SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Form 6-K
Report
of Foreign Issuer
Pursuant to Rule 13a-16 or 15d-16
of
the Securities Exchange Act of
1934
For
the month of February 2024
Eni S.p.A.
(Exact name of Registrant as specified
in its charter)
Piazzale Enrico Mattei 1 --
00144 Rome, Italy
(Address of principal executive
offices)
(Indicate by check mark whether
the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F X Form 40-F
(Indicate by check mark whether
the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant
to Rule 12g3-2b under the Securities Exchange Act of 1934.)
Yes __ No X
(If "Yes" is marked,
indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): ______)
Table
of contents
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. |
|
|
|
|
|
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/s/ Paola Mariani |
|
|
Name: Paola Mariani |
|
Title: Head of Corporate |
|
Secretary’s Staff Office |
Date: February 16, 2024
![](https://www.sec.gov/Archives/edgar/data/1002242/000110465924025930/tm246522d1_6kimg001.jpg)
Eni’s Board of Directors
Approval of the third tranche of the provision
in place of 2023 dividend: € 0.24 per share
San Donato Milanese, 15 February 2024 –
Eni’s Board of Directors, chaired by Giuseppe Zafarana, today resolved to distribute to Shareholders the third of the four
tranches of the provision in place of the 2023 dividend from Eni S.p.A. available reserves1
of € 0.24 (compared to a total annual provision, in place of the dividend, equal to € 0.94) per share outstanding
at the ex-dividend date as of 18 March 20242,
payable on 20 March 20243, as
resolved by the Shareholders’ Meeting of 10 May 2023.
Holders of ADRs, outstanding at the record date
of 19 March 2024, will receive € 0.48 per ADR, payable on 8 April 20244, 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://www.sec.gov/Archives/edgar/data/1002242/000110465924025930/tm246522d1_6kimg02.jpg)
1
Coupon No. 45.
2
Depending on the recipient’s fiscal status the payment is subject to a withholding tax or is 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 19 March 2024 (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.
Eni: fourth quarter and full year
2023 results
Key operating and financial results |
Q3 |
|
|
Q4 |
|
Full
Year |
2023 |
|
2023 |
2022 |
%
Ch. |
|
2023 |
2022 |
%
Ch. |
86.76 |
Brent
dated |
$/bbl |
84.05 |
88.71 |
(5) |
|
82.62 |
101.19 |
(18) |
1.088 |
Average
EUR/USD exchange rate |
|
1.075 |
1.021 |
5 |
|
1.081 |
1.053 |
3 |
34 |
Spot
Gas price at Italian PSV |
€/MWh
|
41 |
95 |
(57) |
|
42 |
122 |
(65) |
14.7
|
Standard
Eni Refining Margin (SERM) |
$/bbl |
8.1 |
13.6 |
(40) |
|
10.1 |
8.5 |
19 |
1,635 |
Hydrocarbon
production |
kboe/d |
1,708 |
1,617 |
6 |
|
1,655 |
1,610 |
3 |
|
Adjusted
operating profit (loss) ⁽ᵃ⁾ |
€
million |
|
|
|
|
|
|
|
2,620 |
E&P |
|
2,431 |
2,923 |
(17) |
|
9,934 |
16,469 |
(40) |
111 |
Global
Gas & LNG Portfolio (GGP) |
|
677 |
63 |
.. |
|
3,247 |
2,063 |
57 |
401 |
Enilive,
Refining and Chemicals |
|
(87) |
379 |
(123) |
|
555 |
1,929 |
(71) |
219 |
Plenitude
& Power |
|
111 |
118 |
(6) |
|
681 |
615 |
11 |
(337) |
Corporate,
other activities and consolidation adjustments |
|
(363) |
99 |
|
|
(612) |
(690) |
|
3,014 |
|
|
2,769 |
3,582 |
(23) |
|
13,805 |
20,386 |
(32) |
3,953 |
Proforma
adjusted EBIT ⁽ᵃ⁾ |
|
3,755 |
4,985 |
(25) |
|
17,809 |
25,333 |
(30) |
251
|
Investment
results and interest expense |
|
398
|
776
|
(49) |
|
1,281
|
1,578
|
(19) |
3,265
|
Adjusted
profit (loss) before taxes |
|
3,167
|
4,358
|
(27) |
|
15,086
|
21,964
|
(31) |
1,818 |
Adjusted
net profit (loss) ⁽ᵃ⁾⁽ᵇ⁾ |
|
1,638 |
2,493 |
(34) |
|
8,298 |
13,301 |
(38) |
0.54 |
per
share - diluted (€) |
|
0.49 |
0.74 |
|
|
2.46 |
3.78 |
|
1,916 |
Net
profit (loss) ⁽ᵃ⁾⁽ᵇ⁾ |
|
149 |
627 |
(76) |
|
4,747 |
13,887 |
(66) |
0.57 |
per
share - diluted (€) |
|
0.05 |
0.21 |
|
|
1.40 |
3.95 |
|
3,369 |
Cash
flow from operations before changes in working capital at replacement cost ⁽ᵃ⁾ |
|
3,606 |
4,114 |
(12) |
|
16,498 |
20,380 |
(19) |
3,519 |
Net
cash from operations |
|
4,175 |
4,593 |
(9) |
|
15,119 |
17,460 |
(13) |
1,916 |
Net
capital expenditure ⁽ᶜ⁾ |
|
2,433 |
2,775 |
(12) |
|
9,160 |
8,243 |
11 |
8,679 |
Net
borrowings before lease liabilities ex IFRS 16 |
|
10,899 |
7,026 |
55 |
|
10,899 |
7,026 |
55 |
57,284 |
Shareholders'
equity including non-controlling interest |
|
53,618 |
55,230 |
(3) |
|
53,618 |
55,230 |
(3) |
0.15 |
Leverage
before lease liabilities ex IFRS 16 |
|
0.20 |
0.13 |
|
|
0.20 |
0.13 |
|
(a)
Non-GAAP measure. For further information see the paragraph "Non-GAAP measures". |
(b)
Attributable to Eni's shareholders. |
(c)
Net of expenditures relating to business combinations, purchase of minority interests and other non-organic items. |
San Donato Milanese, February 16, 2024 - Eni's Board of Directors,
chaired by Giuseppe Zafarana, yesterday approved the unaudited consolidated results for the full year and the fourth quarter of 2023.
Eni CEO Claudio Descalzi said:
“2023 was another year of excellent results for Eni in
the face of an uncertain and volatile scenario. We delivered strongly on both financial and operational targets and we continued to progress
our strategy of generating value while decarbonizing and ensuring secure and affordable energy supplies to markets. Our results were underpinned
by our distinctive satellite model that continues to prove to be an effective lever in accelerating growth and value creation.
We have completed the acquisition of Neptune which with its gas
weighted portfolio strongly synergistic to our assets in North Europe, Indonesia and North Africa will be a core element of our future
plans. In 2023 we continued to deliver our organic growth, with the completion on time and on budget of the two flagship, low-carbon projects
of Baleine in Cote d’Ivoire and Congo FLNG ph.1. We maintained leadership in exploration thanks to outstanding success in Indonesia
and elsewhere, while we also hit the upper range of our production target. GGP achieved its historical result thanks to the quality of
its portfolio, steady optimization drive and favorable contractual settlements.
Delivering gas and low carbon projects is one aspect of our transition
plan as we are also materially growing our presence in the new energies. Enilive, our activity dedicated to biofuels and mobility services,
has expanded its international presence by purchasing a 50% interest in the Chalmette biorefinery in the USA and by signing a JV agreement
in South Korea. Plenitude has now reached 3 GW of renewable capacity. These two businesses already generate an economic performance of
around €1 bln EBITDA each.
With the recent entry of an institutional investor into the
shareholding of Plenitude, we highlighted the value of this business, that is estimated at around €10 bln and accessed additional
dedicated capital supporting our growth plan.
Our financial results were excellent, with a proforma adjusted
EBIT of almost €18 bln and an adjusted net profit of more than €8 bln. Cash flow generation at €16.5 bln before working
capital movements gave us a significant headroom over the substantial cash returns to shareholders of €4.8 bln, while keeping our
leverage at 0.2.”
Financial highlights of the fourth quarter 2023 |
| · | Notwithstanding a volatile scenario featuring
both weaker Brent (down by 5% from Q4 ‘22) and natural gas prices (down 57% for the European benchmarks), in Q4 ’23 Eni’s
adjusted profit before tax was €3.2 bln (with a FY adjusted profit before tax of €15.1 bln), signaling a robust Group performance
driven by strong operational execution and financial discipline. |
| · | Proforma adjusted EBIT1 for Q4 ’23
was €3.8 bln (with a remarkable €17.8 bln in the FY) driven by steady E&P results, a record-breaking GGP performance and
a positive contribution from Plenitude. |
| · | E&P earned €2.4 bln of adjusted EBIT
in Q4 ’23, down 17% from Q4 ’22 affected by weaker realized prices, partly offset by a strong rebound in hydrocarbon production,
up by 6% to 1.71 mln boe/d in the quarter. |
FY ’23 E&P adjusted EBIT was €9.9 bln
(versus €16.5 bln in the FY ’22) reflecting weaker hydrocarbons realization and the effect of the deconsolidation of Azule.
Including the contribution of JV/associates, proforma adjusted EBIT for the FY was €13.3 bln (versus €20.9 bln in 2022).
| · | Q4 ’23 GGP adjusted EBIT was €0.68
bln and included the favorable outcome of an arbitration procedure. FY ’23 adjusted EBIT was a record €3.2 bln, up by 57% compared
with 2022, driven by an optimized natural gas and LNG portfolio and contract renegotiations benefits, while maintaining stability and
reliability of supplies to European markets and compensating for the reduction of Russian volumes. Including the contribution of JV SeaCorridor,
proforma adjusted EBIT for the FY was €3.4 bln. |
| · | Enilive delivered €0.12 bln of adjusted EBIT
in the Q4 ’23, up by 5% y-o-y, €0.73 bln in the FY ’23 (up by 8%) benefitting from a resilient marketing performance.
Proforma adjusted EBITDA in the FY ’23 was €1 bln in line with the Company’s guidance. |
| · | Refining Q4 ’23 results were impacted by
negative trends in the refining scenario, with the SERM falling by 40% y-o-y and narrower spreads between heavy/sour vs. light/sweet crudes,
with an adjusted EBIT of €0.03 bln compared with €0.36 bln in Q4 ‘22 (€0.44 bln in FY ’23 compared with €1.51
bln in FY ‘22). |
| · | Plenitude & Power delivered €0.11 bln
of adjusted EBIT in Q4 ‘23, down 6% year-on-year, impacted by lower marketing margins for both renewables and gas-fired plants.
FY ’23 adjusted EBIT was €0.68 bln, up 11% leveraging on strong performance in the retail business and the material ramp-up
in renewable capacity. Plenitude’s proforma adjusted EBITDA in the FY ’23 was €0.93 bln well ahead of the original EBITDA
guidance. |
| · | Versalis reported an adjusted operating loss of
€0.24 bln in Q4 ’23 (a loss of €0.61 bln in the FY ’23). The negative performance was driven by a weak macro environment
and higher production costs in Europe. |
| · | Q4 ’23 adjusted net profit attributable
to Eni shareholders was €1.64 bln, with a Group tax rate of about 48%. In the FY ’23 adjusted net profit attributable to Eni
shareholders was €8.30 bln and a Group tax rate of about 44%. |
| · | In Q4 ’23, Group adjusted operating cash
flow before working capital at replacement cost was €3.6 bln, exceeding outflows related to organic capex of €2.4 bln, and resulting
in an organic free cash flow “FCF” of €1.2 bln. In the FY ’23, adjusted cash flow was €16.5 bln, exceeding
outflows related to capex of €9.2 bln, resulting in an organic FCF of around €7.3 bln. In addition to fund WC requirements,
the organic FCF was deployed to return cash to shareholders through dividends (€3 bln) and a share repurchase program (€1.8
bln), and to pursue strategic M&A opportunities to accelerate growth in the decarbonization businesses (€2.4 bln), including
the Chalmette deal in the USA, the acquisition of Novamont control and the purchase of gas assets in Algeria. |
| · | Net borrowings ex-IFRS 16 as of December 31, 2023,
were €10.9 bln, an increase of around €3.9 bln from December 31, 2022. Group leverage stood at 0.20, versus 0.13 as of December
31, 2022. |
| · | In November 2023, the second out of four instalments
of the dividend for the fiscal year 2023 of €0.23 per share was paid for a total consideration of €0.75 bln. The third instalment
of the 2023 dividend of €0.24 per share was resolved at the same Board meeting and is scheduled to be paid on March 20, 2024. |
1 For
a reconciliation of Group proforma adjusted EBIT and segment breakdown see page 26.
| · | In September, the second tranche of the 2023 share
buy-back program was launched contemplating a maximum cash out of €1.375 bln (or a maximum number of 275 mln shares, approximately
8% of the share capital) to be executed by April 2024. Through February 9, 2024, 84.5 mln shares have been purchased for a cash outlay
of €1.275 bln. |
| · | In December, Plenitude and Energy Infrastructure
Partners (EIP) signed an agreement which allows EIP to acquire a 9% interest in Plenitude through a reserved share capital issuance with
net proceeds to Eni’s subsidiary of up to €0.7 bln. The transaction, expected to be finalized early in 2024, is recognizing
an implied enterprise value of Plenitude of around €10 bln and will strengthen Eni’s consolidated financial structure and leverage.
As at December 31, 2023, Plenitude’s net debt was about €2.2 bln. |
Main business developments |
Exploration &
Production
| · | In FY 2023, exploration activities delivered an
outstanding performance with around 900 mln boe of new resource additions to the reserve base, driven by the exceptional Geng North discovery
in Indonesia, one of the best in the whole sector, and continuing success in Egypt, Mexico, Algeria, Tunisia and UAE. |
| · | In Q4 2023, production resumed its growth trajectory
with 1.71 mln boe/d, up by 6% y-o-y; production for the year was 1.66 mln boe/d, hitting the upper range of our production target. |
| · | Among the production highlights of the year, we
can count the startup of the Baleine oilfield, off the Côte d’Ivoire, in less than two years after the discovery, and the
commissioning of the Tango FLNG vessel in block Marine XII off Congo, which will deliver the first LNG cargo in the first quarter 2024
on schedule. |
| · | In January 2024, the Neptune acquisition was finalized
and will contribute to 2024 results. The transaction, comprising Neptune’s entire portfolio other than its operations in Norway
(purchased by Vår Energi owned at 63% by Eni) and Germany (carved out of the transaction), aligns with Eni’s strategy of providing
the market and the customers with affordable, secure, and low-carbon energy, guaranteed by natural gas. |
| · | Indonesia is expected to become one of the major
growth drivers of natural gas in E&P. The giant Geng North discovery coupled with the integration of Neptune assets and of the interests
in the Rapak and Ganal PSC blocks, farmed-in from Chevron, will give Eni access to massive resources whose development will be synergistic
with Eni’s existing fields and the Bontang LNG export terminal, offering the prospect of transforming the Kutei basin into a new
world class gas hub. |
Global Gas & LNG Portfolio (GGP)
| · | The GGP segment has delivered on ensuring stable
and reliable natural gas supplies to European markets notwithstanding the massive fall in the import flows from Russia. |
| · | In November, Eni signed an agreement with Open
EP to guarantee the flow of gas from France to Switzerland and Italy in the event of interruptions or significant flow reductions from
Germany. |
Enilive, Refining
and Chemicals
| · | In the Q4 2023 the Chalmette biorefinery in Louisiana
(USA), a 50-50 joint venture between EniLive and PBF Energy established earlier in the year, produced 81 ktonnes of bioproducts (204 ktonnes
in the second half of 2023). |
| · | In October, Versalis completed the purchase of
the remaining 64% participating interest in Novamont from its other shareholder Mater-Bi acquiring the control of the investee. |
| · | In October, construction works started of a demo
plant in Mantova to develop Hoop®, Versalis proprietary technology developed with Italian engineering company S.R.S. testing a chemical
process to recycle mixed plastic waste and to transform it into raw materials to produce new virgin polymers. |
| · | In November, an agreement was signed with Saipem
to explore opportunities to jointly build biorefineries producing airlines and motor transport biofuels. |
| · | In January, Enilive and LG Chem building on the
preliminary agreement signed in September 2023, decided to form a joint venture which will make the final investment decision on a biorefinery
project in South Korea expected to start operations in 2026 with an annual processing capacity of 400 ktons of feedstocks, leveraging
on Eni's Ecofining™ technology. |
| · | In January, signed a MOU between Enilive and Ryanair
for the long-term supply of sustainable aviation fuel at selected Ryanair airports across Italy. This agreement will enable Ryanair to
access to up to 100,000 tons of Sustainable Aviation Fuel (SAF) between 2025 and 2030. |
| · | In January, Eni confirmed its decision to build
Italy's third bio-refinery in Livorno with a capacity of 500 ktonnes/y. The project is awaiting official authorizations and includes the
construction of a biogenic feedstock pre-treatment unit, an Ecofining™ plant and a facility to produce hydrogen from methane gas.
Completion and commissioning are expected by 2026. |
Plenitude &
Power
| · | In October, operations started at the world’s
largest offshore wind facility, Dogger Bank, where the Plenitude-participated Vårgrønn JV retains a 20% revenue-interest.
Renewable electricity is transmitted to the UK’s national grid. |
| · | In December, the Plenitude participated JV GreenIT
signed an agreement with Galileo, the pan-European renewable energy development and investment platform, to install 140 MW of solar photovoltaic
capacity in Italy, with ongoing plans to reach 1,000 MW. |
| · | In December, signed a deal where Plenitude
agreed to purchase from EDP Renováveis, S.A an interest of 80% in the photovoltaic plants of Cattlemen (Texas), Timber Road and
Blue Harvest (Ohio) with a total installed capacity of about 478 MW (383 MW Plenitude share). |
| · | In December, Plenitude reached an agreement with
BlueFloat Energy and Sener Renewable Investments to join their strategic partnership to progress in the development of offshore wind projects
in Spain. The agreement allows to create a leading consortium in the Spanish offshore wind sector with a total portfolio of approximately
1.25 GW of floating offshore wind projects. |
Decarbonization
and Sustainability
| · | The associated natural gas volumes produced at
the recently started-up Baleine field off the Cote d’Ivoire are being freely delivered to local state companies to fuel the country’s
electricity generation significantly contributing to reducing energy poverty and improving local development, as part of Eni’s dual
flag partnership model. |
| · | Eni UK has been awarded a Carbon Dioxide Appraisal
and Storage Licence (CS Licence) for the depleted Hewett gas field, in the Southern North Sea sector of the UK. |
| · | In November, the Callisto's integrated Carbon
Capture and Storage (CCS) project has been included in the European list of Projects of Common Interest (PCI Projects). This project,
which Eni as operator is developing in a JV with Snam, will build a CCS hub in the Ravenna offshore (Italy) leveraging Eni’s depleted
gas fields in the area. |
| · | In October, Eni and the UK Government reached
an agreement in principle on an economic model for the activities of CO2 transportation and storage at the HyNet NorthWest
CCS hub operated by Eni. Hynet NorthWest is expected to be operational around the middle of this decade with an initial storage capacity
of 4.5 mmtonnes/y of CO2. |
| · | In December, Eni Rovuma Basin (Mozambique) announced
the start of vegetable oil production to be used as feedstock in Eni’s biorefineries. The vegetable oil extracted from products
from local agro-processing factories preserve agriculture, while ensuring traceability, respect of human rights and contribution to local
development. |
| · | In December, Eni signed a five-year Sustainability-Linked
revolving credit line worth €3 billion, related to two targets of the Company’s Sustainability-Linked Financing Framework,
lastly updated in April 2023. |
| · | In
December, Eni was ranked as Gold Standard within the Oil and Gas Methane Partnership 2.0 (OGMP 2.0) program as reported in the International
Methane Emissions Observatory (IMEO) published by the United Nations Environment Programme (UNEP), following Eni's positive assessment
for significantly improving reporting of methane emissions, and for having already complied with the Oil and Gas Climate Initiative (OGCI)
recommendation of reducing upstream methane emission intensity "well below 0.2%" by 2025. Eni has already achieved this target
thanks to a continuous focus |
| on reducing
fugitive emissions and through projects of methane abatement from venting and flaring. In 2022 this value
stood at 0.08%. |
| |
· | ESG/Climate Ratings: Sustainalytics has maintained
Eni in the “medium risk” band once again in 2023. Eni has been also confirmed first among its peers in terms of number of
aligned metrics in the Climate Action 100+ Net Zero Benchmark evaluation issued in October. Moreover, Eni has been recognized for the
fourth consecutive year by Carbon Tracker's "Absolute Impact 2023" research as the only company among the 25 largest ones in
the Oil & Gas sector to have established climate objectives that meet the prerequisites to be aligned with Paris Agreement. |
| · | Eni announced its financial support to the Global
Flaring and Methane Reduction trust fund (GFMR), a program sponsored by the World Bank to help governments and operators in developing
countries eliminate routine flaring and reduce methane emissions from the O&G sector to near zero by 2030. |
| · | In December, an energy efficiency program was
started in Rwanda through the delivery of improved cookstoves to households in the Nyagatare district. The whole program foresees supply
and monitor 500,000 improved cookstoves during the next 10 years to reduce CO2 emissions and improve health conditions while
cooking. |
| · | In December, Eni signed a voluntary 5-year-term
cooperation agreement with the International Organization for Migration (IOM) to boost youth employment in Libya’s Fezzan region.
The project will involve 850 trainees and will enhance their professional skills creating a stronger workforce in key fields, such as
agribusiness, facilitating their inclusion in the agriculture, construction, and industry sectors, while improving youth prospects through
education, training, and employment services. |
The Company will issue its financial and operating targets for 2024
and its strategic plans at a Capital Markets Day scheduled on March 14, 2024. A press release summarizing 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 |
|
2023 |
|
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
|
Production |
|
|
|
|
|
|
|
758 |
Liquids |
kbbl/d |
781 |
776 |
1 |
769 |
751 |
2 |
4,590 |
Natural
gas |
mmcf/d |
4,851 |
4,426 |
10 |
4,635 |
4,523 |
2 |
1,635 |
Hydrocarbons
⁽ᵃ⁾ |
kboe/d |
1,708 |
1,617 |
6 |
1,655 |
1,610 |
3 |
|
Average
realizations ⁽ᵇ⁾ |
|
|
|
|
|
|
|
79.13 |
Liquids |
$/bbl |
77.53 |
77.60 |
(0) |
74.87 |
92.39 |
(19) |
6.79 |
Natural
gas |
$/kcf |
7.21 |
8.72 |
(17) |
7.28 |
8.61 |
(15) |
57.20 |
Hydrocarbons |
$/boe |
57.48 |
61.96 |
(7) |
56.23 |
69.06 |
(19) |
(a)
Effective January 1, 2023, the conversion rate of natural gas from cubic feet to boe has been updated to 1 barrel of oil equivalent =
5,232 cubic feet of gas (it was 1 barrel of oil = 5,263 cubic feet of gas).The effect on production has been 5 kboe/d in the fourth quarter
and the full year. Data of the previous 2023 quarters have been restated accordingly.
(b)
Prices related to consolidated subsidiaries.
| · | In Q4 ’23 hydrocarbon production averaged
1.71 mln boe/d (1.66 mln boe/d in the FY ’23), up 6% compared to Q4 ’22 (up 3% vs. the FY ’22). Production was supported
by the ramp-up in Mozambique, start-up of the Baleine project in Côte d'Ivoire, higher activity in Algeria, which also benefited
from the business acquisitions, in Kazakhstan due to unplanned events occurred in the same period ’22, as well as in Libya and Indonesia.
These increases were offset by lower production due to mature fields decline. In the sequential comparison production increased by almost
5% due to above mentioned drivers. |
| · | Liquid production was 781 kbbl/d in Q4 ’23
(769 kbbl/d in the FY ’23, up 2% vs. the FY ’22), up 1% compared to Q4 ’22. Production growth in Kazakhstan and Côte
d'Ivoire was partly offset by mature fields decline. |
| · | Natural gas production was 4,851 mmcf/d in Q4
’23 (4,635 in the FY ’23, up 2% vs. the FY ’22), up 10% compared to Q4 ’22. Production increases were reported
in Algeria, Mozambique in relation to the ramp-up of the Coral Floating LNG project, Libya, Indonesia and Kazakhstan, offset by mature
fields decline. |
Proved oil&gas reserves – preliminary
data
(bboe) |
|
|
|
Net
proved reserves at December 31, 2022 |
|
|
6.6 |
Additions |
|
|
0.4 |
Production |
|
|
(0.6) |
Net
proved reserves at December 31, 2023 |
|
|
6.4 |
Reserves
replacement ratio, all sources |
|
(%) |
67 |
|
|
|
|
| · | In 2023, net additions of proved reserves were
0.4 bln boe relating to discoveries, extensions and revisions of previous estimates. These additions drove an all-sources reserve replacement
ratio of 67%. |
| · | The reserves life index was 10.6 years as of December
31, 2023. |
| · | More information about the Company’s reserves
activity for the year will be disclosed in our 2023 Annual Report on Form 20-F. |
Results2
Q3 |
|
Q4 |
|
Full
Year |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
2,542 |
Operating
profit (loss) |
1,463 |
2,280 |
(36) |
8,549 |
15,963 |
(46) |
78 |
Exclusion
of special items |
968 |
643 |
|
1,385 |
506 |
|
2,620 |
Adjusted
operating profit (loss) |
2,431 |
2,923 |
(17) |
9,934 |
16,469 |
(40) |
(93) |
Net finance
(expense) income |
26 |
(128) |
|
(196) |
(319) |
|
243 |
Net income
(expense) from investments |
414 |
691 |
|
1,321 |
2,086 |
|
85 |
of which:
- Vår Energi |
89 |
171 |
|
454 |
951 |
|
105 |
- Azule |
255 |
281 |
|
653 |
455 |
|
2,770 |
Adjusted
profit (loss) before taxes |
2,871 |
3,486 |
(18) |
11,059 |
18,236 |
(39) |
(1,241) |
Income
taxes |
(1,448) |
(1,598) |
|
(5,543) |
(7,402) |
|
44.8 |
tax
rate (%) |
50.4 |
45.8 |
|
50.1 |
40.6 |
|
1,529 |
Adjusted
net profit (loss) |
1,423 |
1,888 |
(25) |
5,516 |
10,834 |
(49) |
|
Results
also include: |
|
|
|
|
|
|
128 |
Exploration
expenses: |
331 |
361 |
(8) |
687 |
605 |
14 |
46 |
- prospecting,
geological and geophysical expenses |
40 |
55 |
|
205 |
220 |
|
82 |
- write-off
of unsuccessful wells |
291 |
306 |
|
482 |
385 |
|
1,425 |
Capital
expenditure |
1,809 |
1,999 |
(10) |
7,133 |
6,252 |
14 |
| ● | In
Q4 ’23, Exploration & Production reported an adjusted operating profit of €2,431
mln, a decrease of 17% compared to Q4 ’22 due to lower crude oil prices in USD (the
marker Brent was down by 5% in the quarter) and lower benchmark gas prices in all geographies,
which negatively affected realized prices of equity production, particularly in Europe, as
well as the appreciation of the EUR/USD exchange rate (up by 5%). These negative trends were
partly offset by positive volumes/mix effects. In the FY ’23, adjusted operating profit
was €9,934 mln, down 40% compared to the FY ’22, due to the same drivers as for
the Q4, higher expensed exploration cost as well as the missing operating profit contribution
of the former Angolan subsidiaries that were contributed to the Azule joint-venture in Q3
’22, whose results are now recognized below the EBIT line. |
Including
the contribution of JV/associates, Q4 ’23 proforma adjusted EBIT was €3.3 bln, down 20% year-on-year (€13.3 bln in the
FY ’23, down 36%).
| ● | In
Q4 ’23, the segment reported an adjusted net profit of €1,423 mln, a decrease
of about 25% compared to Q4 ’22 due to weaker operating performance and lower performance
of investments, particularly Vår Energi (€454 mln in the FY ’23, a decrease
of €497 mln y-o-y). |
In
the FY ’23 tax rate increased by 9 percentage points (over 4 percentage points in Q4 ’23) when compared to the comparative
period due to: (i) the impact of lower oil and gas prices; (ii) the impact of the UK energy profit levy which is recognized as a recurring
item (effective from the Q3 ’22); and (iii) the impact of certain non-deductible tax expenses (i.e. exploration write-offs).
For the
disclosure on business segment special charges, see “Special items” in the Group results section.
2
From Q4 2023, the results of the business of Carbon Capture, Utilization, and Storage and of the Agri-business, in development stage,
previously included in the E&P segment, have been reported within the “Corporate & other activities” aggregate. Prior
reporting periods and comparative periods have been restated accordingly; the effects are immaterial.
Global
Gas & LNG Portfolio
Sales
Q3 |
|
|
Q4 |
|
Full
Year |
|
2023 |
|
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
34 |
Spot
Gas price at Italian PSV |
€/MWh
|
41 |
95 |
(57) |
42 |
122 |
(65) |
33 |
TTF |
|
41 |
94 |
(57) |
41 |
121 |
(66) |
1 |
Spread
PSV vs. TTF |
|
0 |
1 |
(78) |
2 |
1 |
21 |
|
Natural
gas sales |
bcm |
|
|
|
|
|
|
4.99 |
Italy |
|
6.58 |
7.32 |
(10) |
24.40 |
30.67 |
(20) |
5.32 |
Rest
of Europe |
|
6.50 |
7.71 |
(16) |
23.84 |
27.41 |
(13) |
0.45 |
of
which: Importers in Italy |
|
0.60 |
0.80 |
(25) |
2.29 |
2.43 |
(6) |
4.87 |
European
markets |
|
5.90 |
6.91 |
(15) |
21.55 |
24.98 |
(14) |
0.60 |
Rest
of World |
|
0.53 |
0.52 |
2 |
2.27 |
2.44 |
(7) |
10.91 |
Worldwide
gas sales ⁽*⁾ |
|
13.61 |
15.55 |
(12) |
50.51 |
60.52 |
(17) |
2.0 |
of
which: LNG sales |
|
2.4 |
2.4 |
(0) |
9.6 |
9.4 |
2 |
|
|
|
|
|
|
|
|
|
(*)
Data include intercompany sales. |
| ● | In
Q4 ’23, natural gas sales were 13.61 bcm, down 12% y-o-y, due to lower gas volumes
marketed in Italy (down 10%) particularly in the wholesalers’ segment and the Italian
gas exchange and spot markets. In the European markets gas volumes decreased by 15% as result
of lower sales in Germany, Turkey, and Benelux. In the FY ’23, natural gas sales amounted
to 50.51 bcm, down 17% vs the FY ‘22, due to lower gas volumes marketed in Italy (down
20% vs. FY ‘22) in all segments and in the European markets (down 14% vs. FY ’22). |
Results
Q3 |
|
Q4 |
|
Full
Year |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
324 |
Operating
profit (loss) |
1,293 |
3,728 |
(65) |
2,431 |
3,730 |
(35) |
(213) |
Exclusion
of special items |
(616) |
(3,665) |
|
816 |
(1,667) |
|
111 |
Adjusted
operating profit (loss) |
677 |
63 |
.. |
3,247 |
2,063 |
57 |
(5) |
Net
finance (expense) income |
7 |
22 |
|
1 |
(17) |
|
11 |
Net
income (expense) from investments |
8 |
1 |
|
49 |
4 |
|
11 |
of
which: SeaCorridor |
8 |
|
|
49 |
|
|
117 |
Adjusted
profit (loss) before taxes |
692 |
86 |
.. |
3,297 |
2,050 |
61 |
(42) |
Income
taxes |
(201) |
(346) |
|
(924) |
(1,068) |
|
75 |
Adjusted
net profit (loss) |
491 |
(260) |
.. |
2,373 |
982 |
.. |
4 |
Capital
expenditure |
6 |
9 |
(33) |
16 |
23 |
(30) |
| ● | In
Q4 ’23, the Global Gas & LNG Portfolio segment achieved an adjusted operating profit
of €677 mln reflecting the favorable outcome of an arbitration procedure. The structural
business result, without one-off effects, was substantially in line with the expectations
embedded in our last guidance in a market environment with softer volatility, gas spreads
and price levels. FY ’23 adjusted EBIT was a record €3,247 mln, up by 57% compared
to FY ’22, driven by an optimized natural gas & LNG portfolio and contract renegotiations
benefits while maintaining stability and reliability of supplies to European markets and
compensating for the reduction of Russian volumes. |
| ● | In
Q4 ’23 proforma adjusted EBIT including the operating margin of the equity accounted
entities was €717 mln vs. €63 mln in Q4 ’22 (€3,433 mln in the FY ’23
vs. €2,063 mln in the comparative period). |
For the
disclosure on business segment special charges, see “Special items” in the Group results section.
Enilive, Refining
and Chemicals
Production
and sales
Q3 |
|
|
Q4 |
|
Full
Year |
|
2023 |
|
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
14.7 |
Standard
Eni Refining Margin (SERM) |
$/bbl |
8.1 |
13.6 |
(40) |
10.1 |
8.5 |
19 |
4.25 |
Throughputs
in Italy on own account |
mmtonnes |
4.30 |
3.73 |
15 |
16.88 |
16.12 |
5 |
2.82 |
Throughputs
in the rest of World on own account |
|
2.62 |
2.86 |
(9) |
10.51 |
11.00 |
(5) |
7.07 |
Total
throughputs on own account |
|
6.92 |
6.59 |
5 |
27.39 |
27.12 |
1 |
78 |
Average refineries
utilization rate |
% |
78 |
74 |
|
77 |
79 |
|
325 |
Bio
throughputs |
ktonnes |
265 |
129 |
.. |
866 |
543 |
59 |
88 |
Average
bio refineries utilization rate ⁽ᵃ⁾ |
% |
72 |
55 |
|
72 |
58 |
|
|
Marketing |
|
|
|
|
|
|
|
2.01 |
Retail
sales in Europe |
mmtonnes |
1.86 |
1.90 |
(2) |
7.51 |
7.50 |
0 |
1.42 |
Retail
sales in Italy |
|
1.32 |
1.37 |
(4) |
5.32 |
5.38 |
(1) |
0.59 |
Retail
sales in the rest of Europe |
|
0.54 |
0.53 |
2 |
2.19 |
2.12 |
3 |
21.6 |
Retail
market share in Italy |
% |
21.8 |
21.8 |
|
21.4 |
21.7 |
|
2.36 |
Wholesale
sales in Europe |
mmtonnes |
2.06 |
2.15 |
(4) |
8.39 |
8.63 |
(3) |
1.79 |
Wholesale
sales in Italy |
|
1.58 |
1.55 |
2 |
6.45 |
6.19 |
4 |
0.57 |
Wholesale
sales in the rest of Europe |
|
0.48 |
0.60 |
(21) |
1.94 |
2.44 |
(21) |
|
Chemicals |
|
|
|
|
|
|
|
0.8 |
Sales
of chemical products |
mmtonnes |
0.8 |
0.8 |
(3) |
3.1 |
3.8 |
(18) |
50 |
Average
plant utilization rate |
% |
48 |
44 |
|
52 |
59 |
|
|
|
|
|
|
|
|
|
|
(a)
Redetermined based on the effective biorefinery capacity. |
| ● | In
Q4 ’23, the Standard Eni Refining Margin reported an average of 8.1 $/barrel
vs. 13.6 $/barrel reported in the comparative period. On yearly basis, refining margins increased
driven mainly by lower prices of natural gas (10.1 $/barrel in the FY ’23 vs. 8.5 $/barrel
reported in the FY ’22). However, it is noted that under the current circumstances
of narrowing differentials between heavy/sour crudes vs. lighter/sweet grades due to tight
supplies of the former, the SERM does not entirely capture the effective refining margin. |
| ● | In
Q4 ’23, throughputs on own accounts at Eni’s refineries in Italy were
4.30 mmtonnes, representing an increase of 15% when compared to the same period of 2022,
reflecting higher volumes processed mainly at the Sannazzaro and Milazzo refineries following
optimization initiatives. In the FY ’23, throughputs amounted to 16.88 mmtonnes, an
increase of 5% vs the same period of 2022 due to the same drivers as of the Q4, partly offset
by higher standstills at the Livorno plant. Throughputs outside Italy decreased compared
to Q4 ’22 (in the FY ’23 throughputs decreased by 5% vs. comparative period)
following lower volumes processed in Germany. |
| ● | In
Q4 ’23, bio throughputs were 265 ktonnes, more than doubled compared to the
same period of 2022, benefitting from the Chalmette biorefinery contribution and higher volumes
processed at the Gela and Venice biorefineries. In the FY ’23, bio throughputs increased
by 59% to 866 ktonnes compared to the same period of 2022, thanks to the above-mentioned
Chalmette contribution, as well as higher volumes processed at the Gela biorefinery. |
| ● | In
Q4 ’23, retail sales in Italy were 1.32 mmtonnes, down 4% year-on-year, due
to lower sales of gasoil, on the back of decreasing consumptions. In the FY ’23, retail
sales amounted to 5.32 mmtonnes, substantially in line with the FY ’22. |
| ● | In
Q4 ’23, wholesale sales in Italy were 1.58 mmtonnes, increasing by 2% compared
to the same period of 2022, mainly due to higher sales of jet fuel. An increasing performance
was also recorded in the FY ’23 at 6.45 mmtonnes: up 4% vs. the FY ’22 for the
above-mentioned driver. |
| ● | Sales
of chemical products were 0.8 mmtonnes in Q4 ’23, a slight decrease compared to
the same period of 2022. In the FY ’23, sales amounted to 3.1 mmtonnes, down 18% vs.
the comparative period due to lower product availability impacted by scheduled downtime at
Marghera and Dunkerque sites. |
| ● | In
Q4 ’23 cracking margin decreased compared to the same period in 2022. Also margins
on polyethylene and styrenics decreased compared to Q4 ’22, due to weak commodity prices. |
Results
Q3 |
|
Q4 |
|
Full
Year |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
681 |
Operating
profit (loss) |
(1,503) |
(1,228) |
(22) |
(1,397) |
460 |
.. |
(363) |
Exclusion
of inventory holding (gains) losses |
440 |
730 |
|
604 |
(416) |
|
83 |
Exclusion
of special items |
976 |
877 |
|
1,348 |
1,885 |
|
401 |
Adjusted
operating profit (loss) |
(87) |
379 |
.. |
555 |
1,929 |
(71) |
271 |
-
Enilive |
117 |
111 |
5 |
728 |
672 |
8 |
328 |
-
Refining |
33 |
355 |
(91) |
441 |
1,511 |
(71) |
(198) |
-
Chemicals |
(237) |
(87) |
(172) |
(614) |
(254) |
.. |
(17) |
Net
finance (expense) income |
(3) |
6 |
|
(38) |
(36) |
|
126 |
Net
income (expense) from investments |
64 |
244 |
|
412 |
637 |
|
103 |
of
which: ADNOC R> |
73 |
228 |
|
400 |
568 |
|
13 |
St.
Bernard Renewables Llc |
(19) |
|
|
(6) |
|
|
510 |
Adjusted
profit (loss) before taxes |
(26) |
629 |
.. |
929 |
2,530 |
(63) |
(183) |
Income
taxes |
49 |
(100) |
|
(259) |
(616) |
|
327 |
Adjusted
net profit (loss) |
23 |
529 |
(96) |
670 |
1,914 |
(65) |
|
|
|
|
|
|
|
|
359 |
Enilive
proforma adjusted EBITDA |
181 |
176 |
3 |
1,001 |
920 |
9 |
199 |
Capital
expenditure |
429 |
461 |
(7) |
982 |
878 |
12 |
| ● | In
Q4 ’23, Enilive delivered an adjusted operating profit of €117 mln, up
by 5% compared to the adjusted operating profit of the Q4 ’22 (up 8% in the FY ’23
at €728 mln), thanks to resilient Marketing performance. |
| ● | The
Refining business reported an adjusted operating profit of €33 mln in Q4 ’23
compared to a profit of €355 mln in Q4 ’22 (in the FY ’23 reported an adjusted
operating profit of €441 mln, compared to a profit of €1,511 mln in the FY ’22).
Q4 ’23 deterioration reflected narrowing differentials between heavy/sour vs. light/sweet
crude qualities and product crack spreads, partly offset by reduced energy expenses driven
by a fall in natural gas prices, while comparison with the year-ago quarter reflected exceptionally
strong refining margins at that time. |
| ● | The
Chemicals business, managed by Versalis, reported an adjusted operating loss of €237
mln in Q4 ’23, significantly larger than the one incurred in Q4 ’22. Results
were negatively affected by lower demand across all business segments driven by a slowdown
in the macro environment and comparatively higher production costs in Europe for energy inputs,
which reduced the competitiveness of Versalis productions with respect to US and Asian players
in an oversupplied market. In the FY ’23, the adjusted operating result was a loss
of €614 mln (loss of €254 mln in the FY ’22) reflecting the exceptionally
adverse market conditions described for the quarter. |
In Q4 ’23
Enilive, Refining and Chemicals proforma adjusted EBIT including the operating margin of the equity accounted entities was a negative
€0.03 bln vs. €0.56 bln in Q4 ’22 (€0.96 bln in the FY ’23 vs. €2.45 bln in the comparative period).
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 |
|
2023 |
|
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
|
Plenitude |
|
|
|
|
|
|
|
10.1 |
Retail
and business customers at period end |
mln
pod |
10.1 |
10.1 |
0 |
10.1 |
10.1 |
0 |
0.53 |
Retail
and business gas sales |
bcm |
1.74 |
1.86 |
(6) |
6.06 |
6.84 |
(11) |
4.57 |
Retail
and business power sales to end customers |
TWh |
4.60 |
4.43 |
4 |
17.98 |
18.77 |
(4) |
2.5 |
Installed
capacity from renewables at period end |
GW |
3.0 |
2.2 |
36 |
3.0 |
2.2 |
36 |
59 |
of
which: - photovoltaic (including installed storage capacity) |
% |
64 |
54 |
|
64 |
54 |
|
41 |
-
wind |
|
36 |
46 |
|
36 |
46 |
|
1.03 |
Energy
production from renewable sources |
TWh |
0.99 |
0.65 |
51 |
3.98 |
2.55 |
56 |
17.5 |
EV
charging points at period end |
thousand |
19.0 |
13.1 |
45 |
19.0 |
13.1 |
45 |
|
Power |
|
|
|
|
|
|
|
4.85 |
Power
sales in the open market |
TWh |
4.97 |
5.07 |
(2) |
19.88 |
22.37 |
(11) |
5.18 |
Thermoelectric
production |
|
5.14 |
4.95 |
4 |
20.66 |
21.37 |
(3) |
| ● | As
of December 31, 2023, retail and business customers were 10.1 mln (gas and electricity),
in line compared to December 31, 2022. |
| ● | Retail
and business gas sales amounted to 1.74 bcm in Q4 ’23, down by 6% compared to the
same period in 2022, mainly due to reduced market demand. In the FY ’23, gas sales
amounted to 6.06 bcm, decreasing by 11% vs. the comparative period, due to the same driver
as for the quarter. |
| ● | Retail
and business power sales to end customers were 4.6 TWh in the Q4 ’23, a 4% increase
compared to Q4 ’22 mainly due to the increased customer base in Italy. In the FY '23
power sales decreased by 4% compared to FY ’22 mainly due to lower consumptions. |
| ● | As
of December 31, 2023, the installed capacity from renewables was 3 GW, up by approximately
0.8 GW compared to December 31, 2022, mainly thanks to the acquisitions in Spain (Bonete)
and in the USA (Kellam) and to the organic development in Italy, in Spain and Kazakhstan,
as well as the acquisition of 3 photovoltaic plants in the USA with a total capacity of about
0.38 GW which was signed just at year-end. |
| ● | Energy
production from renewable sources (0.99 TWh in Q4 ’23) up by 51%, mainly thanks
to the contribution from acquired assets in operation and the start-up of organic projects.
In the FY ’23, production from renewable sources amounted to 3.98 TWh, increasing by
56% vs. 2022, due to the same driver as for the quarter. |
| ● | EV
charging points as of December 31, 2023, amounted to 19 thousand, up by 45% compared
to 13.1 thousand as of December 31, 2022, in line with the enhancing plan of our network. |
| ● | Power
sales in the open market were 4.97 TWh in Q4 ’23, down 2% year-on-year mainly due
to lower volumes to the wholesalers; 19.88 TWh in the FY ’23, representing a reduction
of 11% year-on-year due to lower volumes marketed to power exchange and to wholesalers. |
Results
Q3 |
|
Q4 |
|
Full
Year |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
25 |
Operating
profit (loss) |
(178) |
(4,950) |
96 |
(464) |
(825) |
.. |
194 |
Exclusion
of special items |
289 |
5,068 |
|
1,145 |
1,440 |
|
219 |
Adjusted
operating profit (loss) |
111 |
118 |
(6) |
681 |
615 |
11 |
180 |
-
Plenitude |
70 |
78 |
(10) |
515 |
345 |
49 |
39 |
-
Power |
41 |
40 |
3 |
166 |
270 |
(39) |
(16) |
Net
finance (expense) income |
5 |
(2) |
|
(15) |
(11) |
|
(8) |
Net
income (expense) from investments |
(15) |
(8) |
|
(34) |
(6) |
|
195 |
Adjusted
profit (loss) before taxes |
101 |
108 |
(6) |
632 |
598 |
6 |
(73) |
Income
taxes |
(38) |
(53) |
|
(218) |
(201) |
|
122 |
Adjusted
net profit (loss) |
63 |
55 |
15 |
414 |
397 |
4 |
|
|
|
|
|
|
|
|
284 |
Plenitude
proforma adjusted EBITDA |
173 |
164 |
5 |
927 |
672 |
38 |
148 |
Capital
expenditure |
285 |
191 |
49 |
740 |
631 |
17 |
| ● | In
Q4 ’23 Plenitude reported an adjusted operating profit of €70 mln achieved
thanks to good results on retail business and to the ramp-up in renewable installed
capacity and production volumes, confirming the value of the integrated business model, which
allowed to fully capture scenario dynamics. In the FY ’23, adjusted operating
profit was €515 mln, representing an increase of €170 mln year-on-year due to the
same drivers as for the fourth quarter. |
| ● | The
Power generation business from gas-fired plants reported an adjusted operating profit
of €41 mln in Q4 ’23, barely unchanged compared to the same period in 2022. In
the FY ’23, adjusted operating result was €166 mln, down €104 mln compared
to the FY ’22 which benefitted from a particularly favorable price scenario. |
For the
disclosure on business segment special charges, see “Special items” in the Group results section.
Q3 |
|
Q4 |
|
Full
Year |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
22,319
|
Sales
from operations |
24,622
|
31,525
|
(22) |
93,717
|
132,512
|
(29) |
3,126
|
Operating
profit (loss) |
856
|
(423) |
.. |
8,257
|
17,510
|
(53) |
(250) |
Exclusion
of inventory holding (gains) losses |
203
|
722
|
|
562
|
(564) |
|
138
|
Exclusion
of special items (a) |
1,710
|
3,283
|
|
4,986
|
3,440
|
|
3,014
|
Adjusted
operating profit (loss) |
2,769
|
3,582
|
(23) |
13,805
|
20,386
|
(32) |
|
Breakdown
by segment: |
|
|
|
|
|
|
2,620
|
Exploration
& Production |
2,431
|
2,923
|
(17) |
9,934
|
16,469
|
(40) |
111
|
GGP |
677
|
63
|
.. |
3,247
|
2,063
|
57 |
401
|
Enilive,
Refining and Chemicals |
(87) |
379
|
.. |
555
|
1,929
|
(71) |
219
|
Plenitude
& Power |
111
|
118
|
(6) |
681
|
615
|
11 |
(165) |
Corporate
and other activities |
(228) |
(175) |
(30) |
(651) |
(680) |
4 |
(172) |
Impact
of unrealized intragroup profit elimination and other consolidation adjustments |
(135) |
274
|
|
39
|
(10) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,014
|
Adjusted
operating profit (loss) |
2,769
|
3,582
|
(23) |
13,805
|
20,386
|
(32) |
(122) |
Net
finance (expense) income |
(54) |
(125) |
57 |
(443) |
(1,052) |
58 |
373
|
Net
income (expense) from investments |
452
|
901
|
(50) |
1,724
|
2,630
|
(34) |
3,265
|
Adjusted
profit before taxes |
3,167
|
4,358
|
(27) |
15,086
|
21,964
|
(31) |
(1,428) |
Income
taxes |
(1,509) |
(1,841) |
18 |
(6,710) |
(8,608) |
22 |
1,837
|
Adjusted
net profit (loss) |
1,658
|
2,517
|
(34) |
8,376
|
13,356
|
(37) |
19
|
of
which attributable to: - non-controlling interest |
20
|
24
|
.. |
78
|
55
|
.. |
1,818
|
-
Eni’s shareholders |
1,638
|
2,493
|
(34) |
8,298
|
13,301
|
(38) |
1,916
|
Net
profit (loss) attributable to Eni's shareholders |
149
|
627
|
(76) |
4,747
|
13,887
|
(66) |
(177) |
Exclusion
of inventory holding (gains) losses |
143
|
509
|
|
402
|
(401) |
|
79
|
Exclusion
of special items (a) |
1,346
|
1,357
|
|
3,149
|
(185) |
|
1,818
|
Adjusted
net profit (loss) attributable to Eni's shareholders |
1,638
|
2,493
|
(34) |
8,298
|
13,301
|
(38) |
|
|
|
|
|
|
|
|
(a) For further information see table "Breakdown
of special items".
| · | In
Q4 ’23, the Group reported an adjusted operating profit of €2,769 mln,
down 23% compared to Q4 ’22, driven by a lower E&P result (down 17% to €2,431
mln) due to a reduction in crude oil and natural gas prices, the underperformance of the
Chemical business (with a loss of €237 mln) reflecting a slowdown in demand and cost
disadvantages, and finally a significantly deteriorated refining scenario leading to a sharp
contraction of Refining Ebit (down by €322 mln). These negatives were partly offset
by a record GGP performance (up by €614 mln). In the FY ’23, the Group reported
an adjusted operating profit of €13,805 mln, down 32% compared to the FY ’22,
due to lower E&P segment performance, also reflecting the reclassification of Angolan
subsidiaries to equity accounted entities as the Azule joint-venture became operational in
Q4 ’22, lowering results from Refining and Chemical businesses partly offset by the
performance at GGP segment and solid results of Enilive and Plenitude & Power businesses. |
| · | In
Q4 ’23 adjusted net profit attributable to Eni shareholders was €1,638
mln, €855 mln lower than the Q4 ’22, or 34%, due to lower operating profit and
results at JV and associates, partly offset by decreasing financial expenses mainly driven
by the positive effect of a declining yield curve on the fair value of financial assets held
for trading at year end, as well as by higher interest income due to increased average interest
rates on cash deposit balances for the year compared to the effect on fixed-rate financial
liabilities. In the FY ’23, the Group reported an adjusted net result of €8,298
mln, down 38% compared to the FY ’22. |
| · | Group’s
tax rate: the adjusted tax rate increased by 5 percentage points both in the quarter
and the FY compared to the same periods ’22, to 47.6% and 44.5% in the Q4 and the FY
’23 respectively, as a result of the impact of the UK energy profit levy (effective
from the third quarter ’22), adverse scenario effects and the impact of E&P non-deductible
expenses particularly the write-off of exploration expenses. This was partly offset by a
higher proportion of the taxable profit earned by Italian subsidiaries. |
Net borrowings
and cash flow from operations
Q3 |
|
Q4 |
|
|
Full
Year |
|
2023 |
(€
million) |
2023 |
2022 |
Change |
|
2023 |
2022 |
Change |
1,935 |
Net
profit (loss) |
180 |
670 |
(490) |
|
4,836 |
13,961 |
(9,125) |
|
|
|
|
|
|
|
|
|
|
Adjustments
to reconcile net profit (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
1,357 |
-
depreciation, depletion and amortization and other non monetary items |
3,285 |
2,600 |
685 |
|
7,803 |
4,369 |
3,434 |
(11) |
-
net gains on disposal of assets |
(12) |
(65) |
53 |
|
(441) |
(524) |
83 |
1,552 |
-
dividends, interests and taxes |
975 |
(138) |
1,113 |
|
5,598 |
8,611 |
(3,013) |
(140) |
Changes
in working capital related to operations |
657 |
3,397 |
(2,740) |
|
1,811 |
(1,279) |
3,090 |
342 |
Dividends
received by equity investments |
573 |
811 |
(238) |
|
2,255 |
1,545 |
710 |
(1,378) |
Taxes
paid |
(1,516) |
(2,606) |
1,090 |
|
(6,283) |
(8,488) |
2,205 |
(138) |
Interests
(paid) received |
33 |
(76) |
109 |
|
(460) |
(735) |
275 |
3,519 |
Net
cash provided by operating activities |
4,175 |
4,593 |
(418) |
|
15,119 |
17,460 |
(2,341) |
(1,873) |
Capital
expenditure |
(2,666) |
(2,764) |
98 |
|
(9,215) |
(8,056) |
(1,159) |
(60) |
Investments
and acquisitions |
(722) |
(1,066) |
344 |
|
(2,592) |
(3,311) |
719 |
51 |
Disposal
of consolidated subsidiaries, businesses, tangible and intangible assets and investments |
56 |
271 |
(215) |
|
596 |
1,202 |
(606) |
(278) |
Other
cash flow related to investing activities |
(369) |
1,184 |
(1,553) |
|
(348) |
2,361 |
(2,709) |
1,359 |
Free
cash flow |
474 |
2,218 |
(1,744) |
|
3,560 |
9,656 |
(6,096) |
355 |
Net
cash inflow (outflow) related to financial activities |
1,173 |
(590) |
1,763 |
|
2,194 |
786 |
1,408 |
(2,076) |
Changes
in short and long-term financial debt |
963 |
(585) |
1,548 |
|
315 |
(2,569) |
2,884 |
(195) |
Repayment
of lease liabilities |
(293) |
(227) |
(66) |
|
(963) |
(994) |
31 |
(1,327) |
Dividends
paid, share repurchases, changes in non-controlling interests and reserves |
(1,547) |
(1,944) |
397 |
|
(4,882) |
(4,841) |
(41) |
|
Interest
payment of perpetual hybrid bond |
(51) |
(51) |
|
|
(138) |
(138) |
|
40 |
Effect
of changes in consolidation and exchange differences of cash and cash equivalent |
(87) |
(136) |
49 |
|
(62) |
16 |
(78) |
(1,844) |
NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT |
632 |
(1,315) |
1,947 |
|
24 |
1,916 |
(1,892) |
3,369 |
Adjusted
net cash before changes in working capital at replacement cost |
3,606 |
4,114 |
(508) |
|
16,498 |
20,380 |
(3,882) |
|
|
|
|
|
|
|
Q3 |
|
Q4 |
|
|
Full
Year |
|
2023 |
(€
million) |
2023 |
2022 |
Change |
|
2023 |
2022 |
Change |
1,359 |
Free
cash flow |
474 |
2,218 |
(1,744) |
|
3,560 |
9,656 |
(6,096) |
(195) |
Repayment
of lease liabilities |
(293) |
(227) |
(66) |
|
(963) |
(994) |
31 |
|
Net
borrowings of acquired companies |
(234) |
(380) |
146 |
|
(234) |
(512) |
278 |
(8) |
Net
borrowings of divested companies |
|
362 |
(362) |
|
(155) |
142 |
(297) |
(293) |
Exchange
differences on net borrowings and other changes ⁽ᵃ⁾ |
(569) |
(560) |
(9) |
|
(1,061) |
(1,352) |
291 |
(1,327) |
Dividends
paid and changes in non-controlling interest and reserves |
(1,547) |
(1,944) |
397 |
|
(4,882) |
(4,841) |
(41) |
|
Interest
payment of perpetual hybrid bond |
(51) |
(51) |
|
|
(138) |
(138) |
|
(464) |
CHANGE
IN NET BORROWINGS BEFORE LEASE LIABILITIES |
(2,220) |
(582) |
(1,638) |
|
(3,873) |
1,961 |
(5,834) |
195 |
Repayment
of lease liabilities |
293 |
227 |
66 |
|
963 |
994 |
(31) |
(368) |
Inception
of new leases and other changes |
(730) |
(89) |
(641) |
|
(1,348) |
(608) |
(740) |
(637) |
CHANGE
IN NET BORROWINGS AFTER LEASE LIABILITIES |
(2,657) |
(444) |
(2,213) |
|
(4,258) |
2,347 |
(6,605) |
(a)
Includes payables due to suppliers recognized as financing payables because of the deferral of payment terms and incurred in connection
with expenditures to purchase plant and equipment (€966 million and €61 million in the full year 2023 and 2022, respectively,
€294 million and €22 million in the fourth quarter 2023 and 2022, respectively and €483 million in the third quarter 2023).
Net cash provided by operating activities in the FY ’23
reached €15,119 mln and included €2,255 mln of dividends distributed from investments, mainly Azule Energy, Vår Energi
and Adnoc R&T and was impacted by lower amount of trade receivables due in subsequent reporting periods divested to financing institutions,
down by approximately €0.5 bln compared to the amount divested at the end of 2022.
Cash flow from operating activities before changes in working
capital at replacement cost was €16,498 mln in the FY ’23 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, the fair value of commodity derivatives lacking the formal criteria
to be designated as hedges or prorated on an accrual basis, and extraordinary risk provisions (like in the case of refinery decommissioning
provisions or for expected credit losses relating to exceptional non-commercial issues). It also excluded €0.4 bln cash-out relating
to an Italian extraordinary tax contribution enacted by the Italian Budget Law for 2023, calculated on the pre-tax income 2022 and accrued
in the financial statements 2022.
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 |
|
2023 |
(€
million) |
2023 |
2022 |
Change |
2023 |
2022 |
Change |
3,519 |
Net
cash provided by operating activities |
4,175 |
4,593 |
(418) |
15,119 |
17,460 |
(2,341) |
140 |
Changes
in working capital related to operations |
(657) |
(3,397) |
2,740 |
(1,811) |
1,279 |
(3,090) |
(152) |
Exclusion
of commodity derivatives |
23 |
1,076 |
(1,053) |
1,255 |
(389) |
1,644 |
(250) |
Exclusion
of inventory holding (gains) losses |
203 |
722 |
(519) |
562 |
(564) |
1,126 |
3,257 |
Net
cash before changes in working capital at replacement cost |
3,744 |
2,994 |
750 |
15,125 |
17,786 |
(2,661) |
112 |
Provisions
for extraordinary credit losses and other items |
(138) |
1,120 |
(1,258) |
1,373 |
2,594 |
(1,221) |
3,369 |
Adjusted
net cash before changes in working capital at replacement cost |
3,606 |
4,114 |
(508) |
16,498 |
20,380 |
(3,882) |
Organic
capex was €9.2 bln in the FY ’23 (up 11% year on year) due to the ramp-up of natural gas and LNG projects to boost energy
security, as well as the Baleine project in Côte d’Ivoire, and comprised capital contributions to investees that are executing
capital projects of interest to Eni. Net of organic capex, the free cash flow ante working capital was €7.3 bln (€1.2 bln in
the quarter).
Cash
outflows for acquisitions net of divestments were about €2.4 bln and mainly related to the acquisition of bp’s natural
gas activities in Algeria, an interest in the St. Bernard (Chalmette) biorefinery in US, Plenitude’s renewable assets and the final
price installment of the acquisition of PLT group made late in 2022, partly offset by the divestment of a 49.9% stake in the equity interests
of Eni’s subsidiaries managing the TTPC/Transmed pipelines following the deal with Snam and other non-strategic assets.
Net
financial borrowings before IFRS 16 increased by around €3.9 bln due to the adjusted operating cash flow (€16.5 bln), capex
requirements of €9.2 bln, working capital needs (€1 bln), dividend payments to Eni’s shareholders and share repurchases
of €4.8 bln, the cash outflow related to acquisitions and divestments (€2.4 bln), other investing activities and other changes
(€1.5 bln), as well as the payment of lease liabilities and hybrid bond interest (€1.1 bln) and of cash-out relating to an
Italian extraordinary tax contribution (€0.4 bln).
Summarized
Group Balance Sheet
(€
million) |
Dec.
31, 2023 |
Dec.
31, 2022 |
Change |
|
|
|
|
Fixed
assets |
|
|
|
Property, plant
and equipment |
56,299 |
56,332 |
(33) |
Right
of use |
4,834 |
4,446 |
388 |
Intangible
assets |
6,379 |
5,525 |
854 |
Inventories
- Compulsory stock |
1,576 |
1,786 |
(210) |
Equity-accounted
investments and other investments |
13,862 |
13,294 |
568 |
Receivables
and securities held for operating purposes |
2,386 |
1,978 |
408 |
Net
payables related to capital expenditure |
(2,075) |
(2,320) |
245 |
|
83,261 |
81,041 |
2,220 |
Net
working capital |
|
|
|
Inventories |
6,186 |
7,709 |
(1,523) |
Trade
receivables |
13,185 |
16,556 |
(3,371) |
Trade
payables |
(14,200) |
(19,527) |
5,327 |
Net
tax assets (liabilities) |
(2,114) |
(2,991) |
877 |
Provisions |
(15,533) |
(15,267) |
(266) |
Other
current assets and liabilities |
(931) |
316 |
(1,247) |
|
(13,407) |
(13,204) |
(203) |
Provisions
for employee benefits |
(748) |
(786) |
38 |
Assets
held for sale including related liabilities |
747 |
156 |
591 |
CAPITAL
EMPLOYED, NET |
69,853 |
67,207 |
2,646 |
|
|
|
|
Eni's
shareholders equity |
53,158 |
54,759 |
(1,601) |
Non-controlling
interest |
460 |
471 |
(11) |
Shareholders'
equity |
53,618 |
55,230 |
(1,612) |
Net
borrowings before lease liabilities ex IFRS 16 |
10,899 |
7,026 |
3,873 |
Lease
liabilities |
5,336 |
4,951 |
385 |
-
of which Eni working interest |
4,856 |
4,457 |
399 |
-
of which Joint operators' working interest |
480 |
494 |
(14) |
Net
borrowings after lease liabilities ex IFRS 16 |
16,235 |
11,977 |
4,258 |
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY |
69,853 |
67,207 |
2,646 |
Leverage
before lease liabilities ex IFRS 16 |
0.20 |
0.13 |
0.07 |
Leverage
after lease liabilities ex IFRS 16 |
0.30 |
0.22 |
0.08 |
Gearing |
0.23 |
0.18 |
0.05 |
As
of December 31, 2023, fixed assets (€83.3 bln) increased by €2.2 bln from December 31, 2022, due to capital expenditure
and acquisitions of subsidiaries (the deal in Algeria and Novamont control acquisition) and equity investments (mainly a 50% of the Chalmette
biorefinery in US). These increases were offset by negative exchange rate translation differences (the period-end exchange rate of EUR
vs. USD was 1.105, up 4% compared to 1.067 as of December 31, 2022, thus reducing the book values of dollar-denominated assets) and DD&A,
impairment charges and write-offs.
Net
working capital (-€13.4 bln) decreased by €0.2 bln from December 31, 2022. The lower value of oil, natural gas and product
inventories due to the weighted-average cost method of accounting in an environment of declining prices (down by €1.5 bln) as well
as an increase in other current liabilities net (down €1.3 bln) due to fair value changes of derivative instruments were partly
offset by a decreased balance between trade receivables and trade payables (€2 bln).
Shareholders’
equity (€53.6 bln) decreased by €1.6 bln compared to December 31, 2022, due to the net profit for the period (€4.8
bln), the positive change in the cash flow hedge reserve of €0.5 bln, partly offset by negative foreign currency translation differences
(about €2 bln) reflecting the depreciation of the USD vs. the Euro as well as dividends paid to shareholders (€3 bln) and share
repurchases (€1.8 bln).
Net
borrowings3 before lease liabilities as of December 31, 2023, amounted to €10.9 bln, up by approximately €3.9
bln from December 31, 2022.
3
Details on net borrowings are furnished on page 29.
Leverage4–
the ratio of the borrowings to total equity calculated before the impact of IFRS 16 – was 0.20 on December 31, 2023 (compared to
0.13 as of December 31, 2022).
Special
items
The
breakdown of special items recorded in operating profit by segment (net charges of €4,986 mln and €1,710 mln in the
FY ’23 and Q4 ’23, respectively) is as follows:
| · | E&P:
net charges of €1,385 mln in the FY ’23 (net charges of €968 mln in Q4
‘23) mainly related to impairment losses of €1,037 mln recorded at certain Italian
gas properties driven by lower natural gas prices, at certain oil and gas USA properties
following reserve revisions, credit loss provisions (€129 mln in the FY ’23),
environmental charges (€81 mln in the FY ‘23) as well as provision for redundancy
incentives (€40 mln in the FY ’23). |
| · | GGP:
net charges of €816 mln in the FY ’23 (net gains of €616 mln in Q4 ‘23)
relating to 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 (charges
of €97 mln in the FY ’23, gains of €277 mln in Q4 ’23); 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 (charges of €655 mln in the FY ’23 and gains of €375
mln in Q4 ’23, respectively). |
| · | Enilive,
Refining and Chemicals: net charges of €1,348 mln in the FY ’23 (net charges
of €976 mln in Q4 ‘23) mainly related to impairment losses of chemical plants
to reflect a reduced profitability outlook following a worsening trading environment (€405
mln in both the FY ‘23 and Q4 ’23), the write-down of capital expenditures made
for compliance and stay-in-business at certain CGU with expected negative cash flows in the
Refining business (€359 mln and €132 mln in the FY ’23 and Q4 ’23,
respectively), environmental provisions (€373 mln and €233 mln in the FY ‘23
and Q4 ’23), and provision for redundancy incentives (€46 mln and €37 mln
in the FY ’23 and Q4 ’23, respectively). |
| · | Plenitude
& Power: net charges of €1,145 mln in the FY ‘23 (net charges €289
mln in Q4 ‘23) mainly related to the fair values of commodity derivatives lacking the
formal criteria to be classified as hedges under IFRS, and, to a lower extent, some derivatives
part of a general annual hedging program prorated over the 2023 quarters. |
The
other special items in the FY ’23 related to a gain of €0.8 bln (including the fair value evaluation of stake retained in
the company) in connection to the sale of a 49.9% stake in the equity interests of Eni’s subsidiaries managing the TTPC/Transmed
pipelines and the relevant transportation rights of natural gas volumes imported from Algeria following the agreement with Snam SpA.
4 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-GAAFP measures” of this press release. See pages 20 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 2023 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 2023, the full year of 2023 and for the 2022 comparative period. Information
on the Company’s financial position relates to end of the periods as of December 31, 2023 and December 31, 2022.
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 2022 Annual Report on Form 20-F filed with the US SEC on April 5, 2023, which investors are urged to
read.
Effective
January 1, 2023, Eni has updated the conversion rate of gas produced to 5,232 cubic feet of gas equals 1 barrel of oil equivalent (it
was 5,263 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 value of gas in Eni’s gas fields currently
on stream. The effect of this update on production expressed in boe was 5 kboe/d for the fourth quarter and the full year. 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.
Basis
of presentation
Following
the establishment of Enilive (Eni Sustainable Mobility business) effective January 1, 2023, that operates Eni’s biorefineries and
the retail marketing of fuels and of smart mobility solutions, the management has resolved to break-down the adjusted EBIT of the former
reporting segment Refining & Marketing “R&M” into two operating sub-segments:
The
re-segmentation of the adjusted EBIT of R&M for the comparative periods of 2022 is disclosed below:
2022 |
|
First
quarter |
Second
quarter |
Third
quarter |
Fourth
quarter |
Adjusted
operating profit (loss) |
(€
million) |
As
published |
As
restated |
As
published |
As
restated |
As
published |
As
restated |
As
published |
As
restated |
R&M
and Chemicals |
|
(91) |
|
1,104 |
|
537 |
|
379 |
|
-
Refining & Marketing |
|
24 |
|
979 |
|
714 |
|
466 |
|
-
Chemicals |
|
(115) |
|
125 |
|
(177) |
|
(87) |
|
Enilive,
Refining and Chemicals |
|
|
(91) |
|
1,104 |
|
537 |
|
379 |
-
Enilive |
|
|
24 |
|
222 |
|
315 |
|
111 |
-
Refining |
|
|
0 |
|
757 |
|
399 |
|
355 |
-
Chemicals |
|
|
(115) |
|
125 |
|
(177) |
|
(87) |
No change
has been made to the Group statutory segment information as per IFRS 8 “Segment Reporting”, which will continue to feature
the Enilive, Refining and Chemicals segment (formerly R&M and Chemicals).
From
the IVQ 23 and effective January 1, 2023, the results of CCUS and Agribusiness of Eni have been included in the “Corporate and
other activities” reporting segment, previously they were reported as part of the Exploration & Production segment results.
Below is disclosed the re-segmentation of the adjusted EBIT of Corporate and other activities segment:
2023 |
|
First
quarter |
Second
quarter |
Third
quarter |
Adjusted
operating profit (loss) |
(€
million) |
As
published |
As
restated |
As
published |
As
restated |
As
published |
As
restated |
|
|
|
|
|
|
|
|
Exploration
& Production |
|
2,789 |
2,806 |
2,066 |
2,077 |
2,605 |
2,620 |
Corporate
and other activities |
|
(134) |
(151) |
(96) |
(107) |
(150) |
(165) |
Comparative
reporting periods of 2022(including the FY and 4Q) have been restated accordingly; however the overall impact was immaterial.
*
* *
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 reserve 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 2023 will be updated following issuance of Saipem’s 2023 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 2023 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) |
|
|
|
|
|
|
|
|
IVQ
2023 |
Exploration
&
Production |
Global
Gas &
LNG
Portfolio |
Enilive,
Refining
and
Chemicals |
Plenitude
&
Power |
Corporate
and
other
activities |
Impact
of
unrealized
intragroup
profit
elimination |
|
GROUP |
|
|
|
|
Reported
operating profit (loss) |
1,463 |
1,293 |
(1,503) |
(178) |
(321) |
102 |
|
856 |
Exclusion
of inventory holding (gains) losses |
|
|
440 |
|
|
(237) |
|
203 |
Exclusion
of special items: |
|
|
|
|
|
|
|
|
environmental
charges |
(9) |
|
233 |
|
19 |
|
|
243 |
impairment
losses (impairment reversals), net |
855 |
(1) |
537 |
(30) |
16 |
|
|
1,377 |
net
gains on disposal of assets |
(1) |
|
(2) |
|
(4) |
|
|
(7) |
risk
provisions |
|
|
3 |
1 |
3 |
|
|
7 |
provision
for redundancy incentives |
28 |
3 |
37 |
7 |
43 |
|
|
118 |
commodity
derivatives |
|
(277) |
9 |
291 |
|
|
|
23 |
exchange
rate differences and derivatives |
45 |
(105) |
7 |
|
2 |
|
|
(51) |
other |
50 |
(236) |
152 |
20 |
14 |
|
|
|
Special
items of operating profit (loss) |
968 |
(616) |
976 |
289 |
93 |
|
|
1,710 |
Adjusted
operating profit (loss) |
2,431 |
677 |
(87) |
111 |
(228) |
(135) |
|
2,769 |
Net
finance (expense) income (a) |
26 |
7 |
(3) |
5 |
(89) |
|
|
(54) |
Net
income (expense) from investments (a) |
414 |
8 |
64 |
(15) |
(19) |
|
|
452 |
Adjusted
profit (loss) before taxes |
2,871 |
692 |
(26) |
101 |
(336) |
(135) |
|
3,167 |
Income
taxes (a) |
(1,448) |
(201) |
49 |
(38) |
95 |
34 |
|
(1,509) |
Tax
rate (%) |
|
|
|
|
|
|
|
47.6 |
Adjusted
net profit (loss) |
1,423 |
491 |
23 |
63 |
(241) |
(101) |
|
1,658 |
of
which: |
|
|
|
|
|
|
|
|
-
Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
20 |
-
Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
1,638 |
Reported
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
149 |
Exclusion
of inventory holding (gains) losses |
|
|
|
|
|
|
|
143 |
Exclusion
of special items |
|
|
|
|
|
|
|
1,346 |
Adjusted
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
1,638 |
(a)
Excluding special items. |
(€
million) |
|
|
|
|
|
|
|
|
IVQ
2022 |
Exploration
&
Production |
Global
Gas &
LNG
Portfolio |
Enilive,
Refining
and
Chemicals |
Plenitude
&
Power |
Corporate
and
other
activities |
Impact
of
unrealized
intragroup
profit
elimination |
|
GROUP |
|
|
|
|
Reported
operating profit (loss) |
2,280 |
3,728 |
(1,228) |
(4,950) |
(535) |
282 |
|
(423) |
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) |
(35) |
5,110 |
|
|
|
1,076 |
exchange
rate differences and derivatives |
(40) |
(135) |
42 |
(2) |
2 |
|
|
(133) |
other |
275 |
483 |
93 |
2 |
136 |
|
|
989 |
Special
items of operating profit (loss) |
643 |
(3,665) |
877 |
5,068 |
360 |
|
|
3,283 |
Adjusted
operating profit (loss) |
2,923 |
63 |
379 |
118 |
(175) |
274 |
|
3,582 |
Net
finance (expense) income (a) |
(128) |
22 |
6 |
(2) |
(23) |
|
|
(125) |
Net
income (expense) from investments (a) |
691 |
1 |
244 |
(8) |
(27) |
|
|
901 |
Adjusted
profit (loss) before taxes |
3,486 |
86 |
629 |
108 |
(225) |
274 |
|
4,358 |
Income
taxes (a) |
(1,598) |
(346) |
(100) |
(53) |
332 |
(76) |
|
(1,841) |
Tax
rate (%) |
|
|
|
|
|
|
|
42.2 |
Adjusted
net profit (loss) |
1,888 |
(260) |
529 |
55 |
107 |
198 |
|
2,517 |
of
which: |
|
|
|
|
|
|
|
|
-
Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
24 |
-
Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
2,493 |
Reported
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
627 |
Exclusion
of inventory holding (gains) losses |
|
|
|
|
|
|
|
509 |
Exclusion
of special items |
|
|
|
|
|
|
|
1,357 |
Adjusted
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
2,493 |
(a)
Excluding special items. |
|
|
|
|
|
|
|
|
|
(€
million) |
|
|
|
|
|
|
|
|
Full
Year 2023 |
Exploration
&
Production |
Global
Gas &
LNG
Portfolio |
Enilive,
Refining
and
Chemicals |
Plenitude
&
Power |
Corporate
and
other
activities |
Impact
of
unrealized
intragroup
profit
elimination |
|
GROUP |
|
|
|
|
Reported
operating profit (loss) |
8,549 |
2,431 |
(1,397) |
(464) |
(943) |
81 |
|
8,257 |
Exclusion
of inventory holding (gains) losses |
|
|
604 |
|
|
(42) |
|
562 |
Exclusion
of special items: |
|
|
|
|
|
|
|
|
environmental
charges |
81 |
|
373 |
|
193 |
|
|
647 |
impairment
losses (impairment reversals), net |
1,037 |
(1) |
764 |
(30) |
32 |
|
|
1,802 |
net
gains on disposal of assets |
2 |
|
(9) |
|
(4) |
|
|
(11) |
risk
provisions |
7 |
|
19 |
1 |
13 |
|
|
40 |
provision
for redundancy incentives |
40 |
4 |
46 |
9 |
59 |
|
|
158 |
commodity
derivatives |
|
97 |
14 |
1,144 |
|
|
|
1,255 |
exchange
rate differences and derivatives |
62 |
(105) |
24 |
|
3 |
|
|
(16) |
other |
156 |
821 |
117 |
21 |
(4) |
|
|
1,111 |
Special
items of operating profit (loss) |
1,385 |
816 |
1,348 |
1,145 |
292 |
|
|
4,986 |
Adjusted
operating profit (loss) |
9,934 |
3,247 |
555 |
681 |
(651) |
39 |
|
13,805 |
Net
finance (expense) income (a) |
(196) |
1 |
(38) |
(15) |
(195) |
|
|
(443) |
Net
income (expense) from investments (a) |
1,321 |
49 |
412 |
(34) |
(24) |
|
|
1,724 |
Adjusted
profit (loss) before taxes |
11,059 |
3,297 |
929 |
632 |
(870) |
39 |
|
15,086 |
Income
taxes (a) |
(5,543) |
(924) |
(259) |
(218) |
247 |
(13) |
|
(6,710) |
Tax
rate (%) |
|
|
|
|
|
|
|
44.5 |
Adjusted
net profit (loss) |
5,516 |
2,373 |
670 |
414 |
(623) |
26 |
|
8,376 |
of
which: |
|
|
|
|
|
|
|
|
-
Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
78 |
-
Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
8,298 |
Reported
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
4,747 |
Exclusion
of inventory holding (gains) losses |
|
|
|
|
|
|
|
402 |
Exclusion
of special items |
|
|
|
|
|
|
|
3,149 |
Adjusted
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
8,298 |
(a)
Excluding special items. |
(€
million) |
|
|
|
|
|
|
|
|
Full
Year 2022 |
Exploration
&
Production |
Global
Gas &
LNG
Portfolio |
Enilive,
Refining
and
Chemicals |
Plenitude
&
Power |
Corporate
and
other
activities |
Impact
of
unrealized
intragroup
profit
elimination |
|
GROUP |
|
|
|
|
Reported
operating profit (loss) |
15,963 |
3,730 |
460 |
(825) |
(1,956) |
138 |
|
17,510 |
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) |
4 |
1,412 |
|
|
|
(389) |
exchange
rate differences and derivatives |
(54) |
244 |
(33) |
(5) |
(3) |
|
|
149 |
other |
55 |
(98) |
147 |
2 |
128 |
|
|
234 |
Special
items of operating profit (loss) |
506 |
(1,667) |
1,885 |
1,440 |
1,276 |
|
|
3,440 |
Adjusted
operating profit (loss) |
16,469 |
2,063 |
1,929 |
615 |
(680) |
(10) |
|
20,386 |
Net finance
(expense) income (a) |
(319) |
(17) |
(36) |
(11) |
(669) |
|
|
(1,052) |
Net income
(expense) from investments (a) |
2,086 |
4 |
637 |
(6) |
(91) |
|
|
2,630 |
Adjusted
profit (loss) before taxes |
18,236 |
2,050 |
2,530 |
598 |
(1,440) |
(10) |
|
21,964 |
Income
taxes (a) |
(7,402) |
(1,068) |
(616) |
(201) |
673 |
6 |
|
(8,608) |
Tax
rate (%) |
|
|
|
|
|
|
|
39.2 |
Adjusted
net profit (loss) |
10,834 |
982 |
1,914 |
397 |
(767) |
(4) |
|
13,356 |
of
which: |
|
|
|
|
|
|
|
|
-
Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
55 |
-
Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
13,301 |
Reported
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
13,887 |
Exclusion
of inventory holding (gains) losses |
|
|
|
|
|
|
|
(401) |
Exclusion
of special items |
|
|
|
|
|
|
|
(185) |
Adjusted
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
13,301 |
(a)
Excluding special items. |
(€
million) |
|
|
|
|
|
|
|
|
Third
Quarter 2023 |
Exploration
&
Production |
Global
Gas &
LNG
Portfolio |
Enilive,
Refining
and
Chemicals |
Plenitude
&
Power |
Corporate
and
other
activities |
Impact
of
unrealized
intragroup
profit
elimination |
|
GROUP |
|
|
|
|
Reported
operating profit (loss) |
2,542 |
324 |
681 |
25 |
(161) |
(285) |
|
3,126 |
Exclusion
of inventory holding (gains) losses |
|
|
(363) |
|
|
113 |
|
(250) |
Exclusion
of special items: |
|
|
|
|
|
|
|
|
environmental
charges |
54 |
|
61 |
|
|
|
|
115 |
impairment
losses (impairment reversals), net |
(27) |
|
56 |
|
7 |
|
|
36 |
net
gains on disposal of assets |
|
|
(4) |
|
|
|
|
(4) |
risk
provisions |
14 |
|
1 |
|
2 |
|
|
17 |
provision
for redundancy incentives |
4 |
|
2 |
1 |
3 |
|
|
10 |
commodity
derivatives |
|
(313) |
(32) |
193 |
|
|
|
(152) |
exchange
rate differences and derivatives |
4 |
8 |
(6) |
|
(1) |
|
|
5 |
other |
29 |
92 |
5 |
|
(15) |
|
|
111 |
Special
items of operating profit (loss) |
78 |
(213) |
83 |
194 |
(4) |
|
|
138 |
Adjusted
operating profit (loss) |
2,620 |
111 |
401 |
219 |
(165) |
(172) |
|
3,014 |
Net finance
(expense) income (a) |
(93) |
(5) |
(17) |
(16) |
9 |
|
|
(122) |
Net income
(expense) from investments (a) |
243 |
11 |
126 |
(8) |
1 |
|
|
373 |
Adjusted
profit (loss) before taxes |
2,770 |
117 |
510 |
195 |
(155) |
(172) |
|
3,265 |
Income
taxes (a) |
(1,241) |
(42) |
(183) |
(73) |
62 |
49 |
|
(1,428) |
Tax
rate (%) |
|
|
|
|
|
|
|
43.7 |
Adjusted
net profit (loss) |
1,529 |
75 |
327 |
122 |
(93) |
(123) |
|
1,837 |
of
which: |
|
|
|
|
|
|
|
|
-
Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
19 |
-
Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
1,818 |
Reported
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
1,916 |
Exclusion
of inventory holding (gains) losses |
|
|
|
|
|
|
|
(177) |
Exclusion
of special items |
|
|
|
|
|
|
|
79 |
Adjusted
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
1,818 |
(a)
Excluding special items. |
Breakdown of
special items
Q3 |
|
Q4 |
Full
Year |
2023 |
(€
million) |
2023 |
2022 |
2023 |
2022 |
115 |
Environmental
charges |
243 |
348 |
647 |
2,056 |
36 |
Impairment
losses (impairment reversals), net |
1,377 |
875 |
1,802 |
1,140 |
|
Impairment
of exploration projects |
|
2 |
|
2 |
(4) |
Net
gains on disposal of assets |
(7) |
(32) |
(11) |
(41) |
17 |
Risk
provisions |
7 |
76 |
40 |
87 |
10 |
Provisions
for redundancy incentives |
118 |
82 |
158 |
202 |
(152) |
Commodity
derivatives |
23 |
1,076 |
1,255 |
(389) |
5 |
Exchange
rate differences and derivatives |
(51) |
(133) |
(16) |
149 |
111 |
Other |
|
989 |
1,111 |
234 |
138 |
Special
items of operating profit (loss) |
1,710 |
3,283 |
4,986 |
3,440 |
(2) |
Net
finance (income) expense |
56 |
111 |
30 |
(127) |
|
of
which: |
|
|
|
|
(5) |
-
exchange rate differences and derivatives reclassified to operating profit (loss) |
51 |
133 |
16 |
(149) |
(59) |
Net
income (expense) from investments |
68 |
(201) |
(698) |
(2,834) |
|
of
which: |
|
|
|
|
|
-
gain on the SeaCorridor deal |
(10) |
|
(834) |
|
|
-
gain on the divestment of Vår Energi |
|
(4) |
|
(448) |
|
-
net gains on the divestment of Angolan assets |
|
(97) |
|
(2,542) |
2 |
Income
taxes |
(499) |
(1,855) |
(1,180) |
(683) |
79 |
Total
special items of net profit (loss) |
1,335 |
1,338 |
3,138 |
(204) |
|
|
|
|
|
|
|
attributable
to: |
|
|
|
|
79 |
-
Eni's shareholders |
1,346 |
1,357 |
3,149 |
(185) |
|
-
Non-controlling interest |
(11) |
(19) |
(11) |
(19) |
Reconciliation
of Group proforma adjusted EBIT
Q3 |
|
Q4 |
|
Full
Year |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
2,620 |
E&P
adjusted Ebit |
2,431 |
2,923 |
(17) |
9,934 |
16,469 |
(40) |
777 |
Main
Associates adjusted Ebit |
889 |
1,220 |
(27) |
3,414 |
4,431 |
(23) |
3,397 |
E&P
proforma adjusted Ebit |
3,320 |
4,143 |
(20) |
13,348 |
20,900 |
(36) |
111 |
GGP
adjusted Ebit |
677 |
63 |
.. |
3,247 |
2,063 |
57 |
42 |
Main
Associates adjusted Ebit |
40 |
|
|
186 |
|
|
153 |
GGP
proforma adjusted Ebit |
717 |
63 |
.. |
3,433 |
2,063 |
66 |
401 |
Enilive,
Refining and Chemicals adjusted Ebit |
(87) |
379 |
.. |
555 |
1,929 |
(71) |
120 |
Main
Associates adjusted Ebit |
57 |
183 |
(69) |
404 |
516 |
(22) |
521 |
Enilive,
Refining and Chemicals proforma adjusted Ebit |
(30) |
562 |
.. |
959 |
2,445 |
(61) |
54 |
Other
segments adjusted Ebit |
(117) |
(57) |
.. |
30 |
(65) |
.. |
(172) |
Impact
of unrealized intragroup profit elimination |
(135) |
274 |
|
39 |
(10) |
|
3,953 |
Group
proforma adjusted Ebit |
3,755 |
4,985 |
(25) |
17,809 |
25,333 |
(30) |
Profit and loss
reconciliation GAAP vs Non-GAAP
IVQ
|
2023 |
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 |
|
|
|
|
|
|
|
|
|
|
|
856 |
203 |
1,761 |
(51) |
2,769 |
Operating
profit |
8,257 |
562 |
5,002 |
(16) |
13,805 |
(110) |
|
5 |
51 |
(54) |
Finance
income (expense) |
(473) |
|
14 |
16 |
(443) |
384 |
|
68 |
|
452 |
Income
(expense) from investments |
2,422 |
|
(698) |
|
1,724 |
76 |
|
13 |
|
89 |
.
Vår Energi |
356 |
|
98 |
|
454 |
255 |
|
|
|
255 |
.
Azule |
653 |
|
|
|
653 |
57 |
|
16 |
|
73 |
.
Adnoc R&T |
418 |
|
(18) |
|
400 |
(55) |
|
36 |
|
(19) |
.
St. Bernard Renewables Llc |
(42) |
|
36 |
|
(6) |
(950) |
(60) |
(499) |
|
(1,509) |
Income
taxes |
(5,370) |
(160) |
(1,180) |
|
(6,710) |
180 |
143 |
1,335 |
|
1,658 |
Net
profit |
4,836 |
402 |
3,138 |
|
8,376 |
31 |
|
(11) |
|
20 |
-
Non-controlling interest |
89 |
|
(11) |
|
78 |
149 |
|
1,346 |
|
1,638 |
Net
profit attributable to Eni's shareholders |
4,747 |
|
3,149 |
|
8,298 |
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 |
|
|
|
|
|
|
|
|
|
|
|
(423) |
722 |
3,416 |
(133) |
3,582 |
Operating
profit |
17,510 |
(564) |
3,291 |
149 |
20,386 |
(236) |
|
(22) |
133 |
(125) |
Finance
income (expense) |
(925) |
|
22 |
(149) |
(1,052) |
1,102 |
|
(201) |
|
901 |
Income
(expense) from investments |
5,464 |
|
(2,834) |
|
2,630 |
295 |
|
(124) |
|
171 |
.
Vår Energi |
691 |
|
260 |
|
951 |
281 |
|
|
|
281 |
.
Azule |
455 |
|
|
|
455 |
105 |
|
123 |
|
228 |
.
Adnoc R&T |
529 |
|
39 |
|
568 |
227 |
(213) |
(1,855) |
|
(1,841) |
Income
taxes |
(8,088) |
163 |
(683) |
|
(8,608) |
670 |
509 |
1,338 |
|
2,517 |
Net
profit |
13,961 |
(401) |
(204) |
|
13,356 |
43 |
|
(19) |
|
24 |
-
Non-controlling interest |
74 |
|
(19) |
|
55 |
627 |
|
1,357 |
|
2,493 |
Net
profit attributable to Eni's shareholders |
13,887 |
|
(185) |
|
13,301 |
|
Q3
2023 |
(€
million) |
Reported
results |
Profit
on
stock |
Special
items |
Finance
expense
reclassified |
Adjusted
results |
|
|
|
|
|
|
Operating
profit |
3,126 |
(250) |
133 |
5 |
3,014 |
Finance
income (expense) |
(120) |
|
3 |
(5) |
(122) |
Income
(expense) from investments |
432 |
|
(59) |
|
373 |
.
Vår Energi |
109 |
|
(24) |
|
85 |
.
Azule |
105 |
|
|
|
105 |
.
Adnoc R&T |
135 |
|
(32) |
|
103 |
.St.
Bernard Renewables Llc |
13 |
|
|
|
13 |
Income
taxes |
(1,503) |
73 |
2 |
|
(1,428) |
Net
profit |
1,935 |
(177) |
79 |
|
1,837 |
-
Non-controlling interest |
19 |
|
|
|
19 |
Net
profit attributable to Eni's shareholders |
1,916 |
|
|
|
1,818 |
Analysis of Profit and Loss account items |
Sales
from operations
Q3 |
|
Q4 |
|
Full
Year |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
6,004 |
Exploration
& Production |
6,334 |
7,322 |
(13) |
23,903 |
31,194 |
(23) |
3,001 |
Global
Gas & LNG Portfolio |
5,450 |
10,844 |
(50) |
20,139 |
48,586 |
(59) |
14,387 |
Enilive,
Refining and Chemicals |
13,551 |
14,736 |
(8) |
52,558 |
59,178 |
(11) |
2,669 |
Plenitude
& Power |
3,863 |
4,831 |
(20) |
14,256 |
20,883 |
(32) |
458 |
Corporate
and other activities |
578 |
598 |
(3) |
1,972 |
1,886 |
5 |
(4,200) |
Consolidation
adjustments |
(5,154) |
(6,806) |
|
(19,111) |
(29,215) |
|
22,319 |
|
24,622 |
31,525 |
(22) |
93,717 |
132,512 |
(29) |
Operating expenses
Q3 |
|
Q4 |
|
Full
Year |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
16,944 |
Purchases,
services and other |
19,836 |
28,252 |
(30) |
73,887 |
102,529 |
(28) |
50 |
Impairment
losses (impairment reversals) of trade and other receivables, net |
139 |
69 |
.. |
249 |
(47) |
.. |
663 |
Payroll
and related costs |
933 |
817 |
14 |
3,136 |
3,015 |
4 |
10 |
of
which: provision for redundancy incentives and other |
218 |
82 |
|
258 |
202 |
|
17,657 |
|
20,908 |
29,138 |
(28) |
77,272 |
105,497 |
(27) |
DD&A, impairments,
reversals and write-off
Q3 |
|
Q4 |
|
Full
Year |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
1,443 |
Exploration
& Production |
1,609 |
1,783 |
(10) |
6,148 |
6,017 |
2 |
58 |
Global
Gas & LNG Portfolio |
62 |
58 |
7 |
233 |
217 |
7 |
128 |
Enilive,
Refining and Chemicals |
157 |
129 |
22 |
524 |
506 |
4 |
116 |
Plenitude
& Power |
122 |
96 |
27 |
466 |
358 |
30 |
32 |
Corporate
and other activities |
44 |
38 |
16 |
142 |
140 |
1 |
(8) |
Impact
of unrealized intragroup profit elimination |
(9) |
(8) |
|
(34) |
(33) |
|
1,769 |
Total
depreciation, depletion and amortization |
1,985 |
2,096 |
(5) |
7,479 |
7,205 |
4 |
36 |
Impairment
losses (impairment reversals) of tangible and intangible and right of use assets, net |
1,377 |
875 |
|
1,802 |
1,140 |
|
1,805 |
Depreciation,
depletion, amortization, impairments and reversals |
3,362 |
2,971 |
13 |
9,281 |
8,345 |
11 |
85 |
Write-off
of tangible and intangible assets |
315 |
500 |
|
535 |
599 |
|
1,890 |
|
3,677 |
3,471 |
6 |
9,816 |
8,944 |
10 |
Income (expense)
from investments
(€
million) |
|
|
|
|
|
|
Full
Year 2023 |
Exploration
&
Production |
Global
Gas &
LNG Portfolio |
Enilive,
Refining
and Chemicals |
Plenitude
&
Power |
Corporate
and
other activities |
Group |
Share
of profit (loss) from equity-accounted investments |
1,009 |
49 |
343 |
(55) |
(32) |
1,314 |
Dividends
|
194 |
|
60 |
|
1 |
255 |
Net
gains (losses) on disposals |
8 |
420 |
2 |
|
|
430 |
Other
income (expense), net |
(1) |
444 |
(13) |
|
(7) |
423 |
|
1,210 |
913 |
392 |
(55) |
(38) |
2,422 |
Leverage and net borrowings |
Leverage
is a measure used by management to assess the Company’s level of indebtedness. It is calculated as a ratio of net borrowings to
shareholders’ equity, including non-controlling interest. Management periodically reviews leverage in order to assess the soundness
and efficiency of the Group balance sheet in terms of optimal mix between net borrowings and net equity, and to carry out benchmark analysis
with industry standards.
(€
million) |
Dec.
31, 2023 |
Dec.
31, 2022 |
Change |
Total
debt |
28,729 |
26,917 |
1,812 |
- Short-term
debt |
7,013 |
7,543 |
(530) |
- Long-term
debt |
21,716 |
19,374 |
2,342 |
Cash
and cash equivalents |
(10,193) |
(10,155) |
(38) |
Financial
assets measured at fair value through profit or loss |
(6,782) |
(8,251) |
1,469 |
Financing
receivables held for non-operating purposes |
(855) |
(1,485) |
630 |
Net
borrowings before lease liabilities ex IFRS 16 |
10,899 |
7,026 |
3,873 |
Lease
Liabilities |
5,336 |
4,951 |
385 |
-
of which Eni working interest |
4,856 |
4,457 |
399 |
-
of which Joint operators' working interest |
480 |
494 |
(14) |
Net
borrowings after lease liabilities ex IFRS 16 |
16,235 |
11,977 |
4,258 |
Shareholders'
equity including non-controlling interest |
53,618 |
55,230 |
(1,612) |
Leverage
before lease liability ex IFRS 16 |
0.20 |
0.13 |
0.07 |
Leverage
after lease liability ex IFRS 16 |
0.30 |
0.22 |
0.08 |
Consolidated financial statements |
BALANCE
SHEET
(€
million) |
|
|
|
Dec.
31, 2023 |
Dec.
31, 2022 |
ASSETS |
|
|
Current
assets |
|
|
Cash
and cash equivalents |
10,193
|
10,155
|
Financial
assets measured at fair value through profit or loss |
6,782
|
8,251
|
Other
financial assets |
896
|
1,504
|
Trade
and other receivables |
16,713
|
20,840
|
Inventories
|
6,186
|
7,709
|
Income
tax assets |
460
|
317
|
Other
assets |
5,642
|
12,821
|
|
46,872
|
61,597
|
Non-current
assets |
|
|
Property,
plant and equipment |
56,299
|
56,332
|
Right
of use assets |
4,834
|
4,446
|
Intangible
assets |
6,379
|
5,525
|
Inventory
- compulsory stock |
1,576
|
1,786
|
Equity-accounted
investments |
12,618
|
12,092
|
Other
investments |
1,244
|
1,202
|
Other
financial assets |
2,352
|
1,967
|
Deferred
tax assets |
4,480
|
4,569
|
Income
tax assets |
142
|
114
|
Other
assets |
3,260
|
2,236
|
|
93,184
|
90,269
|
Assets
held for sale |
2,609
|
264
|
TOTAL
ASSETS |
142,665
|
152,130
|
LIABILITIES
AND SHAREHOLDERS' EQUITY |
|
|
Current
liabilities |
|
|
Short-term
debt |
4,092
|
4,446
|
Current
portion of long-term debt |
2,921
|
3,097
|
Current
portion of long-term lease liabilities |
1,128
|
884
|
Trade
and other payables |
20,734
|
25,709
|
Income
taxes payable |
1,685
|
2,108
|
Other
liabilities |
5,584
|
12,473
|
|
36,144
|
48,717
|
Non-current
liabilities |
|
|
Long-term
debt |
21,716
|
19,374
|
Long-term
lease liabilities |
4,208
|
4,067
|
Provisions
for contingencies |
15,533
|
15,267
|
Provisions
for employee benefits |
748
|
786
|
Deferred
tax liabilities |
4,702
|
5,094
|
Income
taxes payable |
38
|
253
|
Other
liabilities |
4,096
|
3,234
|
|
51,041
|
48,075
|
Liabilities
directly associated with assets held for sale |
1,862
|
108
|
TOTAL
LIABILITIES |
89,047
|
96,900
|
Share
capital |
4,005
|
4,005
|
Retained
earnings |
32,686
|
23,455
|
Cumulative
currency translation differences |
5,570
|
7,564
|
Other
reserves and equity instruments |
8,483
|
8,785
|
Treasury
shares |
(2,333) |
(2,937) |
Net
profit (loss) |
4,747
|
13,887
|
Total
Eni shareholders' equity |
53,158
|
54,759
|
Non-controlling
interest |
460
|
471
|
TOTAL
SHAREHOLDERS' EQUITY |
53,618
|
55,230
|
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY |
142,665
|
152,130
|
GROUP PROFIT
AND LOSS ACCOUNT
Q3 |
|
Q4 |
Full
Year |
2023 |
(€
million) |
2023 |
2022 |
2023 |
2022 |
22,319
|
Sales
from operations |
24,622
|
31,525
|
93,717
|
132,512
|
331
|
Other
income and revenues |
405
|
290
|
1,150
|
1,175
|
22,650
|
Total
revenues |
25,027
|
31,815
|
94,867
|
133,687
|
(16,944) |
Purchases,
services and other |
(19,836) |
(28,252) |
(73,887) |
(102,529) |
(50) |
Impairment
reversals (impairment losses) of trade and other receivables, net |
(139) |
(69) |
(249) |
47
|
(663) |
Payroll
and related costs |
(933) |
(817) |
(3,136) |
(3,015) |
23
|
Other
operating (expense) income |
414
|
371
|
478
|
(1,736) |
(1,769) |
Depreciation,
Depletion and Amortization |
(1,985) |
(2,096) |
(7,479) |
(7,205) |
(36) |
Impairment
reversals (impairment losses) of tangible, intangible and right of use assets, net |
(1,377) |
(875) |
(1,802) |
(1,140) |
(85) |
Write-off
of tangible and intangible assets |
(315) |
(500) |
(535) |
(599) |
3,126
|
OPERATING
PROFIT (LOSS) |
856
|
(423) |
8,257
|
17,510
|
1,874
|
Finance
income |
2,347
|
2,376
|
7,417
|
8,450
|
(2,126) |
Finance
expense |
(2,435) |
(2,602) |
(8,113) |
(9,333) |
128
|
Net
finance income (expense) from financial assets measured at fair value through profit or loss |
31
|
57
|
284
|
(55) |
4
|
Derivative
financial instruments |
(53) |
(67) |
(61) |
13
|
(120) |
FINANCE
INCOME (EXPENSE) |
(110) |
(236) |
(473) |
(925) |
357
|
Share
of profit (loss) of equity-accounted investments |
266
|
665
|
1,314
|
1,841
|
75
|
Other
gain (loss) from investments |
118
|
437
|
1,108
|
3,623
|
432
|
INCOME
(EXPENSE) FROM INVESTMENTS |
384
|
1,102
|
2,422
|
5,464
|
3,438
|
PROFIT
(LOSS) BEFORE INCOME TAXES |
1,130
|
443
|
10,206
|
22,049
|
(1,503) |
Income
taxes |
(950) |
227
|
(5,370) |
(8,088) |
1,935
|
Net
profit (loss) |
180
|
670
|
4,836
|
13,961
|
|
attributable
to: |
|
|
|
|
1,916
|
- Eni's shareholders |
149
|
627
|
4,747
|
13,887
|
19
|
- Non-controlling
interest |
31
|
43
|
89
|
74
|
|
|
|
|
|
|
|
Earnings
per share (€ per share) |
|
|
|
|
0.57
|
-
basic |
0.05
|
0.22
|
1.41
|
3.96
|
0.57
|
-
diluted |
0.05
|
0.21
|
1.40
|
3.95
|
|
Weighted
average number of shares outstanding (million) |
|
|
|
|
3,290.2
|
-
basic |
3,242.8
|
3,371.9
|
3,303.8
|
3,483.6
|
3,300.0
|
-
diluted |
3,306.1
|
3,378.2
|
3,327.1
|
3,490.0
|
|
|
|
|
|
|
COMPREHENSIVE INCOME (LOSS)
|
Q4 |
Full
Year |
(€
million) |
2023 |
2022 |
2023 |
2022 |
Net
profit (loss) |
180 |
670 |
4,836 |
13,961 |
Items
that are not reclassified to profit or loss in later periods |
(18) |
20 |
11 |
114 |
Remeasurements of defined
benefit plans |
(31) |
(10) |
(31) |
60 |
Share of other comprehensive
income on equity accounted entities |
|
2 |
|
3 |
Change in the fair value
of interests with effects on other comprehensive income |
3 |
18 |
32 |
56 |
Taxation |
10 |
10 |
10 |
(5) |
Items
that may be reclassified to profit in later periods |
(2,253) |
(1,498) |
(1,587) |
1,643 |
Currency translation
differences |
(2,344) |
(5,035) |
(1,994) |
1,095 |
Change in the fair value
of cash flow hedging derivatives |
135 |
5,045 |
541 |
794 |
Share of other comprehensive
income on equity-accounted entities |
(4) |
(45) |
24 |
(12) |
Taxation |
(40) |
(1,463) |
(158) |
(234) |
Total
other items of comprehensive income (loss) |
(2,271) |
(1,478) |
(1,576) |
1,757 |
Total
comprehensive income (loss) |
(2,091) |
(808) |
3,260 |
15,718 |
attributable to: |
|
|
|
|
-
Eni's shareholders |
(2,122) |
(847) |
3,171 |
15,643 |
-
Non-controlling interest |
31 |
39 |
89 |
75 |
|
|
|
|
|
CHANGES IN SHAREHOLDERS’ EQUITY
(€
million) |
|
|
|
Shareholders'
equity at January 1, 2022 |
|
|
44,519
|
Total comprehensive
income (loss) |
|
15,718
|
|
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) |
|
Tax on hybrid
bond coupon |
|
44 |
|
Other changes |
|
27 |
|
Total
changes |
|
|
10,711
|
Shareholders'
equity at December 31, 2022 |
|
|
55,230
|
attributable
to: |
|
|
|
-
Eni's shareholders |
|
|
54,759
|
-
Non-controlling interest |
|
|
471
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity at January 1, 2023 |
|
|
55,230
|
Total comprehensive
income (loss) |
|
3,260
|
|
Dividends paid
to Eni's shareholders |
|
(3,005) |
|
Dividends distributed
by consolidated subsidiaries |
|
(36) |
|
Coupon of perpetual
subordinated bonds |
|
(138) |
|
Net purchase
of treasury shares |
|
(1,837) |
|
Issue of convertible
bond |
|
79 |
|
Taxes on hybrid
bond coupon |
|
40 |
|
Other changes |
|
25 |
|
Total changes |
|
|
(1,612) |
Shareholders'
equity at December 31, 2023 |
|
|
53,618
|
attributable
to: |
|
|
|
-
Eni's shareholders |
|
|
53,158
|
-
Non-controlling interest |
|
|
460
|
|
|
|
|
GROUP CASH FLOW STATEMENT
Q3 |
|
Q4 |
Full
Year |
2023 |
(€
million) |
2023 |
2022 |
2023 |
2022 |
1,935
|
Net
profit (loss) |
180
|
670
|
4,836
|
13,961
|
|
Adjustments
to reconcile net profit (loss) to net cash provided by operating activities: |
|
|
|
|
1,769
|
Depreciation,
depletion and amortization |
1,985
|
2,096
|
7,479
|
7,205
|
36
|
Impairment
losses (impairment reversals) of tangible, intangible and right of use, net |
1,377
|
875
|
1,802
|
1,140
|
85
|
Write-off
of tangible and intangible assets |
315
|
500
|
535
|
599
|
(357) |
Share
of (profit) loss of equity-accounted investments |
(266) |
(665) |
(1,314) |
(1,841) |
(11) |
Gains
on disposal of assets, net |
(12) |
(65) |
(441) |
(524) |
(69) |
Dividend
income |
(94) |
(134) |
(255) |
(351) |
(135) |
Interest
income |
(146) |
(50) |
(517) |
(159) |
253
|
Interest
expense |
265
|
273
|
1,000
|
1,033
|
1,503
|
Income
taxes |
950
|
(227) |
5,370
|
8,088
|
(107) |
Other
changes |
(173) |
(242) |
(700) |
(2,773) |
(140) |
Cash
flow from changes in working capital |
657
|
3,397
|
1,811
|
(1,279) |
(1,025) |
-
inventories |
754
|
2,203
|
1,792
|
(2,528) |
(615) |
-
trade receivables |
(2,106) |
281
|
3,322
|
(1,036) |
764
|
-
trade payables |
2,851
|
1,536
|
(4,829) |
2,284
|
(16) |
-
provisions for contingencies |
253
|
709
|
97
|
2,028
|
752
|
-
other assets and liabilities |
(1,095) |
(1,332) |
1,429
|
(2,027) |
(69) |
Net
change in the provisions for employee benefits |
47
|
36
|
1
|
39
|
342
|
Dividends
received |
573
|
811
|
2,255
|
1,545
|
101
|
Interest
received |
205
|
87
|
459
|
116
|
(239) |
Interest
paid |
(172) |
(163) |
(919) |
(851) |
(1,378) |
Income
taxes paid, net of tax receivables received |
(1,516) |
(2,606) |
(6,283) |
(8,488) |
3,519
|
Net
cash provided by operating activities |
4,175
|
4,593
|
15,119
|
17,460
|
(2,438) |
Cash
flow from investing activities |
(3,688) |
(3,324) |
(12,404) |
(10,793) |
(1,806) |
-
tangible assets |
(2,382) |
(2,597) |
(8,739) |
(7,700) |
|
-
prepaid right of use |
|
(3) |
|
(3) |
(67) |
-
intangible assets |
(284) |
(167) |
(476) |
(356) |
|
-
consolidated subsidiaries and businesses net of cash and cash equivalent acquired |
(649) |
(743) |
(1,277) |
(1,636) |
(60) |
-
investments |
(73) |
(323) |
(1,315) |
(1,675) |
(54) |
-
securities and financing receivables held for operating purposes |
(213) |
(119) |
(415) |
(350) |
(451) |
-
change in payables in relation to investing activities |
(87) |
628
|
(182) |
927
|
278
|
Cash
flow from disposals |
(13) |
949
|
845
|
2,989
|
25
|
-
tangible assets |
55
|
119
|
122
|
149
|
|
-
intangible assets |
|
5
|
32
|
17
|
15
|
-
consolidated subsidiaries and businesses net of cash and cash equivalent disposed of |
|
(28) |
395
|
(60) |
11
|
-
investments |
1
|
175
|
47
|
1,096
|
7
|
-
securities and financing receivables held for operating purposes |
1
|
351
|
32
|
483
|
220
|
-
change in receivables in relation to disposals |
(70) |
327
|
217
|
1,304
|
355
|
Net
change in receivables and securities not held for operating purposes |
1,173
|
(590) |
2,194
|
786
|
(1,805) |
Net
cash used in investing activities |
(2,528) |
(2,965) |
(9,365) |
(7,018) |
|
|
|
|
|
|
GROUP CASH FLOW STATEMENT
(continued)
Q3 |
|
Q4 |
Full
Year |
2023 |
(€
million) |
2023 |
2022 |
2023 |
2022 |
921 |
Increase
in long-term debt |
|
(1) |
4,971 |
130 |
(2,374) |
Payment
of long-term debt |
(278) |
(286) |
(3,161) |
(4,074) |
(195) |
Payment
of lease liabilities |
(293) |
(227) |
(963) |
(994) |
(623) |
Increase
(decrease) in short-term financial debt |
1,241 |
(298) |
(1,495) |
1,375 |
(790) |
Dividends
paid to Eni's shareholders |
(747) |
(738) |
(3,046) |
(3,009) |
(9) |
Dividends
paid to non-controlling interests |
(7) |
(47) |
(36) |
(60) |
|
Net
capital issuance from non-controlling interest |
|
71 |
(16) |
92 |
|
Disposal
(acquisition) of additional interests in consolidated subsidiaries |
(3) |
(6) |
(60) |
536 |
(607) |
Net
purchase of treasury shares |
(790) |
(1,224) |
(1,803) |
(2,400) |
79 |
Effect
issue of convertible bonds |
|
|
79 |
|
|
Interest
payment of perpetual hybrid bond |
(51) |
(51) |
(138) |
(138) |
(3,598) |
Net
cash used in financing activities |
(928) |
(2,807) |
(5,668) |
(8,542) |
40 |
Effect
of exchange rate changes on cash and cash equivalents and other changes |
(87) |
(136) |
(62) |
16 |
(1,844) |
Net
increase (decrease) in cash and cash equivalents |
632 |
(1,315) |
24 |
1,916 |
11,417 |
Cash
and cash equivalents - beginning of the period |
9,573 |
11,496 |
10,181 |
8,265 |
9,573 |
Cash
and cash equivalents - end of the period |
10,205 |
10,181 |
10,205 |
10,181 |
|
|
|
|
|
|
Capital
expenditure
Q3 |
|
Q4 |
|
Full
Year |
|
2023 |
(€
million) |
2023 |
2022 |
%Ch. |
2023 |
2022 |
%Ch. |
1,425 |
Exploration
& Production |
1,809 |
1,999 |
(10) |
7,133 |
6,252 |
14 |
|
of
which: - acquisition of proved and unproved properties |
|
(11) |
.. |
|
260 |
.. |
203 |
-
exploration |
215 |
285 |
(25) |
784 |
708 |
11 |
1,213 |
-
oil & gas development |
1,569 |
1,704 |
(8) |
6,293 |
5,238 |
20 |
4 |
Global
Gas & LNG Portfolio |
6 |
9 |
(33) |
16 |
23 |
(30) |
199 |
Enilive,
Refining and Chemicals |
429 |
461 |
(7) |
982 |
878 |
12 |
158 |
-
Enilive and Refining |
352 |
317 |
11 |
795 |
623 |
28 |
41 |
-
Chemicals |
77 |
144 |
(47) |
187 |
255 |
(27) |
148 |
Plenitude
& Power |
285 |
191 |
49 |
740 |
631 |
17 |
124 |
-
Plenitude |
254 |
127 |
.. |
637 |
481 |
|
24 |
-
Power |
31 |
64 |
(52) |
103 |
150 |
(31) |
104 |
Corporate
and other activities |
145 |
104 |
39 |
363 |
276 |
32 |
(7) |
Impact
of unrealized intragroup profit elimination |
(8) |
|
|
(19) |
(4) |
|
1,873 |
Capital
expenditure ⁽ᵃ⁾ |
2,666 |
2,764 |
(4) |
9,215 |
8,056 |
14 |
|
|
|
|
|
|
|
|
(a)
Expenditures to purchase plant and equipment from suppliers whose payment terms matched classification as financing payables, have
been recognized among other changes of the reclassified cash flow statements and are not reported in the table above (€966
million and €61 million in the full year 2023 and 2022, respectively, €294 million and €22 million in the fourth quarter
2023 and 2022, respectively and €483 million in the third quarter 2023). |
|
|
|
|
|
|
|
|
In
the FY ’23, capital expenditure amounted to €9,215 mln (€8,056 mln in the FY ’22) increasing by 14% y-o-y, and
mainly related to:
| · | oil
and gas development activities (€6,293 mln) mainly in Côte d'Ivoire, Congo, Egypt,
Italy, the United Arab Emirates, Libya and Algeria; |
| · | bio
and traditional refining in Italy and outside Italy and biomethane activities (€621
mln) relating to development activities, maintain plants’ integrity and stay-in-business,
as well as HSE initiatives; marketing activity (€174 mln) for regulation compliance
and stay-in-business initiatives in the retail network in Italy and in the rest of Europe;
|
| · | Plenitude
(€637 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 |
|
|
2023 |
2022 |
TRIR
(Total Recordable Injury Rate) |
(total
recordable injuries/worked hours) x 1,000,000 |
0.40
|
0.41
|
Direct
GHG emissions (Scope 1) |
(mmtonnes
CO₂ eq.) |
38.7
|
39.4 |
Direct
methane emissions (Scope 1) |
(ktonnes
CH₄) |
39.1
|
49.6
|
Volumes
of hydrocarbon sent to routine flaring |
(billion
Sm³) |
1.0
|
1.1 |
Total
volume of oil spills (>1 barrel) |
(kbbl)
|
12.8
|
6.1 |
Re-injected
production water |
(%) |
60
|
59 |
KPIs
refer to 100% of the operated assets and also include the contribution of cooperated assets. |
|
|
| · | TRIR
(Total recordable injury rate) of the workforce amounted to 0.40, decreasing when compared
to 2022, due to lower number of injury events occurred to the contractors. When compared
to 2014, TRIR was down 42%. |
| · | Direct
GHG emissions (Scope 1) amounted to 38.7 million tonnes of CO2eq, reporting
a slight decrease compared to 2022, mainly due to lower emissions in the Chemical, Power
and GGP businesses, partly offset by increases in the Exploration & Production segment.
|
| · | Direct
methane emissions (Scope 1) decreasing compared to 2022 thanks to the continuous monitoring
and maintenance campaigns of fugitive emissions in the Upstream asset in line with the requirements
of the Oil & Gas Methane Partnership 2.0, as well as reflecting changes from portfolio
activities. |
| · | Volumes
of hydrocarbon sent to routing flaring reported a reduction compared to 2022, mainly
thanks to the launch of flaring down projects in Egypt (Agiba), Nigeria (NAOC) and Ghana. |
| · | Total
volume of oil spills: increased when compared to 2022 mainly due to an operational spill
of fuel oil, fully recovered. Overall, the volume of oil spills from sabotage reports a decreasing
trend, notwithstanding the increased number of occurrences in Nigeria. |
| · | Re-injected
production water increasing when compared to 2022, mainly due to the Libya’s contribution.
|
Exploration & Production
PRODUCTION
OF OIL AND NATURAL GAS BY REGION |
|
|
|
|
|
|
|
|
|
Q3 |
|
Q4 |
Full
Year |
2023 |
|
2023 |
2022 |
2023 |
2022 |
68
|
Italy |
(kboe/d)
|
66
|
80
|
69
|
82
|
172
|
Rest
of Europe |
182
|
182
|
177
|
189
|
286
|
North
Africa |
352
|
291
|
301
|
267
|
313
|
Egypt |
303
|
328
|
318
|
346
|
308
|
Sub-Saharan
Africa |
307
|
273
|
298
|
289
|
147
|
Kazakhstan |
178
|
150
|
163
|
126
|
187
|
Rest
of Asia |
185
|
171
|
183
|
174
|
144
|
Americas |
129
|
135
|
139
|
127
|
10 |
Australia
and Oceania |
6
|
7
|
7
|
10
|
1,635
|
Production
of oil and natural gas ⁽ᵃ⁾⁽ᵇ⁾ |
1,708
|
1,617
|
1,655
|
1,610
|
330
|
- of which
Joint Ventures and associates |
337
|
314
|
328
|
260
|
135
|
Production
sold ⁽ᵃ⁾ |
(mmboe)
|
145
|
134
|
546
|
532
|
|
|
|
|
|
|
|
|
|
|
|
PRODUCTION
OF LIQUIDS BY REGION |
|
|
|
|
|
|
|
|
|
Q3 |
|
Q4 |
Full
Year |
2023 |
|
2023 |
2022 |
2023 |
2022 |
28 |
Italy
|
(kbbl/d) |
28
|
35
|
29
|
36
|
105
|
Rest
of Europe |
113
|
106
|
105
|
109
|
117
|
North
Africa |
134
|
136
|
125
|
125
|
67 |
Egypt |
63
|
76
|
67
|
77
|
172
|
Sub-Saharan
Africa |
174
|
166
|
171
|
175
|
105
|
Kazakhstan |
122
|
111
|
115
|
88
|
87 |
Rest
of Asia |
83
|
78
|
85
|
78
|
77 |
Americas |
64
|
68
|
72
|
63
|
- |
Australia
and Oceania |
- |
- |
- |
- |
758
|
Production
of liquids |
781
|
776
|
769
|
751
|
183
|
- of which
Joint Ventures and associates |
187
|
176
|
180
|
132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRODUCTION
OF NATURAL GAS BY REGION |
|
|
|
|
|
|
|
|
|
Q3 |
|
Q4 |
Full
Year |
2023 |
|
2023 |
2022 |
2023 |
2022 |
210
|
Italy |
(mmcf/d) |
200
|
236
|
211
|
242
|
353
|
Rest
of Europe |
364
|
400
|
374
|
420
|
882
|
North
Africa |
1,140
|
816
|
920
|
752
|
1,291
|
Egypt |
1,254
|
1,331
|
1,310
|
1,413
|
711
|
Sub-Saharan
Africa |
691
|
565
|
667
|
598
|
222
|
Kazakhstan |
292
|
204
|
255
|
199
|
521
|
Rest
of Asia |
536
|
490
|
512
|
507
|
351
|
Americas |
341
|
350
|
349
|
340
|
49 |
Australia
and Oceania |
33
|
34
|
37
|
52
|
4,590
|
Production
of natural gas |
4,851
|
4,426
|
4,635
|
4,523
|
771
|
- of which
Joint Ventures and associates |
788
|
723
|
775
|
674
|
|
|
|
|
|
|
|
|
|
(a) Includes
Eni’s share of production of equity-accounted entities. |
|
|
(b) Includes
volumes of hydrocarbons consumed in operation (131 and 139 kboe/d in the fourth quarter of 2023 and 2022, respectively, 127 and 124
kboe/d in the full year of 2023 and 2022, respectively, and 119 kboe/d in the third quarter of 2023). |
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