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:
February 23, 2023
Eni’s
Board of Directors
Approval
of the third tranche of the provision in place of the 2022 dividend: € 0.22 per share
Rome,
22 February 2023 – Eni’s Board of Directors, chaired by Lucia Calvosa, today resolved to distribute to Shareholders the
third of the four tranches of the provision in place of the dividend 2022 from Eni S.p.A. available reserves1
of € 0.22 (compared to a total annual provision, in place of the dividend, equal to € 0.88) per share outstanding
at the ex-dividend date as of 20 March 20232, payable on 22 March 20233,
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 21 March 2023, will receive € 0.44 per ADR, payable on 7 April 20234, 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
![](https://content.edgar-online.com/edgar_conv_img/2023/03/02/0001104659-23-027768_image_002.jpg)
1 Coupon No. 41
2 Depending on the recipient’s
fiscal status the payment is 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 payment 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 21 March 2023 (record date).
4 On
ADR payment date, Citibank, N.A. will pay net of the amount of the withholding tax under Italian law applicable to all Depository
Trust Company Participants.
|
Registered
Head Office,
Piazzale Enrico Mattei, 1
00144 Roma
Tel. +39 06598.21
www.eni.com |
Rome
February
23, 2023
Eni:
fourth quarter and full year 2022 results
Key
operating and financial results |
Q3 |
|
|
Q4 |
|
Full
Year |
2022 |
|
2022 |
2021 |
%
Ch. |
|
2022 |
2021 |
%
Ch. |
100.85 |
Brent
dated |
$/bbl |
88.71 |
79.73 |
11 |
|
101.19 |
70.73 |
43 |
1.007 |
Average
EUR/USD exchange rate |
|
1.021 |
1.144 |
(11) |
|
1.053 |
1.183 |
(11) |
2,082 |
Spot
Gas price at Italian PSV |
€/kcm |
1,009 |
987 |
2 |
|
1,294 |
487 |
.. |
4.1
|
Standard
Eni Refining Margin (SERM) |
$/bbl |
13.6 |
(2.2) |
.. |
|
8.5 |
(0.9) |
.. |
1,578 |
Hydrocarbon
production |
kboe/d |
1,617 |
1,737 |
(7) |
|
1,610 |
1,682 |
(4) |
5,772 |
Adjusted
operating profit (loss) (a) |
€ million |
3,587 |
3,806 |
(6) |
|
20,391 |
9,664 |
111 |
4,272 |
E&P |
|
2,891 |
3,630 |
(20) |
|
16,411 |
9,293 |
77 |
1,083 |
Global
Gas & LNG Portfolio (GGP) |
|
67 |
536 |
.. |
|
2,067 |
580 |
.. |
537 |
R&M
and Chemicals |
|
378 |
(104) |
.. |
|
1,928 |
152 |
.. |
172 |
Plenitude
& Power |
|
118 |
102 |
16 |
|
615 |
476 |
29 |
3,730 |
Adjusted
net profit (loss) (a) |
|
2,503 |
1,700 |
47 |
|
13,311 |
4,330 |
207 |
1.06 |
per
share - diluted (€) |
|
0.74 |
0.47 |
|
|
3.78 |
1.19 |
|
5,862 |
Net
profit (loss) (b) |
|
550 |
3,515 |
(84) |
|
13,810 |
5,821 |
137 |
1.67 |
per
share - diluted (€) |
|
0.19 |
0.97 |
|
|
3.93 |
1.60 |
|
5,469 |
Cash
flow from operations before changes in working capital at replacement cost (a) |
|
4,113 |
4,615 |
(11) |
|
20,379 |
12,711 |
60 |
5,586 |
Net
cash from operations |
|
4,593 |
5,835 |
(21) |
|
17,460 |
12,861 |
36 |
2,029 |
Net
capital expenditure (b) |
|
2,775 |
1,777 |
56 |
|
8,243 |
5,817 |
42 |
6,444 |
Net
borrowings before lease liabilities ex IFRS 16 |
|
7,021 |
8,987 |
(22) |
|
7,021 |
8,987 |
(22) |
57,845 |
Shareholders’
equity including non-controlling interest |
|
55,104 |
44,519 |
24 |
|
55,104 |
44,519 |
24 |
0.11 |
Leverage
before lease liabilities ex IFRS 16 |
|
0.13 |
0.20 |
|
|
0.13 |
0.20 |
|
|
|
|
|
|
|
|
|
|
|
(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 full year and the
fourth quarter of 2022. Eni CEO Claudio Descalzi said:
“In
2022, Eni was not only engaged in progressing its sustainable energy transition goals, but also in ensuring the security and stability
of energy supplies to Italy and Europe, building up a diversified geographic mix of energy sources. The Company delivered excellent
financial and operating results while contributing to the stability of energy supplies to Italy and Europe and progressing its
decarbonization plans. During the year, we were able to finalize agreements and activities to fully replace Russian gas by 2025,
leveraging our strong relationships with producing states and fast-track development approach to ramp-up volumes from Algeria,
Egypt, Mozambique, Congo and Qatar. The recently signed deal with Libya’s NOC on the A&E Structures development and
exploration successes off Cyprus, Egypt and Norway will further strengthen our integrated supply diversification. This prompt
reaction to the gas crisis and the integration with the E&P activities were important driver of the performance of our GGP
business, which was able to ensure its supply commitments through different sources. Plenitude reached a renewable capacity of
2.2 GW, doubling last year level, and together with our newly established Eni Sustainable Mobility will continue to progress our
plans to zeroing customers’ emissions. This new entity, leveraging our strong biofuels footprint will offer increasingly
decarbonized mobility solutions to customers in Italy and Europe. While market conditions were clearly supportive, our 2022 financial
results were underpinned by capital and cost discipline, operating performance and by effective risk management of price volatility
and supply tightness. Strong cash generation with an organic CFFO of €20.4 bln allowed us to invest and grow the business,
to reach an all-time low leverage of 0.13 and to return €5.4 bln to shareholders via dividends and an accelerated share buy-back
program. Our strategic objectives are unchanged: we will invest to ensure stable and affordable supplies to meet energy market
demand and decarbonize our operations and clients, while maintaining financial discipline to ensure attractive returns for our
shareholders.”
| • | FY
2022 group adjusted EBIT was €20.4 bln, double the amount of FY 2021, driven by
a strong performance of the E&P, GGP and R&M businesses: |
| ○ | E&P
with €16.4 bln of EBIT was up more than 70% y-o-y due its capacity to capture the
upside of a favorable commodity environment; |
| ○ | GGP
earned €2.1 bln of EBIT, replacing Russian flows with equity gas or supplies from
countries where we operate, and ensuring optimization of the gas and LNG portfolio in
a tight market, while ensuring stable and secure supplies to its customers and managing
financial risks; |
| ○ | R&M
achieved its best performance ever with €2.2 bln, compared to breakeven in 2021,
due to plant availability and output optimization allowing to capture the upside of a
strong refining environment, and efficiency measures to address the rise in plant utility
expenses; |
| ○ | Plenitude
delivered against its operating and financial targets with EBIT of €0.34 bln and
a renewable capacity of 2.2 GW, despite the challenging market scenario; |
| ○ | Versalis
was impacted by competitive pressures, weakening demand and higher gas-indexed utilities
expenses, driving a loss of €0.25 bln. |
| • | FY
2022 adjusted net profit attributable to Eni shareholders was €13.3 bln and, compared
with FY 2021, was €9 bln higher due to a strong operating performance and higher
results of equity-accounted entities. |
| • | FY
2022 net profit attributable to Eni shareholders was €13.8 bln and, compared with
FY 2021, was driven by an improved underlying performance partly offset by lower net
special gains mainly due to inventory evaluation. |
In
2022 special charges largely related to environmental and remediation provision of €2 bln, including €0.3 bln decommissioning
provision for refinery, impairment charges of €1.1 bln for oil & gas assets and chemicals plants, and windfall taxes
on energy profits totalling €1.7 bln, of which €1 bln was paid in 2022. These charges were offset by gains of €2.5
bln on the Azule transaction and of €0.4 bln on the divestment of an interest in the Vår Energi associate and by deferred
taxes of €1.6 bln.
| • | Q4
2022 group adjusted EBIT was €3.6 bln, down by €0.2 bln from Q4 2021 owing
to the reclassification of Azule Energy (Eni E&P activities in Angola) into associates,
lower hydrocarbons production and GGP one-off gains in 2021, partly offset by a strong
performance of the R&M business. |
| • | Q4
2022 adjusted net profit attributable to Eni shareholders was €2.5 bln and almost
50% higher compared with the Q4 2021, up by €0.8 bln due to higher results of equity-accounted
entities partly as a result of the Azule JV, more than offsetting a lower operating profit. |
| • | Q4
2022 net profit attributable to Eni shareholders was €550 mln and was reduced by
fair-valued commodity derivatives of €1.1 bln (compared to a gain of €1.7 bln
in the previous year), asset impairments of €0.9 bln (compared to reversals of €0.5
bln in the previous year) and extraordinary solidarity tax contributions of €0.7
bln, partly offset by deferred taxes of €1.6 bln. All these gains and losses were
classified as special items. |
| • | In
Q4 2022, the Group adjusted operating cash flow before working capital at replacement
cost was €4.1 bln. In FY 2022, it reached €20.4 bln, net of €8.5 bln of
cash taxes, up 60% y-o-y: after funding organic capex of €8.2 bln, up 42% y-o-y
due to a stronger US dollar and planned post-lockdown activity, and covering working
capital needs, the Group delivered an organic FCF of €12.8 bln to cover portfolio
activities, reduce net borrowing by €2 bln and return €5.4 bln of cash to shareholders
via dividends and share repurchases. |
| • | In
September and November, Eni paid the first and the second quarterly instalment of the
2022 dividend of €0.22 per share each, amounting to €1.47 bln. The third instalment
of €0.22 per share will be paid to shareholders on March 22, 2023, being the ex-dividend
date March 20, 2023. |
| • | In
November, Eni completed the announced buy-back program of €2.4 bln, repurchasing
196 mln shares. |
| • | In
January 2023, Eni successfully placed the first sustainability-linked bond among the
retail public in Italy for a total amount of €2 bln. Orders for over €10 bln
were received compared to €1 bln initially offered, setting the Italian record for
a single tranche corporate bond issue aimed at retail. The offering was closed in advance
in just 5 days, the minimum term set in the prospectus. |
| • | Net
borrowings ex-IFRS 16 as of December 31, 2022, were €7 bln, down by €2 bln
compared to December 31, 2021, and Group leverage stood at 0.13, versus 0.20 as of December
31, 2021. |
Main business developments |
Advancing
our satellite model
| • | In
FY 2022, significant progress was made in pursuing our distinctive satellite model of
creating dedicated entities capable of independently accessing capital markets to fund
their growth and to reveal the real value of each business, benefitting from Eni’s
technologies, know-how and services, at the same time allowing the Group to optimize
its financial structure: |
| ○ | Plenitude
has substantially grown its renewable capacity, while the Sustainable Mobility business
was set up to offer increasingly decarbonized solutions/products to people on the move,
leveraging the strong marketing network and biorefineries vertically integrated with
our agri-business. |
In
E&P these entities will continue to bring new volumes to the market for energy security, while freeing additional capital
and delivering dividends that allow us to optimize investments in our decarbonized energy portfolio:
| ○ | In
August Azule Energy, the JV combining Eni and bp asset in Angola, started operations
as the largest independent Angolan O&G producer to pursue growth opportunities and
deliver real value to its shareholders; |
| ○ | Vår
Energi performed strongly in 2022 and delivered extra value to Eni through its listing
at the Norway exchange and entry of new investors. |
Finally,
our SPAC, NEOA, was established and listed on the UK main exchange to pursue a business combination with targets poised to benefit
from the global transition towards a low carbon economy.
Exploration
& Production
| • | In
FY 2022 around 750 mln boe of new resources were added to the reserve base continuing
the delivery of outstanding exploration performance. |
Several
discoveries were made close to existing assets and facilities as part of our fast-track development model in Algeria, Egypt and
Abu Dhabi.
Important
reserve additions were made with the appraisal wells of the offshore Ndungu oilfield in Angola and of the offshore Baleine oilfield
in the Ivory Coast, allowing us to significantly raise the estimated hydrocarbons in place in both cases. The XF-002 in the UAE
and the Cronos off Cyprus gas discoveries also significantly contributed to the year’s results. The later success of Zeus
in Cyprus, still in evaluation at the end of the year and of Nargis in Egypt in January further confirmed the potential of the
East Mediterranean area.
| • | Production
for the year was 1.610 mln boe/d, down by 4% due to unplanned outages and force majeure.
|
| • | In
Q4 2022, activities have been fast-tracked in Algeria and several fields have come onstream:
two gas deposits as part of the new Berkine South contract, just six months from the
closing, and then, the HDLE/HDLS project, in the Zemlet el Arbi concession in the Berkine
North Basin, just six months after the discovery made in March. |
| • | In
November, the first loading of liquefied natural gas (LNG) produced from the Coral gas
field, in the ultra-deep waters of the Rovuma Basin in Mozambique, was shipped from the
Coral Sul Floating Liquefied Natural Gas (FLNG) facility, marking a milestone in the
worldwide LNG business thanks to our ability to deliver the project on time and on budget
notwithstanding the pandemic disruptions, while launching the Country as a new relevant
LNG hub. |
| • | In
November, construction works began to build a second 10 MW photovoltaic plant in partnership
with Sonatrach in the Bir Rebaa North (BRN) production complex, South-Eastern Algeria,
to decarbonize hydrocarbons operations. Another photovoltaic facility is planned at the
Menzel Ledjmet East Project (MLE) production complex, with construction expected to begin
in 2023. |
| • | In
December, a photovoltaic plant in Tataouine, Southern Tunisia, built by a joint venture
between Eni and ETAP (Entreprise Tunisienne d’Activités Pétrolières)
was linked to the national grid. The plant, with an installed capacity of 10 MW, is expected
to supply over 20 GWh of renewable electricity per year under a 20-year Power Purchase
Agreement. |
| • | In
December, as part of the Congo LNG project to exploit Eni’s gas reserves in block
Marine XII and support the security of gas supplies to Europe, a turn-key contract was
signed to build, install and commission a Floating Liquefied Natural Gas (FLNG) vessel
with a capacity of 2.4 mln tonnes/year, which will pair the Tango FLNG vessel purchased
earlier to speed up Eni’s development plans. LNG production is expected to reach
a plateau capacity of 3 mln tonnes/year in 2025. |
| • | In
December, our associate Vår Energi announced a gas discovery in the Barents Sea,
Norway, with estimated recoverable resources of gas in the range of 9-21 bln cubic meters
(57-132 mln barrels of oil equivalent). Subsequently, in January, the venture was awarded
twelve exploration licenses (five of which are operated) following the “Awards
in Predefined Areas 2022” (APA) by the Ministry of Petroleum and Energy of Norway. |
| • | In
December, Eni closed the acquisition of a 3% interest in the giant North Field East LNG
project in Qatar. |
| • | In
December, Eni signed an agreement with Snam to jointly develop and manage the Ravenna
Carbon Capture and Storage (CCS) Project, which is intended to gather data to support
the planned construction of a large CCS hub, which will leverage Eni’s depleted
offshore reservoirs in the area. The Phase 1 of project is ongoing and from 2024 is expected
to begin capturing 25 ktons of CO2 emitted from Eni’s natural gas treatment
plant in Casalborsetti (Ravenna), to be subsequently transported and injected into a
nearby depleted gas field. By 2027, Phase 2 will start the industrial scale up with a
storage injection of up to 4 mln tons. |
| • | In
January, we announced the non-operated Nargis gas discovery, offshore Egypt. The new
reserves will be developed by leveraging Eni’s existing facilities. |
| • | In
January, we signed an agreement with the National Oil Corporation of Libya (NOC) for
the development of the large gas reserves of A&E Structures, offshore Tripoli. Production
is expected to start in 2026 to reach a plateau of 750 mmscf/d, with volumes destined
both to the domestic market and to Europe via the existing Greenstream offshore pipeline
leveraging synergies with the Mellitah Complex. The project comprises construction of
an onshore Carbon Capture and Storage (CCS) hub. |
| • | In
January, a 30% interest in offshore exploration Blocks 4 and 9, in Lebanon, operated
by TotalEnergies, was farmed out to QatarEnergy. Eni will retain a 35% interest in the
venture. |
Global
Gas & LNG Portfolio
| • | In
January, a restructuring of Eni’s natural gas transport business from the Southern
route was agreed with Snam, the Italian natural gas grid operator, by divesting a 49.9%
stake in the equity interests of Eni’s subsidiaries managing the TTPC/Transmed
pipelines connecting Algeria’s network to Italy through Tunisia and the Mediterranean
Sea, and the relevant transportation rights. A new entity “SeaCorridor” was
established to hold the participating interests in those businesses, which will be jointly
controlled by Eni and Snam with shareholding of 50.1% and 49.9%, respectively. Eni received
cash proceeds of €405 mln. |
Refining
& Marketing and Chemicals
| • | In
October, a first cargo of vegetable oil, produced at Eni’s Makueni agri-hub in
Kenya, was shipped to the Eni’s biorefinery of Gela. This renewable feedstock will
be used in the manufacturing of biofuels, respecting all applicable standards of sustainability
and the circular economy by repurposing abandoned land and by favorably contributing
to local job creation and development. Production of such sustainable oil is expected
to scale up rapidly to 20,000 tons by 2023. This project marks the start of Eni’s
innovative |
| | model
of vertically integrating its agri-business with its biorefineries, which will be replicated
in a network incorporating other African countries. |
| • | In
October, Eni completed the phase-out of palm oil as feedstock supply for Eni’s
biorefineries, with it fully replaced by sustainable raw materials. |
| • | In
October, Eni launched a study to assess the economic feasibility of building and operating
a biorefinery at the Livorno hub, with a design capacity of 500 ktonnes/y. |
| • | In
December, started a collaboration with Euglena, a leading Japanese biotechnology firm,
and Petronas, Malaysia state-owned oil company, to evaluate the economic feasibility
of building and operating a biorefinery complex in the South-Eastern Asian country. An
investment decision is expected to be reached by 2023 with possible completion in 2025
and a targeted processing capacity of up to 650 ktonnes/y of bio-feedstock. The project
will leverage the Honeywell UOP’s EcofiningTM process technology, which
was jointly developed by Eni and Honeywell UOP. |
| • | In
December, Versalis acquired from DSM a technology to produce enzymes for second-generation
ethanol to be employed at the Crescentino plant to integrate the proprietary Proesa®
technology to deliver sustainable bioethanol and chemical products from lignocellulosic
biomass. |
| • | In
December, further inroads into the Sustainable Aviation Fuel (SAF) market were made with
the agreement with DHL Express Italy and SEA Group that operates the Milan airports of
Malpensa and Linate, for a test involving use of Eni Biojet, a 20% blended with JetA1
produced exclusively from waste raw materials, animal fat and used vegetable oils. |
| • | In
January, as part of Eni’s strategy to set up dedicated vehicles to accelerate
the decarbonization of the Group’s customer portfolio (Scope 3 emissions), Eni
Sustainable Mobility was established as a stand-alone business. This vertically integrated
entity will support Eni’s energy transition by pairing the offer of increasingly
sustainable fuels and advanced services to motorists in Italy and Europe by leveraging
a network of 5 thousand service stations, which will be upgraded to support electric
and hydrogen-based mobility. Eni Sustainable Mobility will manage Eni’s operating
biorefineries, the biomethane business and will pursue the development of new projects,
including those at Livorno and Pengerang in Malaysia, which are currently under evaluation.
|
| • | In
February, Eni Sustainable Mobility entered into definitive agreements with PBF to
partner in a 50-50 joint venture, St. Bernard Renewables LLC (SBR), for the biorefinery
currently under construction in Louisiana (US). The deal, which is subject to customary
closing conditions, foresees Eni’s subsidiary Eni Sustainable Mobility to make
a capital contribution of $835 million and to provide expertise in biorefining operations.
The biorefinery startup is expected in the first half of 2023, with a target processing
capacity of about 1.1 mln tonnes/year of raw materials to produce mainly HVO Diesel. |
Plenitude
and Power
| • | In
October, the 104.5 MW El Monte wind farm in the Spanish region of Castilla La Mancha,
started producing renewable electricity. The plant will produce about 300 GWh/y, equivalent
to the domestic consumption of 100,000 households. |
| • | In
October, the disposal of Plenitude’s 20% interest in the Dogger Bank offshore wind
projects to the Norwegian joint venture Vårgrønn engaged in the development
of a windpower business was finalized. Based on the shareholders’ agreement, HitecVision
increased its ownership interest from 30.4% to 35% through a cash contribution. |
| • | In
December, Plenitude finalized the 100% acquisition of PLT (PLT Energia Srl and SEF Srl
and their respective subsidiaries and affiliates), an integrated Italian group with an
installed capacity of 0.3 GW already operational, 0.1 GW under construction, 1.2 GW of
projects under development (mainly wind power) both in Italy and Spain. Furthermore,
the PLT Group also supplies a portfolio of 90,000 customers in Italy. |
| • | In
December, Plenitude signed an agreement to acquire the 81 MW Kellam photovoltaic plant
located in Texas, USA, boosting the total installed capacity in the country to 878 MW. |
| • | In
January, Plenitude signed an agreement with Simply Blue Group for the joint development
of floating offshore wind projects in Italy. The first two projects, “Messapia”
in offshore Apulia and “Krimisa” |
| | offshore
Calabria, have already been submitted for approval to the relevant authorities, with
a design capacity of 1.3 GW and 1.1 GW, respectively. |
| • | In
January, Plenitude started production at the 263 MW “Golden Buckle Solar Project”
in Brazoria County, Texas. The yearly average solar energy production is expected in
the range of 400 to 500 GWh. |
Decarbonization
and Sustainability
| • | In
October, two projects by Eni and Enel Green Power to develop green hydrogen were approved
as beneficiaries of public funding under IPCEI Hy2Use, an EU-backed initiative to support
development of a hydrogen value chain. Two electrolyzers of 20 MW and 10 MW capacity
will be operated respectively at Eni’s biorefinery in Gela, Sicily, and in the
Eni’s nearby oil refinery in Taranto, both designed to use the PEM (polymer electrolyte
membrane) technology. |
| • | In
October, Commonwealth Fusion Systems, of which Eni is the main shareholder, was selected
after a competitive tender process by the UK Atomic Energy Authority to support work
on the magnetic confinement system for the UKAEA’s Spherical Tokomak for Energy
Production. |
| • | In
the quarter Eni was ranked first out of 30 companies in the European oil & gas sector
by Moody’s ESG Solutions due to its advanced capabilities in managing ESG risks.
Eni’s ESG score improved and remains in the Advanced category. |
| • | In
November, Eni signed an agreement with Leonardo for the joint development of sustainability
and innovation initiatives, with the aim of boosting the energy transition and the decarbonization
of the two partners’ operations. |
| • | In
November, Eni signed an agreement with Autostrade per l’Italia and CDP to jointly
develop initiatives with the aim to upgrade Italian motorway infrastructure by increasing
the offer of products for sustainable mobility and other decarbonization solutions. |
| • | In
November, Eni signed several agreements with the Government of Rwanda to jointly develop
initiatives in the fields of agriculture, protection of forest ecosystems, health and
technology. This collaboration aims to support the energy transition by promoting high-quality
seed production suitable for agri-feedstock, for the production of biofuel in Eni’s
biorefinery. It will also generate carbon credit initiatives, and support development
infrastructures and services for the health and education of local communities. |
| • | In
November, Eni signed a collaboration agreement with Bonifiche Ferraresi to evaluate the
development of an agri-business in Italy, not in competition with the food chain, regenerating
abandoned and degraded lands and promoting sustainable practices, to produce crops to
be used as feedstock for the production of biofuel. |
| • | In
January, Eni signed strategic agreements with Sonatrach reaffirming the common objective
of strengthening energy security and accelerating the transition to a low-carbon economy.
The two partners have agreed on identifying and pursuing joint opportunities for the
reduction of greenhouse gas emissions through energy efficiency initiatives, renewables
development, green hydrogen projects and carbon dioxide capture and storage projects,
to support energy security and a sustainable energy transition, including the evaluation
of possible measures to improve Algeria’s energy export capacity to Europe. |
The
Company will issue its financial and operating targets for 2023 and its strategic plans at a capital markets day scheduled today
at 13:00 CET. A press release summarising the Group’s strategy and objectives will be issued on the same day and disseminated
through the Company’s website (eni.com) and other public channels as required by applicable listing standards.
Business segments operating results |
Exploration & Production
Production and
prices
Q3 |
|
|
Q4 |
|
Full
Year |
|
2022 |
|
2022 |
2021 |
%
Ch. |
2022 |
2021 |
%
Ch. |
|
Production |
|
|
|
|
|
|
|
707 |
Liquids |
kbbl/d |
776 |
852 |
(9) |
751 |
813 |
(8) |
4,583 |
Natural gas |
mmcf/d |
4,426 |
4,700 |
(6) |
4,523 |
4,613 |
(2) |
1,578 |
Hydrocarbons
⁽ᵃ⁾ |
kboe/d |
1,617 |
1,737 |
(7) |
1,610 |
1,682 |
(4) |
|
Average
realizations⁽ᵇ⁾ |
|
|
|
|
|
|
|
91.51 |
Liquids |
$/bbl |
77.60 |
75.58 |
3 |
92.39 |
66.90 |
38 |
9.08 |
Natural
gas |
$/kcf |
8.72 |
8.27 |
5 |
8.61 |
5.93 |
45 |
68.51 |
Hydrocarbons |
$/boe |
61.96 |
61.03 |
2 |
69.06 |
49.82 |
39 |
(a)
Effective January 1, 2022, the conversion rate of natural gas from cubic feet to boe has been updated to 1 barrel of oil = 5,263
cubic feet of gas (it was 1 barrel of oil =5,310 cubic feet of gas). The effect on production has been 8 kboe/d in the fourth
quarter and the full year 2022. Data of the previous 2022 quarters have been restated accordingly.
(b)
Prices relate to consolidated subsidiaries.
| • | In
Q4 2022, hydrocarbon production averaged 1.62 mln boe/d (1.61 mln boe/d in the
FY 2022), down by 7% compared to Q4 2021. The decrease was due to planned and unplanned
outages in Kazakhstan, local issues in Nigeria, lower production in Norway and Egypt
as well as mature fields decline. Production was supported by: the start-up of the Coral
project in Mozambique and the Amoca project in Mexico, higher activity in Algeria, also
following the business acquisition, as well as in the United States. The sequential comparison
reported a growth of 3% and benefitted from the resumption of activity in Kazakhstan
and higher entitlements in Libya. In full year 2022, positive factors, including the
progressive easing of OPEC+ production quotas (particularly in the United Arab Emirates)
weighted more, resulting in a decline of 4%. |
| • | Liquid
production was 776 kbbl/d in Q4 2022, down 9% year-on-year (down 8% compared to 2021).
The reduction in Kazakhstan, Norway and Nigeria was partly offset by production growth
in Algeria, Mexico and in the United States. |
| • | Natural
gas production was 4,426 mmcf/d in Q4 2022, down 6% year-on-year (down 2% compared
to 2021). Lower production in Norway, Nigeria and Egypt was partly offset by production
growth in Algeria and Mozambique. |
Proved oil&gas
reserves – preliminary data
(bboe) |
|
|
|
Net proved reserves at December 31, 2021 |
|
|
6.6 |
Additions |
|
|
0.5 |
Production |
|
|
(0.6) |
Net proved reserves at December 31, 2022 |
|
|
6.6 |
Reserves replacement ratio, all sources |
|
(%) |
90 |
| • | In
2022, net additions of proved reserves were 0.5 bboe relating to discoveries, extensions
and revisions of previous estimates. These additions drove an all-sources reserve replacement
ratio of 90%. |
| • | The
reserves life index was 11.2 years as of December 31, 2022. |
| • | More
information about the Company’s reserves activity for the year will be disclosed
in our 2022 Annual Report on Form 20-F. |
Results
Q3 |
|
|
Q4 |
|
Full
Year |
|
2022 |
(€
million) |
2022 |
2021 |
%
Ch. |
2022 |
2021 |
%
Ch. |
4,539 |
Operating
profit (loss) |
|
2,246 |
4,066 |
(45) |
15,908 |
10,066 |
58 |
(267) |
Exclusion of
special items |
|
645 |
(436) |
|
503 |
(773) |
|
4,272 |
Adjusted
operating profit (loss) |
|
2,891 |
3,630 |
(20) |
16,411 |
9,293 |
77 |
(76) |
Net finance
(expense) income |
|
(128) |
(47) |
|
(319) |
(313) |
|
511 |
Net income (expense)
from investments |
|
691 |
253 |
|
2,086 |
681 |
|
325 |
of
which: - Vår Energi |
|
171 |
161 |
|
951 |
425 |
|
174 |
-
Azule |
|
281 |
0 |
|
455 |
0 |
|
(1,935) |
Income taxes |
|
(1,598) |
(1,578) |
|
(7,402) |
(4,118) |
|
41.1 |
tax
rate (%) |
|
46.3 |
41.1 |
|
40.7 |
42.6 |
|
2,772 |
Adjusted
net profit (loss) |
|
1,856 |
2,258 |
(18) |
10,776 |
5,543 |
94 |
|
Results also
include: |
|
|
|
|
|
|
|
84 |
Exploration
expenses: |
|
361 |
326 |
11 |
605 |
558 |
8 |
60 |
- prospecting,
geological and geophysical expenses |
|
55 |
50 |
|
220 |
194 |
|
24 |
- write-off
of unsuccessful wells |
|
306 |
276 |
|
385 |
364 |
|
1,770 |
Capital
expenditure |
|
2,041 |
1,154 |
77 |
6,362 |
3,861 |
65 |
| • | In
Q4 2022, Exploration & Production reported an adjusted operating profit
of €2,891 mln, a decrease of 20% compared to Q4 2021, due to the derecognition
of the subsidiaries operating in Angola following their contribution to the Azule Energy
joint venture with bp, which became operational in early August, lower production volumes
and higher write-offs, partly offset by higher realized prices (up 2%). In FY 2022 adjusted
operating profit was €16,411 mln, up 77% compared to the FY 2021, driven by a supportive
oil scenario and a tight worldwide market for natural gas, as well as by cost discipline.
|
| • | In
Q4 2022, the segment reported an adjusted net profit of €1,856 mln, a decrease
of about €0.4 bln compared to Q4 2021 helped by a robust performance of investments,
particularly Vår Energi, offsetting a weaker operating performance (it was €10,776
mln in FY 2022, an increase of €5,233 mln compared to 2021 due to a better operating
and equity-accounted performance). The reduction in the tax rate in 2022, down by 2 percentage
points compared to 2021, benefitted from the positive scenario and better equity-accounted
performance. In the Q4 2022, the tax rate increased by 5 percentage points compared to
the comparative period, due to lower performance in countries with more favorable tax
rates. |
For the disclosure
on business segment special charges, see “Special items” in the Group results section.
Global Gas & LNG Portfolio
Sales
Q3 |
|
|
Q4 |
|
Full
Year |
|
2022 |
|
2022 |
2021 |
%
Ch. |
2022 |
2021 |
%
Ch. |
2,082 |
Spot
Gas price at Italian PSV |
€/kcm |
1,009 |
987 |
2 |
1,294 |
487 |
166 |
2,077 |
TTF |
|
999 |
975 |
3 |
1,279 |
486 |
163 |
5 |
Spread
PSV vs. TTF |
|
9 |
12 |
(21) |
15 |
1 |
.. |
|
Natural
gas sales |
bcm |
|
|
|
|
|
|
7.07 |
Italy |
|
7.32 |
10.25 |
(29) |
30.67 |
36.88 |
(17) |
5.79 |
Rest
of Europe |
|
7.71 |
7.52 |
3 |
27.41 |
28.01 |
(2) |
0.53 |
of
which: Importers in Italy |
|
0.80 |
0.73 |
10 |
2.43 |
2.89 |
(16) |
5.26 |
European
markets |
|
6.91 |
6.79 |
2 |
24.98 |
25.12 |
(1) |
0.47 |
Rest
of World |
|
0.52 |
1.11 |
(53) |
2.44 |
5.56 |
(56) |
13.33 |
Worldwide
gas sales (*) |
|
15.55 |
18.88 |
(18) |
60.52 |
70.45 |
(14) |
1.8 |
of
which: LNG sales |
|
2.4 |
2.8 |
(14) |
9.4 |
10.9 |
(14) |
(*)
Data include intercompany sales.
| • | In
Q4 2022, natural gas sales of 15.55 bcm decreased by 18% compared to the same
period of 2021, due to the lower gas volumes marketed in Italy, particularly in the spot
market and the industrial segments. In the European markets gas volumes reported an increase
of 3% thanks to higher sales in Germany and Austria which offset lower volumes sold in
all the other markets. Worldwide LNG sales decreased by 14% compared to the fourth quarter
of 2021. In the FY 2022, natural gas sales amounted to 60.52 bcm, down 14% vs. 2021,
impacted by lower supply from Russia and Nigeria. |
Results
Q3 |
|
|
Q4 |
|
Full
Year |
|
2022 |
(€
million) |
2022 |
2021 |
%
Ch. |
2022 |
2021 |
%
Ch. |
2,062 |
Operating
profit (loss) |
|
3,732 |
2,864 |
30 |
3,734 |
899 |
.. |
(979) |
Exclusion of
special items |
|
(3,665) |
(2,328) |
|
(1,667) |
(319) |
|
1,083 |
Adjusted
operating profit (loss) |
|
67 |
536 |
(88) |
2,067 |
580 |
.. |
(19) |
Net finance
(expense) income |
|
22 |
(6) |
|
(17) |
(17) |
|
1 |
Net income (expense)
from investments |
|
1 |
2 |
|
4 |
|
|
(421) |
Income taxes |
|
(348) |
(365) |
|
(1,070) |
(394) |
|
644 |
Adjusted
net profit (loss) |
|
(258) |
167 |
.. |
984 |
169 |
.. |
5 |
Capital
expenditure |
|
9 |
3 |
.. |
23 |
19 |
21 |
| • | In
Q4 2022, the Global Gas & LNG Portfolio segment achieved an adjusted operating
profit of €67 mln despite the anticipated reversal in market trends and lower Russian
supplies, as well as higher expenses for contract revisions, partly offset by continuing
optimization across the gas and LNG portfolio. In FY 2022, the segment earned €2,067
mln of adjusted operating profit, replacing Russian flows with equity gas or supplies
from countries where we operate, and ensuring optimization of the gas and LNG portfolio
in a tight market, while ensuring stable and secure supplies to its customers and managing
financial risks. |
For the disclosure
on business segment special charges, see “Special items” in the Group results section.
Refining & Marketing and
Chemicals
Production
and sales
Q3 |
|
|
Q4 |
|
Full
Year |
|
2022 |
|
2022 |
2021 |
%
Ch. |
2022 |
2021 |
%
Ch. |
4.1 |
Standard
Eni Refining Margin (SERM) |
$/bbl |
13.6 |
(2.2) |
.. |
8.5 |
(0.9) |
.. |
4.26 |
Throughputs
in Italy |
mmtonnes |
3.73 |
4.13 |
(10) |
16.12 |
16.51 |
(2) |
2.79 |
Throughputs
in the rest of World |
|
2.86 |
2.84 |
1 |
11.00 |
10.89 |
1 |
7.05 |
Total
throughputs |
|
6.59 |
6.97 |
(5) |
27.12 |
27.40 |
|
84 |
Average refineries
utilization rate |
% |
74 |
76 |
|
79 |
76 |
|
181 |
Bio
throughputs |
ktonnes |
129 |
198 |
(35) |
543 |
665 |
(18) |
70 |
Average
bio refineries utilization rate |
% |
50 |
77 |
|
53 |
65 |
|
|
Marketing |
|
|
|
|
|
|
|
2.04 |
Retail
sales in Europe |
mmtonnes |
1.91 |
1.90 |
1 |
7.50 |
7.23 |
4 |
1.46 |
Retail sales
in Italy |
|
1.38 |
1.36 |
1 |
5.38 |
5.12 |
5 |
0.58 |
Retail sales
in the rest of Europe |
|
0.53 |
0.54 |
(2) |
2.12 |
2.11 |
0 |
21.8 |
Retail market
share in Italy |
% |
21.9 |
22.2 |
|
21.7 |
22.2 |
|
2.36 |
Wholesale
sales in Europe |
mmtonnes |
2.15 |
2.20 |
(2) |
8.63 |
8.21 |
5 |
1.71 |
Wholesale sales
in Italy |
|
1.55 |
1.57 |
(1) |
6.19 |
6.02 |
3 |
0.65 |
Wholesale
sales in the rest of Europe |
|
0.60 |
0.63 |
(5) |
2.44 |
2.19 |
11 |
|
Chemicals |
|
|
|
|
|
|
|
0.77 |
Sales
of chemical products |
mmtonnes |
0.77 |
1.13 |
(31) |
3.75 |
4.47 |
(16) |
52 |
Average
plant utilization rate |
% |
44 |
67 |
|
59 |
66 |
|
| • | In
Q4 2022, the Standard Eni Refining Margin reported an average of 13.6 $/barrel
(8.5 $/barrel in the FY 2022) vs. negative values of the comparative periods. Refining
margins increased materially driven by a strong rebound in demand for all kinds of refined
products due to the reopening of the economy and bottlenecks in the refining system. |
| • | In
Q4 2022, throughputs on own accounts at Eni’s refineries in Italy were 3.73
mmtonnes, down 10% compared to Q4 2021 as result of lower volumes processed at Sannazzaro
and Milazzo refineries due to higher maintenance shutdown, partly offset by higher volumes
processed at the Livorno refinery (in the full year of 2022 throughputs were 16.12 mmtonnes,
down by 2% from the previous year). Throughputs outside Italy slightly increased in both
2022 reporting periods compared to 2021, following higher volumes processed in Germany. |
| • | In
Q4 2022, bio throughputs were 129 ktonnes, representing a 35% decrease compared
to the same period of 2021: lower volumes were processed at the Gela and Venice biorefineries
following a maintenance shutdown. In FY 2022, bio throughputs amounted to 543 ktonnes
and decreased by 18% compared to 2021, due to a shutdown
that occurred at the Gela biorefinery in the first months of the year, partly offset
by higher throughputs at the Venice biorefinery. |
| • | In
Q4 2022, retail sales in Italy were 1.38 mmtonnes, a slight increase year-on-year
(up 1%) due to higher volumes of gasoline and gasoil. In FY 2022, retail sales amounted
to 5.38 mmtonnes, up 5% vs. the full year of 2021. |
| • | In
Q4 2022, wholesale sales in Italy were 1.55 mmtonnes, a slight decrease (down
1%) compared to the same period of 2021, mainly due to lower sales of gasoil and partly
offset by higher sales of jet fuel (6.19 mmtonnes in the FY 2022; up 3% from 2021). |
| • | Sales
of chemical products were 0.77 mmtonnes in Q4 2022, down 31% compared to the same
period in 2021, impacted by lower demand and competitive pressure due to high energy
cost. In FY 2022, sales amounted to 3.75 mmtonnes, down 16% vs. FY 2021. |
| • | In
Q4 2022 cracking margin decreased compared to the same period of 2021. Operating
margins on polymers decreased compared to Q4 2021. |
Results
Q3 |
|
Q4 |
|
Full
Year |
|
2022 |
(€
million) |
2022 |
2021 |
%
Ch. |
2022 |
2021 |
%
Ch. |
(591) |
Operating
profit (loss) |
(1,236) |
(239) |
.. |
452 |
45 |
.. |
242 |
Exclusion of
inventory holding (gains) losses |
730 |
(321) |
|
(416) |
(1,455) |
|
886 |
Exclusion of
special items |
884 |
456 |
|
1,892 |
1,562 |
|
537 |
Adjusted
operating profit (loss) |
378 |
(104) |
.. |
1,928 |
152 |
.. |
714 |
-
Refining & Marketing |
465 |
(36) |
.. |
2,182 |
(46) |
.. |
(177) |
-
Chemicals |
(87) |
(68) |
(28) |
(254) |
198 |
.. |
(13) |
Net finance
(expense) income |
6 |
(13) |
|
(36) |
(32) |
|
175 |
Net income (expense)
from investments |
244 |
10 |
|
637 |
(4) |
|
144 |
of
which: ADNOC R> |
228 |
(31) |
|
568 |
(76) |
|
(192) |
Income taxes |
(100) |
3 |
|
(616) |
(54) |
|
507 |
Adjusted
net profit (loss) |
528 |
(104) |
.. |
1,913 |
62 |
.. |
186 |
Capital
expenditure |
461 |
233 |
98 |
878 |
728 |
21 |
| • | In
Q4 2022, the Refining & Marketing business achieved an adjusted operating
profit of €465 mln, a significant improvement, up €501 mln, compared to
the same period of 2021 (€2,182 mln in the FY 2022, against the loss of €46
mln reported in the FY 2021) due to significantly higher refining margins. The performance
was also driven by optimization measures and initiatives to reduce energy costs of industrial
processes by replacing natural gas with cheaper alternatives. |
| • | The
Chemicals business, managed by Versalis, in Q4 2022, reported an adjusted operating
loss of €87 mln, down €19 mln compared to Q4 2021 in a context of weaker
demand and rising expenses mainly due to a large increase in utilities costs indexed
to the price of natural gas. These were partly offset by optimization measures intended
to reduce natural gas consumption and a reduction in production to compensate the decrease
in demand. In the FY 2022, the adjusted operating result was a loss of €254 mln,
compared to a profit of €198 mln reported in 2021, which reflected unusual market
conditions in the FY 2021 due to the pandemic. |
For
the disclosure on business segment special charges, see “Special items” in the Group results section.
Plenitude & Power
Production
and sales
Q3 |
|
|
Q4 |
|
Full
Year |
|
2022 |
|
2022 |
2021 |
%
Ch. |
2022 |
2021 |
%
Ch. |
|
Plenitude |
|
|
|
|
|
|
|
0.61 |
Retail
and business gas sales |
bcm |
1.86 |
2.62 |
(29) |
6.84 |
7.85 |
(13) |
4.77 |
Retail
and business power sales to end customers |
TWh |
4.43 |
4.72 |
(6) |
18.77 |
16.49 |
14 |
9.89 |
Retail/business
customers |
mln pod |
10.07 |
10.04 |
0 |
10.07 |
10.04 |
0 |
681 |
Energy
production from renewable sources |
GWh |
652 |
470 |
39 |
2,553 |
986 |
159 |
1.827 |
Installed capacity
from renewables at period end |
GW |
2.198 |
1.137 |
93 |
2.198 |
1.137 |
93 |
59 |
of
which: - photovoltaic (including installed storage capacity) |
% |
54 |
49 |
|
54 |
49 |
|
41 |
-
wind |
|
46 |
51 |
|
46 |
51 |
|
|
Power |
|
|
|
|
|
|
|
5.96 |
Power
sales in the open market |
TWh |
5.07 |
7.74 |
(34) |
22.37 |
28.54 |
(22) |
5.36 |
Thermoelectric
production |
|
4.95 |
6.36 |
(22) |
21.37 |
22.31 |
(4) |
| • | Retail
and business gas sales amounted to 1.86 bcm in the Q4 2022, down 29% compared to
the same period in 2021. In Italy retail and business gas sales decreased mainly due
to lower volumes sold in the residential segments. Outside Italy, sales were impacted
by lower volumes marketed in France. In FY 2022 sales amounted to 6.84 bcm, down 13%
from 2021. |
| • | Retail
and business power sales to end customers were 4.43 TWh in the Q4 2022, a decrease
compared to the same period of 2021 (-6%). In the FY 2022, sales were 18.77 TWh, up 14%
from 2021, benefitting from the growth of activities in Italy and the acquisition of
Aldro Energía. |
| • | Energy
production from renewable sources (652 GWh in Q4 2022) were up 182 GWh y-o-y, mainly
thanks to the contribution from the acquired assets in operation. |
| • | As
of December 31, 2022, the installed capacity from renewables was 2.2 GW, doubled
from December 31, 2021, mainly due to: the completion of the Brazoria photovoltaic plant
in the USA, the Cerillares photovoltaic plant in Spain and the Badamsha 2 onshore wind
plant in Kazakhstan, as well as the acquisition of Fortore Energia and PLT in Italy,
the Corazon photovoltaic plant in the USA and Cuevas assets in Spain. |
| • | Power
sales in the open market were 5.07 TWh in Q4 2022, down 34% year-on-year mainly due
to lower volumes marketed to power exchange (22.37 TWh in the FY 2022, representing a
reduction of 22% compared to 2021). |
Results
Q3 |
|
|
Q4 |
|
Full
Year |
|
2022 |
(€
million) |
2022 |
2021 |
%
Ch. |
2022 |
2021 |
%
Ch. |
1,512 |
Operating
profit (loss) |
|
(4,950) |
(532) |
(830) |
(825) |
2,355 |
(135) |
(1,340) |
Exclusion of
special items |
|
5,068 |
634 |
|
1,440 |
(1,879) |
|
172 |
Adjusted
operating profit (loss) |
|
118 |
102 |
16 |
615 |
476 |
29 |
16 |
-
Plenitude |
|
78 |
86 |
(9) |
345 |
363 |
(5) |
156 |
-
Power |
|
40 |
16 |
150 |
270 |
113 |
139 |
(2) |
Net finance
(expense) income |
|
(2) |
(1) |
|
(11) |
(2) |
|
4 |
Net income (expense)
from investments |
|
(8) |
(3) |
|
(6) |
(3) |
|
(46) |
Income taxes |
|
(53) |
(44) |
|
(201) |
(144) |
|
128 |
Adjusted
net profit (loss) |
|
55 |
54 |
2 |
397 |
327 |
21 |
118 |
Capital
expenditure |
|
191 |
185 |
3 |
631 |
443 |
42 |
| • | In
Q4 2022, Plenitude reported an adjusted operating profit of €78 mln,
a decrease of €8 mln compared to the same period in 2021, due to market trends.
In the FY 2022, adjusted operating profit was €345 mln down by 5% from 2021 due
to the same drivers noted for the Q4. |
| • | The
Power generation business from gas-fired plants reported an adjusted operating
profit of €40 mln in Q4 2022, up €24 mln compared to the same period in
2021, mainly due to a favorable price scenario. In the FY 2022, adjusted operating result
was €270 mln, up €157 mln compared to 2021. |
For the disclosure
on business segment special charges, see “Special items” in the Group results section.
Q3 |
|
Q4 |
|
Full
Year |
|
2022 |
(€
million) |
2022 |
2021 |
%
Ch. |
2022 |
2021 |
%
Ch. |
37,302 |
Sales
from operations |
31,250 |
26,766 |
17 |
132,237 |
76,575 |
73 |
6,611 |
Operating
profit (loss) |
(425) |
5,691 |
(107) |
17,508 |
12,341 |
42 |
65 |
Exclusion of
inventory holding (gains) losses |
722 |
(376) |
|
(564) |
(1,491) |
|
(904) |
Exclusion of
special items ⁽ᵃ⁾ |
3,290 |
(1,509) |
|
3,447 |
(1,186) |
|
5,772 |
Adjusted
operating profit (loss) |
3,587 |
3,806 |
(6) |
20,391 |
9,664 |
111 |
|
Breakdown by
segment: |
|
|
|
|
|
|
4,272 |
Exploration
& Production |
2,891 |
3,630 |
(20) |
16,411 |
9,293 |
77 |
1,083 |
GGP |
67 |
536 |
(88) |
2,067 |
580 |
.. |
537 |
Refining
& Marketing and Chemicals |
378 |
(104) |
463 |
1,928 |
152 |
1,168 |
172 |
Plenitude
& Power |
118 |
102 |
16 |
615 |
476 |
29 |
(185) |
Corporate
and other activities |
(141) |
(227) |
38 |
(620) |
(593) |
(5) |
(107) |
Impact
of unrealized intragroup profit elimination and other consolidation adjustments |
274 |
(131) |
|
(10) |
(244) |
|
|
Utile (perdita) operativo
adjusted - continuing operations |
|
|
|
|
|
#DIV/0! |
|
|
|
|
|
|
|
|
5,862 |
Net
profit (loss) attributable to Eni’s shareholders |
550 |
3,515 |
(84) |
13,810 |
5,821 |
137 |
52 |
Exclusion of
inventory holding (gains) losses |
509 |
(267) |
|
(401) |
(1,060) |
|
(2,184) |
Exclusion of
special items ⁽ᵃ⁾ |
1,444 |
(1,548) |
|
(98) |
(431) |
|
3,730 |
Adjusted
net profit (loss) attributable to Eni’s shareholders |
2,503 |
1,700 |
47 |
13,311 |
4,330 |
207 |
(a)
For further information see table “Breakdown of special items”.
| • | In
Q4 2022, the Group reported an adjusted operating profit of €3,587 mln, down
6% compared to the Q4 2021 due to lower hydrocarbon production, the reclassification
of Azule Energy to associates and reversal in natural gas market trend, partly offset
by higher refining margins (13.6 $/barrel vs negative value of comparative period) and
various optimizations in the refining business, as well as higher hydrocarbons realizations.
These trends were reflected in a decrease in the E&P and GGP businesses (down €1.2
bln overall, compared to the Q4 2021), while the R&M was up by almost €500 mln.
In the FY 2022, the Group reported an adjusted operating profit of €20,391 mln,
up by €10,727 mln compared to the FY 2021, due to the strong operating performance
of E&P driven by higher realizations, continuing optimization at the GGP business
by leveraging the flexibility of the gas and LNG portfolio, and due to the R&M business
thanks to plant availability and output and cost optimization in a robust margin environment. |
| • | Adjusted
net result was €2,503 mln in Q4 2022, a significant improvement compared to
€1,700 mln in the Q4 2021, due to higher results at equity-accounted JVs and associates
(up €1,057 mln from the Q4 2021). In the FY 2022 the Group reported an adjusted
net result of €13,311 mln, up by €8,981 mln from the FY 2021. |
In
FY 2022, the Group incurred an adjusted basis income taxes of €8.6 bln, including the UK Energy profit levy of €0.2
bln. Adding the solidarity contribution enacted in Italy and Germany of €1.7 bln, the total accrued fiscal take raised to
€10.5 bln, nearly 50% of the Group’s pre-tax profit.
| • | Review
of the Group’s tax rate: the consolidated adjusted tax rate, not considering
the material one-off Italian windfall taxation reported as special items, has stabilized
at around 40% in the full year. |
Net borrowings
and cash flow from operations
Q3 |
|
Q4 |
|
|
Full
Year |
|
2022 |
(€
million) |
2022 |
2021 |
Change |
|
2022 |
2021 |
Change |
5,883 |
Net profit
(loss) |
593 |
3,520 |
(2,927) |
|
13,884 |
5,840 |
8,044 |
|
Adjustments to reconcile
net profit (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
(996) |
- depreciation, depletion and amortization and
other non monetary items |
2,580 |
2,467 |
113 |
|
4,349 |
8,568 |
(4,219) |
(15) |
- net gains on disposal of assets |
(65) |
(10) |
(55) |
|
(524) |
(102) |
(422) |
3,564 |
- dividends, interests and taxes |
(43) |
1,524 |
(1,567) |
|
8,706 |
5,334 |
3,372 |
(836) |
Changes in working capital related to operations |
3,405 |
(592) |
3,997 |
|
(1,271) |
(3,146) |
1,875 |
429 |
Dividends received by equity investments |
811 |
318 |
493 |
|
1,545 |
857 |
688 |
(2,218) |
Taxes paid |
(2,611) |
(1,231) |
(1,380) |
|
(8,493) |
(3,726) |
(4,767) |
(225) |
Interests (paid) received |
(77) |
(161) |
84 |
|
(736) |
(764) |
28 |
5,586 |
Net cash
provided by operating activities |
4,593 |
5,835 |
(1,242) |
|
17,460 |
12,861 |
4,599 |
(2,099) |
Capital expenditure |
(2,764) |
(1,647) |
(1,117) |
|
(8,056) |
(5,234) |
(2,822) |
(978) |
Investments |
(1,066) |
(1,314) |
248 |
|
(3,311) |
(2,738) |
(573) |
27 |
Disposal of consolidated subsidiaries, businesses,
tangible and intangible assets and investments |
271 |
149 |
122 |
|
1,202 |
404 |
798 |
921 |
Other cash flow related to investing activities |
1,184 |
436 |
748 |
|
2,361 |
289 |
2,072 |
3,457 |
Free cash
flow |
2,218 |
3,459 |
(1,241) |
|
9,656 |
5,582 |
4,074 |
(294) |
Net cash inflow (outflow) related to financial
activities |
(590) |
(3,089) |
2,499 |
|
786 |
(4,743) |
5,529 |
(1,278) |
Changes in short and
long-term financial debt |
(585) |
1,145 |
(1,730) |
|
(2,569) |
(244) |
(2,325) |
(211) |
Repayment of lease
liabilities |
(227) |
(264) |
37 |
|
(994) |
(939) |
(55) |
(1,184) |
Dividends paid and changes in non-controlling
interests and reserves |
(1,944) |
(319) |
(1,625) |
|
(4,841) |
(2,780) |
(2,061) |
|
Net issue (repayment) of perpetual hybrid bond |
(51) |
(51) |
|
|
(138) |
1,924 |
(2,062) |
73 |
Effect of changes in consolidation and exchange
differences of cash and cash equivalent |
(136) |
13 |
(149) |
|
16 |
52 |
(36) |
563 |
NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT |
(1,315) |
894 |
(2,209) |
|
1,916 |
(1,148) |
3,064 |
5,469 |
Adjusted
net cash before changes in working capital at replacement cost |
4,113 |
4,615 |
(502) |
|
20,379 |
12,711 |
7,668 |
Q3 |
|
Q4 |
|
|
Full
Year |
|
2022 |
(€
million) |
2022 |
2021 |
Change |
|
2022 |
2021 |
Change |
3,457 |
Free cash
flow |
2,218 |
3,459 |
(1,241) |
|
9,656 |
5,582 |
4,074 |
(211) |
Repayment of lease liabilities |
(227) |
(264) |
37 |
|
(994) |
(939) |
(55) |
(44) |
Net borrowings of acquired companies |
(374) |
(282) |
(92) |
|
(506) |
(777) |
271 |
(220) |
Net borrowings of divested companies |
362 |
|
362 |
|
142 |
|
142 |
(370) |
Exchange differences on net borrowings and other
changes |
(561) |
(221) |
(340) |
|
(1,353) |
(429) |
(924) |
(1,184) |
Dividends paid and changes in non-controlling
interest and reserves |
(1,944) |
(319) |
(1,625) |
|
(4,841) |
(2,780) |
(2,061) |
|
Net issue (repayment) of perpetual hybrid bond |
(51) |
(51) |
|
|
(138) |
1,924 |
(2,062) |
1,428 |
CHANGE IN
NET BORROWINGS BEFORE LEASE LIABILITIES |
(577) |
2,322 |
(2,899) |
|
1,966 |
2,581 |
(615) |
211 |
Repayment of lease liabilities |
227 |
264 |
(37) |
|
994 |
939 |
55 |
(395) |
Inception of new leases and other changes |
(89) |
(288) |
199 |
|
(608) |
(1,258) |
650 |
(184) |
Change in
lease liabilities |
138 |
(24) |
162 |
|
386 |
(319) |
705 |
1,244 |
CHANGE
IN NET BORROWINGS AFTER LEASE LIABILITIES |
(439) |
2,298 |
(2,737) |
|
2,352 |
2,262 |
90 |
Net cash
provided by operating activities in Q4 2022 was €4,593 mln, a decrease of €1,242 mln compared to the Q4 2021, due
to the derecognition of the Group’s subsidiaries in Angola following the Azule Energy JV start-up and other business trends.
In the FY,
net cash provided by operating activities was €17,460 mln, a 36% increase from 2021 due to a better scenario in the upstream
segment and a strong contribution from the R&M business.
The outflow
relating to the working capital of €1,271 mln was due to the change in the value of inventory holding accounted for under
the weighted-average cost 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, Nigeria LNG, Azule Energy and ADNOC R&T.
Cash flow
from operating activities before changes in working capital at replacement cost was €20,379 mln in the FY and was net
of the following items: inventory holding gains or losses relating to oil and products, the reversing timing difference between
gas inventories accounted at weighted average cost and management’s own measure of performance leveraging inventories to
optimize margin, provisions for environmental reclamation activities and decommissioning of refinery assets, extraordinary credit
losses and other charges/gains, and the fair value of commodity derivatives lacking the formal criteria to be designated as hedges,
the Italian 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:
Q3 |
|
Q4 |
|
Full
Year |
|
2022 |
(€
million) |
2022 |
2021 |
Change |
2022 |
2021 |
Change |
5,586 |
Net
cash provided by operating activities |
4,593 |
5,835 |
(1,242) |
17,460 |
12,861 |
4,599 |
836 |
Changes
in working capital related to operations |
(3,405) |
592 |
(3,997) |
1,271 |
3,146 |
(1,875) |
(1,955) |
Exclusion
of commodity derivatives |
1,083 |
(1,707) |
2,790 |
(382) |
(2,139) |
1,757 |
65 |
Exclusion
of inventory holding (gains) losses |
722 |
(376) |
1,098 |
(564) |
(1,491) |
927 |
4,532 |
Net
cash before changes in working capital at replacement cost |
2,993 |
4,344 |
(1,351) |
17,785 |
12,377 |
5,408 |
937 |
Provisions
for extraordinary credit losses and other items |
1,120 |
271 |
849 |
2,594 |
334 |
2,260 |
5,469 |
Adjusted
net cash before changes in working capital at replacement cost |
4,113 |
4,615 |
(502) |
20,379 |
12,711 |
7,668 |
Organic
capex was €8.24 bln, higher than the comparative period in 2021 (up 41.7%) due to the strong appreciation of the USD
against the Euro and the catch-up in activities that were delayed due to the coronavirus pandemic. That amount included the funding
of the CFS (Commonwealth Fusion Systems) venture engaged in developing magnetic fusion.
Cash outflows
for acquisitions net of divestments were €2.5 bln (including acquired and divested 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, a 3% interest in the North Field East LNG project in
Qatar, the 100% stake in PLT Energia engaged in the renewable business, the Tango FLNG floating liquefaction vessel in Congo,
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 (about €0.53
bln) and an equity contribution by an investor in Eni’s subsidiaries operating in the natural gas-fired power generation
with recognition of a non-controlling interest (€0.5 bln).
Net
financial borrowings before IFRS 16 decreased by around €2 bln due to the net cash provided by operating activities (€17.5
bln), the reimbursement of operating financing receivable by Azule Energy (€1.3 bln), partly offset by capex requirements
(€8.2 bln), dividends payments to Eni’s shareholders of €3 bln, a €2.4
bln share buy-back program, the cash outflow related to acquisitions and divestments (€2.5 bln), payments of lease liabilities
for €1 bln, the payment of the coupon of perpetual subordinated hybrid bonds (€0.1 bln) and other positive changes for
€0.5 bln.
Summarized
Group Balance Sheet
(€
million) |
Dec.
31, 2022 |
Dec.
31, 2021 |
Change |
|
|
|
|
Fixed
assets |
|
|
|
Property, plant
and equipment |
56,332 |
56,299 |
33 |
Right
of use |
4,446 |
4,821 |
(375) |
Intangible
assets |
5,525 |
4,799 |
726 |
Inventories
- Compulsory stock |
1,786 |
1,053 |
733 |
Equity-accounted
investments and other investments |
13,265 |
7,181 |
6,084 |
Receivables
and securities held for operating purposes |
1,973 |
1,902 |
71 |
Net
payables related to capital expenditure |
(2,320) |
(1,804) |
(516) |
|
81,007 |
74,251 |
6,756 |
Net
working capital |
|
|
|
Inventories |
7,753 |
6,072 |
1,681 |
Trade
receivables |
16,693 |
15,524 |
1,169 |
Trade
payables |
(19,615) |
(16,795) |
(2,820) |
Net
tax assets (liabilities) |
(3,083) |
(3,678) |
595 |
Provisions |
(15,267) |
(13,593) |
(1,674) |
Other
current assets and liabilities |
218 |
(2,258) |
2,476 |
|
(13,301) |
(14,728) |
1,427 |
Provisions
for employee benefits |
(786) |
(819) |
33 |
Assets
held for sale including related liabilities |
156 |
139 |
17 |
CAPITAL
EMPLOYED, NET |
67,076 |
58,843 |
8,233 |
|
|
|
|
Eni’s
shareholders equity |
54,634 |
44,437 |
10,197 |
Non-controlling
interest |
470 |
82 |
388 |
Shareholders’
equity |
55,104 |
44,519 |
10,585 |
Net
borrowings before lease liabilities ex IFRS 16 |
7,021 |
8,987 |
(1,966) |
Lease
liabilities |
4,951 |
5,337 |
(386) |
-
of which Eni working interest |
4,457 |
3,653 |
804 |
-
of which Joint operators’ working interest |
494 |
1,684 |
(1,190) |
Net
borrowings after lease liabilities ex IFRS 16 |
11,972 |
14,324 |
(2,352) |
TOTAL
LIABILITIES AND SHAREHOLDERS’ EQUITY |
67,076 |
58,843 |
8,233 |
Leverage
before lease liabilities ex IFRS 16 |
0.13 |
0.20 |
(0.07) |
Leverage
after lease liabilities ex IFRS 16 |
0.22 |
0.32 |
(0.10) |
Gearing |
0.18 |
0.24 |
(0.06) |
As
of December 31, 2022, fixed assets of €81 bln, increased by €6.8 bln from December 31, 2021, mainly due to the
exchange rate translation differences (the period-end exchange rate of EUR vs. USD was 1.067, down 6% compared to 1.133 as of
December 31, 2021), acquisitions, expenditures and the entry into service of the FPSO vessel operating Area 1 in Mexico, partly
offset by the net effect of the contribution of Angolan subsidiaries in exchange for 50% equity interest in Azule Energy and DD&A,
impairment charges and write-offs recorded in the year.
Net
working capital (-€13.3 bln) increased by €1.4 bln 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 €1.7 bln), as well as by an
increase in other current assets and liabilities (up €2.5 bln) due to fair value changes of derivative instruments, partly
offset by increased risk provisions (up €1.7 bln) and a lower balance between trade receivables and trade payables (approximately
down by €1.6 bln).
Shareholders’
equity (€55.1 bln) increased by €10.6 bln compared to December 31, 2021, due to the net profit for the period (€13.9
bln), positive foreign currency translation differences (about €1.1 bln) reflecting the appreciation of the US dollar vs.
the Euro, the positive change in the cash flow hedge reserve of €0.7 bln, partly offset by dividend payments and the share
buy-back (€5.4 bln).
Net
borrowings1 before lease liabilities as of December 31, 2022, were €7 bln, down approximately €2 bln
from December 31, 2021. Leverage2 – the ratio of the borrowings to total equity calculated before the
impact of IFRS 16 – was 0.13 on December 31, 2022, lower than December 31, 2021 (0.20).
Special
items
The
breakdown of special items recorded in operating profit by segment (net charges of €3,447 mln and €3,290 mln
in the FY and in the Q4 2022, respectively) is as follows:
| ● | E&P:
net charges of €503 mln in the FY (€645 mln in Q4 2022) mainly related
to projects write-offs (about €200 mln), asset impairment charges driven by reserve
revisions and expenditures updates (€432 mln in the FY), environmental charges (€30
mln in the FY) and provisions for redundancy incentives (€34 mln in the FY). |
| ● | GGP:
net gains of €1,667 mln in the FY (net gains of €3,665 mln in the Q4 2022)
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
(gains of €1,805 mln and €3,999 mln in the FY and in the Q4 2022, 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 normal
levels leveraging the seasonal spread in gas prices net of the effects of the associated
commodity derivatives (gains of €114 mln and charges of €472 mln in the FY
and in the Q4 2022, respectively). The reclassification to adjusted operating profit
of the positive balance of €244 mln in the FY (a negative balance of €135 mln
in the Q4 2022) related to derivatives 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 €1,892 mln in the FY 2022 (€884 mln in the
Q4 2022) mainly related to environmental provisions (€676 mln and €153 mln
in the FY 2022 and Q4 2022, respectively), an approximately €300 mln decommissioning
charge relating to certain refinery production units and facilities, impairment losses
of chemical plants to reflect a reduced profitability outlook and the write-down of capital
expenditures made for compliance and stay-in-business at certain CGU with expected negative
cash flows (overall €717 mln and €544 mln in the FY 2022 and Q4 2022, respectively),
as well as the accounting effect of certain fair-valued commodity derivatives lacking
the formal criteria to be classified as hedges (charges of €11 mln and a gain of
€28 mln in the FY 2022 and Q4 2022, respectively). The reclassification to adjusted
operating profit of the negative balance of €33 mln (a positive balance of €42
mln in Q4 2022) related to exchange rate differences and derivatives. |
| ● | Plenitude
& Power: net charges of €1,440 mln (charges of €5,068 mln in Q4 2022)
including the accounting effect of certain fair-valued commodity derivatives lacking
the formal criteria to be classified as hedges driven by high volatility of natural gas
prices. |
| ● | Corporate
and other activities: net charges of €1,279 mln in the FY 2022 mainly related
to environmental provision taken at dismissed Italian industrial hubs, based on management’s
accumulate know-how about scale, reach and timing of remediation activities and a stabilized
regulatory framework, allowing reliable estimate of the future costs of the reclamation
of groundwater. |
The
other special items in the FY 2022 related to: (i) a gain of €2.5 bln (including the reversal of accumulated exchange rate
translation differences) arising in connection with the contribution of Eni’s subsidiaries operating in Angola in exchange
for a 50% equity interest in the newly established Azule Energy JV with bp, which has been recognized to the extent that the gain
was attributable to the other party to the joint venture based on the provisions of IAS 28; (ii) a gain on the share offering
of the Vår Energi investee through an IPO and listing at the Norwegian stock exchange (€0.4 bln); (iii) charges of
€0.3 bln relating to the JV Vår Energi, driven by impairment losses and currency translation differences at finance
debt denominated in a currency other than the reporting currency for which the cash outflows are expected to be matched by highly
probable cash inflows from the sale of production volumes, in the same currency as the finance debt as part of a natural hedge
relationship; (iv) a charge of €1.7 bln relating to windfall taxes levied on energy companies; such charge include accrual
for the Italian solidarity contribution enacted by Budget Law 2023 computed on 2022 taxable income net of distribution of revaluation
reserve.
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 fourth quarter and the full year 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 third and fourth quarter of 2022, the full year of 2022 and for the 2021 comparative period.
Information on the Company’s financial position relates to end of the periods as of December 31, 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.
Effective
January 1, 2022, Eni has updated the conversion rate of gas produced to 5,263 cubic feet of gas equals 1 barrel of oil (it was
5,310 cubic feet of gas per barrel in previous reporting periods). This update reflected changes in volumes and Eni’s gas
properties that took place in the last years and was assessed by collecting data on the heating power of gas in Eni’s gas
fields currently on stream. The effect of this update on production expressed in boe was 8 kboe/d for the fourth quarter and the
full year. For the sake of comparability also production of the first and the second quarter of 2022 was restated resulting in
an effect equal to that of the third quarter. Other per-boe indicators were only marginally affected by the update (e.g. realized
prices, costs per boe) and also negligible was the impact on depletion charges. Other oil companies may use different conversion
rates.
*
* *
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.
The
all sources reserves replacement ratio disclosed elsewhere in this press release is calculated as ratio of changes in proved reserves
for the year resulting from revisions of previously reported reserves, improved recovery, extensions, discoveries and sales or
purchases of minerals in place, to production for the year. A ratio higher than 100% indicates that more proved reserves were
added than produced in a year. The reserves replacement ratio (RRR) is a measure used by management to indicate the extent to
which production is replaced by proved oil and gas reserves. The RRR is not an indicator of future production because the ultimate
development and production of reserves is subject to a number of risks and uncertainties. These include the risks associated with
the successful completion of large-scale projects, including addressing ongoing regulatory issues and completion of infrastructure,
as well as changes in oil and gas prices, political risks and geological and other environmental risks.
Eni’s
results for the full-year 2022 will be updated following issuance of Saipem’s 2022 results.
*
* *
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 fourth quarter and the full year 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, financial assets measured at fair value through profit
or loss and financing receivables held for non-operating purposes. 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) |
|
|
|
|
|
|
|
|
Full
Year 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) |
15,908 |
3,734 |
452 |
(825) |
(1,899) |
138 |
|
17,508 |
Exclusion
of inventory holding (gains) losses |
|
|
(416) |
|
|
(148) |
|
(564) |
Exclusion
of special items: |
|
|
|
|
|
|
|
|
environmental
charges |
30 |
|
962 |
2 |
1,062 |
|
|
2,056 |
impairment
losses (impairment reversals), net |
432 |
(12) |
717 |
(37) |
40 |
|
|
1,140 |
impairment
of exploration projects |
2 |
|
|
|
|
|
|
2 |
net
gains on disposal of assets |
(27) |
|
(10) |
1 |
(5) |
|
|
(41) |
risk
provisions |
34 |
|
52 |
|
1 |
|
|
87 |
provision
for redundancy incentives |
34 |
4 |
46 |
65 |
53 |
|
|
202 |
commodity
derivatives |
|
(1,805) |
11 |
1,412 |
|
|
|
(382) |
exchange
rate differences and derivatives |
(57) |
244 |
(33) |
(5) |
|
|
|
149 |
other |
55 |
(98) |
147 |
2 |
128 |
|
|
234 |
Special
items of operating profit (loss) |
503 |
(1,667) |
1,892 |
1,440 |
1,279 |
|
|
3,447 |
Adjusted
operating profit (loss) |
16,411 |
2,067 |
1,928 |
615 |
(620) |
(10) |
|
20,391 |
Net
finance (expense) income (a) |
(319) |
(17) |
(36) |
(11) |
(670) |
|
|
(1,053) |
Net
income (expense) from investments (a) |
2,086 |
4 |
637 |
(6) |
(81) |
|
|
2,640 |
Income
taxes (a) |
(7,402) |
(1,070) |
(616) |
(201) |
671 |
6 |
|
(8,612) |
Tax
rate (%) |
|
|
|
|
|
|
|
39.2 |
Adjusted
net profit (loss) |
10,776 |
984 |
1,913 |
397 |
(700) |
(4) |
|
13,366 |
of
which: |
|
|
|
|
|
|
|
|
-
Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
55 |
-
Adjusted net profit (loss) attributable to Eni’s shareholders |
|
|
|
|
|
|
|
13,311 |
Reported
net profit (loss) attributable to Eni’s shareholders |
|
|
|
|
|
|
|
13,810 |
Exclusion
of inventory holding (gains) losses |
|
|
|
|
|
|
|
(401) |
Exclusion
of special items |
|
|
|
|
|
|
|
(98) |
Adjusted
net profit (loss) attributable to Eni’s shareholders |
|
|
|
|
|
|
|
13,311 |
(a)
Excluding special items.
(€
million) |
|
|
|
|
|
|
|
|
Full
Year 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) |
10,066 |
899 |
45 |
2,355 |
(816) |
(208) |
|
12,341 |
Exclusion
of inventory holding (gains) losses |
|
|
(1,455) |
|
|
(36) |
|
(1,491) |
Exclusion
of special items: |
|
|
|
|
|
|
|
|
environmental
charges |
60 |
|
150 |
|
61 |
|
|
271 |
impairment
losses (impairment reversals), net |
(1,244) |
26 |
1,342 |
20 |
23 |
|
|
167 |
impairment
of exploration projects |
247 |
|
|
|
|
|
|
247 |
net
gains on disposal of assets |
(77) |
|
(22) |
(2) |
1 |
|
|
(100) |
risk
provisions |
113 |
|
(4) |
|
33 |
|
|
142 |
provision
for redundancy incentives |
60 |
5 |
42 |
(5) |
91 |
|
|
193 |
commodity
derivatives |
|
(207) |
50 |
(1,982) |
|
|
|
(2,139) |
exchange
rate differences and derivatives |
(3) |
206 |
(14) |
(6) |
|
|
|
183 |
other |
71 |
(349) |
18 |
96 |
14 |
|
|
(150) |
Special
items of operating profit (loss) |
(773) |
(319) |
1,562 |
(1,879) |
223 |
|
|
(1,186) |
Adjusted
operating profit (loss) |
9,293 |
580 |
152 |
476 |
(593) |
(244) |
|
9,664 |
Net
finance (expense) income (a) |
(313) |
(17) |
(32) |
(2) |
(539) |
|
|
(903) |
Net
income (expense) from investments (a) |
681 |
|
(4) |
(3) |
(691) |
|
|
(17) |
Income
taxes (a) |
(4,118) |
(394) |
(54) |
(144) |
247 |
68 |
|
(4,395) |
Tax
rate (%) |
|
|
|
|
|
|
|
50.3 |
Adjusted
net profit (loss) |
5,543 |
169 |
62 |
327 |
(1,576) |
(176) |
|
4,349 |
of
which: |
|
|
|
|
|
|
|
|
-
Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
19 |
-
Adjusted net profit (loss) attributable to Eni’s shareholders |
|
|
|
|
|
|
|
4,330 |
Reported
net profit (loss) attributable to Eni’s shareholders |
|
|
|
|
|
|
|
5,821 |
Exclusion
of inventory holding (gains) losses |
|
|
|
|
|
|
|
(1,060) |
Exclusion
of special items |
|
|
|
|
|
|
|
(431) |
Adjusted
net profit (loss) attributable to Eni’s shareholders |
|
|
|
|
|
|
|
4,330 |
(a)
Excluding special items. |
(€
million) |
|
|
|
|
|
|
|
|
IVQ
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) |
2,246 |
3,732 |
(1,236) |
(4,950) |
(499) |
282 |
|
(425) |
Exclusion
of inventory holding (gains) losses |
|
|
730 |
|
|
(8) |
|
722 |
Exclusion
of special items: |
|
|
|
|
|
|
|
|
environmental
charges |
15 |
|
153 |
2 |
178 |
|
|
348 |
impairment
losses (impairment reversals), net |
375 |
(15) |
544 |
(40) |
11 |
|
|
875 |
impairment
of exploration projects |
2 |
|
|
|
|
|
|
2 |
net
gains on disposal of assets |
(25) |
|
(3) |
|
(4) |
|
|
(32) |
risk
provisions |
27 |
|
52 |
|
(3) |
|
|
76 |
provision
for redundancy incentives |
14 |
1 |
31 |
(4) |
40 |
|
|
82 |
commodity
derivatives |
|
(3,999) |
(28) |
5,110 |
|
|
|
1,083 |
exchange
rate differences and derivatives |
(38) |
(135) |
42 |
(2) |
|
|
|
(133) |
other |
275 |
483 |
93 |
2 |
136 |
|
|
989 |
Special
items of operating profit (loss) |
645 |
(3,665) |
884 |
5,068 |
358 |
|
|
3,290 |
Adjusted
operating profit (loss) |
2,891 |
67 |
378 |
118 |
(141) |
274 |
|
3,587 |
Net
finance (expense) income (a) |
(128) |
22 |
6 |
(2) |
(24) |
|
|
(126) |
Net
income (expense) from investments (a) |
691 |
1 |
244 |
(8) |
(17) |
|
|
911 |
Income
taxes (a) |
(1,598) |
(348) |
(100) |
(53) |
330 |
(76) |
|
(1,845) |
Tax
rate (%) |
|
|
|
|
|
|
|
42.2 |
Adjusted
net profit (loss) |
1,856 |
(258) |
528 |
55 |
148 |
198 |
|
2,527 |
of
which: |
|
|
|
|
|
|
|
|
-
Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
24 |
-
Adjusted net profit (loss) attributable to Eni’s shareholders |
|
|
|
|
|
|
|
2,503 |
Reported
net profit (loss) attributable to Eni’s shareholders |
|
|
|
|
|
|
|
550 |
Exclusion
of inventory holding (gains) losses |
|
|
|
|
|
|
|
509 |
Exclusion
of special items |
|
|
|
|
|
|
|
1,444 |
Adjusted
net profit (loss) attributable to Eni’s shareholders |
|
|
|
|
|
|
|
2,503 |
(a)
Excluding special items. |
(€ million) |
|
|
|
|
|
|
|
|
IVQ
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) |
4,066 |
2,864 |
(239) |
(532) |
(392) |
(76) |
|
5,691 |
Exclusion
of inventory holding (gains) losses |
|
|
(321) |
|
|
(55) |
|
(376) |
Exclusion
of special items: |
|
|
|
|
|
|
|
|
environmental
charges |
41 |
|
71 |
|
56 |
|
|
168 |
impairment
losses (impairment reversals), net |
(871) |
26 |
303 |
20 |
11 |
|
|
(511) |
impairment
of exploration projects |
225 |
|
|
|
|
|
|
225 |
net
gains on disposal of assets |
(2) |
|
(5) |
(1) |
|
|
|
(8) |
risk
provisions |
16 |
|
|
|
25 |
|
|
41 |
provision
for redundancy incentives |
41 |
3 |
19 |
(6) |
61 |
|
|
118 |
commodity
derivatives |
|
(2,342) |
19 |
616 |
|
|
|
(1,707) |
exchange
rate differences and derivatives |
(9) |
52 |
(6) |
(1) |
|
|
|
36 |
other |
123 |
(67) |
55 |
6 |
12 |
|
|
129 |
Special
items of operating profit (loss) |
(436) |
(2,328) |
456 |
634 |
165 |
|
|
(1,509) |
Adjusted
operating profit (loss) |
3,630 |
536 |
(104) |
102 |
(227) |
(131) |
|
3,806 |
Net
finance (expense) income (a) |
(47) |
(6) |
(13) |
(1) |
(134) |
|
|
(201) |
Net
income (expense) from investments (a) |
253 |
2 |
10 |
(3) |
(408) |
|
|
(146) |
Income
taxes (a) |
(1,578) |
(365) |
3 |
(44) |
194 |
36 |
|
(1,754) |
Tax
rate (%) |
|
|
|
|
|
|
|
50.7 |
Adjusted
net profit (loss) |
2,258 |
167 |
(104) |
54 |
(575) |
(95) |
|
1,705 |
of
which: |
|
|
|
|
|
|
|
|
-
Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
5 |
-
Adjusted net profit (loss) attributable to Eni’s shareholders |
|
|
|
|
|
|
|
1,700 |
Reported
net profit (loss) attributable to Eni’s shareholders |
|
|
|
|
|
|
|
3,515 |
Exclusion
of inventory holding (gains) losses |
|
|
|
|
|
|
|
(267) |
Exclusion
of special items |
|
|
|
|
|
|
|
(1,548) |
Adjusted
net profit (loss) attributable to Eni’s shareholders |
|
|
|
|
|
|
|
1,700 |
(a)
Excluding special items. |
(€
million) |
|
|
|
|
|
|
|
|
IIIQ
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) |
4,539 |
2,062 |
(591) |
1,512 |
(981) |
70 |
|
6,611 |
Exclusion
of inventory holding (gains) losses |
|
|
242 |
|
|
(177) |
|
65 |
Exclusion
of special items: |
|
|
|
|
|
|
|
|
environmental
charges |
13 |
|
685 |
|
786 |
|
|
1,484 |
impairment
losses (impairment reversals), net |
14 |
|
70 |
|
6 |
|
|
90 |
impairment
of exploration projects |
|
|
|
|
|
|
|
|
net
gains on disposal of assets |
|
|
|
1 |
(1) |
|
|
|
risk
provisions |
|
|
|
|
(1) |
|
|
(1) |
provision
for redundancy incentives |
3 |
|
5 |
|
6 |
|
|
14 |
commodity
derivatives |
|
(680) |
66 |
(1,341) |
|
|
|
(1,955) |
exchange
rate differences and derivatives |
(5) |
231 |
(34) |
|
|
|
|
192 |
other |
(292) |
(530) |
94 |
|
|
|
|
(728) |
Special
items of operating profit (loss) |
(267) |
(979) |
886 |
(1,340) |
796 |
|
|
(904) |
Adjusted
operating profit (loss) |
4,272 |
1,083 |
537 |
172 |
(185) |
(107) |
|
5,772 |
Net
finance (expense) income (a) |
(76) |
(19) |
(13) |
(2) |
(198) |
|
|
(308) |
Net
income (expense) from investments (a) |
511 |
1 |
175 |
4 |
(4) |
|
|
687 |
Income
taxes (a) |
(1,935) |
(421) |
(192) |
(46) |
163 |
31 |
|
(2,400) |
Tax
rate (%) |
|
|
|
|
|
|
|
39.0 |
Adjusted
net profit (loss) |
2,772 |
644 |
507 |
128 |
(224) |
(76) |
|
3,751 |
of
which: |
|
|
|
|
|
|
|
|
-
Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
21 |
-
Adjusted net profit (loss) attributable to Eni’s shareholders |
|
|
|
|
|
|
|
3,730 |
Reported
net profit (loss) attributable to Eni’s shareholders |
|
|
|
|
|
|
|
5,862 |
Exclusion
of inventory holding (gains) losses |
|
|
|
|
|
|
|
52 |
Exclusion
of special items |
|
|
|
|
|
|
|
(2,184) |
Adjusted
net profit (loss) attributable to Eni’s shareholders |
|
|
|
|
|
|
|
3,730 |
(a)
Excluding special items. |
Breakdown
of special items
Q3 |
|
Q4 |
Full
Year |
2022 |
(€
million) |
2022 |
2021 |
2022 |
2021 |
1,484 |
Environmental
charges |
348 |
168 |
2,056 |
271 |
90 |
Impairment
losses (impairment reversals), net |
875 |
(511) |
1,140 |
167 |
|
Impairment
of exploration projects |
2 |
225 |
2 |
247 |
|
Net
gains on disposal of assets |
(32) |
(8) |
(41) |
(100) |
(1) |
Risk
provisions |
76 |
41 |
87 |
142 |
14 |
Provisions
for redundancy incentives |
82 |
118 |
202 |
193 |
(1,955) |
Commodity
derivatives |
1,083 |
(1,707) |
(382) |
(2,139) |
192 |
Exchange
rate differences and derivatives |
(133) |
36 |
149 |
183 |
(728) |
Other |
989 |
129 |
234 |
(150) |
(904) |
Special
items of operating profit (loss) |
3,290 |
(1,509) |
3,447 |
(1,186) |
(147) |
Net
finance (income) expense |
111 |
(27) |
(127) |
(115) |
|
of
which: |
|
|
|
|
(192) |
-
exchange rate differences and derivatives reclassified to operating profit (loss) |
133 |
(36) |
(149) |
(183) |
(2,166) |
Net
income (expense) from investments |
(211) |
399 |
(2,844) |
851 |
|
of
which: |
|
|
|
|
(2,445) |
-
impairment/revaluation of equity investments |
|
399 |
|
851 |
(12) |
-
gain on the divestment of Vår Energi |
(4) |
|
(448) |
|
(2,445) |
-
net gains on the divestment of Angolan assets |
(97) |
|
(2,542) |
|
1,033 |
Income
taxes |
(1,765) |
(411) |
(593) |
19 |
(2,184) |
Total
special items of net profit (loss) |
1,425 |
(1,548) |
(117) |
(431) |
|
|
|
|
|
|
|
attributable
to: |
|
|
|
|
(2,184) |
-
Eni’s shareholders |
1,444 |
(1,548) |
(98) |
(431) |
|
-
Non-controlling interest |
(19) |
|
(19) |
|
Profit
and loss reconciliation GAAP vs Non-GAAP
IVQ
|
2022 |
Full
Year |
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 |
|
|
|
|
|
|
|
|
|
|
|
(425) |
722 |
3,423 |
(133) |
3,587 |
Operating
profit |
17,508 |
(564) |
3,298 |
149 |
20,391 |
(237) |
|
(22) |
133 |
(126) |
Finance
income (expense) |
(926) |
|
22 |
(149) |
(1,053) |
1,122 |
|
(211) |
|
911 |
Income
(expense) from investments |
5,484 |
|
(2,844) |
|
2,640 |
295 |
|
(124) |
|
171 |
.
Vår Energi |
691 |
|
260 |
|
951 |
281 |
|
|
|
281 |
.
Azule |
455 |
|
|
|
455 |
105 |
|
123 |
|
228 |
.
Adnoc R&T |
529 |
|
39 |
|
568 |
133 |
(213) |
(1,765) |
|
(1,845) |
Income
taxes |
(8,182) |
163 |
(593) |
|
(8,612) |
593 |
509 |
1,425 |
|
2,527 |
Net
profit |
13,884 |
(401) |
(117) |
|
13,366 |
43 |
|
(19) |
|
24 |
-
Non-controlling interest |
74 |
|
(19) |
|
55 |
550 |
|
|
|
2,503 |
Net
profit attributable to Eni’s shareholders |
13,810 |
|
|
|
13,311 |
|
|
|
|
|
|
|
|
|
|
|
IVQ
|
2021 |
Full
Year |
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 |
|
|
|
|
|
|
|
|
|
|
|
5,691 |
(376) |
(1,545) |
36 |
3,806 |
Operating
profit |
12,341 |
(1,491) |
(1,369) |
183 |
9,664 |
(174) |
|
9 |
(36) |
(201) |
Finance
income (expense) |
(788) |
|
68 |
(183) |
(903) |
(545) |
|
399 |
|
(146) |
Income
(expense) from investments |
(868) |
|
851 |
|
(17) |
196 |
|
(35) |
|
161 |
.
Vår Energi |
20 |
|
405 |
|
425 |
(385) |
|
354 |
|
(31) |
.
Adnoc R&T |
(320) |
|
244 |
|
(76) |
(1,452) |
109 |
(411) |
|
(1,754) |
Income
taxes |
(4,845) |
431 |
19 |
|
(4,395) |
3,520 |
(267) |
(1,548) |
|
1,705 |
Net
profit |
5,840 |
(1,060) |
(431) |
|
4,349 |
5 |
|
|
|
5 |
-
Non-controlling interest |
19 |
|
|
|
19 |
3,515 |
|
|
|
1,700 |
Net
profit attributable to Eni’s shareholders |
5,821 |
|
|
|
4,330 |
|
|
|
|
|
|
|
|
|
|
|
|
IIIQ
2022 |
(€
million) |
Reported
results |
Profit
on stock |
Special
items |
Finance
expense reclassified |
Adjusted
results |
|
|
|
|
|
|
Operating
profit |
6,611 |
65 |
(1,096) |
192 |
5,772 |
Finance
income (expense) |
(161) |
|
45 |
(192) |
(308) |
Income
(expense) from investments |
2,853 |
|
(2,166) |
|
687 |
.
Vår Energi |
102 |
|
223 |
|
325 |
.
Azule |
174 |
|
|
|
174 |
.
Adnoc R&T |
85 |
|
59 |
|
144 |
Income
taxes |
(3,420) |
(13) |
1,033 |
|
(2,400) |
Net
profit |
5,883 |
52 |
(2,184) |
|
3,751 |
-
Non-controlling interest |
21 |
|
|
|
21 |
Net
profit attributable to Eni’s shareholders |
5,862 |
|
|
|
3,730 |
|
|
|
|
|
|
Analysis
of Profit and Loss account items |
Sales
from operations
Q3 |
|
Q4 |
|
Full
Year |
|
2022 |
(€
million) |
2022 |
2021 |
%
Ch. |
2022 |
2021 |
%
Ch. |
7,676 |
Exploration
& Production |
7,328 |
7,273 |
1 |
31,200 |
21,742 |
44 |
14,905 |
Global
Gas & LNG Portfolio |
10,745 |
10,213 |
5 |
48,487 |
20,843 |
.. |
14,757 |
Refining
& Marketing and Chemicals |
14,488 |
12,426 |
17 |
58,930 |
40,374 |
46 |
6,085 |
Plenitude
& Power |
4,902 |
4,051 |
21 |
20,954 |
11,187 |
87 |
428 |
Corporate
and other activities |
591 |
481 |
23 |
1,879 |
1,698 |
11 |
(6,549) |
Consolidation
adjustments |
(6,804) |
(7,678) |
|
(29,213) |
(19,269) |
|
37,302 |
|
31,250 |
26,766 |
17 |
132,237 |
76,575 |
73 |
|
|
|
|
|
|
|
|
Operating
expenses
Q3 |
|
Q4 |
|
Full
Year |
|
2022 |
(€
million) |
2022 |
2021 |
%
Ch. |
2022 |
2021 |
%
Ch. |
27,395 |
Purchases,
services and other |
27,979 |
19,624 |
43 |
102,256 |
55,549 |
84 |
(281) |
Impairment
losses (impairment reversals) of trade and other receivables, net |
69 |
113 |
(39) |
(47) |
279 |
.. |
650 |
Payroll
and related costs |
817 |
769 |
6 |
3,015 |
2,888 |
4 |
14 |
of
which: provision for redundancy incentives and other |
82 |
118 |
|
202 |
193 |
|
27,764 |
|
28,865 |
20,506 |
41 |
105,224 |
58,716 |
79 |
|
|
|
|
|
|
|
|
DD&A,
impairments, reversals and write-off
Q3 |
|
Q4 |
|
Full
Year |
|
2022 |
(€
million) |
2022 |
2021 |
%
Ch. |
2022 |
2021 |
%
Ch. |
1,423 |
Exploration
& Production |
1,784 |
1,663 |
7 |
6,018 |
5,976 |
1 |
55 |
Global
Gas & LNG Portfolio |
58 |
57 |
2 |
217 |
174 |
25 |
127 |
Refining
& Marketing and Chemicals |
129 |
128 |
1 |
506 |
512 |
(1) |
89 |
Plenitude
& Power |
96 |
85 |
13 |
358 |
286 |
25 |
34 |
Corporate
and other activities |
37 |
38 |
(3) |
139 |
148 |
(6) |
(9) |
Impact
of unrealized intragroup profit elimination |
(8) |
(9) |
|
(33) |
(33) |
|
1,719 |
Total
depreciation, depletion and amortization |
2,096 |
1,962 |
7 |
7,205 |
7,063 |
|
90 |
Impairment
losses (impairment reversals) of tangible and intangible and right of use assets, net |
875 |
(511) |
.. |
1,140 |
167 |
.. |
1,809 |
Depreciation,
depletion, amortization, impairments and reversals |
2,971 |
1,451 |
.. |
8,345 |
7,230 |
15 |
52 |
Write-off
of tangible and intangible assets |
500 |
288 |
74 |
599 |
387 |
|
1,861 |
|
3,471 |
1,739 |
100 |
8,944 |
7,617 |
17 |
Income
(expense) from investments
(€
million) |
|
|
|
|
|
|
Full
Year 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 |
1,526 |
4 |
446 |
(20) |
(95) |
1,861 |
Dividends
|
269 |
|
82 |
|
|
351 |
Net
gains (losses) on disposals |
448 |
|
3 |
30 |
2 |
483 |
Other
income (expense), net |
2,615 |
|
102 |
77 |
(5) |
2,789 |
|
4,858 |
4 |
633 |
87 |
(98) |
5,484 |
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.
Sept.
30,
2022 |
Change |
|
(€
million) |
Dec.
31, 2022 |
Dec.
31, 2021 |
Change |
27,313 |
(396) |
|
Total
debt |
26,917 |
27,794 |
(877) |
7,468 |
75 |
|
- Short-term
debt |
7,543 |
4,080 |
3,463 |
19,845 |
(471) |
|
- Long-term
debt |
19,374 |
23,714 |
(4,340) |
(11,480) |
1,325 |
|
Cash
and cash equivalents |
(10,155) |
(8,254) |
(1,901) |
(6,752) |
(1,499) |
|
Financial
assets measured at fair value through profit or loss |
(8,251) |
(6,301) |
(1,950) |
(2,637) |
1,147 |
|
Financing
receivables held for non-operating purposes |
(1,490) |
(4,252) |
2,762 |
6,444 |
577 |
|
Net
borrowings before lease liabilities ex IFRS 16 |
7,021 |
8,987 |
(1,966) |
5,089 |
(138) |
|
Lease
Liabilities |
4,951 |
5,337 |
(386) |
4,555 |
(98) |
|
-
of which Eni working interest |
4,457 |
3,653 |
804 |
534 |
(40) |
|
-
of which Joint operators’ working interest |
494 |
1,684 |
(1,190) |
11,533 |
439 |
|
Net
borrowings after lease liabilities ex IFRS 16 |
11,972 |
14,324 |
(2,352) |
57,845 |
(2,741) |
|
Shareholders’
equity including non-controlling interest |
55,104 |
44,519 |
10,585 |
0.11 |
0.02 |
|
Leverage
before lease liability ex IFRS 16 |
0.13 |
0.20 |
(0.07) |
0.20 |
0.02 |
|
Leverage
after lease liability ex IFRS 16 |
0.22 |
0.32 |
(0.10) |
Pro-forma
leverage
(€
million) |
Reported
measure |
Lease
liabilities of
Joint operators’
working interest |
Pro-forma
measure |
Net
borrowings after lease liabilities ex IFRS 16 |
11,972 |
494 |
11,478 |
|
|
|
|
Shareholders’
equity including non-controlling interest |
55,104 |
|
55,104 |
|
|
|
|
Pro-forma
leverage |
0.22 |
|
0.21 |
Pro-forma
leverage is net of followers’ lease liabilities which are recovered through a cash call mechanism.
Consolidated
financial statements |
|
BALANCE
SHEET
(€
million) |
|
|
|
Dec.
31, 2022 |
Dec.
31, 2021 |
ASSETS |
|
|
Current
assets |
|
|
Cash
and cash equivalents |
10,155
|
8,254
|
Financial
assets measured at fair value through profit or loss |
8,251
|
6,301
|
Other
financial assets |
1,504
|
4,308
|
Trade
and other receivables |
20,924
|
18,850
|
Inventories
|
7,753
|
6,072
|
Income
tax assets |
608
|
195
|
Other
assets |
12,823
|
13,634
|
|
62,018
|
57,614
|
Non-current
assets |
|
|
Property,
plant and equipment |
56,332
|
56,299
|
Right
of use assets |
4,446
|
4,821
|
Intangible
assets |
5,525
|
4,799
|
Inventory
- compulsory stock |
1,786
|
1,053
|
Equity-accounted
investments |
12,063
|
5,887
|
Other
investments |
1,202
|
1,294
|
Other
financial assets |
1,967
|
1,885
|
Deferred
tax assets |
3,735
|
2,713
|
Income
tax assets |
114
|
108
|
Other
assets |
2,271
|
1,029
|
|
89,441
|
79,888
|
Assets
held for sale |
264
|
263
|
TOTAL
ASSETS |
151,723
|
137,765
|
LIABILITIES
AND SHAREHOLDERS’ EQUITY |
|
|
Current
liabilities |
|
|
Short-term
debt |
4,446
|
2,299
|
Current
portion of long-term debt |
3,097
|
1,781
|
Current
portion of long-term lease liabilities |
884
|
948
|
Trade
and other payables |
25,797
|
21,720
|
Income
taxes payable |
1,657
|
648
|
Other
liabilities |
12,519
|
15,756
|
|
48,400
|
43,152
|
Non-current
liabilities |
|
|
Long-term
debt |
19,374
|
23,714
|
Long-term
lease liabilities |
4,067
|
4,389
|
Provisions
for contingencies |
15,267
|
13,593
|
Provisions
for employee benefits |
786
|
819
|
Deferred
tax liabilities |
5,094
|
4,835
|
Income
taxes payable |
253
|
374
|
Other
liabilities |
3,270
|
2,246
|
|
48,111
|
49,970
|
Liabilities
directly associated with assets held for sale |
108
|
124
|
TOTAL
LIABILITIES |
96,619
|
93,246
|
Share
capital |
4,005
|
4,005
|
Retained
earnings |
23,257
|
22,750
|
Cumulative
currency translation differences |
7,646
|
6,530
|
Other
reserves and equity instruments |
8,853
|
6,289
|
Treasury
shares |
(2,937) |
(958) |
Net
profit (loss) |
13,810
|
5,821
|
Total
Eni shareholders’ equity |
54,634
|
44,437
|
Non-controlling
interest |
470
|
82
|
TOTAL
SHAREHOLDERS’ EQUITY |
55,104
|
44,519
|
TOTAL
LIABILITIES AND SHAREHOLDERS’ EQUITY |
151,723
|
137,765
|
GROUP
PROFIT AND LOSS ACCOUNT
Q3 |
|
Q4 |
Full
Year |
2022 |
(€
million) |
2022 |
2021 |
2022 |
2021 |
37,302
|
Sales
from operations |
31,250
|
26,766
|
132,237
|
76,575
|
267
|
Other
income and revenues |
290
|
312
|
1,175
|
1,196
|
37,569
|
Total
revenues |
31,540
|
27,078
|
133,412
|
77,771
|
(27,395) |
Purchases,
services and other |
(27,979) |
(19,624) |
(102,256) |
(55,549) |
281
|
Impairment
reversals (impairment losses) of trade and other receivables, net |
(69) |
(113) |
47
|
(279) |
(650) |
Payroll
and related costs |
(817) |
(769) |
(3,015) |
(2,888) |
(1,333) |
Other
operating (expense) income |
371
|
858
|
(1,736) |
903
|
(1,719) |
Depreciation,
Depletion and Amortization |
(2,096) |
(1,962) |
(7,205) |
(7,063) |
(90) |
Impairment
reversals (impairment losses) of tangible, intangible and right of use assets, net |
(875) |
511
|
(1,140) |
(167) |
(52) |
Write-off
of tangible and intangible assets |
(500) |
(288) |
(599) |
(387) |
6,611
|
OPERATING
PROFIT (LOSS) |
(425) |
5,691
|
17,508
|
12,341
|
2,618
|
Finance
income |
2,375
|
1,035
|
8,449
|
3,723
|
(2,926) |
Finance
expense |
(2,602) |
(1,168) |
(9,333) |
(4,216) |
(21) |
Net
finance income (expense) from financial assets measured at fair value through profit or loss |
57
|
(10) |
(55) |
11
|
168
|
Derivative
financial instruments |
(67) |
(31) |
13
|
(306) |
(161) |
FINANCE
INCOME (EXPENSE) |
(237) |
(174) |
(926) |
(788) |
326
|
Share
of profit (loss) of equity-accounted investments |
685
|
(667) |
1,861
|
(1,091) |
2,527
|
Other
gain (loss) from investments |
437
|
122
|
3,623
|
223
|
2,853
|
INCOME
(EXPENSE) FROM INVESTMENTS |
1,122
|
(545) |
5,484
|
(868) |
9,303
|
PROFIT
(LOSS) BEFORE INCOME TAXES |
460
|
4,972
|
22,066
|
10,685
|
(3,420) |
Income
taxes |
133
|
(1,452) |
(8,182) |
(4,845) |
5,883
|
Net
profit (loss) |
593
|
3,520
|
13,884
|
5,840
|
|
attributable
to: |
|
|
|
|
5,862
|
-
Eni’s shareholders |
550
|
3,515
|
13,810
|
5,821
|
21
|
-
Non-controlling interest |
43
|
5
|
74
|
19
|
|
|
|
|
|
|
|
Earnings
per share (€ per share) |
|
|
|
|
1.66
|
-
basic |
0.19
|
0.98
|
3.93
|
1.61
|
1.67
|
-
diluted |
0.19
|
0.97
|
3.93
|
1.60
|
|
Weighted
average number of shares outstanding (million) |
|
|
|
|
3,487.8
|
-
basic |
3,371.9
|
3,548.9
|
3,483.6
|
3,566.0
|
3,493.6
|
-
diluted |
3,378.2
|
3,556.5
|
3,490.0
|
3,573.6
|
|
|
|
|
|
|
COMPREHENSIVE
INCOME (LOSS)
|
Q4 |
Full
Year |
(€
million) |
2022 |
2021 |
2022 |
2021 |
Net
profit (loss) |
593 |
3,520 |
13,884 |
5,840 |
|
|
|
|
|
Items
that are not reclassified to profit or loss in later periods |
(80) |
132 |
14 |
149 |
Remeasurements
of defined benefit plans |
(10) |
119 |
60 |
119 |
|
|
|
|
|
Share
of other comprehensive income on equity accounted entities |
1 |
|
2 |
2 |
|
|
|
|
|
Change
in the fair value of interests with effects on other comprehensive income |
(81) |
90 |
(43) |
105 |
|
|
|
|
|
Taxation |
10 |
(77) |
(5) |
(77) |
|
|
|
|
|
Items
that may be reclassified to profit in later periods |
(1,446) |
916 |
1,695 |
1,902 |
Currency
translation differences |
(5,013) |
845 |
1,117 |
2,828 |
|
|
|
|
|
Change
in the fair value of cash flow hedging derivatives |
4,947 |
72 |
696 |
(1,264) |
|
|
|
|
|
Share
of other comprehensive income on equity-accounted entities |
86 |
20 |
119 |
(34) |
|
|
|
|
|
Taxation
|
(1,466) |
(21) |
(237) |
372 |
|
|
|
|
|
Total
other items of comprehensive income (loss) |
(1,526) |
1,048 |
1,709 |
2,051 |
Total
comprehensive income (loss) |
(933) |
4,568 |
15,593 |
7,891 |
attributable
to: |
|
|
|
|
-
Eni’s shareholders |
(973) |
4,563 |
15,517 |
7,872 |
-
Non-controlling interest |
40 |
5 |
76 |
19 |
CHANGES
IN SHAREHOLDERS’ EQUITY
(€
million) |
|
|
|
Shareholders’
equity at January 1, 2021 |
|
|
37,493
|
Total
comprehensive income (loss) |
|
7,891
|
|
Dividends
paid to Eni’s shareholders |
|
(2,390) |
|
Dividends
distributed by consolidated subsidiaries |
|
(5) |
|
Issue
of perpetual subordinated bonds |
|
2,000
|
|
Coupon
of perpetual subordinated bonds |
|
(61) |
|
Buy-back
program |
|
(400) |
|
Costs
for the issue of perpetual subordinated bonds |
|
(15) |
|
Other
changes |
|
6
|
|
Total
changes |
|
|
7,026
|
Shareholders’
equity at December 31, 2021 |
|
|
44,519
|
attributable
to: |
|
|
|
-
Eni’s shareholders |
|
|
44,437
|
-
Non-controlling interest |
|
|
82
|
|
|
|
|
Shareholders’
equity at January 1, 2022 |
|
|
44,519
|
Total
comprehensive income (loss) |
|
15,593
|
|
Dividends
paid to Eni’s shareholders |
|
(3,022) |
|
Dividends
distributed by consolidated subsidiaries |
|
(60) |
|
Coupon
of perpetual subordinated bonds |
|
(138) |
|
EniPower
operation |
|
542
|
|
Net
purchase of treasury shares |
|
(2,400) |
|
Taxes
on hybrid bond coupon |
|
44
|
|
Other
changes |
|
26
|
|
Total
changes |
|
|
10,585
|
Shareholders’
equity at December 31, 2022 |
|
|
55,104
|
attributable
to: |
|
|
|
-
Eni’s shareholders |
|
|
54,634
|
-
Non-controlling interest |
|
|
470
|
|
|
|
|
GROUP
CASH FLOW STATEMENT
Q3 |
|
Q4 |
Full
Year |
2022 |
(€
million) |
2022 |
2021 |
2022 |
2021 |
5,883
|
Net
profit (loss) |
593
|
3,520
|
13,884
|
5,840
|
|
|
|
|
|
|
|
Adjustments
to reconcile net profit (loss) to net cash provided by operating activities: |
|
|
|
|
1,719
|
Depreciation,
depletion and amortization |
2,096
|
1,962
|
7,205
|
7,063
|
|
|
|
|
|
|
90
|
Impairment
losses (impairment reversals) of tangible, intangible and right of use, net |
875
|
(511) |
1,140
|
167
|
|
|
|
|
|
|
52
|
Write-off
of tangible and intangible assets |
500
|
288
|
599
|
387
|
(326) |
Share
of (profit) loss of equity-accounted investments |
(685) |
667
|
(1,861) |
1,091
|
(15) |
Gains
on disposal of assets, net |
(65) |
(10) |
(524) |
(102) |
(66) |
Dividend
income |
(134) |
(110) |
(351) |
(230) |
(60) |
Interest
income |
(49) |
(18) |
(158) |
(75) |
270
|
Interest
expense |
273
|
200
|
1,033
|
794
|
3,420
|
Income
taxes |
(133) |
1,452
|
8,182
|
4,845
|
(2,479) |
Other
changes |
(242) |
(9) |
(2,773) |
(194) |
(836) |
Cash
flow from changes in working capital |
3,405
|
(592) |
(1,271) |
(3,146) |
(1,658) |
-
inventories |
2,159
|
(410) |
(2,572) |
(2,033) |
(1,170) |
-
trade receivables |
145
|
(4,933) |
(1,172) |
(7,888) |
1,393
|
-
trade payables |
1,624
|
5,073
|
2,372
|
7,744
|
1,211
|
-
provisions for contingencies |
709
|
(151) |
2,028
|
(406) |
(612) |
-
other assets and liabilities |
(1,232) |
(171) |
(1,927) |
(563) |
(52) |
Net
change in the provisions for employee benefits |
36
|
70
|
39
|
54
|
429
|
Dividends
received |
811
|
318
|
1,545
|
857
|
16
|
Interest
received |
86
|
8
|
115
|
28
|
(241) |
Interest
paid |
(163) |
(169) |
(851) |
(792) |
(2,218) |
Income
taxes paid, net of tax receivables received |
(2,611) |
(1,231) |
(8,493) |
(3,726) |
5,586
|
Net
cash provided by operating activities |
4,593
|
5,835
|
17,460
|
12,861
|
(3,160) |
Cash
flow from investing activities |
(3,324) |
(2,559) |
(10,793) |
(7,815) |
(2,031) |
-
tangible assets |
(2,597) |
(1,541) |
(7,700) |
(4,950) |
|
-
prepaid right of use |
(3) |
|
(3) |
(2) |
(68) |
-
intangible assets |
(167) |
(106) |
(356) |
(284) |
(723) |
-
consolidated subsidiaries and businesses net of cash and cash equivalent acquired |
(744) |
(1,145) |
(1,637) |
(1,901) |
(255) |
-
investments |
(322) |
(169) |
(1,674) |
(837) |
(85) |
-
securities and financing receivables held for operating purposes |
(119) |
(49) |
(350) |
(227) |
2
|
-
change in payables in relation to investing activities |
628
|
451
|
927
|
386
|
1,031
|
Cash
flow from disposals |
949
|
183
|
2,989
|
536
|
23
|
-
tangible assets |
119
|
16
|
149
|
207
|
|
-
intangible assets |
5
|
|
17
|
1
|
(36) |
-
consolidated subsidiaries and businesses net of cash and cash equivalent disposed of |
(28) |
|
(60) |
76
|
|
-
tax on disposals |
|
|
|
(35) |
40
|
-
investments |
175
|
133
|
1,096
|
155
|
52
|
-
securities and financing receivables held for operating purposes |
351
|
30
|
483
|
141
|
952
|
-
change in receivables in relation to disposals |
327
|
4
|
1,304
|
(9) |
(294) |
Net
change in receivables and securities not held for operating purposes |
(590) |
(3,089) |
786
|
(4,743) |
(2,423) |
Net
cash used in investing activities |
(2,965) |
(5,465) |
(7,018) |
(12,022) |
|
|
|
|
|
|
GROUP
CASH FLOW STATEMENT (continued)
Q3 |
|
Q4 |
|
Full
Year |
2022 |
(€
million) |
2022 |
2021 |
|
2022 |
2021 |
2 |
Increase
in long-term debt |
(1) |
2,205 |
|
130 |
3,556 |
(94) |
Payment
of long-term debt |
(286) |
(912) |
|
(4,074) |
(2,890) |
(211) |
Payment
of lease liabilities |
(227) |
(264) |
|
(994) |
(939) |
(1,186) |
Increase
(decrease) in short-term financial debt |
(298) |
(148) |
|
1,375 |
(910) |
(751) |
Dividends
paid to Eni’s shareholders |
(738) |
(8) |
|
(3,009) |
(2,358) |
|
Dividends
paid to non-controlling interests |
(47) |
|
|
(60) |
(5) |
1 |
Capital
issuance from non-controlling interest |
71 |
|
|
92 |
|
547 |
Disposal
(acquisition) of additional interests in consolidated subsidiaries |
(6) |
(13) |
|
536 |
(17) |
(981) |
Net
purchase of treasury shares |
(1,224) |
(298) |
|
(2,400) |
(400) |
|
Issue
of perpetual subordinated bonds |
|
|
|
|
1,985 |
|
Coupon
of perpetual subordinated bonds |
(51) |
(51) |
|
(138) |
(61) |
(2,673) |
Net
cash used in financing activities |
(2,807) |
511 |
|
(8,542) |
(2,039) |
73 |
Effect
of exchange rate changes on cash and cash equivalents and other changes |
(136) |
13 |
|
16 |
52 |
563 |
Net
increase (decrease) in cash and cash equivalents |
(1,315) |
894 |
|
1,916 |
(1,148) |
10,933 |
Cash
and cash equivalents - beginning of the period |
11,496 |
7,371 |
|
8,265 |
9,413 |
11,496 |
Cash
and cash equivalents - end of the period |
10,181 |
8,265 |
|
10,181 |
8,265 |
|
|
|
|
|
|
|
Capital
expenditure
Q3 |
|
Q4 |
|
Full
Year |
|
2022 |
(€
million) |
2022 |
2021 |
%
Ch. |
2022 |
2021 |
%
Ch. |
1,770 |
Exploration
& Production |
2,041 |
1,154 |
77 |
6,362 |
3,861 |
65 |
118 |
of
which: - acquisition of proved and unproved properties |
(11) |
4 |
.. |
260 |
17 |
.. |
138 |
-
exploration |
285 |
85 |
.. |
708 |
391 |
81 |
1,490 |
-
oil & gas development |
1,704 |
1,029 |
66 |
5,238 |
3,364 |
56 |
5 |
Global
Gas & LNG Portfolio |
9 |
3 |
.. |
23 |
19 |
.. |
186 |
Refining
& Marketing and Chemicals |
461 |
233 |
98 |
878 |
728 |
21 |
135 |
-
Refining & Marketing |
317 |
184 |
72 |
623 |
538 |
16 |
51 |
-
Chemicals |
144 |
49 |
.. |
255 |
190 |
34 |
118 |
Plenitude
& Power |
191 |
185 |
3 |
631 |
443 |
42 |
96 |
-
Plenitude |
127 |
146 |
(13) |
481 |
366 |
31 |
22 |
-
Power |
64 |
39 |
64 |
150 |
77 |
95 |
23 |
Corporate
and other activities |
62 |
72 |
(14) |
166 |
187 |
(11) |
(3) |
Impact
of unrealized intragroup profit elimination |
|
|
|
(4) |
(4) |
|
2,099 |
Capital
expenditure |
2,764 |
1,647 |
68 |
8,056 |
5,234 |
54 |
In
the FY 2022, capital expenditure amounted to €8,056 mln (€5,234 mln in the FY 2021), increasing by 54% y-o-y, and mainly
related to:
-
oil and gas development activities (€5,238 mln) mainly in Egypt, Ivory Coast, Congo, the United Arab Emirates, Mexico, Iraq,
Italy and Algeria;
-
refining activity in Italy and outside Italy (€491 mln) mainly relating to the activities to maintain plants’ integrity
and stay-in-business, as well as HSE initiatives; marketing activity (€132 mln) for regulation compliance and stay-in-business
initiatives in the retail network in Italy and in the rest of Europe;
-
Plenitude (€481 mln) mainly relating to development activities in the renewable business, acquisition of new customers as
well as development of electric vehicles network infrastructure.
Sustainability
performance
|
|
Full
Year |
|
|
2022 |
2021 |
TRIR
(Total Recordable Injury Rate) |
(total
recordable injuries/worked hours) x 1,000,000 |
0.41 |
0.34 |
|
|
|
|
Direct
GHG emissions (Scope 1) |
(mmtonnes
CO₂ eq.) |
39.4 |
40.1 |
|
|
|
|
Direct
GHG emissions (Scope 1)/operated hydrocarbon gross production (upstream) |
(tonnes
CO₂ eq./kboe) |
20.6 |
20.2 |
|
|
|
|
Direct
methane emissions (Scope 1) |
(ktonnes
CH₄) |
49.6 |
54.5 |
|
|
|
|
Volumes
of hydrocarbon sent to routine flaring |
(billion
Sm³) |
1.1 |
1.2 |
|
|
|
|
Volume
of operational oil spills (>1 barrel) |
(kbbl)
|
1.04 |
1.36 |
|
|
|
|
Re-injected
production water |
(%) |
59 |
58 |
KPIs
refer to 100% of the operated assets.
•
TRIR (Total recordable injury rate) of the
workforce amounted to 0.41, an increase compared to 2021, driven by higher injury events occurred to the contractors, mainly in
the upstream business. When compared to 2014, the rate reported an improvement of 42%.
•
Direct GHG emissions (Scope 1) amounted
to 39.4 million tonnes of CO2eq, representing a slight decrease compared to 2021, mainly due to lower emissions in
the upstream, power and chemical businesses, partially offset by the increase in the gas transport and liquefaction segment.
•
Direct GHG emissions (Scope 1)/operated hydrocarbon
gross production (upstream): 20.6 tons of CO2eq/kboe, a slight increase compared to 2021 due to lower production.
•
Direct methane emissions (Scope 1) were
in reduction compared to 2021, thanks to the continuous monitoring and maintenance campaigns of fugitive emissions.
•
Volumes of hydrocarbon sent to routing flaring
reported a reduction compared to 2021, mainly thanks to the launch of flaring down projects in Nigeria and a gas valorization
initiative in Egypt.
•
Volume of operational oil spills: decreased
by over 20% from 2021 benefitting from the proprietary technology applied by the R&M logistic business and in the upstream
business. Volume of oil spills from sabotage increased compared to 2021, due to higher oil thefts recorded in Nigeria.
•
Re-injected production water is substantially
in line compared to 2021.
Exploration
& Production
PRODUCTION
OF OIL AND NATURAL GAS BY REGION
Q3 |
|
|
Q4 |
Full
Year |
2022 |
|
|
2022 |
2021 |
2022 |
2021 |
81
|
Italy |
(kboe/d)
|
80
|
87
|
82
|
83
|
181
|
Rest
of Europe |
|
182
|
228
|
189
|
213
|
268
|
North
Africa |
|
291
|
264
|
267
|
262
|
343
|
Egypt |
|
328
|
348
|
346
|
360
|
316
|
Sub-Saharan
Africa |
|
273
|
321
|
289
|
310
|
81
|
Kazakhstan |
|
150
|
165
|
126
|
146
|
171
|
Rest
of Asia |
|
171
|
190
|
174
|
177
|
127
|
Americas |
|
135
|
119
|
127
|
115
|
10
|
Australia
and Oceania |
|
7
|
15
|
10
|
16
|
1,578
|
Production
of oil and natural gas ⁽ᵃ⁾⁽ᵇ⁾ |
|
1,617
|
1,737
|
1,610
|
1,682
|
277
|
-
of which Joint Ventures and associates |
|
314
|
260
|
260
|
242
|
128
|
Production
sold ⁽ᵃ⁾ |
(mmboe)
|
134
|
149
|
532
|
567
|
|
|
|
|
|
PRODUCTION
OF LIQUIDS BY REGION |
|
|
|
|
|
|
|
|
Q3 |
|
|
Q4 |
Full
Year |
2022 |
|
|
2022 |
2021 |
2022 |
2021 |
35
|
Italy |
(kbbl/d) |
35
|
39
|
36
|
36
|
106
|
Rest
of Europe |
|
106
|
136
|
109
|
130
|
124
|
North
Africa |
|
136
|
121
|
125
|
126
|
74
|
Egypt |
|
76
|
81
|
77
|
82
|
173
|
Sub-Saharan
Africa |
|
166
|
217
|
175
|
201
|
53
|
Kazakhstan |
|
111
|
118
|
88
|
102
|
80
|
Rest
of Asia |
|
78
|
85
|
78
|
80
|
62
|
Americas |
|
68
|
55
|
63
|
56
|
- |
Australia
and Oceania |
|
- |
- |
- |
- |
707
|
Production
of liquids |
|
776
|
852
|
751
|
813
|
146
|
-
of which Joint Ventures and associates |
|
176
|
124
|
132
|
119
|
|
|
|
|
|
|
|
|
|
|
|
PRODUCTION
OF NATURAL GAS BY REGION |
|
|
|
|
|
|
|
Q3 |
|
|
Q4 |
Full
Year |
2022 |
|
|
2022 |
2021 |
2022 |
2021 |
243
|
Italy |
(mmcf/d) |
236
|
255
|
242
|
251
|
396
|
Rest
of Europe |
|
400
|
489
|
420
|
442
|
757
|
North
Africa |
|
816
|
757
|
752
|
723
|
1,418
|
Egypt |
|
1,331
|
1,414
|
1,413
|
1,475
|
752
|
Sub-Saharan
Africa |
|
565
|
553
|
598
|
575
|
148
|
Kazakhstan |
|
204
|
249
|
199
|
233
|
476
|
Rest
of Asia |
|
490
|
562
|
507
|
517
|
340
|
Americas |
|
350
|
342
|
340
|
312
|
53
|
Australia
and Oceania |
|
34
|
79
|
52
|
85
|
4,583
|
Production
of natural gas |
|
4,426
|
4,700
|
4,523
|
4,613
|
686
|
-
of which Joint Ventures and associates |
|
723
|
720
|
674
|
651
|
|
|
|
|
|
|
|
(a)
Includes Eni’s share of production of equity-accounted entities.
(b)
Includes volumes of hydrocarbons consumed in operation (139 and 121 kboe/d in the fourth quarter of 2022 and 2021, respectively,
124 and 116 kboe/d in the full year of 2022 and 2021, respectively, and 121 kboe/d in the third quarter of 2022).
PRICE
SENSITIVE
ENI
CAPITAL MARKETS UPDATE
Strategic
plan 2023-2026
| · | The 2023-2026 Plan presented today builds on Eni’s track-record
of operating and financial performance and focusses on: |
| o | energy security and affordability through geographical and technological diversification; |
| o | leveraging technology for today and for breakthrough opportunities; |
| o | delivering value for our shareholders. |
| · | Eni confirms Scope 1, 2 and 3 emissions reduction targets versus 2018:
35% by 2030; 80% by 2040; and net zero by 2050. |
| · | Upstream production is expected to grow by a 3-4% CAGR through 2026, then
plateau to 2030. Gas share of production will rise to 60% by 2030. Upstream net zero Scope 1 + 2 target by 2030 is confirmed. |
| · | Eni is securing gas supplies for its customers via a more diversified,
flexible and integrated portfolio, and it expects to grow contracted LNG to over 18 MTPA by 2026, double that of 2022. The Company is
raising the profit outlook for its re-shaped GGP business. |
| · | Eni is accelerating its ambition in biorefining, raising the target for
Eni Sustainable Mobility to over 3 MTPA capacity by 2025 and over 5 MTPA by 2030. Pro-forma EBIT guidance for Downstream is raised to
reflect this better outlook in ESM and the performance improvement very evident across our R&M business in 2022. Versalis’ transformation
into a fully specialized and sustainable chemical company will move it to sustained profitability in the Plan period. |
| · | Eni sees Plenitude renewable generating capacity growing to over 7 GW
by 2026 and over 15 GW by 2030. The Company targets to more than double its charging points by 2026 and Plenitude’s EBITDA is also
expected to rise by 3 times by that date versus 2022. |
| · | At Eni Plan scenario, the Company will generate CFFO before working capital
of over €17 billion in 2023 and over €69 billion over the Plan, a 25% increase in 2026 versus 2023 in a constant 2023 scenario.
This organically funds investment and enhanced shareholder distributions while maintaining leverage in a 10-20% range |
| · | Underlying capex in the plan is 15% higher (vs the previous plan) in USD
terms mainly as a result of incorporating new or larger identified, high quality opportunities |
| · | Shareholder remuneration policy is simplified and enhanced with 25-30%
of CFFO to be distributed in dividends and buybacks. The proposed 2023 dividend is raised by 7% to €0.94 per share, and share buyback
set at €2.2bn. |
“The
Plan presented today confirms the strength and effectiveness of our strategy. In 2014 we undertook an industrial and financial transformation
path which progressively enabled us to create value even in difficult scenarios, delivering security of supplies and environmental sustainability.
We have been focussing our exploration and production strategy mainly on gas, leveraging our own production and diversifying our investments
across different countries. This has enabled us to put in place our Plan aimed at replacing 20 billion cubic meters of Russian gas by
2025. We have been transforming our downstream platform and invested in technology to create and grow our transition businesses aiming
at net zero Scope 1, 2 and 3 emissions. This enables us today to fully confirm our decarbonization targets despite the current energy
security scenario and the need to respond to a strong demand for traditional sources. Today we can clearly outline how the Company will
be in 2030: our Upstream operations will no longer produce net emissions; our hydrocarbon production will be composed mainly by gas;
our biofuel capacity will exceed 5 million tonnes per year; our renewable energy capacity will be more than 15 GW. And our investments
in the most revolutionary technology linked to the energy transition - the magnetic confinement fusion - will be about to result in the
first industrial plant.
Finally,
we have deeply strengthened the Company from a financial point of view through optimization and rationalization of expenditures, and
this allows us today to present our strong financial goals: a significant CFFO generated both from our traditional activities and with
the contribution of transition-related businesses; a satellite business model which allows us to enhance the value of our businesses
while freeing up additional resources for investment in transition; and a very low debt level. Our financial robustness enables us today
to create increasing value for our shareholders and to enhance the remuneration policy”
Claudio
Descalzi, Eni CEO
Rome,
23 February 2023 – Claudio Descalzi, Chief Executive Officer of Eni, today presented the Company’s Strategic Plan for
2023-2026.
Eni’s
strategy aims to meet each of the essential pillars of the energy trilemma, achieving environmental sustainability side-by-side with
energy security and affordability. This means geographical and technological diversification of energy sources, creating a different
energy mix while also maintaining a strong focus on value creation for shareholders.
The Company is pursuing these objectives by continuing:
| · | To develop new gas resources, diversifying geographical presence, leveraging
on Eni high performing exploration and fast-track development approach, improving returns and reducing emissions. |
| · | To focus on new technologies and their fast-track development, both to create
a diversified energy mix for the energy transition and to support the energy security, continuing to create value, while also pursuing
breakthrough opportunities. |
| · | To remain agile and innovative, for example in
the development of the satellite model with dedicated entities capable of independently accessing capital markets to fund their growth
and reveal the real value of each business (Plenitude, Sustainable Mobility, Var Energi, Azule Energy). |
NATURAL
RESOURCES
Eni
Natural Resources division will deliver superior returns, accretive growth and falling emissions, driven by the Company’s leading
exploration and integrated fast-track projects.
Eni
mid-stream gas has proved its resilience and will increasingly benefit from its re-shaped business with higher levels of equity gas supply.
Eni
continues to meet the emissions reduction challenge in its own operations, building a new carbon capture business and integrating with
its biorefining by developing its innovative agri-hub network.
| · | Production: growing at average of 3-4%
over the 4-year Plan period and then plateau to 2030; progressively increasing the share of gas in the portfolio to 60% by 2030. |
| · | Upstream net carbon footprint (Scope 1+2):
-65% by 2025 vs 2018, confirming on track for net zero by 2030. |
| · | Methane emissions: remain committed to
keeping Upstream intensity well below 0.2% and will set a new emissions reduction target after completing a measurement campaign on operated
assets later this year. |
| · | Exploration: 2.2 billion boe of new resources
in the 4-year Plan, of which 60% gas; UEC of around $1.5/boe. |
| · | Upstream Capex: €6-6.5 billion on
average per year during the Plan period. |
| · | Upstream organic FCF per barrel will growth
by 20% in 2026 vs 2023 at constant scenario. |
| · | Cumulative GGP Ebit at over €4 billion
in the Plan and between €1.7- €2.2 billion in 2023. |
| · | CCS: 30 MPTA of carbon gross volume stored
by 2030. |
| · | Agri-feedstock: over 700,000 tonnes in
2026 supplying Eni’s biorefineries. |
During
the plan Eni will approve a number of high quality FIDs including the A/E Structures in Libya, Hail & Ghasha and expansions of Lower
Zakum in the UAE plus Ivory Coast, Kazakhstan, Angola and possible new activities in the Eastern Mediterranean.
At
the same time, in 2023, Eni will start-up the first phases of Baleine in Ivory Coast and Congo LNG, start-ups in Egypt, UAE and Norway
and the continuing development programme in Algeria, while in 2024 there will be start-ups in Italy, Egypt, Ivory Coast Phase 2, Kazakhstan
and Norway.
As
result Eni expects a production growth CAGR of 3-4% over the 4-year plan period. By 2026 the Company will have added around 800,000 boed
from start-ups and ramp-ups with high returns, short paybacks and leading unitary costs.
Eni
will continue to focus on fast time to market projects leveraging on the high quality portfolio, confirmed by the low technical cost
and high cash flow per barrel, at the top for the industry; Capex will be €6-6.5 billion on average per year during the plan period.
Eni
continues to follow its dual exploration model, and it targets exploration with high levels of equity participation, in areas
with existing activity and infrastructure such as North Africa, West Africa and the UAE – around 90% of its spend, supporting its
track-record of leading value creation.
Eni
will invest €2.1 billion over the next 4-year period, targeting 2.2 billion barrels of oil equivalent at around $1.50/boe of exploration
cost, targeting 60% of discoveries to be gas.
The
great attention on the Company’s value growth will also deliver a decrease in Eni’s Scope 1 & 2 net carbon footprint
by 65% by 2025 versus 2018, on track to its 2030 net zero emission target.
In
GGP, Eni confirms it will fully replace Russian gas volumes by 2025, leveraging the strong relationships with producing countries and
its fast track development approach to ramp up volumes from Algeria, Egypt, Mozambique, Congo LNG, and Qatar.
Contractual
LNG volumes are expected to exceed 18 MTPA by 2026 (9 MTPA in 2022).
Eni
expects GGP to generate 4 year Ebit totalling above €4 billion, higher than in the previous plan, leveraging on a more diversified
and flexible portfolio, and a larger equity component. This outcome incorporates Eni’s assumption of normalizing gas markets over
the plan while the Company expects to generate an EBIT of between €1.7-€2.2bn in 2023.
CCS
will contribute to cut Eni’s own net emissions and also to provide a solution for other hard to abate emitters beyond the energy
sector. The Company has material projects under development using depleted reservoirs, existing infrastructures and well-defined economics.
One of the most advanced, Hynet, based around Liverpool Bay, is on track to start-up in 2025 with an initial 4.5 million tonnes per year
storage capacity. Ravenna Phase 1, recently brought into development, will start-up in early-2024. Eni is also advancing a second UK
project, using its depleted Hewett field aimed at decarbonising the Bacton and Thames Estuary areas, potentially ready by 2027, and also
pursuing opportunities in North Africa and the Middle East.
ENERGY
EVOLUTION
Eni
continues the transformation of its legacy businesses and the growth in its new activities unlocking value and supporting its customers
in reducing their emissions.
| · | EBIT will progressively increase over
the 4 Year Plan, doubling in 2026 versus 2023. |
| · | CFFO before working capital will account
for more than 20% of the overall Group in 2026. |
Refining
and Marketing, having generated record results in 2022, is expected to continue to benefit from the structural improvements delivered
with 2026 pro-forma EBIT of around €1.4billion, well above historic levels of profitability notwithstanding the Plan’s assumption
of normalizing refining margins.
An
important contributor to this better outlook is the growth of Eni Sustainable Mobility, incorporated at the beginning of this
year, combining biorefining, biomethane and the sale of mobility products and targeted to evolve into a multi-service, multi-energy company,
generating and unlocking new value.
| · | Accelerating targeted biorefining capacity: over
3 MTPA by 2025 versus 2 MTPA previously, and more than 5 MTPA by 2030, supported by recently announced initiatives in Italy, Malaysia
and the US. |
| · | Vertical integration with Upstream as a unique
element of biorefining strategy: 700,000 tonnes of feedstock by 2026. |
| · | A network of over 5,000 sales points in Europe
to market and distribute new energy carriers, as electricity and, in perspective, hydrogen. Eni plans to add around 300 new stations over
the plan period. |
| · | Sustainable Mobility EBITDA of €1.5 billion
by 2026, growing at average of 20% CAGR versus 2023, contributing to the raised expectations for the Downstream. |
Plenitude,
Eni’s company which integrates renewables, energy solutions for customers and a widespread Electric Vehicle (EV) charging network,
is maturing in its pipeline of Renewable projects and delivered its 2022 target of more than 2 GW of installed capacity.
Plenitude
expects to deliver over 7GW of installed capacity by the end of 2026, and more than double its network of EV charging points to 30,000
by the end of the plan.
Having
delivered its target of over €600 million in pro forma EBITDA in 2022, the Company expect to triple this figure to €1.8 billion
by 2026. The integration of retail, with over 11 million customers by 2026, renewables and e-mobility has significant operational synergistic
benefits while also providing diversification and financial resilience.
As
Plenitude expands its offer of decarbonised products and services, its growth is expected to continue to be impressive and supported
by a strong pipeline of over 11GW of projects and opportunities.
Versalis
will move into sustainable profitability over the course of the Plan, thanks to the transformation to a structurally more sustainable
and competitive business mix. It will continue its transformation into a fully specialized and sustainable chemical company by increasing
its presence in end-user markets and building a leadership position in bio-based chemistry. The Company will look to grow in target markets
with investments in its compounding platform and in new technologies. Versalis is developing complementary recycling processes, improving
energy efficiency, and developing breakthrough technologies.
TECHNOLOGY
The
innovation in Eni’s businesses demonstrates the benefit of placing Technology at the heart of the Company.
Eni’s
commitment has resulted by more than 1,000 professionals, more than 400 projects and around 8,000 patents, actively managed for their
strategic exploitation. Since 2014, Eni has also significantly enhanced its collaboration with leading universities, and created venture
capital and venture builder vehicles to promote technology transfer, with a gross value creation of our proprietary technologies estimated
at around €9 billion since 2014.
Eni
Next, with its investment in CFS, the MIT spin-off, is accelerating the development of magnetic confinement fusion. SPARC, the experimental
plant designed to generate net energy, is under construction, targeted for 2025 start-up and will be followed by the first industrial
plant, called ARC, targeted for the early 2030s.
FINANCIAL
STRATEGY
Eni’s
financial strength enable the execution of its business strategy, provides flexibility across the cycle and delivers return to its investors.
Based on Eni’s scenario assumption:
| · | 2023 EBIT of €13 billion, the second best
in 10 years after the record of 2022, confirming the quality of the business that Eni is building. |
| · | 2023 CFFO before working capital at replacement
cost of over €17 billion, and over €69 billion along the plan period. At a constant scenario, 2026 CFFO will be over 25% above
2023, driven by E&P and positive contributions from all the sectors and growth from the main transition businesses of Plenitude and
Sustainable Mobility. This implies 12%/share CAGR over the period at constant oil price. |
| · | 13% average ROACE over 2023-2026 at a constant
2023 scenario, +7 percentage points vs 2010-2019 average, confirming the profitability of Eni’s capital. |
| · | 2023 Capex will be around €9.5 billion and
€37 billion over the Plan. This represents +15% in USD terms versus the outlook provided last year adjusted for inflation, reflecting
new, high quality opportunities and acceleration or increase in scale of existing projects in the Upstream. These projects deliver significant
value and continue to do so well after the end of the Plan. Low and zero carbon spending will be around 25% of the total. |
| · | Leverage in the range of 10-20% over the plan
period confirming Eni capital and cost discipline, and the quality of the Company portfolio. |
Eni’s
excellent financial results in 2022 came while contributing to the stability of energy supplies for its customers and progressing its
decarbonization plan confirming the quality of the business the Company is building.
ENHANCED
SHAREHOLDER REMUNERATION
Eni’s
excellent financial and strategic progress provides scope to simplify and enhance the Company remuneration policy. An attractive shareholder
distribution is a priority of the Company. Going forward Eni intends to distribute between 25%-30% of annual CFFO by way of a combination
of dividend and share buyback. In upside scenarios, the Company expects to apply 35% of incremental CFFO to distribution and to be able,
in the first instance, to use balance sheet, capex and timing flexibility in the event of downside.
Expected
underlying performance improvement and the buyback also provides scope for the dividend to continue to rise in the coming years.
In
line with the policy the 2023 annual dividend is raised to €0.94 per share, a 7% increase on 2022. Eni will continue to pay it in
four equal quarterly instalments, in September 2023, November 2023, March 2024 and May 2024.
Considering
Eni’s expectations for the scenario and the performance of the businesses, the Company will also launch a €2.2 billion share
buyback in 2023, equivalent to around 4.5% of shares in issue at the current share price, following shareholder approval in May.
Applying
the new remuneration policy at the scenario implies a return to shareholders over the Plan period of around 40% of the current market
capitalization and a current total shareholder yield in 2023 of 11%.
ROBUST
BALANCE SHEET AND FUNDING POSITION
Eni
is financially robust and highly cash generative. Over the 4-year plan, based on our scenario, Eni will generate organic FCF before working
capital at replacement scenario of more than € 32 billion that implies after shareholder distributions leverage will be in the range
of 10-20% along the plan period.
Company Contacts:
Press Office: Tel. +39 02 52031875 –
+39 06 59822030
Freephone for shareholders (from Italy): 800
940924
Freephone for shareholders (from abroad): +800
11223456
Switchboard: +39 06 59821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
Website: www.eni.com