaction plants, which allow a highly competitive time-to-market. We target LNG production to start-up in 2023.
Finally,
CCS plays an important role helping hard to abate industries cut their emissions. From the current projects pipeline we target storage
of around 10 MTPA of our own emissions by 2030, with an overall gross capacity including 3rd party volumes of 30MTPA.
ENERGY
EVOLUTION: GROWING PROFITABLE NEW ENERGY BUSINESS
Eni
aims to expand the offer of decarbonized energy products and services acting as an enabler for driving down scope 3 emissions among its
customers.
Plenitude,
Eni’s green power value chain company integrates renewables, energy solutions for customers and a widespread Electric Vehicle
(EV) charging network, with a model designed to deliver resilient value.
| • | Renewable
power generation: reaching more than 2GW of installed capacity by 2022, from around 1GW
in 2021, and more than 6GW by the end of the plan. |
| • | Retail
activities: reaching 11.5mln customers by 2025, from more than 10mln in 2022. |
| • | EV
charging points: expanding network in e-mobility, up to more than 30,000 charging points
by 2025. |
| • | Plenitude’s
pro forma EBITDA: more than double by the end of the plan versus 2021, up to €1.4bln. |
Plenitude
listing process is progressing and we have filed the Registration Document with the Italian Market Authority.
Sustainable
Mobility: Eni is merging its bio-refining and marketing operations into a Sustainable Mobility company, uniquely positioned as a
multi-energy, multi-service, customer-centric business.
| • | Biorefining:
capacity increasing from 1MTPA to around 2MTPA by 2025, via the expansion of the Venice plant
and another traditional refinery conversion; 6MTPA will be achieved in the next decade. |
| • | Feedstock:
vertical integration to secure feedstock through the development of an agro-hubs network
in many of the countries of Eni’s existing upstream operations, targeting 35% cover
by 2025. |
| • | Marketing:
Eni’s service stations will be transformed to a place where its customers will
access sustainable fuels and retail services. |
| • | Sustainable
mobility EBITDA: more than €0.9bln EBITDA by 2025. |
The
overall downstream business (R&M and Versalis) will be impacted by both a negative scenario and by increased utility costs in 2022.
2022 EBIT is expected to be negative and 1Q22 has been challenging. However, thanks to the ongoing transition towards the circular economy
projects and green products, as well as an expected recovering scenario, the business is able to self-sustain its transformation over
the plan period.
FINANCIAL
STRATEGY
Eni’s
disciplined financial plan is a structural component in the execution of our transition strategy.
| • | Average
yearly capex of around €7bln during the plan with 2022 capex at €7.7bln
(excluding equity accounted entities). |
| • | IRR
of Upstream projects in execution at 21% @Eni Scenario. |
| • | Renewable
Portfolio Return for new investment: +200bps vs Plenitude WACC. |
| • | Portfolio
management net contribution 2022-2025 of around €3bln. |
| • | CFFO
before working capital at replacement cost at Eni scenario more than €14bln in
2022 and around €55bln along the plan period. |
| • | Increasing
Sustainable Finance instruments, targeting more than €13bln in 2025. |
| • | Cash
neutrality below $45/bbl along the plan period. |
While
maintaining strict capital discipline, with average annual capex of €7bln in line with last year’s plan, Eni will also continue
to restructure our portfolio to focus on the real value of our businesses and to maximize our opportunities of growth.
Around
25% of capex is allocated to increasing renewable capacity and our customer base, implementing circular economy projects, building incremental
biorefining capacity and expanding our sustainable mobility proposition.
Over
the plan period we retain a high degree of flexibility with nearly 40% of cumulative capex uncommitted, ensuring a material buffer versus
future market volatility.
Portfolio
management will be a key component of our plan leveraging on the new business models approach and portfolio high-grading
to deliver value.
Through
Eni’s new business models approach the Company is unlocking its asset growth potential and seeking to highlight full value
through market valorization mechanisms:
| o | In
the upstream we intend to create further dedicated vehicles in selected geographies like
we have been doing in Norway with Vår Energi, where we have recently launched
the largest IPO in O&G in over a decade; and in Angola through our Azule Energy our business
combination with BP. |
| o | We
are speeding up new businesses and technologies related to decarbonization. Earlier this
month we successfully completed the listing of the first London listed SPAC focused on the
energy transition. |
| o | We
also plan to list Plenitude, our retail, renewables and electric vehicle charging business
in 2022, subject to market condition. |
Eni
will also continue portfolio high-grading, exiting or diluting its exposure from non-core assets and countries, while evaluating
tactical acquisitions to optimize our portfolio.
In
the 4-year plan Eni expects to generate from these portfolio management a positive net cash contribution of around €3bln.
The
Company will also continue to align its financial tools to the strategic milestones it has designed in its decarbonization plan. At the
end of the plan €13bln of financing instruments will be linked to Eni strategic KPIs.
Eni
is financially resilient and highly cash generative. Assuming a Brent price of 80$/bbl CFFO before working capital at replacement cost
is expected to exceed €14bln in 2022 and organic FCF before working capital at replacement cost for the year to be €6-7bln.
Over
the 4-year period, at the Eni plan scenario, the Company will generate a cumulative CFFO ante working capital at replacement cost of
about €55bln euro and FCF ante working capital at replacement cost of more than €25bln.
Enhanced
Shareholder Remuneration
Sharing
the value of Eni’s strategic progress and the improved scenario with investors, Eni’s Board of Directors has approved an
enhanced shareholder distribution as follows:
| • | The
annual total dividend is raised to €0.88 per share from €0.86, based on the 2022
Brent Reference between $80/bbl to $90/bbl. |
| • | The
dividend will now be paid in four equal quarterly instalments in September 2022, November 2022,
March 2023 and May 2023. |
| • | Reflecting
the strength of Eni’s plan and the 2022 reference price, Eni will also launch a €1.1
bln share buyback, following shareholder approval in May. |
| • | In
addition, Eni will update its 2022 buyback scenario assessment in July and October.
For scenarios above $90/bbl further buybacks equivalent to 30% of the associated incremental
FCF will be made. |
| • | Reflecting
the underlying resilient performance of the business, the sliding scale of variable dividend
per share from the floor level of €0.36 has also been simplified. |
NOTE:
Eni
Scenario Assumption:
Brent
price: 80 – 75 – 70 – 70 $/bbl from 2022 to 2025 respectively;
PSV
(italian gas hub) @: 688 – 452 – 363 – 293 €/kmc from 2022 to 2025 respectively; Exchange rate $/€: 1.15
– 1.18 – 1.21 – 1.24 from 2022 to 2025 respectively.
Plenitude
figures (Renewables Capacity, Retail customers and EV charging points) are expressed at Eni 100% stake.
Company
Contacts:
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Office: Tel. +39 02 52031875 – +39 06 59822030
Freephone
for shareholders (from Italy): 800 940924
Freephone
for shareholders (from abroad): +800 11223456
Switchboard:
+39 06 59821
ufficio.stampa@eni.com
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Website:
www.eni.com