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: July 29, 2022
Eni’s Board of Directors
Approval of 2022 first tranche of dividend:
€ 0.22 per share
Rome, 28 July 2022 – Eni’s
Board of Directors, chaired by Lucia Calvosa, today resolved to distribute to Shareholders the first of the four tranches of the dividend
2022 from Eni S.p.A. available reserves1 for the fiscal year 2022 of € 0.22 (compared to a total annual dividend of
€ 0,88) per share outstanding at the ex-dividend date as of 19 September 20222, payable on 21 September 20223,
as announced on 18 March 2022 with the Capital Market Day and resolved by the Shareholders’ Meeting of 11 May 2022.
Holders of ADRs, outstanding at the record date
of 20 September 2022, will receive € 0.44 per ADR, payable on 7 October 20224, with each ADR listed on the
New York Stock Exchange representing two Eni shares.
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
1 Coupon No. 39
2
Depending on the recipient’s fiscal status dividends are subject to a withholding tax
or are treated in part as taxable income.
3
Pursuant to article 83-terdecies of the Italian Legislative Decree no. 58 of
February 24, 1998, the right to receive the interim dividend is determined with reference to the entries on the books of the intermediary
– as set out in art. 83-quater, paragraph 3 of the Italian Legislative Decree no. 58 of February 24, 1998 – at the end of
the accounting day of the September 20, 2022 (record date).
4On
ADR payment date, Citibank, N.A. will pay Eni S.p.A.’s dividend net of the amount of the withholding tax under Italian law applicable
to all Depository Trust Company Participants.
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Head Office,
Piazzale
Enrico Mattei, 1
00144
Roma
Tel.
+39 06598.21
www.eni.com |
San Donato Milanese
July 29,
2022
Eni: results for the second quarter and half
year 2022
Key operating and financial results |
|
IQ |
|
|
IIQ |
|
IH |
2022 |
|
2022 |
2021 |
%
Ch. |
|
2022 |
2021 |
%
Ch. |
101.4 |
Brent dated |
$/bbl |
113.78 |
68.83 |
65 |
|
107.59 |
64.86 |
66 |
1.122 |
Average EUR/USD exchange rate |
|
1.065 |
1.206 |
(12) |
|
1.093 |
1.205 |
(9) |
1,043 |
Spot Gas price at Italian PSV |
€/kcm |
1,032 |
264 |
291 |
|
1,037 |
231 |
349 |
(0.9) |
Standard Eni Refining Margin (SERM) |
$/bbl |
17.2 |
(0.4) |
.. |
|
8.2 |
(0.5) |
.. |
1,654 |
Hydrocarbon
production |
kboe/d |
1,578 |
1,597 |
(1) |
|
1,616 |
1,650 |
(2) |
5,191 |
Adjusted
operating profit (loss) ⁽ᵃ⁾ |
€
million |
5,841 |
2,045 |
186 |
|
11,032 |
3,366 |
228 |
4,381 |
E&P |
|
4,867 |
1,841 |
164 |
|
9,248 |
3,219 |
187 |
931 |
Global Gas
& LNG Portfolio (GGP) |
|
(14) |
24 |
.. |
|
917 |
(6) |
.. |
(91) |
R&M and
Chemicals |
|
1,104 |
190 |
481 |
|
1,013 |
70 |
.. |
185 |
Plenitude
& Power |
|
140 |
108 |
30 |
|
325 |
310 |
5 |
3,270 |
Adjusted
net profit (loss) ⁽ᵃ⁾ |
|
3,808 |
929 |
.. |
|
7,078 |
1,199 |
.. |
0.91 |
per
share - diluted (€) |
|
1.07 |
0.25 |
|
|
1.98 |
0.32 |
|
3,583 |
Net profit (loss)
⁽ᵇ⁾ |
|
3,815 |
247 |
|
|
7,398 |
1,103 |
.. |
1.00 |
per
share - diluted (€) |
|
1.07 |
0.06 |
|
|
2.07 |
0.30 |
|
5,606 |
Cash
flow from operations before changes in working capital at replacement cost ⁽ᵃ⁾ |
|
5,191 |
2,797 |
86 |
|
10,797 |
4,757 |
127 |
3,098 |
Net
cash from operations |
|
4,183 |
2,717 |
54 |
|
7,281 |
4,093 |
78 |
1,617 |
Net capital expenditure ⁽ᵇ⁾ |
|
1,822 |
1,517 |
20 |
|
3,439 |
2,904 |
18 |
8,623 |
Net borrowings before lease liabilities
ex IFRS 16 |
|
7,872 |
10,040 |
(22) |
|
7,872 |
10,040 |
(22) |
47,466 |
Shareholders' equity including
non-controlling interest |
|
52,012 |
40,580 |
28 |
|
52,012 |
40,580 |
28 |
0.18 |
Leverage
before lease liabilities ex IFRS 16 |
|
0.15 |
0.25 |
|
|
0.15 |
0.25 |
|
(a) Non-GAAP measure. For further information see the paragraph "Non-GAAP measures".
(b) Net of expenditures relating to business combinations, purchase of minority interests and other non-organic items.
Eni's Board of Directors, chaired by Lucia Calvosa,
yesterday approved the unaudited consolidated results for the second quarter and first half 2022. Eni CEO Claudio Descalzi said:
“Amid uncertainty and volatility in markets
we moved fast to secure new energy supplies. After new gas agreements with our partners in Algeria, Congo and Egypt earlier in the year,
in June Eni entered the North Field East venture in Qatar, part of the world’s largest LNG project. In East Africa, gas production
started from the Eni’s operated Coral South FLNG, the first development of Mozambique’s large potential. In Italy, we have
invested to rebuild gas storage ahead of winter and our refineries raised their processing rates significantly to ensure oil products
are available for the market.
While maximizing our efforts on energy security,
we continue to execute our decarbonisation strategy. In Plenitude the build-up of our renewable generation capacity progresses towards
over 2 GW by year end; given market condition, the IPO has been postponed but remains our intention. Our Sustainable Mobility business
will enhance the value of our biorefineries, vertically integrating with our innovative agri-business and portfolio of decarbonized solutions.
Development of breakthrough technology is at our core and the construction of the magnetic fusion demonstration plant is well underway,
aiming at producing net energy by 2025.
Financial delivery is underpinned by our continued
efforts on efficiency and cost control. The Group adjusted EBIT for the quarter was €5.8 billion driven by E&P and R&M and
adjusted net income was €3.8 billion. With an adjusted cash flow of €10.8 billion we are able to cover our organic capex of
€3.4 billion, and our distribution policy for the full year. Based on these robust results and our updated market outlook, we are
enhancing shareholders’ distribution by raising the 2022 share buyback to €2.4 billion.”
Financial highlights of the second quarter of 2022 |
|
| · | Group adjusted EBIT in the second quarter 2022
was €5.84 billion, up 13% q-o-q and more than doubling y-o-y driven by the favorable commodity price environment, strong refining
margins and the focus on cost management and business operating performance. |
| · | E&P
delivered €4.87 billion of adjusted EBIT in the second quarter 2022, up by 11% q-o-q
and more than doubling y-o-y, fully capturing the improved scenario. Production in the quarter
was 1.58 million boe/d down 1% y-o-y and slightly decreasing from the previous quarter due
to primarily force majeure events in Libya, Nigeria and Kazakhstan. |
| · | After
a strong first quarter thanks to the LNG business and portfolio flexibility, GGP was
at break-even in the second quarter, reflecting normal seasonal patterns in profitability. |
| · | R&M
performed very well, achieving adjusted EBIT of €979 million driven by strong refining
margins but outperforming thanks to higher utilization, output optimization, efficiency measures
to address utilities costs, and despite the higher expenses required to replace Russian crudes
in our refinery slate. |
| · | Despite
the rising prices of oil-based feedstock and higher utilities costs driven by natural gas
prices, the chemicals business managed by Versalis reported a positive result of €125
million in the second quarter, reversing the €115 million loss of the first quarter
2022, thanks to efficiency initiatives and the optimization of production volumes. |
| · | Plenitude
(including the retail, renewables & electric mobility businesses) reported second
quarter adjusted EBIT of €112 million (+58% y-o-y) driven by a ramp-up in produced volumes
of renewable electricity, higher wholesale prices and effective customer base management,
confirming the resilience of our integrated business model. |
The legacy business of natural gas-fired
power and steam production reported a lower adjusted EBIT compared to the second quarter 2021 (down 24%) due to a less favorable scenario,
partly offset by higher revenues on services (capacity market and dispatching). At the end of July, the divestment of a 49% stake of
the business to a minority shareholder was closed with net proceeds to Eni of €0.55 billion.
| · | Group
adjusted net profit in the second quarter was €3.81 billion (€7.08 billion in the
first half 2022), an improvement of €2.9 billion y-o-y (€5.9 billion increase in
the first half) reflecting this strong EBIT result and further helped by the performance
of our equity-accounted entities and a lower tax rate (quarter on quarter tax rate was essentially
in line). The year over year reduction in the tax rate mainly relates to an improvement in
the geographical mix of pre-tax profits and scenario-related effects in E&P, as well
as in Italy better profitability in the lower taxed downstream, and also for the first half
midstream. |
| · | In
the second quarter 2022, the Group adjusted cash flow before working capital at replacement
cost was €5.19 billion. In the first half of 2022, it reached €10.80 billion, more
than doubling y-o-y. After funding first half organic capex of €3.44 billion, +18% y-o-y
due to a stronger US dollar and planned post lockdown activity, and working capital needs,
the Group realised an organic FCF of about €5 billion. |
| · | Dividend
distribution: in May Eni paid its final 2021 dividend of €0.43 per share, amounting
to €1.52 billion. The first quarterly instalment of 2022 dividend of €0.22 per
share will be paid in September 2022. |
| · | Buy-back
program: based on the authorization granted by the Shareholders Meeting on May 11, 2022,
the Board of Directors approved a new share purchase program to be executed through April 2023,
providing for a minimum outlay of €1.1 billion and a possible upside up to €2.5
billion depending on trends in the scenario. |
| · | The
2022 buy-back program commenced at the end of May and through July 22, 2022, 29.4
million shares have been purchased for a cash outlay of €355 million. Following the
Board’s revised outlook for the Brent crude oil prices, now expected at 105 $/bbl average
for the full year 2022 and reflecting the effects of the stronger US dollar plus broader
strength in the Group’s cash flows the buy-back commitment has been raised by €1.3
billion to €2.4 billion. |
| · | Net
borrowing ex IFRS 16 as of June 30, 2022, was €7.9 billion down by €1.1 billion
compared to December 31, 2021, and the Group leverage stood at 0.15 versus 0.20 as of
December 31, 2021. |
Main business developments |
|
Strengthening
the natural gas portfolio
| · | Secured
alternative sources of gas supply to Italy and Europe by leveraging Eni’s strong strategic
alliances, accelerating a key component of Eni’s long-term strategy, where equity gas
will progressively play a major role. |
| · | New
supply agreements with Algeria, Egypt and Congo were signed and additional opportunities
may also arise in other countries in our global gas portfolio: including Libya, Angola, Mozambique, Indonesia
and Italy. |
| · | The
initiatives are designed to deliver up to an equivalent of 100% of Russia’s 20 billion
cubic meters of annual gas import to the Italian market secured by 2025. |
| · | In
June, Eni entered in the Qatar’s North Field East project, the world’s largest
LNG project, expanding its presence in the Middle East and gaining access to a leading LNG
producer country. |
Exploration &
Production
| · | In
the first half of 2022 added about 300 million boe of new resources to reserve base. Main
discoveries were made close to existing assets and facilities as part of our fast-track development
model: in Algeria, near to the Bir Rebaa North field complex and in the Berkine North basin,
in Angola Block 15/06 in particular with the incremental result of the appraisal well Ndungu-2,
and in Abu Dhabi with the well XF-002. In addition, findings in the Meleiha concessions,
in Egypt’s Western Desert, have already been tied to existing production facilities. |
| · | Appraisal
of the Baleine discovery with the well Baleine East-1X in Block CI-802, increasing the potential
mineral resources of the area to around 2.5 bbbl and 3.3 Tcf of associated gas in place.
The well has been successfully tested, allowing the optimization of ongoing and future development
plans. |
| · | Start-up
in Angola: the Ndungu field started production by hooking it up to the Ngoma Floating Production
Storage and Offloading (FPSO) located in the operated Block 15/06. |
| · | In
July, reached the final investment decision (FID) by New Gas Consortium (Eni 25.6%, operator)
for the development of the Quiluma and Maboqueiro fields in Angola. The project, the first
non-associated gas development in the country, is planned to start-up in 2026 with an expected
production plateau at 330 mmcf/d. |
| · | In
July, signed with Sonatrach, Oxy and TotalEnergies a new Production Sharing Contract (PSC)
for blocks 404 and 208 located in the Berkine basin in Algeria. This will allow to boost
investments, increasing the fields’ reserves while enabling future valorization of
associated gas, available for export, further contributing to the diversification of gas
supplies to Europe. |
| · | In
July, completed the construction of an oilseed collection and pressing plant (agri-hub) in
Makueni, Kenya and started the production of the first vegetable oil for bio-refineries.
The first agri-hub will have an installed capacity of 15,000 tons with an expected production
of 2,500 tons in 2022. |
| · | In
June, started the commissioning of the Coral Sul Floating Liquefied Natural Gas (FLNG) vessel,
offshore Mozambique, by safely achieving the introduction of natural gas from the Coral South
reservoir into the treatment plant. First LNG cargo is scheduled for the second half of 2022. |
| · | In
May, Solenova, a venture equally owned by Eni and the Angolan national oil company Sonangol,
commenced construction of the Country’s first photovoltaic project in Caraculo, with
a targeted generation capacity of 50 MW, being the first phase of 25 MW. |
| · | In
May, signed with Sonatrach a MoU to evaluate viability of a green hydrogen project at
the Bir Rebaa North concession, to enable decarbonizing the operations of the gas complex. |
Refining &
Marketing and Chemicals
| · | In
July, Versalis, Eni's chemical company, agreed terms with Forever Plast to acquire a license
to build a mechanical recycling unit for post-consumer plastics from waste, capable of manufacturing
50 ktonnes/year of recycled polymer compounds. The expected start-up is in 2024 and the plant
will be located in Porto Marghera contributing to the progressive transformation of industrial
hub. |
| · | In
June, Versalis started recycling plastics from used industrial packaging. The project has
successfully tested sacks made at 50% with recycled materials for the packaging and shipping
of polyethylene products. The new product will be deployed at all Versalis industrial hubs. |
| · | In
June, the first Eni-branded hydrogen refuelling station was inaugurated in Venice Mestre.
The station is equipped with two dispensing points with a capacity of over 100 kg/day, where
vehicles or buses could be filled in about 5 minutes. |
| · | In
May, Enjoy, Eni's car sharing service, introduced in the City of Turin the first 100 new
XEV YOYO city cars among its fleet. The XEV YOYO is a fully electric city car designed for
battery swapping, which can be done in just a few minutes. |
| · | In
April, signed a cooperation agreement with Iveco to develop a sustainable mobility platform
for commercial fleets by offering innovative vehicles powered by biofuels and other sustainable
energy vectors, as well as the related supply infrastructure. |
| · | In
April, signed an agreement with the Chinese Shandong Eco Chemical Co. Ltd. to license Versalis
proprietary continuous mass technology to manufacture styrenic polymers with a low-carbon
footprint. |
Plenitude
and Power
| · | In
July, Plenitude and HitecVision reached a deal to boost the joint venture Vårgrønn
in Norway to become a material full cycle offshore wind player. Plenitude will contribute
to the venture a 20% interest in the Dogger Bank offshore wind project in the UK, with HitecVision
increasing its ownership share from 30.4% to 35% through a cash injection. |
| · | In
May, signed an agreement with Ansaldo Energia to evaluate technologies for storing electricity,
as an alternative to electrochemical batteries. Those technologies will be implemented in
synergy at Eni’s industrial hubs in Italy, leveraging existing power generation and
consumption systems. |
| · | In
April, Plenitude announced an investment in EnerOcean S.L., a Spanish developer of the W2Power
technology for floating wind power. The agreement is structured as a long-term partnership
focused on the deployment of the W2Power technology as a lead solution for floating wind
power developments worldwide. Plenitude will contribute with capital and expertise to the
EnerOcean development program and initially retain a 25% equity share in EnerOcean S.L.,
which will continue to operate independently. |
| · | In
April, GreenIT, a joint venture between Plenitude and the Italian agency CDP Equity, signed
an agreement with the equity fund Copenhagen Infrastructure Partners (CIP) to build and operate
two floating offshore wind farms in Sicily and Sardinia, with an expected total capacity
of approximately 750 MW. |
Decarbonization &
Sustainability
| · | In
July, signed a new €6 billion five-year Sustainability-Linked revolving credit line,
linked to two targets of Eni "Sustainability-Linked Financing Framework" updated
in May 2022. The new facility will increase the Group financial flexibility, further
strengthening its solid liquidity position, and is consistent with Eni's goal of fully integrating
its financing with its decarbonization strategy. |
| · | In
July, Eni was awarded the Energy Intelligence’s Energy Innovation Award, in recognition
of its preparedness for the energy transition and acceleration in low-carbon investments.
Eni was ranked strongly in terms of emissions reduction targets, portfolio resilience and
transformation of its business model. |
| · | In
June, Eni strengthened the collaboration with the United Nations Industrial Development Organization
(UNIDO) to pursue joint initiatives in the fields of green hydrogen, renewables, energy efficiency,
technical education, youth employment and the agricultural value chain, particularly in Africa,
as part of Eni’s commitment to develop the UN’s SDG. |
| · | In
June, an Eni-led sustainable initiative was launched in the Ivory Coast involving distribution
of improved cookstoves to vulnerable households. It is estimated that more than three
hundred thousand people from the Region of Gbêkê, will benefit from the projects,
which aims at delivering one hundred thousand cookstoves over a period of 6 years. |
The Company is issuing the following updated
operational and financial guidance for the FY ’22 based on information available to date, management’s judgement of potential
risks and uncertainties and assuming no additional material disruptions to Russian gas flow:
| · | E&P:
Hydrocarbon production is expected at 1.67 million boe/d, in line with previous guidance
of 1.7 million boe/d adjusted for force majeure effects and at the Company’s updated
price deck of 105 $/bbl. |
| · | E&P:
Around 700 million boe of new exploration resources are expected to be discovered in 2022,
up from 600 million boe previously guided. |
| · | GGP:
Reaffirmed guidance of adjusted EBIT of at least €1.2 billion. Second half EBIT is expected
to be concentrated in the fourth quarter. |
| · | Plenitude &
Power: Reaffirmed Plenitude’s EBITDA guidance, expected to be higher than €0.6
billion. We also confirm our guidance of more than 2 GW of installed renewable generation
capacity by year-end. |
| · | Downstream:
Adjusted EBIT (R&M with ADNOC pro-forma and Versalis) is raised to the range of €1.8-
2 billion vs previous guidance of just positive territory, assuming a SERM of 6 $/bbl in
the second half of 2022. |
| · | Our
main price sensitivities foresee a variation of €130 million in free cash flow for each
one-dollar change in the price of Brent crude oil and around €700 million for a 5 USD/cent
movement in the USD/EUR cross rate vs our new assumption of 1.08 USD/EUR for 2022 and considering
105 $/bbl Brent price. |
| · | Adjusted
cash flow before working capital at replacement cost is now expected to be €20 billion
at 105 $/bbl, vs our previous guidance of €16 billion at 90 $/bbl. |
| · | Organic
capex is seen at €8.3 billion, in line with previous guidance of €7.7 billion adjusting
for EUR/USD exchange rate updated assumption. |
| · | Cash
neutrality on a normalized basis is expected at a Brent price of around 40 $/bbl, reflecting
current strong underlying performance and cost management across our businesses. |
| · | 2022
leverage ante IFRS 16 is seen at 0.13 at our price assumption. |
Business segments operating results |
|
Exploration & Production
Production and prices
IQ |
|
|
IIQ |
|
IH |
|
2022 |
|
2022 |
2021 |
%
Ch. |
2022 |
2021 |
%
Ch. |
|
Production |
|
|
|
|
|
|
|
780 |
Liquids |
kbbl/d |
740 |
779 |
(5) |
760 |
797 |
(5) |
4,638 |
Natural
gas |
mmcf/d |
4,447 |
4,339 |
2 |
4,542 |
4,531 |
1 |
1,654 |
Hydrocarbons |
kboe/d |
1,578 |
1,597 |
(1) |
1,616 |
1,650 |
(2) |
|
Average
realizations |
|
|
|
|
|
|
|
93.86 |
Liquids |
$/bbl |
104.99 |
63.76 |
65 |
99.54 |
60.56 |
64 |
10.69 |
Natural
gas |
$/kcf |
9.13 |
4.95 |
84 |
9.92 |
4.75 |
109 |
75.47 |
Hydrocarbons |
$/boe |
78.03 |
45.94 |
70 |
76.75 |
43.36 |
77 |
| · | In
the second quarter of 2022, hydrocarbon production averaged 1.58 million boe/d (1.62
million boe/d in the first half of 2022), down 1% compared to the second quarter of 2021
(down 2% compared to the first half of 2021). The decrease was due to unplanned outages,
such as force majeure at the CPC export pipeline affecting our volumes in Kazakhstan, plant
shutdowns in Libya due to a resumption of internal clashes, and rising sabotage and oil thefts
in Nigeria. Net of those events, price effects and the progressive easing of OPEC+ production
quotas (particularly in the United Arab Emirates), production increased by 1% year-on-year
(essentially unchanged compared to the first half of 2021). Production was supported by ramp-ups
in Indonesia, in a context of strong global demand for LNG, as well as by higher activity
levels in Algeria and Angola, while Italy and the UK benefitted from a lower maintenance
activity compared to 2021. |
| · | Liquid
production was 740 kbbl/d in the quarter, down 5% year-on-year (down 5% compared to the
first half of 2021). The reduction in Kazakhstan, Nigeria and Libya was partly offset by
production growth in Angola, Algeria and Italy as well as the progressive easing of OPEC+
production quotas. |
| · | Natural
gas production was 4,447 mmcf/d in the quarter, up 2% year-on-year (up 1% compared to
the first half of 2021). Production ramp-ups in Indonesia and higher production in Algeria,
the UK and Italy were partly offset by reductions in Libya and Nigeria. |
Results
IQ |
|
|
IIQ |
|
IH |
|
2022 |
(€ million) |
2022 |
2021 |
% Ch. |
2022 |
2021 |
% Ch. |
4,344 |
Operating profit (loss) |
|
4,779 |
2,269 |
.. |
9,123 |
3,665 |
.. |
37 |
Exclusion of special items |
|
88 |
(428) |
|
125 |
(446) |
|
4,381 |
Adjusted operating profit (loss) |
|
4,867 |
1,841 |
164 |
9,248 |
3,219 |
187 |
(103) |
Net finance (expense) income |
|
(12) |
(97) |
|
(115) |
(193) |
|
379 |
Net income (expense) from investments |
|
505 |
129 |
|
884 |
219 |
|
235 |
of which: - Vår Energi |
|
220 |
81 |
|
455 |
143 |
|
(1,737) |
Income taxes |
|
(2,132) |
(831) |
|
(3,869) |
(1,473) |
|
2,920 |
Adjusted net profit (loss) |
|
3,228 |
1,042 |
.. |
6,148 |
1,772 |
.. |
|
Results also include: |
|
|
|
|
|
|
|
68 |
Exploration expenses: |
|
92 |
91 |
1 |
160 |
132 |
21 |
46 |
- prospecting, geological and geophysical expenses |
|
59 |
63 |
|
105 |
102 |
|
22 |
- write-off of unsuccessful wells |
|
33 |
28 |
|
55 |
30 |
|
1,080 |
Capital expenditure |
|
1,489 |
950 |
57 |
2,569 |
1,806 |
42 |
| · | In
the second quarter of 2022, Exploration & Production continued on a strong
uptrend with adjusted operating profit of €4,867 million, a 164% increase compared
to the same period of 2021, driven by an ongoing recovery in the oil scenario and a tight
worldwide market for natural gas, as well as by cost discipline. Against this backdrop, Eni’s
realized prices of liquids increased by 65%, whereas natural gas realized prices increased
by 84% compared to the same period of 2021. In the first half of 2022 adjusted operating
profit was €9,248 million, up 187% compared to the first half of 2021, due to the same
drivers as for the second quarter. |
| · | In
the second quarter of 2022, the segment reported an adjusted net profit of €3,228
million, an increase of about €2.2 billion compared to the second quarter of 2021 (€6,148
million in the first half of 2022, an increase of €4,376 million compared to the same
period of 2021) helped by a robust performance of the equity-accounted entities Vår
Energi (up €139 million) and Angola LNG, as well as a lower tax rate (down 5 and 7 percentage
points compared to the second quarter and the first half of 2021, respectively). The lower
tax rate is related to scenario effects and a more favorable geographic profit mix reflecting
a higher share of taxable income earned in countries with more favourable statutory tax rates. |
For the disclosure on business segment special
charges, see “Special items” in the Group results section.
Global Gas & LNG Portfolio
Sales
IQ |
|
|
IIQ |
|
IH |
|
2022 |
|
2022 |
2021 |
%
Ch. |
2022 |
2021 |
%
Ch. |
1,043 |
Spot
Gas price at Italian PSV |
€/kcm |
1,032 |
264 |
291 |
1,037 |
231 |
349 |
1,018 |
TTF |
|
1,011 |
262 |
285 |
1,014 |
229 |
342 |
26 |
Spread
PSV vs. TTF |
|
20 |
1 |
.. |
23 |
2 |
.. |
|
Natural
gas sales |
bcm |
|
|
|
|
|
|
9.45 |
Italy |
|
6.83 |
9.07 |
(25) |
16.28 |
17.73 |
(8) |
7.93 |
Rest
of Europe |
|
5.98 |
6.31 |
(5) |
13.91 |
13.90 |
0 |
0.46 |
of
which: Importers in Italy |
|
0.64 |
0.65 |
(2) |
1.10 |
1.45 |
(24) |
7.47 |
European
markets |
|
5.34 |
5.66 |
(6) |
12.81 |
12.45 |
3 |
0.88 |
Rest
of World |
|
0.57 |
1.57 |
(64) |
1.45 |
2.80 |
(48) |
18.26 |
Worldwide
gas sales ⁽*⁾ |
|
13.38 |
16.95 |
(21) |
31.64 |
34.43 |
(8) |
2.8 |
of
which: LNG sales |
|
2.4 |
3.0 |
(20) |
5.2 |
5.2 |
|
(*) Data include intercompany sales.
| · | In the second quarter of 2022, natural gas
sales of 13.38 bcm decreased by 21% compared to the same period of 2021, due to the lower gas volumes marketed in Italy, particularly
at the spot market and in the wholesale segment, and in the European markets, mainly in France. Also, worldwide LNG sales decreased compared
to the second quarter of 2021. These negatives were partly offset by higher gas volumes marketed in Germany. In the first half of 2022,
natural gas sales amounted to 31.64 bcm, down 8% vs the same period of 2021, due to the same drivers as for the quarter. |
Results
IQ |
|
|
IIQ |
|
IH |
|
2022 |
(€
million) |
2022 |
2021 |
%
Ch. |
2022 |
2021 |
%
Ch. |
(977) |
Operating
profit (loss) |
|
(1,083) |
(311) |
.. |
(2,060) |
(240) |
.. |
1,908 |
Exclusion
of special items |
|
1,069 |
335 |
|
2,977 |
234 |
|
931 |
Adjusted
operating profit (loss) |
|
(14) |
24 |
(158) |
917 |
(6) |
.. |
(5) |
Net finance
(expense) income |
|
(15) |
(1) |
|
(20) |
(4) |
|
1 |
Net income
(expense) from investments |
|
1 |
1 |
|
2 |
(2) |
|
(271) |
Income taxes |
|
(30) |
(17) |
|
(301) |
(11) |
|
656 |
Adjusted
net profit (loss) |
|
(58) |
7 |
.. |
598 |
(23) |
.. |
3 |
Capital
expenditure |
|
6 |
15 |
(60) |
9 |
15 |
(40) |
| · | In the second quarter of 2022, the Global
Gas & LNG Portfolio segment reported an adjusted operating loss of €14 million in line with normal seasonality
patterns. In the first half of 2022, adjusted operating profit was €917 million, an improvement from the same period of 2021, mainly
due to the strong pricing environment and margin optimization leveraging on the flexibility of the natural gas supply portfolio in inventory
management and the diversified price indexation. |
For the disclosure on business segment special
charges, see “Special items” in the Group results section.
Refining & Marketing and Chemicals
Production and sales
IQ |
|
|
IIQ |
|
IH |
|
2022 |
|
2022 |
2021 |
% Ch. |
2022 |
2021 |
% Ch. |
(0.9) |
Standard Eni Refining Margin (SERM) |
$/bbl |
17.2 |
(0.4) |
.. |
8.2 |
(0.5) |
.. |
3.50 |
Throughputs in Italy |
mmtonnes |
4.63 |
4.00 |
16 |
8.13 |
7.85 |
4 |
2.57 |
Throughputs in the rest of World |
|
2.78 |
2.75 |
1 |
5.35 |
5.30 |
1 |
6.07 |
Total throughputs |
|
7.41 |
6.75 |
10 |
13.48 |
13.15 |
3 |
70 |
Average refineries utilization rate |
% |
90 |
73 |
|
80 |
72 |
|
91 |
Bio throughputs |
ktonnes |
144 |
145 |
(1) |
235 |
303 |
(22) |
36 |
Average bio refineries utilization rate |
% |
57 |
57 |
|
47 |
60 |
|
|
Marketing |
|
|
|
|
|
|
|
1.68 |
Retail sales in Europe |
mmtonnes |
1.87 |
1.79 |
4 |
3.55 |
3.26 |
9 |
1.20 |
Retail sales in Italy |
|
1.35 |
1.27 |
6 |
2.55 |
2.31 |
10 |
0.48 |
Retail sales in the rest of Europe |
|
0.52 |
0.52 |
|
1.00 |
0.95 |
5 |
22.0 |
Retail market share in Italy |
% |
21.7 |
22.3 |
|
21.8 |
22.4 |
|
1.87 |
Wholesale sales in Europe |
mmtonnes |
2.24 |
2.00 |
12 |
4.11 |
3.72 |
11 |
1.32 |
Wholesale sales in Italy |
|
1.60 |
1.46 |
10 |
2.92 |
2.75 |
6 |
0.55 |
Wholesale sales in the rest of Europe |
|
0.64 |
0.54 |
19 |
1.19 |
0.97 |
23 |
|
Chemicals |
|
|
|
|
|
|
|
1.13 |
Sales of chemical products |
mmtonnes |
1.07 |
1.14 |
(6) |
2.20 |
2.32 |
(5) |
70 |
Average plant utilization rate |
% |
69 |
65 |
|
69 |
69 |
|
| · | In the second quarter of 2022, the Standard
Eni Refining Margin recorded an exceptional level, setting an average of 17.2 $/barrel (8.2 $/barrel in the first half of 2022) vs.
negative values reported in the previous quarter and in the same period of 2021. Growing demand for gasoline, jet fuel and gasoil has
materialized from the second half of March 2022 due to the restart of economic activity against a backdrop of limited supply, particularly
of gasoil, owing to bottlenecks and capacity constrains across the industry, resulting in very strong products crack spreads. |
| · | In the second quarter of 2022, throughputs
on own accounts at Eni’s refineries in Italy were 4.63 mmtonnes, 16% higher than in the second quarter 2021 due to a favorable
refining scenario, with the main increases recorded at Milazzo, Sannazzaro and Taranto refineries (in the first half of 2022 throughputs
increased by 4%). Throughputs in the rest of world increased by 1% in both 2022 reporting periods compared to 2021, thanks to higher volumes
processed in Germany. |
| · | In the second quarter of 2022, bio throughputs
were 144 ktonnes, barely changed compared to the same period of 2021, impacted by lower volumes processed at the Gela biorefinery following
a shutdown that occurred in the first months of the year, offset by higher volumes at the Venice biorefinery. In the first half of 2022,
bio throughputs decreased by 22% compared to the same period of 2021. |
| · | In the second quarter of 2022, retail sales
in Italy were 1.35 mmtonnes, up 6% year-on-year due to higher volumes of gasoil, gasoline and LPG following the restarting of economic
activities and travel. In the first half of 2022, retail sales amounted to 2.55 mmtonnes, up 10% vs. the first half of 2021. The market
share in the second quarter 2022 was 21.7% (22.3% in the second quarter 2021). |
| · | In the second quarter of 2022, wholesale sales
in Italy were 1.60 mmtonnes, up 10% compared to the same period in 2021, driven by higher sales in the jet fuel segment. Positive
performance was also recorded in the first half of 2022 at 2.92 mmtonnes: up 6% vs. the first half of 2021. |
| · | Sales of chemical products were 1.07 mmtonnes
in the second quarter of 2022, down 6% compared to the same period in 2021, due to lower chemicals and raw materials availability and
the unfavorable scenario mainly in the polyethylene segment. In the first half of 2022, sales amounted to 2.20 mmtonnes, down 5% vs. the
first half of 2021. |
| · | In the second quarter of 2022 cracker, elastomers
and styrenics margins improved supported by higher prices due to demand recovery and lower imports and in the elastomer segment following
higher demand in the tyre segment. Margin in the polyethylene segments reported a sharp decreased compared to the second quarter of 2021. |
Results
IQ |
|
IIQ |
|
IH |
|
2022 |
(€ million) |
2022 |
2021 |
% Ch. |
2022 |
2021 |
% Ch. |
662 |
Operating profit (loss) |
1,617 |
(424) |
.. |
2,279 |
(115) |
.. |
(763) |
Exclusion of inventory holding (gains) losses |
(625) |
(350) |
|
(1,388) |
(832) |
|
10 |
Exclusion of special items |
112 |
964 |
|
122 |
1,017 |
|
(91) |
Adjusted operating profit (loss) |
1,104 |
190 |
.. |
1,013 |
70 |
.. |
24 |
- Refining & Marketing |
979 |
(12) |
.. |
1,003 |
(171) |
.. |
(115) |
- Chemicals |
125 |
202 |
(38) |
10 |
241 |
(96) |
(10) |
Net finance (expense) income |
(19) |
2 |
|
(29) |
(10) |
|
52 |
Net income (expense) from investments |
166 |
(2) |
|
218 |
(33) |
|
45 |
of which: ADNOC R> |
151 |
(14) |
|
196 |
(49) |
|
(5) |
Income taxes |
(319) |
(35) |
|
(324) |
(3) |
|
(54) |
Adjusted net profit (loss) |
932 |
155 |
.. |
878 |
24 |
.. |
92 |
Capital expenditure |
139 |
206 |
(33) |
231 |
333 |
(31) |
| · | In the second quarter of 2022, the Refining &
Marketing business achieved an adjusted operating profit of €979 million, a significant improvement compared
to a loss in same period of 2021 (€1,003 million in the first half of 2022, compared to loss of €171 million in the first half
2021). The performance was driven by materially higher refining margins, which the business was able to fully capture by ensuring high
levels of plant availability. Results also benefitted from optimization measures and initiatives to reduce energy costs of industrial
processes by replacing gas with cheaper alternatives. The marketing business reported better results due to higher sales volumes benefitting
from the reopening of the economy and increased mobility. |
| · | The Chemicals business, managed by Versalis,
in the second quarter of 2022, reported an adjusted operating profit of €125 million, down €77 million compared to the
second quarter of 2021 mainly due to a strong increase in the cost of oil-based feedstock and higher plant utilities expenses indexed
to the price of natural gas. These were partly offset by optimization measures intended to reduce natural gas consumption and steady margins
of polymers. In the first half of 2022, the adjusted operating result was a profit of €10 million, compared to a profit of €241
million reported in the first half of 2021, reflecting unusual market conditions in the first part of 2021. |
For the disclosure
on business segment special charges, see “Special items” in the Group results section.
Plenitude & Power
Production and sales
IQ |
|
|
IIQ |
|
IH |
|
2022 |
|
2022 |
2021 |
% Ch. |
2022 |
2021 |
% Ch. |
|
Plenitude |
|
|
|
|
|
|
|
3.42 |
Retail and business gas sales |
bcm |
0.95 |
1.08 |
(12) |
4.37 |
4.60 |
(5) |
5.10 |
Retail and business power sales to end customers |
TWh |
4.49 |
3.88 |
16 |
9.58 |
7.53 |
27 |
10.07 |
Retail/business customers |
mln pod |
9.95 |
9.95 |
0 |
9.95 |
9.95 |
0 |
557 |
Energy production from renewable sources |
GWh |
662 |
144 |
360 |
1,220 |
264 |
362 |
1,397 |
Installed capacity from renewables at period end |
MW |
1,524 |
359 |
325 |
1,524 |
359 |
325 |
57 |
of which: - photovoltaic |
% |
57 |
74 |
|
57 |
74 |
|
42 |
- wind |
|
42 |
24 |
|
42 |
24 |
|
1 |
- installed storage capacity |
|
1 |
2 |
|
1 |
2 |
|
|
Power |
|
|
|
|
|
|
|
5.73 |
Power sales in the open market |
TWh |
5.61 |
6.55 |
(14) |
11.34 |
12.97 |
(13) |
6.07 |
Thermoelectric production |
|
4.99 |
5.08 |
(2) |
11.06 |
10.20 |
8 |
| · | Retail and business gas sales amounted
to 0.95 bcm in the second quarter of 2022, decreasing by 12% compared to the same period in 2021 mainly due to lower gas volumes marketed
outside Italy particularly in France. In Italy retail and business gas sales were substantially unchanged vs. the comparative period.
In the first half of 2022 sales amounted to 4.37 bcm, down by 5% due to the same drivers as for the second quarter. |
| · | Retail and business power sales to end customers
were 4.49 TWh in the second quarter of 2022, up 16% and benefitting from the growth of activities in Italy as well as from the acquisition
of Aldro Energía (9.58 TWh in the first half of 2022, up 27% from the same period in 2021). |
| · | Energy production from renewable sources amounted
to 662 GWh in the second quarter of 2022, an almost five-fold increase year-on-year, mainly thanks to the contribution from the acquired
assets in operation. |
| · | As of June 30, 2022, the installed capacity
from renewables was 1.5 GW. Capacity increased by 0.4 GW from December 31, 2021, mainly due to the acquisition of Corazon photovoltaic
plant in the USA, the installation of the first plant of the Brazoria photovoltaic project (68 MW) in the USA, as well as the acquisition
of Fortore Energia wind farm in Italy. |
| · | Power sales in the open market were 5.61
TWh in the second quarter of 2022, down 14% year-on-year mainly due to lower volumes marketed to power exchange (11.34 TWh in the first
half of 2022, representing a reduction of 13% compared to the same period in 2021). |
Results
IQ |
|
|
IIQ |
|
IH |
|
2022 |
(€ million) |
2022 |
2021 |
% Ch. |
2022 |
2021 |
% Ch. |
1,594 |
Operating profit (loss) |
|
1,019 |
598 |
.. |
2,613 |
828 |
.. |
(1,409) |
Exclusion of special items |
|
(879) |
(490) |
|
(2,288) |
(518) |
|
185 |
Adjusted operating profit (loss) |
|
140 |
108 |
30 |
325 |
310 |
5 |
139 |
- Plenitude |
|
112 |
71 |
58 |
251 |
247 |
2 |
46 |
- Power |
|
28 |
37 |
(24) |
74 |
63 |
17 |
(3) |
Net finance (expense) income |
|
(4) |
(1) |
|
(7) |
(1) |
|
(2) |
Net income (expense) from investments |
|
|
(3) |
|
(2) |
3 |
|
(61) |
Income taxes |
|
(41) |
(34) |
|
(102) |
(89) |
|
119 |
Adjusted net profit (loss) |
|
95 |
70 |
36 |
214 |
223 |
(4) |
141 |
Capital expenditure |
|
181 |
76 |
138 |
322 |
160 |
101 |
| · | In the second quarter of 2022, Plenitude reported
an adjusted operating profit of €112 million, an increase of €41 million compared to the same period in 2021, due to
a ramp-up in produced volumes of renewable electricity and higher wholesale prices, as well as effective customer base management, partly
offset by a negative trading environment, adverse regulatory effects. In the first half of 2022, adjusted operating result was €251
million barely unchanged from the same period in 2021 due to the same drivers as for the second quarter. |
| · | The Power generation business from gas-fired
plants in the second quarter of 2022, reported an adjusted operating profit of €28 million, down 24% compared to the same
period in 2021, mainly due to lower power sales in the open market. In the first half of 2022, adjusted operating result was €74
million, up €11 million compared to the first half of 2021. |
For the disclosure on business segment special
charges, see “Special items” in the Group results section.
IQ |
|
IIQ |
|
IH |
|
2022 |
(€ million) |
2022 |
2021 |
% Ch. |
2022 |
2021 |
% Ch. |
32,129 |
Sales from operations |
31,556 |
16,294 |
94 |
63,685 |
30,788 |
107 |
5,352 |
Operating profit (loss) |
5,970 |
1,995 |
.. |
11,322 |
3,857 |
.. |
(713) |
Exclusion of inventory holding (gains) losses |
(638) |
(351) |
|
(1,351) |
(815) |
|
552 |
Exclusion of special items ⁽ᵃ⁾ |
509 |
401 |
|
1,061 |
324 |
|
5,191 |
Adjusted operating profit (loss) |
5,841 |
2,045 |
186 |
11,032 |
3,366 |
228 |
|
Breakdown by segment: |
|
|
|
|
|
|
4,381 |
Exploration & Production |
4,867 |
1,841 |
164 |
9,248 |
3,219 |
187 |
931 |
GGP |
(14) |
24 |
.. |
917 |
(6) |
.. |
(91) |
Refining & Marketing and Chemicals |
1,104 |
190 |
481 |
1,013 |
70 |
.. |
185 |
Plenitude & Power |
140 |
108 |
30 |
325 |
310 |
5 |
(174) |
Corporate and other activities |
(120) |
(111) |
(8) |
(294) |
(257) |
(14) |
(41) |
Impact of unrealized intragroup profit elimination and other consolidation adjustments |
(136) |
(7) |
|
(177) |
30 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,583 |
Net profit (loss) attributable to Eni's shareholders |
3,815 |
247 |
.. |
7,398 |
1,103 |
.. |
(507) |
Exclusion of inventory holding (gains) losses |
(455) |
(252) |
|
(962) |
(581) |
|
194 |
Exclusion of special items ⁽ᵃ⁾ |
448 |
934 |
|
642 |
677 |
|
3,270 |
Adjusted net profit (loss) attributable to Eni's shareholders |
3,808 |
929 |
.. |
7,078 |
1,199 |
.. |
(a) For further information see table "Breakdown of special items".
Adjusted results
| · | In the second quarter of 2022, the Group reported
an adjusted operating profit of €5,841 million, more than doubling the second quarter of 2021 (up €3,796 million) due
to strengthening hydrocarbon prices, supported by better fundamentals and a tight natural gas market, and materially higher refining margins.
These positive trends boosted the E&P performance (up €3,026 million compared to the second quarter of 2021) and the R&M
business which earned almost €1 billion of operating profit vs losses in the comparative periods. In the first half of 2022, the
Group reported an adjusted operating profit of €11,032 million, an improvement of €7,666 million compared to the first half
of 2021 thanks to the E&P segment and R&M business due to the above-mentioned drivers and also the GGP segment due to a strong
performance in the first quarter of the year. |
| · | Adjusted net result was €3,808 million
in the second quarter of 2022, an improvement compared to €929 million in the second quarter of 2021, due to significantly higher
results at equity-accounted JVs and associates (up €712 million from the second quarter of 2021) and a better consolidated tax rate.
In the first half of 2022 the Group reported an adjusted net result of €7,078 million, up by €5,879 million from the first half
of 2021. |
| · | Review of the Group’s tax rate:
the consolidated tax rate was 38.7% in the second quarter of 2022, down by approximately 9 percentage points vs. the second quarter of
2021. In the first half of 2022, the tax rate was lowered to 38.1%. This was mainly driven by the improved tax rate in E&P due to
scenario-related effects and a more favorable geographic profit mix reflecting a higher share of taxable income earned in countries with
more favorable statutory tax rates. Furthermore, the Group mix of taxable profit improved from a year ago due to a recovery in the profitability
outlook of Italian subsidiaries, whereas in 2021 the recognition of deferred tax asset on losses for the period was limited by lower profitability
prospects. |
Net borrowings and cash flow from operations
IQ |
|
IIQ |
|
|
IH |
|
2022 |
(€ million) |
2022 |
2021 |
Change |
|
2022 |
2021 |
Change |
3,589 |
Net profit (loss) |
3,819 |
252 |
3,567 |
|
7,408 |
1,112 |
6,296 |
|
Adjustments to reconcile net profit (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
1,554 |
- depreciation, depletion and amortization and other non monetary items |
1,211 |
2,810 |
(1,599) |
|
2,765 |
4,273 |
(1,508) |
(334) |
- net gains on disposal of assets |
(110) |
(6) |
(104) |
|
(444) |
(88) |
(356) |
2,454 |
- dividends, interests and taxes |
2,731 |
1,088 |
1,643 |
|
5,185 |
2,135 |
3,050 |
(2,605) |
Changes in working capital related to operations |
(1,235) |
(606) |
(629) |
|
(3,840) |
(1,797) |
(2,043) |
58 |
Dividends received by equity investments |
247 |
204 |
43 |
|
305 |
354 |
(49) |
(1,393) |
Taxes paid |
(2,271) |
(839) |
(1,432) |
|
(3,664) |
(1,502) |
(2,162) |
(225) |
Interests (paid) received |
(209) |
(186) |
(23) |
|
(434) |
(394) |
(40) |
3,098 |
Net cash provided by operating activities |
4,183 |
2,717 |
1,466 |
|
7,281 |
4,093 |
3,188 |
(1,364) |
Capital expenditure |
(1,829) |
(1,248) |
(581) |
|
(3,193) |
(2,387) |
(806) |
(1,194) |
Investments |
(73) |
(351) |
278 |
|
(1,267) |
(871) |
(396) |
574 |
Disposal of consolidated subsidiaries, businesses, tangible and intangible assets and investments |
330 |
68 |
262 |
|
904 |
237 |
667 |
(161) |
Other cash flow related to investing activities |
417 |
68 |
349 |
|
256 |
73 |
183 |
953 |
Free cash flow |
3,028 |
1,254 |
1,774 |
|
3,981 |
1,145 |
2,836 |
2,715 |
Net cash inflow (outflow) related to financial activities |
(1,045) |
(634) |
(411) |
|
1,670 |
(1,185) |
2,855 |
1,890 |
Changes in short and long-term financial debt |
(2,596) |
(265) |
(2,331) |
|
(706) |
(361) |
(345) |
(290) |
Repayment of lease liabilities |
(266) |
(226) |
(40) |
|
(556) |
(445) |
(111) |
(32) |
Dividends paid and changes in non-controlling interests and reserves |
(1,681) |
(844) |
(837) |
|
(1,713) |
(844) |
(869) |
(39) |
Net issue (repayment) of perpetual hybrid bond |
(48) |
1,985 |
(2,033) |
|
(87) |
1,975 |
(2,062) |
9 |
Effect of changes in consolidation and exchange differences of cash and cash equivalent |
70 |
(14) |
84 |
|
79 |
22 |
57 |
5,206 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT |
(2,538) |
1,256 |
(3,794) |
|
2,668 |
307 |
2,361 |
5,606 |
Adjusted net cash before changes in working capital at replacement cost |
5,191 |
2,797 |
2,394 |
|
10,797 |
4,757 |
6,040 |
IQ |
|
IIQ |
|
|
IH |
|
2022 |
(€ million) |
2022 |
2021 |
Change |
|
2022 |
2021 |
Change |
953 |
Free cash flow |
3,028 |
1,254 |
1,774 |
|
3,981 |
1,145 |
2,836 |
(290) |
Repayment of lease liabilities |
(266) |
(226) |
(40) |
|
(556) |
(445) |
(111) |
(79) |
Net borrowings of acquired companies |
(9) |
(71) |
62 |
|
(88) |
(241) |
153 |
(149) |
Exchange differences on net borrowings and other changes |
(273) |
101 |
(374) |
|
(422) |
(62) |
(360) |
(32) |
Dividends paid and changes in non-controlling interest and reserves |
(1,681) |
(844) |
(837) |
|
(1,713) |
(844) |
(869) |
(39) |
Net issue (repayment) of perpetual hybrid bond |
(48) |
1,985 |
(2,033) |
|
(87) |
1,975 |
(2,062) |
364 |
CHANGE IN NET BORROWINGS BEFORE LEASE LIABILITIES |
751 |
2,199 |
(1,448) |
|
1,115 |
1,528 |
(413) |
290 |
Repayment of lease liabilities |
266 |
226 |
40 |
|
556 |
445 |
111 |
(323) |
Inception of new leases and other changes |
199 |
(241) |
440 |
|
(124) |
(710) |
586 |
(33) |
Change in lease liabilities |
465 |
(15) |
480 |
|
432 |
(265) |
697 |
331 |
CHANGE IN NET BORROWINGS AFTER LEASE LIABILITIES |
1,216 |
2,184 |
(968) |
|
1,547 |
1,263 |
284 |
Net cash provided by operating activities
for the first half of 2022 was €7.3 billion, an increase of €3.2 billion compared to the first half of 2021, driven by a better
scenario in the upstream segment and a strong contribution from R&M business. The cash flow benefitted from trade receivables (€2.7
billion) due in subsequent reporting periods divested to financing institutions, up by approximately €0.6 billion compared to the
amount divested at the end of 2021 and slightly higher than the net benefit made in the first half 2021.
The outflow relating to the working capital of
approximately €3.8 billion was due to the change in the value of inventory holding accounted for under the weighted-average method
in a rising price environment, the build-up of gas inventories and invoice payments for gas supplies. The dividends received by investments
mainly related to Vår Energi and Nigeria LNG.
Cash flow from operations before changes in
working capital at replacement cost was €10,797 million. This non-GAAP measure includes net cash provided by operating activities
before changes in working capital and excluding the following items: inventory holding gains or losses relating to oil and products, the
timing difference between gas inventories accounted at weighted average cost and management own measure of performance leveraging inventories
to optimize margin, provisions for extraordinary credit losses and charges, and the fair value of commodity derivatives lacking
the formal criteria to be designated as hedges, the first instalment of an Italian one-off windfall tax levied on energy companies for
fiscal year 2022, as well as the reclassification as an operating cash flow of a reimbursement of share capital made by an associate.
A reconciliation of cash flow from operations
before changes in working capital at replacement cost to net cash provided by operating activities is provided below:
IQ |
|
IIQ |
|
IH |
|
2022 |
(€ million) |
2022 |
2021 |
Change |
2022 |
2021 |
Change |
3,098 |
Net cash provided by operating activities |
4,183 |
2,717 |
1,466 |
7,281 |
4,093 |
3,188 |
2,605 |
Changes in working capital related to operations |
1,235 |
606 |
629 |
3,840 |
1,797 |
2,043 |
605 |
Exclusion of commodity derivatives |
(115) |
(111) |
(4) |
490 |
(269) |
759 |
(713) |
Exclusion of inventory holding (gains) losses |
(638) |
(351) |
(287) |
(1,351) |
(815) |
(536) |
5,595 |
Net cash before changes in working capital at replacement cost |
4,665 |
2,861 |
1,804 |
10,260 |
4,806 |
5,454 |
11 |
Provisions for extraordinary credit losses and other items |
526 |
(64) |
590 |
537 |
(49) |
586 |
5,606 |
Adjusted net cash before changes in working capital at replacement cost |
5,191 |
2,797 |
2,394 |
10,797 |
4,757 |
6,040 |
Organic capex was €3.44 billion, higher
than the comparative period in 2021 (up 18%), and included the funding of the CFS (Commonwealth Fusion Systems) venture engaged in developing
magnetic fusion. They were fully funded by the adjusted net cash flow.
Cash outflows for acquisitions net of divestments
were €0.9 billion (including acquired net finance debt) and related to the acquisition of a 20% stake in the Dogger Bank C offshore
wind project in the North Sea, the 100% stake in SKGR company owner of a portfolio of photovoltaic plants in Greece, renewable capacity
in the United States as well as a capital contribution to our joint venture Saipem to support a new industrial plan and a financial restructuring
of the investee. These outflows were partly offset by the divestment of a stake of the joint venture Vår Energi, with proceeds net
to Eni of about €0.5 billion.
Net financial borrowings before IFRS 16 decreased
by around €1.1 billion due to the organic free cash flow (approximately €5 billion), partly offset by the payment of the 2021
balance dividends to Eni’s shareholders of approximately €1.5 billion, the €0.2 billion buy-back program, net effect of
acquisitions and divestments (€0.9 billion of cash outflow), payments of lease liabilities for €0.6 billion, the payment of
the coupon of perpetual subordinated bonds, as well as by the effect of exchange differences and other minor changes on net borrowings
(€0.6 billion).
Summarized Group Balance Sheet
(€ million) |
Jun. 30, 2022 |
Dec. 31, 2021 |
Change |
|
|
|
|
Fixed assets |
|
|
|
Property, plant and equipment |
54,871 |
56,299 |
(1,428) |
Right of use |
4,401 |
4,821 |
(420) |
Intangible assets |
4,851 |
4,799 |
52 |
Inventories - Compulsory stock |
1,307 |
1,053 |
254 |
Equity-accounted investments and other investments |
7,300 |
7,181 |
119 |
Receivables and securities held for operating purposes |
2,087 |
1,902 |
185 |
Net payables related to capital expenditure |
(2,040) |
(1,804) |
(236) |
|
72,777 |
74,251 |
(1,474) |
Net working capital |
|
|
|
Inventories |
8,820 |
6,072 |
2,748 |
Trade receivables |
15,853 |
15,524 |
329 |
Trade payables |
(16,202) |
(16,795) |
593 |
Net tax assets (liabilities) |
(4,835) |
(3,678) |
(1,157) |
Provisions |
(11,959) |
(13,593) |
1,634 |
Other current assets and liabilities |
(4,300) |
(2,258) |
(2,042) |
|
(12,623) |
(14,728) |
2,105 |
Provisions for employee benefits |
(803) |
(819) |
16 |
Assets held for sale including related liabilities |
5,438 |
139 |
5,299 |
CAPITAL EMPLOYED, NET |
64,789 |
58,843 |
5,946 |
|
|
|
|
Eni's shareholders equity |
51,917 |
44,437 |
7,480 |
Non-controlling interest |
95 |
82 |
13 |
Shareholders' equity |
52,012 |
44,519 |
7,493 |
Net borrowings before lease liabilities ex IFRS 16 |
7,872 |
8,987 |
(1,115) |
Lease liabilities |
4,905 |
5,337 |
(432) |
- of which Eni working interest |
4,417 |
3,653 |
764 |
- of which Joint operators' working interest |
488 |
1,684 |
(1,196) |
Net borrowings after lease liabilities ex IFRS 16 |
12,777 |
14,324 |
(1,547) |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
64,789 |
58,843 |
5,946 |
Leverage before lease liabilities ex IFRS 16 |
0.15 |
0.20 |
(0.05) |
Leverage after lease liabilities ex IFRS 16 |
0.25 |
0.32 |
(0.07) |
Gearing |
0.20 |
0.24 |
(0.05) |
As of June 30, 2022, fixed assets
of €72.8 billion decreased by €1.5 billion from December 31, 2021, due to the reclassification of Eni Angola’s assets
as held for sale following the merger agreement signed in March 2022 with BP. Other movements in fixed assets included capital expenditure
and acquisitions incurred in the period and positive currency translation differences (the period-end exchange rate of EUR vs. USD was
1.039, down 8.3% compared to 1.133 as of December 31, 2021), partly offset by DD&A (€3,612 million).
Net working capital (-€12.6 billion)
increased by €2.1 billion mainly as a result of increased value of oil and product inventories due to the weighted-average cost method
of accounting in an environment of rising prices (up €2.7 billion). These were partly offset by the accrual of income taxes for the
period of €1.2 billion (net of payments made), as well as by a decrease in other current assets and liabilities (down €2.04
billion) due to fair value changes of derivative instruments.
Shareholders’ equity (€52 billion)
increased by approximately €7.5 billion compared to December 31, 2021, due to the net profit for the period (€7.4 billion),
positive foreign currency translation differences (about €3.5 billion) reflecting the appreciation of the US dollar vs. the euro
as of June 30, 2022, vs. December 31, 2021, partly offset by the negative change in the cash flow hedge reserve of €2.7
billion reflecting trends in gas prices and dividend payments.
Net borrowings1 before lease
liabilities as of June 30, 2022, were €7.9 billion, down €1.1 billion from December 31, 2021. Leverage2
– the ratio of the borrowings to total equity calculated before the impact of IFRS 16 - was 0.15 on June 30, 2022, lower than
December 31, 2021 (0.20).
Special items
The breakdown of special items recorded in
operating profit by segment (net charges of €1,061 million and of €509 million in the first half and in the second quarter,
respectively) is as follows:
| · | E&P: net charges of €125 million
in the first half (net charges of €88 million in the second quarter) mainly related to the impairment of certain assets to align
the book value to fair value (€43 million and €35 million in the first half and second quarter, respectively), impairment losses
of credits (€27 million in the first half), provisions for redundancy incentive (€17 million in the first half) and risk provision
(€7 million in both reporting periods). |
| · | GGP: net charges of €2,977 million
in the first half (€1,069 million in the second quarter) mainly 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 exemption (charge of €2,874 million and
of €831 million in the first half and in the second quarter, respectively) following a noticeable increase in natural gas prices;
and the difference between the value of gas inventories 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 (gains of
€53 million in the first half and charges of €121 million in the second quarter). |
The reclassification to adjusted operating
profit of the positive balance of €148 million (€113 million in the second quarter) 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
€122 million (€112 million in the second quarter) and mainly related to environmental charges (€124 million and €110
million in the first half and the second quarter, respectively), the write-down of capital expenditures made for compliance and stay-in-business
at certain Cash Generating Units with expected negative cash flows (€103 million and €58 million in the first half and in the
second quarter, respectively). These charges were partly offset by the reclassification to adjusted operating profit of the negative balance
of €41 million (€34 million in the quarter) related to exchange rate differences and derivatives, an insurance compensation
(gains of €23 million) and net gains on disposal of €7 million as well as the accounting effect of certain fair-valued commodity
derivatives lacking the formal criteria to be classified as hedges (gains of €27 million in the first half). |
| · | Plenitude & Power: net gains
of €2,288 million (€879 million in the second quarter) including the accounting effect of certain fair-valued commodity derivatives
lacking the formal criteria to be classified as hedges driven by material increases of natural gas prices. |
The other special items in the first half of 2022
were related to: (i) the gain on the share offering of the Vår Energi investee through an IPO and listing at the Norwegian
stock exchange; (ii) a charge relating to an Italian windfall tax levied on energy companies for fiscal year 2022 enacted by Law
51/2022; (iii) the alignment to current values of the raw materials and products inventory of the ADNOC refinery.
1 Details on net borrowings are furnished on page 28.
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 19 and subsequent.
Other information, basis
of presentation and disclaimer
This press release on Eni’s results for the second quarter and
the first half of 2022 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 and second quarter of 2022, the first half of 2022 and for the second quarter and first
half of 2021. Information on the Company’s financial position relates to end of the periods as of June 30, 2022 and December 31,
2021.
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 2021 Annual
Report on Form 20-F filed with the US SEC on April 8, 2022, which investors are urged to read.
The interim consolidated financial report as at
June 30, 2022 prepared in accordance with Italian listing standards, subject to a limited review by the external auditors is due
to be published in the first week of August.
* * *
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 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 second quarter and
the first half of 2022 results (not subject to audit) 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) |
|
|
|
|
|
|
|
|
Second
Quarter 2022 |
Exploration
&
Production |
Global
Gas &
LNG
Portfolio |
Refining
&
Marketing
and Chemicals |
Plenitude
& Power |
Corporate
and other
activities |
Impact
of unrealized
intragroup
profit
elimination |
|
GROUP |
Reported
operating profit (loss) |
4,779 |
(1,083) |
1,617 |
1,019 |
(239) |
(123) |
|
5,970 |
Exclusion
of inventory holding (gains) losses |
|
|
(625) |
|
|
(13) |
|
(638) |
Exclusion
of special items: |
|
|
|
|
|
|
|
|
environmental
charges |
2 |
|
110 |
|
98 |
|
|
210 |
impairment
losses (impairment reversals), net |
35 |
|
58 |
3 |
17 |
|
|
113 |
impairment
of exploration projects |
|
|
|
|
|
|
|
|
net
gains on disposal of assets |
|
|
(7) |
|
|
|
|
(7) |
risk
provisions |
7 |
|
|
|
5 |
|
|
12 |
provision
for redundancy incentives |
|
3 |
|
69 |
(2) |
|
|
70 |
commodity
derivatives |
|
831 |
3 |
(949) |
|
|
|
(115) |
exchange
rate differences and derivatives |
(9) |
113 |
(34) |
(2) |
|
|
|
68 |
other |
53 |
122 |
(18) |
|
1 |
|
|
158 |
Special
items of operating profit (loss) |
88 |
1,069 |
112 |
(879) |
119 |
|
|
509 |
Adjusted
operating profit (loss) |
4,867 |
(14) |
1,104 |
140 |
(120) |
(136) |
|
5,841 |
Net
finance (expense) income ⁽ᵃ⁾ |
(12) |
(15) |
(19) |
(4) |
(230) |
|
|
(280) |
Net
income (expense) from investments ⁽ᵃ⁾ |
505 |
1 |
166 |
|
(10) |
|
|
662 |
Income
taxes ⁽ᵃ⁾ |
(2,132) |
(30) |
(319) |
(41) |
77 |
34 |
|
(2,411) |
Tax
rate (%) |
|
|
|
|
|
|
|
38.7 |
Adjusted
net profit (loss) |
3,228 |
(58) |
932 |
95 |
(283) |
(102) |
|
3,812 |
of
which: |
|
|
|
|
|
|
|
|
-
Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
4 |
-
Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
3,808 |
Reported
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
3,815 |
Exclusion
of inventory holding (gains) losses |
|
|
|
|
|
|
|
(455) |
Exclusion
of special items |
|
|
|
|
|
|
|
448 |
Adjusted
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
3,808 |
(a)
Excluding special items. |
(€
million) |
|
|
|
|
|
|
|
|
Second
Quarter 2021 |
Exploration
&
Production |
Global
Gas &
LNG
Portfolio |
Refining
&
Marketing
and Chemicals |
Plenitude
& Power |
Corporate
and other
activities |
Impact
of unrealized
intragroup
profit
elimination |
|
GROUP |
Reported operating profit (loss) |
2,269 |
(311) |
(424) |
598 |
(131) |
(6) |
|
1,995 |
Exclusion of inventory holding (gains) losses |
|
|
(350) |
|
|
(1) |
|
(351) |
Exclusion of special items: |
|
|
|
|
|
|
|
|
environmental charges |
9 |
|
41 |
|
5 |
|
|
55 |
impairment losses (impairment reversals), net |
(382) |
|
946 |
|
5 |
|
|
569 |
impairment of exploration projects |
22 |
|
|
|
|
|
|
22 |
net gains on disposal of assets |
1 |
|
(7) |
|
1 |
|
|
(5) |
risk provisions |
32 |
|
(4) |
|
(1) |
|
|
27 |
provision for redundancy incentives |
8 |
|
8 |
|
9 |
|
|
25 |
commodity derivatives |
|
369 |
10 |
(490) |
|
|
|
(111) |
exchange rate differences and derivatives |
(5) |
(27) |
7 |
|
|
|
|
(25) |
other |
(113) |
(7) |
(37) |
|
1 |
|
|
(156) |
Special items of operating profit (loss) |
(428) |
335 |
964 |
(490) |
20 |
|
|
401 |
Adjusted operating profit (loss) |
1,841 |
24 |
190 |
108 |
(111) |
(7) |
|
2,045 |
Net finance (expense) income ⁽ᵃ⁾ |
(97) |
(1) |
2 |
(1) |
(124) |
|
|
(221) |
Net income (expense) from investments ⁽ᵃ⁾ |
129 |
1 |
(2) |
(3) |
(175) |
|
|
(50) |
Income taxes ⁽ᵃ⁾ |
(831) |
(17) |
(35) |
(34) |
76 |
1 |
|
(840) |
Tax rate (%) |
|
|
|
|
|
|
|
47.4 |
Adjusted net profit (loss) |
1,042 |
7 |
155 |
70 |
(334) |
(6) |
|
934 |
of which: |
|
|
|
|
|
|
|
|
- Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
5 |
- Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
929 |
Reported net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
247 |
Exclusion of inventory holding (gains) losses |
|
|
|
|
|
|
|
(252) |
Exclusion of special items |
|
|
|
|
|
|
|
934 |
Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
929 |
(a) Excluding special items. |
(€
million) |
|
|
|
|
|
|
|
|
First Half 2022 |
Exploration
&
Production |
Global
Gas &
LNG
Portfolio |
Refining
&
Marketing
and Chemicals |
Plenitude
& Power |
Corporate
and other
activities |
Impact
of unrealized
intragroup
profit
elimination |
|
GROUP |
Reported
operating profit (loss) |
9,123 |
(2,060) |
2,279 |
2,613 |
(419) |
(214) |
|
11,322 |
Exclusion of inventory holding (gains)
losses |
|
|
(1,388) |
|
|
37 |
|
(1,351) |
Exclusion
of special items: |
|
|
|
|
|
|
|
|
environmental charges |
2 |
|
124 |
|
98 |
|
|
224 |
impairment losses (impairment reversals),
net |
43 |
3 |
103 |
3 |
23 |
|
|
175 |
impairment of exploration projects |
|
|
|
|
|
|
|
|
net gains on disposal of assets |
(2) |
|
(7) |
|
|
|
|
(9) |
risk provisions |
7 |
|
|
|
5 |
|
|
12 |
provision for redundancy incentives |
17 |
3 |
10 |
69 |
7 |
|
|
106 |
commodity derivatives |
|
2,874 |
(27) |
(2,357) |
|
|
|
490 |
exchange rate differences and derivatives |
(14) |
148 |
(41) |
(3) |
|
|
|
90 |
other |
72 |
(51) |
(40) |
|
(8) |
|
|
(27) |
Special
items of operating profit (loss) |
125 |
2,977 |
122 |
(2,288) |
125 |
|
|
1,061 |
Adjusted
operating profit (loss) |
9,248 |
917 |
1,013 |
325 |
(294) |
(177) |
|
11,032 |
Net finance (expense) income ⁽ᵃ⁾ |
(115) |
(20) |
(29) |
(7) |
(448) |
|
|
(619) |
Net income (expense) from investments
⁽ᵃ⁾ |
884 |
2 |
218 |
(2) |
(60) |
|
|
1,042 |
Income taxes ⁽ᵃ⁾ |
(3,869) |
(301) |
(324) |
(102) |
178 |
51 |
|
(4,367) |
Tax rate (%) |
|
|
|
|
|
|
|
38.1 |
Adjusted
net profit (loss) |
6,148 |
598 |
878 |
214 |
(624) |
(126) |
|
7,088 |
of
which: |
|
|
|
|
|
|
|
|
- Adjusted net profit (loss) of non-controlling
interest |
|
|
|
|
|
|
|
10 |
-
Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
7,078 |
Reported
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
7,398 |
Exclusion of inventory holding (gains)
losses |
|
|
|
|
|
|
|
(962) |
Exclusion of special items |
|
|
|
|
|
|
|
642 |
Adjusted
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
7,078 |
(a) Excluding special items. |
(€
million) |
|
|
|
|
|
|
|
|
First Half 2021 |
Exploration
&
Production |
Global
Gas &
LNG
Portfolio |
Refining
&
Marketing
and Chemicals |
Plenitude
& Power |
Corporate
and other
activities |
Impact
of unrealized
intragroup
profit
elimination |
|
GROUP |
Reported operating profit (loss) |
3,665 |
(240) |
(115) |
828 |
(294) |
13 |
|
3,857 |
Exclusion of inventory holding (gains) losses |
|
|
(832) |
|
|
17 |
|
(815) |
Exclusion of special items: |
|
|
|
|
|
|
|
|
environmental charges |
9 |
|
65 |
|
5 |
|
|
79 |
impairment losses (impairment reversals), net |
(376) |
|
970 |
|
8 |
|
|
602 |
impairment of exploration projects |
22 |
|
|
|
|
|
|
22 |
net gains on disposal of assets |
(75) |
|
(13) |
(1) |
1 |
|
|
(88) |
risk provisions |
32 |
|
(4) |
|
(1) |
|
|
27 |
provision for redundancy incentives |
15 |
|
18 |
1 |
22 |
|
|
56 |
commodity derivatives |
|
215 |
32 |
(516) |
|
|
|
(269) |
exchange rate differences and derivatives |
1 |
56 |
(2) |
(2) |
|
|
|
53 |
other |
(74) |
(37) |
(49) |
|
2 |
|
|
(158) |
Special items of operating profit (loss) |
(446) |
234 |
1,017 |
(518) |
37 |
|
|
324 |
Adjusted operating profit (loss) |
3,219 |
(6) |
70 |
310 |
(257) |
30 |
|
3,366 |
Net finance (expense) income ⁽ᵃ⁾ |
(193) |
(4) |
(10) |
(1) |
(263) |
|
|
(471) |
Net income (expense) from investments ⁽ᵃ⁾ |
219 |
(2) |
(33) |
3 |
(212) |
|
|
(25) |
Income taxes ⁽ᵃ⁾ |
(1,473) |
(11) |
(3) |
(89) |
(77) |
(9) |
|
(1,662) |
Tax rate (%) |
|
|
|
|
|
|
|
57.9 |
Adjusted net profit (loss) |
1,772 |
(23) |
24 |
223 |
(809) |
21 |
|
1,208 |
of which: |
|
|
|
|
|
|
|
|
- Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
9 |
- Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
1,199 |
Reported net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
1,103 |
Exclusion of inventory holding (gains) losses |
|
|
|
|
|
|
|
(581) |
Exclusion of special items |
|
|
|
|
|
|
|
677 |
Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
1,199 |
(a) Excluding special items. |
(€
million) |
|
|
|
|
|
|
|
|
IQ 2022 |
Exploration
&
Production |
Global
Gas &
LNG
Portfolio |
Refining
&
Marketing
and Chemicals |
Plenitude
& Power |
Corporate
and other
activities |
Impact
of unrealized
intragroup
profit
elimination |
|
GROUP |
Reported operating profit (loss) |
4,344 |
(977) |
662 |
1,594 |
(180) |
(91) |
|
5,352 |
Exclusion of inventory holding (gains) losses |
|
|
(763) |
|
|
50 |
|
(713) |
Exclusion of special items: |
|
|
|
|
|
|
|
|
environmental charges |
|
|
14 |
|
|
|
|
14 |
impairment losses (impairment reversals), net |
8 |
3 |
45 |
|
6 |
|
|
62 |
net gains on disposal of assets |
(2) |
|
|
|
|
|
|
(2) |
provision for redundancy incentives |
17 |
|
10 |
|
9 |
|
|
36 |
commodity derivatives |
|
2,043 |
(30) |
(1,408) |
|
|
|
605 |
exchange rate differences and derivatives |
(5) |
35 |
(7) |
(1) |
|
|
|
22 |
other |
19 |
(173) |
(22) |
|
(9) |
|
|
(185) |
Special items of operating profit (loss) |
37 |
1,908 |
10 |
(1,409) |
6 |
|
|
552 |
Adjusted operating profit (loss) |
4,381 |
931 |
(91) |
185 |
(174) |
(41) |
|
5,191 |
Net finance (expense) income ⁽ᵃ⁾ |
(103) |
(5) |
(10) |
(3) |
(218) |
|
|
(339) |
Net income (expense) from investments ⁽ᵃ⁾ |
379 |
1 |
52 |
(2) |
(50) |
|
|
380 |
Income taxes ⁽ᵃ⁾ |
(1,737) |
(271) |
(5) |
(61) |
101 |
17 |
|
(1,956) |
Tax rate (%) |
|
|
|
|
|
|
|
37.4 |
Adjusted net profit (loss) |
2,920 |
656 |
(54) |
119 |
(341) |
(24) |
|
3,276 |
of which: |
|
|
|
|
|
|
|
|
- Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
6 |
- Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
3,270 |
Reported net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
3,583 |
Exclusion of inventory holding (gains) losses |
|
|
|
|
|
|
|
(507) |
Exclusion of special items |
|
|
|
|
|
|
|
194 |
Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
3,270 |
(a) Excluding special items. |
Breakdown of special items
IQ |
|
IIQ |
IH |
2022 |
(€ million) |
2022 |
2021 |
2022 |
2021 |
14 |
Environmental charges |
210 |
55 |
224 |
79 |
62 |
Impairment losses (impairment reversals), net |
113 |
569 |
175 |
602 |
|
Impairment of exploration projects |
|
22 |
|
22 |
(2) |
Net gains on disposal of assets |
(7) |
(5) |
(9) |
(88) |
|
Risk provisions |
12 |
27 |
12 |
27 |
36 |
Provisions for redundancy incentives |
70 |
25 |
106 |
56 |
605 |
Commodity derivatives |
(115) |
(111) |
490 |
(269) |
22 |
Exchange rate differences and derivatives |
68 |
(25) |
90 |
53 |
(185) |
Other |
158 |
(156) |
(27) |
(158) |
552 |
Special items of operating profit (loss) |
509 |
401 |
1,061 |
324 |
(16) |
Net finance (income) expense |
(75) |
79 |
(91) |
2 |
|
of which: |
|
|
|
|
(22) |
- exchange rate differences and derivatives reclassified to operating profit (loss) |
(68) |
25 |
(90) |
(53) |
(475) |
Net income (expense) from investments |
8 |
449 |
(467) |
402 |
|
of which: |
|
|
|
|
|
- impairment/revaluation of equity investments |
|
449 |
|
402 |
|
- gain on the divestment of Vår Energi |
(100) |
|
(432) |
|
133 |
Income taxes |
6 |
5 |
139 |
(51) |
194 |
Total special items of net profit (loss) |
448 |
934 |
642 |
677 |
Profit and loss reconciliation GAAP vs Non-GAAP
Second Quarter |
2022 |
IH |
Reported
results |
Profit
on
stock |
Special
items |
Finance
expense
reclassified |
Adjusted
results |
(€ million) |
Reported
results |
Profit
on
stock |
Special
items |
Finance
expense
reclassified |
Adjusted
results |
|
|
|
|
|
|
|
|
|
|
|
5,970 |
(638) |
441 |
68 |
5,841 |
Operating profit |
11,322 |
(1,351) |
971 |
90 |
11,032 |
(205) |
|
(7) |
(68) |
(280) |
Finance income (expense) |
(528) |
|
(1) |
(90) |
(619) |
654 |
|
8 |
|
662 |
Income (expense) from investments |
1,509 |
|
(467) |
|
1,042 |
46 |
|
174 |
|
220 |
. Vår Energi |
294 |
|
161 |
|
455 |
229 |
|
(78) |
|
151 |
. Adnoc R&T ⁽*⁾ |
339 |
|
(143) |
|
196 |
(2,600) |
183 |
6 |
|
(2,411) |
Income taxes |
(4,895) |
389 |
139 |
|
(4,367) |
3,819 |
(455) |
448 |
|
3,812 |
Net profit |
7,408 |
(962) |
642 |
|
7,088 |
4 |
|
|
|
4 |
- Non-controlling interest |
10 |
|
|
|
10 |
3,815 |
|
|
|
3,808 |
Net profit attributable to Eni's shareholders |
7,398 |
|
|
|
7,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
⁽*⁾ The Adnoc R&T special item is related to the elimination of the stock profit/loss. |
|
|
|
|
|
Second Quarter |
2021 |
IH |
Reported
results |
Profit
on
stock |
Special
items |
Finance
expense
reclassified |
Adjusted
results |
(€ million) |
Reported
results |
Profit
on
stock |
Special
items |
Finance
expense
reclassified |
Adjusted
results |
|
|
|
|
|
|
|
|
|
|
|
1,995 |
(351) |
426 |
(25) |
2,045 |
Operating profit |
3,857 |
(815) |
271 |
53 |
3,366 |
(300) |
|
54 |
25 |
(221) |
Finance income (expense) |
(473) |
|
55 |
(53) |
(471) |
(499) |
|
449 |
|
(50) |
Income (expense) from investments |
(427) |
|
402 |
|
(25) |
(321) |
|
402 |
|
81 |
. Vår Energi |
(254) |
|
397 |
|
143 |
8 |
|
(22) |
|
(14) |
. Adnoc R&T ⁽*⁾ |
20 |
|
(69) |
|
(49) |
(944) |
99 |
5 |
|
(840) |
Income taxes |
(1,845) |
234 |
(51) |
|
(1,662) |
252 |
(252) |
934 |
|
934 |
Net profit |
1,112 |
(581) |
677 |
|
1,208 |
5 |
|
|
|
5 |
- Non-controlling interest |
9 |
|
|
|
9 |
247 |
|
|
|
929 |
Net profit attributable to Eni's shareholders |
1,103 |
|
|
|
1,199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
⁽*⁾ The Adnoc R&T special item is related to the elimination of the stock profit/loss. |
|
|
|
|
|
|
First Quarter 2022 |
(€ million) |
Reported
results |
Profit
on
stock |
Special
items |
Finance
expense
reclassified |
Adjusted
results |
|
|
|
|
|
|
Operating profit |
5,352 |
(713) |
530 |
22 |
5,191 |
Finance income (expense) |
(323) |
|
6 |
(22) |
(339) |
Income (expense) from investments |
855 |
|
(475) |
|
380 |
. Vår Energi |
248 |
|
(13) |
|
235 |
. Adnoc R&T ⁽*⁾ |
110 |
|
(65) |
|
45 |
Income taxes |
(2,295) |
206 |
133 |
|
(1,956) |
Net profit |
3,589 |
(507) |
194 |
|
3,276 |
- Non-controlling interest |
6 |
|
|
|
6 |
Net profit attributable to Eni's shareholders |
3,583 |
|
|
|
3,270 |
|
|
|
|
|
|
|
|
|
|
|
|
⁽*⁾ The Adnoc R&T special item is related to the elimination of the stock profit/loss. |
|
|
|
|
|
Analysis of Profit and Loss account items |
Sales from operations
IQ |
|
IIQ |
|
IH |
|
2022 |
(€ million) |
2022 |
2021 |
% Ch. |
2022 |
2021 |
% Ch. |
7,772 |
Exploration & Production |
8,424 |
4,690 |
80 |
16,196 |
8,921 |
82 |
13,410 |
Global Gas & LNG Portfolio |
9,427 |
3,028 |
211 |
22,837 |
5,943 |
.. |
13,052 |
Refining & Marketing and Chemicals |
16,633 |
9,697 |
72 |
29,685 |
17,584 |
69 |
6,219 |
Plenitude & Power |
3,748 |
2,012 |
86 |
9,967 |
4,742 |
.. |
394 |
Corporate and other activities |
466 |
426 |
9 |
860 |
812 |
6 |
(8,718) |
Consolidation adjustments |
(7,142) |
(3,559) |
|
(15,860) |
(7,214) |
|
32,129 |
|
31,556 |
16,294 |
94 |
63,685 |
30,788 |
.. |
Operating expenses
IQ |
|
IIQ |
|
IH |
|
2022 |
(€ million) |
2022 |
2021 |
% Ch. |
2022 |
2021 |
% Ch. |
23,479 |
Purchases, services and other |
23,403 |
11,857 |
97 |
46,882 |
22,117 |
112 |
177 |
Impairment losses (impairment reversals) of trade and other receivables, net |
(12) |
(67) |
82 |
165 |
67 |
146 |
793 |
Payroll and related costs |
755 |
702 |
8 |
1,548 |
1,493 |
4 |
36 |
of which: provision for redundancy incentives and other |
70 |
25 |
|
106 |
56 |
|
24,449 |
|
24,146 |
12,492 |
93 |
48,595 |
23,677 |
.. |
DD&A, impairments,
reversals and write-off
IQ |
|
IIQ |
|
IH |
|
2022 |
(€ million) |
2022 |
2021 |
% Ch. |
2022 |
2021 |
% Ch. |
1,557 |
Exploration & Production |
1,254 |
1,361 |
(8) |
2,811 |
2,803 |
0 |
55 |
Global Gas & LNG Portfolio |
49 |
39 |
26 |
104 |
74 |
41 |
121 |
Refining & Marketing and Chemicals |
129 |
128 |
1 |
250 |
266 |
(6) |
86 |
Plenitude & Power |
87 |
64 |
36 |
173 |
122 |
42 |
34 |
Corporate and other activities |
34 |
38 |
(11) |
68 |
73 |
(7) |
(8) |
Impact of unrealized intragroup profit elimination |
(8) |
(8) |
|
(16) |
(16) |
|
1,845 |
Total depreciation, depletion and amortization |
1,545 |
1,622 |
|
3,390 |
3,322 |
2 |
62 |
Impairment losses (impairment reversals) of tangible and intangible and right of use assets, net |
113 |
569 |
(80) |
175 |
602 |
(71) |
1,907 |
Depreciation, depletion, amortization, impairments and reversals |
1,658 |
2,191 |
(24) |
3,565 |
3,924 |
(9) |
25 |
Write-off of tangible and intangible assets |
22 |
24 |
(8) |
47 |
29 |
.. |
1,932 |
|
1,680 |
2,215 |
(24) |
3,612 |
3,953 |
(9) |
Income (expense)
from investments
(€ million) |
|
|
|
|
|
|
First Half 2022 |
Exploration &
Production |
Global Gas & LNG Portfolio |
Refining &
Marketing and Chemicals |
Plenitude & Power |
Corporate and other activities |
Group |
Share of profit (loss) from equity-accounted investments |
578 |
2 |
337 |
(2) |
(65) |
850 |
Dividends |
127 |
|
24 |
|
|
151 |
Net gains (losses) on disposals |
432 |
|
|
|
2 |
434 |
Other income (expense), net |
(12) |
|
88 |
|
(2) |
74 |
|
1,125 |
2 |
449 |
(2) |
(65) |
1,509 |
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.
Mar. 31, 2022 |
Change |
|
(€ million) |
Jun. 30, 2022 |
Dec. 31, 2021 |
Change |
29,908 |
(2,191) |
|
Total debt |
27,717 |
27,794 |
(77) |
6,777 |
(1,076) |
|
- Short-term debt |
5,701 |
4,080 |
1,621 |
23,131 |
(1,115) |
|
- Long-term debt |
22,016 |
23,714 |
(1,698) |
(13,464) |
2,564 |
|
Cash and cash equivalents |
(10,900) |
(8,254) |
(2,646) |
(6,287) |
(17) |
|
Financial assets held for trading |
(6,304) |
(6,301) |
(3) |
(1,534) |
(1,107) |
|
Financing receivables held for non-operating purposes |
(2,641) |
(4,252) |
1,611 |
8,623 |
(751) |
|
Net borrowings before lease liabilities ex IFRS 16 |
7,872 |
8,987 |
(1,115) |
5,370 |
(465) |
|
Lease Liabilities |
4,905 |
5,337 |
(432) |
3,696 |
721 |
|
- of which Eni working interest |
4,417 |
3,653 |
764 |
1,674 |
(1,186) |
|
- of which Joint operators' working interest |
488 |
1,684 |
(1,196) |
13,993 |
(1,216) |
|
Net borrowings after lease liabilities ex IFRS 16 |
12,777 |
14,324 |
(1,547) |
47,466 |
4,546 |
|
Shareholders' equity including non-controlling interest |
52,012 |
44,519 |
7,493 |
0.18 |
(0.03) |
|
Leverage before lease liability ex IFRS 16 |
0.15 |
0.20 |
(0.05) |
0.29 |
(0.04) |
|
Leverage after lease liability ex IFRS 16 |
0.25 |
0.32 |
(0.07) |
Pro-forma leverage
(€ million) |
Reported measure |
Lease liabilities of
Joint operators'
working interest |
Pro-forma
measure |
Net borrowings after lease liabilities ex IFRS 16 |
12,777 |
488 |
12,289 |
|
|
|
|
Shareholders' equity including non-controlling interest |
52,012 |
|
52,012 |
|
|
|
|
Pro-forma leverage |
0.25 |
|
0.24 |
Pro-forma leverage is net of followers’
lease liabilities which are recovered through a cash call mechanism.
Consolidated financial statements |
|
BALANCE SHEET
(€ million) |
|
|
|
Jun. 30, 2022 |
Dec. 31, 2021 |
ASSETS |
|
|
Current assets |
|
|
Cash and cash equivalents |
10,900 |
8,254 |
Financial assets held for trading |
6,304 |
6,301 |
Other financial assets |
2,689 |
4,308 |
Trade and other receivables |
19,104 |
18,850 |
Inventories |
8,820 |
6,072 |
Income tax assets |
193 |
195 |
Other assets |
25,627 |
13,634 |
|
73,637 |
57,614 |
Non-current assets |
|
|
Property, plant and equipment |
54,871 |
56,299 |
Right of use assets |
4,401 |
4,821 |
Intangible assets |
4,851 |
4,799 |
Inventory - compulsory stock |
1,307 |
1,053 |
Equity-accounted investments |
6,091 |
5,887 |
Other investments |
1,209 |
1,294 |
Other financial assets |
2,081 |
1,885 |
Deferred tax assets |
3,545 |
2,713 |
Income tax assets |
112 |
108 |
Other assets |
1,449 |
1,029 |
|
79,917 |
79,888 |
Assets held for sale |
9,823 |
263 |
TOTAL ASSETS |
163,377 |
137,765 |
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
Current liabilities |
|
|
Short-term debt |
5,250 |
2,299 |
Current portion of long-term debt |
451 |
1,781 |
Current portion of long-term lease liabilities |
835 |
948 |
Trade and other payables |
21,193 |
21,720 |
Income taxes payable |
1,179 |
648 |
Other liabilities |
30,649 |
15,756 |
|
59,557 |
43,152 |
Non-current liabilities |
|
|
Long-term debt |
22,016 |
23,714 |
Long-term lease liabilities |
4,070 |
4,389 |
Provisions for contingencies |
11,959 |
13,593 |
Provisions for employee benefits |
803 |
819 |
Deferred tax liabilities |
5,651 |
4,835 |
Income taxes payable |
372 |
374 |
Other liabilities |
2,552 |
2,246 |
|
47,423 |
49,970 |
Liabilities directly associated with assets held for sale |
4,385 |
124 |
TOTAL LIABILITIES |
111,365 |
93,246 |
Share capital |
4,005 |
4,005 |
Retained earnings |
26,818 |
22,750 |
Cumulative currency translation differences |
10,051 |
6,530 |
Other reserves and equity instruments |
4,415 |
6,289 |
Treasury shares |
(770) |
(958) |
Net profit (loss) |
7,398 |
5,821 |
Total Eni shareholders' equity |
51,917 |
44,437 |
Non-controlling interest |
95 |
82 |
TOTAL SHAREHOLDERS' EQUITY |
52,012 |
44,519 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
163,377 |
137,765 |
GROUP PROFIT AND LOSS ACCOUNT
IQ |
|
IIQ |
IH |
2022 |
(€ million) |
2022 |
2021 |
2022 |
2021 |
32,129 |
Sales from operations |
31,556 |
16,294 |
63,685 |
30,788 |
365 |
Other income and revenues |
253 |
346 |
618 |
651 |
32,494 |
Total revenues |
31,809 |
16,640 |
64,303 |
31,439 |
(23,479) |
Purchases, services and other |
(23,403) |
(11,857) |
(46,882) |
(22,117) |
(177) |
Impairment reversals (impairment losses) of trade and other receivables, net |
12 |
67 |
(165) |
(67) |
(793) |
Payroll and related costs |
(755) |
(702) |
(1,548) |
(1,493) |
(761) |
Other operating (expense) income |
(13) |
62 |
(774) |
48 |
(1,845) |
Depreciation, Depletion and Amortization |
(1,545) |
(1,622) |
(3,390) |
(3,322) |
(62) |
Impairment reversals (impairment losses) of tangible, intangible and right of use assets, net |
(113) |
(569) |
(175) |
(602) |
(25) |
Write-off of tangible and intangible assets |
(22) |
(24) |
(47) |
(29) |
5,352 |
OPERATING PROFIT (LOSS) |
5,970 |
1,995 |
11,322 |
3,857 |
1,251 |
Finance income |
2,205 |
592 |
3,456 |
1,831 |
(1,517) |
Finance expense |
(2,288) |
(956) |
(3,805) |
(2,105) |
(42) |
Net finance income (expense) from financial assets held for trading |
(49) |
11 |
(91) |
19 |
(15) |
Derivative financial instruments |
(73) |
53 |
(88) |
(218) |
(323) |
FINANCE INCOME (EXPENSE) |
(205) |
(300) |
(528) |
(473) |
400 |
Share of profit (loss) of equity-accounted investments |
450 |
(519) |
850 |
(477) |
455 |
Other gain (loss) from investments |
204 |
20 |
659 |
50 |
855 |
INCOME (EXPENSE) FROM INVESTMENTS |
654 |
(499) |
1,509 |
(427) |
5,884 |
PROFIT (LOSS) BEFORE INCOME TAXES |
6,419 |
1,196 |
12,303 |
2,957 |
(2,295) |
Income taxes |
(2,600) |
(944) |
(4,895) |
(1,845) |
3,589 |
Net profit (loss) |
3,819 |
252 |
7,408 |
1,112 |
|
attributable to: |
|
|
|
|
3,583 |
- Eni's shareholders |
3,815 |
247 |
7,398 |
1,103 |
6 |
- Non-controlling interest |
4 |
5 |
10 |
9 |
|
|
|
|
|
|
|
Earnings per share (€ per share) |
|
|
|
|
1.00 |
- basic |
1.08 |
0.06 |
2.08 |
0.30 |
1.00 |
- diluted |
1.07 |
0.06 |
2.07 |
0.30 |
|
Weighted average number of shares outstanding (million) |
|
|
|
|
3,539.8 |
- basic |
3,536.9 |
3,572.5 |
3,538.3 |
3,572.5 |
3,547.4 |
- diluted |
3,544.5 |
3,577.9 |
3,544.1 |
3,577.9 |
|
|
|
|
|
|
COMPREHENSIVE INCOME (LOSS)
|
IIQ |
IH |
(€ million) |
2022 |
2021 |
2022 |
2021 |
Net profit (loss) |
3,819 |
252 |
7,408 |
1,112 |
Items that are not reclassified to profit or loss in later periods |
106 |
25 |
98 |
18 |
Remeasurements of defined benefit plans |
71 |
|
71 |
|
Share of other comprehensive income on equity accounted entities |
7 |
2 |
1 |
2 |
Change in the fair value of interests with effects on other comprehensive income |
43 |
23 |
41 |
16 |
Taxation |
(15) |
|
(15) |
|
Items that may be reclassified to profit in later periods |
2,240 |
(786) |
1,611 |
850 |
Currency translation differences |
2,651 |
(494) |
3,522 |
1,037 |
Change in the fair value of cash flow hedging derivatives |
(641) |
(393) |
(2,735) |
(221) |
Share of other comprehensive income on equity-accounted entities |
45 |
(12) |
36 |
(30) |
Taxation |
185 |
113 |
788 |
64 |
|
|
|
|
|
Total other items of comprehensive income (loss) |
2,346 |
(761) |
1,709 |
868 |
Total comprehensive income (loss) |
6,165 |
(509) |
9,117 |
1,980 |
attributable to: |
|
|
|
|
- Eni's shareholders |
6,160 |
(514) |
9,106 |
1,971 |
- Non-controlling interest |
5 |
5 |
11 |
9 |
CHANGES IN SHAREHOLDERS’ EQUITY
(€ million) |
|
|
Shareholders' equity at January 1, 2021 |
|
37,493 |
Total comprehensive income (loss) |
1,980 |
|
Dividends paid to Eni's shareholders |
(857) |
|
Dividends distributed by consolidated subsidiaries |
(5) |
|
Issue of perpetual subordinated bonds |
2,000 |
|
Coupon of perpetual subordinated bonds |
(10) |
|
Costs for the issue of perpetual subordinated bonds |
(15) |
|
Other changes |
(6) |
|
Total changes |
|
3,087 |
Shareholders' equity at June 30, 2021 |
|
40,580 |
attributable to: |
|
|
- Eni's shareholders |
|
40,496 |
- Non-controlling interest |
|
84 |
|
|
|
|
|
|
Shareholders' equity at January 1, 2022 |
|
44,519 |
Total comprehensive income (loss) |
9,117 |
|
Dividends paid to Eni's shareholders |
(1,522) |
|
Dividends distributed by consolidated subsidiaries |
(13) |
|
Coupon of perpetual subordinated bonds |
(87) |
|
Net purchase of treasury shares |
(212) |
|
Other changes |
210 |
|
Total changes |
|
7,493 |
Shareholders' equity at June 30, 2022 |
|
52,012 |
attributable to: |
|
|
- Eni's shareholders |
|
51,917 |
- Non-controlling interest |
|
95 |
GROUP CASH FLOW STATEMENT
IQ |
|
IIQ |
IH |
2022 |
(€ million) |
2022 |
2021 |
2022 |
2021 |
3,589 |
Net profit (loss) |
3,819 |
252 |
7,408 |
1,112 |
|
Adjustments to reconcile net profit (loss) to net cash provided by operating activities: |
|
|
|
|
1,845 |
Depreciation, depletion and amortization |
1,545 |
1,622 |
3,390 |
3,322 |
62 |
Impairment losses (impairment reversals) of tangible, intangible and right of use, net |
113 |
569 |
175 |
602 |
25 |
Write-off of tangible and intangible assets |
22 |
24 |
47 |
29 |
(400) |
Share of (profit) loss of equity-accounted investments |
(450) |
519 |
(850) |
477 |
(334) |
Gains on disposal of assets, net |
(110) |
(6) |
(444) |
(88) |
(44) |
Dividend income |
(107) |
(39) |
(151) |
(66) |
(8) |
Interest income |
(41) |
(17) |
(49) |
(38) |
211 |
Interest expense |
279 |
200 |
490 |
394 |
2,295 |
Income taxes |
2,600 |
944 |
4,895 |
1,845 |
6 |
Other changes |
(58) |
87 |
(52) |
(176) |
(2,605) |
Cash flow from changes in working capital |
(1,235) |
(606) |
(3,840) |
(1,797) |
(981) |
- inventories |
(2,092) |
(286) |
(3,073) |
(890) |
(4,701) |
- trade receivables |
4,554 |
(228) |
(147) |
(1,916) |
2,738 |
- trade payables |
(3,383) |
503 |
(645) |
1,016 |
(9) |
- provisions for contingencies |
117 |
(165) |
108 |
(242) |
348 |
- other assets and liabilities |
(431) |
(430) |
(83) |
235 |
16 |
Net change in the provisions for employee benefits |
39 |
(11) |
55 |
19 |
58 |
Dividends received |
247 |
204 |
305 |
354 |
6 |
Interest received |
7 |
3 |
13 |
15 |
(231) |
Interest paid |
(216) |
(189) |
(447) |
(409) |
(1,393) |
Income taxes paid, net of tax receivables received |
(2,271) |
(839) |
(3,664) |
(1,502) |
3,098 |
Net cash provided by operating activities |
4,183 |
2,717 |
7,281 |
4,093 |
(2,770) |
Cash flow from investing activities |
(1,539) |
(1,552) |
(4,309) |
(3,254) |
(1,301) |
- tangible assets |
(1,771) |
(1,183) |
(3,072) |
(2,276) |
|
- prepaid right of use |
|
(2) |
|
(2) |
(63) |
- intangible assets |
(58) |
(65) |
(121) |
(111) |
(167) |
- consolidated subsidiaries and businesses net of cash and cash equivalent acquired |
(3) |
(331) |
(170) |
(331) |
(1,027) |
- investments |
(70) |
(20) |
(1,097) |
(540) |
(104) |
- securities and financing receivables held for operating purposes |
(42) |
(42) |
(146) |
(69) |
(108) |
- change in payables in relation to investing activities |
405 |
91 |
297 |
75 |
625 |
Cash flow from disposals |
384 |
89 |
1,009 |
306 |
3 |
- tangible assets |
4 |
88 |
7 |
176 |
|
- intangible assets |
12 |
1 |
12 |
1 |
|
- consolidated subsidiaries and businesses net of cash and cash equivalent disposed of |
4 |
(5) |
4 |
76 |
|
- tax on disposals |
|
(35) |
|
(35) |
571 |
- investments |
310 |
19 |
881 |
19 |
51 |
- securities and financing receivables held for operating purposes |
29 |
21 |
80 |
79 |
|
- change in receivables in relation to disposals |
25 |
|
25 |
(10) |
2,715 |
Net change in receivables and securities not held for operating purposes |
(1,045) |
(634) |
1,670 |
(1,185) |
570 |
Net cash used in investing activities |
(2,200) |
(2,097) |
(1,630) |
(4,133) |
GROUP CASH FLOW STATEMENT (continued)
IQ |
|
IIQ |
|
IH |
2022 |
(€ million) |
2022 |
2021 |
|
2022 |
2021 |
128 |
Increase in long-term debt |
1 |
1,112 |
|
129 |
1,333 |
(877) |
Payment of long-term debt |
(2,817) |
(1,464) |
|
(3,694) |
(1,912) |
(290) |
Payment of lease liabilities |
(266) |
(226) |
|
(556) |
(445) |
2,639 |
Increase (decrease) in short-term financial debt |
220 |
87 |
|
2,859 |
218 |
(30) |
Dividends paid to Eni's shareholders |
(1,490) |
(839) |
|
(1,520) |
(839) |
|
Dividends paid to non-controlling interests |
(13) |
(5) |
|
(13) |
(5) |
|
Reimbursement to non-controlling interest |
20 |
|
|
20 |
|
(2) |
Acquisition of additional interests in consolidated subsidiaries |
(3) |
|
|
(5) |
|
|
Net purchase of treasury shares |
(195) |
|
|
(195) |
|
|
Issue of perpetual subordinated bonds |
|
1,985 |
|
|
1,985 |
(39) |
Coupon of perpetual subordinated bonds |
(48) |
|
|
(87) |
(10) |
1,529 |
Net cash used in financing activities |
(4,591) |
650 |
|
(3,062) |
325 |
9 |
Effect of exchange rate changes on cash and cash equivalents and other changes |
70 |
(14) |
|
79 |
22 |
5,206 |
Net increase (decrease) in cash and cash equivalents |
(2,538) |
1,256 |
|
2,668 |
307 |
8,265 |
Cash and cash equivalents - beginning of the period |
13,471 |
8,464 |
|
8,265 |
9,413 |
13,471 |
Cash and cash equivalents - end of the period |
10,933 |
9,720 |
|
10,933 |
9,720 |
Capital expenditure
IQ |
|
IIQ |
|
IH |
|
2022 |
(€ million) |
2022 |
2021 |
% Ch. |
2022 |
2021 |
% Ch. |
1,080 |
Exploration & Production ⁽ᵃ⁾ |
1,489 |
950 |
57 |
2,569 |
1,806 |
42 |
76 |
of which: - acquisition of proved and unproved properties |
77 |
|
.. |
153 |
13 |
.. |
116 |
- exploration |
169 |
126 |
34 |
285 |
160 |
78 |
870 |
- oil & gas development |
1,192 |
793 |
50 |
2,062 |
1,594 |
29 |
3 |
Global Gas & LNG Portfolio |
6 |
15 |
|
9 |
15 |
.. |
92 |
Refining & Marketing and Chemicals |
139 |
206 |
(33) |
231 |
333 |
(31) |
68 |
- Refining & Marketing |
103 |
137 |
(25) |
171 |
232 |
(26) |
24 |
- Chemicals |
36 |
69 |
(48) |
60 |
101 |
(41) |
141 |
Plenitude & Power |
181 |
76 |
.. |
322 |
160 |
.. |
116 |
- Plenitude |
142 |
69 |
.. |
258 |
135 |
91 |
25 |
- Power |
39 |
7 |
.. |
64 |
25 |
.. |
59 |
Corporate and other activities |
22 |
20 |
10 |
81 |
94 |
(14) |
(2) |
Impact of unrealized intragroup profit elimination |
1 |
(1) |
|
(1) |
(3) |
|
1,373 |
Capital expenditure ⁽ᵃ⁾ |
1,838 |
1,266 |
45 |
3,211 |
2,405 |
34 |
(a) Includes reverse factoring operations.
In the first half of 2022, capital expenditure
amounted to €3,211 million (€2,405 million in the half of 2021), increasing by 34% y-o-y, and mainly related to:
- oil and gas development activities (€2,062
million) mainly in the Egypt, United States, Angola, Mexico, the United Arab Emirates, Kazakhstan, Congo, Ivory Coast, Iraq, Italy
and Algeria;
- refining activity in Italy and outside Italy
(€139 million) mainly relating to the activities to maintain plants’ integrity and stay-in-business, as well as HSE initiatives;
marketing activity (€32 million) for regulation compliance and stay-in-business initiatives in the retail network in Italy and in
the rest of Europe;
- Plenitude (€258 million) mainly relating
marketing initiatives, acquisition of new customers and development activities in the renewable business.
Sustainability performance
|
|
IH |
|
|
2022 |
2021 |
TRIR (Total Recordable Injury Rate) |
(total recordable injury rate/worked hours) x 1,000,000 |
0.38 |
0.39 |
Direct GHG emissions (Scope 1) |
(mmtonnes CO₂ eq.) |
19.9 |
19.5 |
Direct GHG emissions (Scope 1)/operated hydrocarbon gross production (upstream) |
(tonnes CO₂ eq./kboe) |
20.8 |
20.2 |
Direct methane emissions (Scope 1) |
(ktonnes CH₄) |
28.0 |
26.9 |
Volumes of hydrocarbon sent to routine flaring |
(billion Sm³) |
0.5 |
0.6 |
Total volume of oil spills (>1 barrel) |
(kbbl) |
2.74 |
3.05 |
Upstream water reinjection |
(%) |
58 |
59 |
KPIs refer to 100% of the operated assets.
· | TRIR
(Total recordable injury rate) of the workforce amounted to 0.38, a decrease compared
to the first half of 2021, driven by a better performance reported in the employees. |
· | Direct
GHG emissions (Scope 1) of the operated assets: 19.9 million tCO2eq., slightly increasing
compared to the first half of 2021, due to the higher operating activities, mainly in the
Power and GGP businesses. |
· | Direct
GHG emissions (Scope 1)/operated hydrocarbon gross production (upstream): 20.8 tCO2eq./kboe,
increasing compared to the same period of 2021 due to different operating conditions and
lower production level. |
· | Direct
methane emissions (Scope 1): a slight increase from the first half of 2021 to 28 ktonnes
CH4 reflecting the direct GHG emissions trend. |
· | Volumes
of hydrocarbon sent to routine flaring of 0.5 billion Sm3, a decrease from
the first half of 2021. |
· | Total
volume of oil spills: down by over 10% compared to the first half of 2021. The reduction
in the upstream operating activities was partly offset by higher spills from sabotage, in
Nigeria, where the installation program of the proprietary e-vpms technology (Eni Vibroacoustic
Pipeline Monitoring System) is ongoing, aimed at the detection of vibro-acoustic variations
in the pipelines and in the transported fluid. |
· | Upstream
water reinjection decreased from the first half of 2021 due to non-strategic production
assets razionalization. |
Exploration & Production
PRODUCTION OF OIL AND NATURAL GAS BY REGION
IQ |
|
|
IIQ |
IH |
2022 |
|
|
2022 |
2021 |
2022 |
2021 |
1,654 |
Production of oil and natural gas ⁽ᵃ⁾⁽ᵇ⁾ |
(kboe/d) |
1,578 |
1,597 |
1,616 |
1,650 |
84 |
Italy |
|
82 |
65 |
83 |
82 |
213 |
Rest of Europe |
|
179 |
172 |
196 |
205 |
238 |
North Africa |
|
269 |
247 |
254 |
260 |
355 |
Egypt |
|
351 |
371 |
353 |
363 |
283 |
Sub-Saharan Africa |
|
282 |
293 |
282 |
301 |
163 |
Kazakhstan |
|
108 |
147 |
135 |
150 |
181 |
Rest of Asia |
|
173 |
169 |
177 |
158 |
124 |
Americas |
|
124 |
116 |
124 |
114 |
13 |
Australia and Oceania |
|
10 |
17 |
12 |
17 |
135 |
Production sold ⁽ᵃ⁾ |
(mmboe) |
134 |
137 |
270 |
277 |
PRODUCTION OF LIQUIDS BY REGION
IQ |
|
|
IIQ |
IH |
2022 |
|
|
2022 |
2021 |
2022 |
2021 |
780 |
Production of liquids |
(kbbl/d) |
740 |
779 |
760 |
797 |
37 |
Italy |
|
36 |
23 |
37 |
34 |
127 |
Rest of Europe |
|
99 |
114 |
113 |
128 |
112 |
North Africa |
|
126 |
125 |
119 |
128 |
79 |
Egypt |
|
80 |
96 |
79 |
82 |
176 |
Sub-Saharan Africa |
|
187 |
188 |
181 |
190 |
112 |
Kazakhstan |
|
75 |
100 |
94 |
101 |
78 |
Rest of Asia |
|
75 |
75 |
76 |
76 |
59 |
Americas |
|
62 |
58 |
61 |
58 |
- |
Australia and Oceania |
|
- |
- |
- |
- |
PRODUCTION OF NATURAL GAS BY REGION
IQ |
|
|
IIQ |
IH |
2022 |
|
|
2022 |
2021 |
2022 |
2021 |
4,638 |
Production of natural gas |
(mmcf/d) |
4,447 |
4,339 |
4,542 |
4,531 |
248 |
Italy |
|
241 |
220 |
244 |
254 |
460 |
Rest of Europe |
|
427 |
309 |
443 |
411 |
673 |
North Africa |
|
758 |
652 |
716 |
702 |
1,466 |
Egypt |
|
1,439 |
1,463 |
1,453 |
1,492 |
565 |
Sub-Saharan Africa |
|
508 |
557 |
536 |
590 |
270 |
Kazakhstan |
|
173 |
249 |
221 |
262 |
546 |
Rest of Asia |
|
518 |
498 |
532 |
436 |
342 |
Americas |
|
328 |
305 |
335 |
296 |
68 |
Australia and Oceania |
|
55 |
86 |
62 |
88 |
(a) Includes Eni’s
share of production of equity-accounted entities.
(b) Includes volumes of hydrocarbons consumed in operation (117 and 108 kboe/d in the second quarter of 2022 and 2021, respectively, 116 and 111 kboe/d in the first half of 2022 and 2021, respectively, and 115 kboe/d in the first quarter of 2022).