Edgar Filing: ENI SPA

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 2018

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

- Press release dated February 16, 2018.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorised.

	Eni S.p.A.

	/s/ Vanessa Siscaro
	Name: Vanessa Siscaro
	Title: Head of Corporate
	Secretary’s Staff Office

Date: February 28, 2018

Registered Head Office,

Piazzale Enrico Mattei, 1

00144 Rome

Tel. +39 06598.21

www.eni.com

San Donato Milanese

February 16, 2018

Eni: full year 2017 and fourth quarter results

Key operating and financial results

IIIQ				IVQ						Full Year
2017				2017		2016		% Ch.		2017		2016		% Ch.
	52.08	Brent dated	$/bbl		61.39		49.46		24		54.27		43.69		24
	1.175	Average EUR/USD exchange rate			1.177		1.079		9		1.130		1.107		2
	44.34	Brent dated	€/bbl		52.14		45.84		14		48.03		39.47		22
	1,803	Hydrocarbon production	kboe/d		1,892		1,856		2		1,816		1,759		3
	947	Adjusted operating profit (loss) ^(a)	€ million		1,995		1,286		55		5,795		2,315		150
	1,046	of which: E&P			1,864		1,400		33		5,170		2,494		107
	(193)	G&P			213		(72)		..		212		(390)		..
	337	R&M e Chemicals			114		75		52		992		583		70
	229	Adjusted net profit (loss) ^(a)			975		459		112		2,411		(340)		..
	0.06	- per share (€)			0.27		0.13				0.67		(0.09)
	344	Net profit (loss) ^(b)			2,100		340		518		3,427		(1,464)		..
	0.10	- per share (€)			0.58		0.09				0.95		(0.41)
	1,938	Adjusted net cash before changes in working capital ^(c)			2,423		2,123		14		9,256		6,179		50
	2,124	Underlying net cash provided by operating activities ^(d)			3,218		3,546		(9)		9,986		7,971		25
	1,463	Net capital expenditure ^{(d) (e)}			1,891		2,256		(16)		7,619		9,275		(18)
		Net disposals ^(d)			2,323						3,797
	14,965	Net borrowings			10,916		14,776		(26)		10,916		14,776		(26)
	0.32	Leverage			0.23		0.28				0.23		0.28

(a) Non-GAAP measure. For further information see the paragraph "Non-GAAP measures" on page 18 of the Press Release on Full Year 2017 and fourth quarter results.

(b) Attributable to Eni's shareholders - 2016 results refer to continuing and discontinued operations.

(c) Non-GAAP measure. Net cash provided by operating activities before changes in working capital excluding inventory holding gains or losses and certain non-recurring items. For further information see page 15 of the Press Release on Full Year 2017 and fourth quarter results.

(d) For further information see page 15 of the Press Release on Full Year 2017 and fourth quarter results.

(e) Include capital contribution to equity accounted entities.

Yesterday, Eni’s Board of Directors approved the Group results for the fourth quarter and the full year of 2017 (unaudited). Commenting on the results, Claudio Descalzi, CEO of Eni, remarked:

“We close 2017 with excellent results which underline how the process of intense change started in 2014 has transformed Eni into a company able to grow and create value even in difficult market conditions. In Upstream we beat our historical record of production having even reduced our development capex by 40% vs. the 2014 baseline, continued to record outstanding results from our exploration programme and started our most significant projects in record time, in particular the jewel in our crown, Zohr. In Mid-Downstream, Gas & Power returned to positive structural results a year ahead of schedule, while we achieved our best full year results in eight years for Refining & Marketing and record numbers in our Chemicals business Versalis. Consequently, our cash generation increased 50% compared with an increase in Brent of 22% and our cash-neutrality decreased to 57 $/bl. We also strengthened our capital structure, also through divestments over the course of the year. Looking to the future, we see excellent growth prospects for all of our businesses. However, growth must be sustainable and we will pursue it in a disciplined way with great respect for the possibility of the most difficult operating conditions. Nevertheless, should conditions be more favourable, we will be in a position to create substantial surplus value for our shareholders. On this basis, I will propose a dividend of €0.80 per share in 2017 to the Board of Directors, on March 15.”

-1-

Highlights

Exploration & Production

Hydrocarbon production at record level:

reached 1.92 million boe/d in December 2017, marking an all-time high for Eni;

produced an average of 1.89 million boe/d in the fourth quarter, the highest quarterly production in the last seven years (up by 1.9%); FY production averaged 1.82 million boe/d (up by 3.2% y-o-y), its highest ever level. Excluding price effects at PSAs and OPEC cuts, production was up by 3.7% in the fourth quarter and by 5.3% for the FY 2017;

start-ups and ramp-ups additions: added 243 kboe/d on average over the FY, leveraging on Eni’s integrated model of exploration and development, designed to optimize new projects’ time-to-market (Zohr in Egypt, East-Hub in Angola, OCTP in Ghana, Jangkrik in Indonesia, all in 2017) and to accelerate fields ramp-up (as in the case of the Noroos project).

Achieved production start-up at the super-giant Zohr gas field in record time-to-market: in less than two years from the FID and two and a half years from discovery.

Exploration resources: discovered 1 billion boe of new resources, of which 800 million from in house exploration with a discovery cost of approximately 1 $/bbl.

Successfully completed the exploration campaign in Area 1, offshore Mexico: the appraisal of Tecoalli discovery, which followed that of Amoca and Miztòn, resulted in a rise in estimated hydrocarbons in place of the Area to 2 billion boe, of which approximately 90% oil.

Renewed the exploration portfolio adding approximately 97,000 Km₂ of new acreage:

obtained 50% of the mineral rights of the Isatay Block in the Kazakh Caspian Sea;

signed an exploration and production sharing agreement of Block 52, offshore Oman (Eni 85%);

acquired new exploration licenses in Morocco, Mexico, Cyprus, Ivory Coast and Norway.

Proved hydrocarbon reserves: 7 billion boe with an organic replacement ratio of 103%. Excluding the de-booking of a volume of PUD reserves to unproved in Venezuela due to the Country’s current outlook, the ratio increases to 151%.

Dual Exploration Model success: Eni closed the divestment of a 25% stake in Area 4 in Mozambique to Exxon Mobil in the fourth quarter of 2017.

E&P adjusted operating profit: €1.86 billion in the fourth quarter of 2017 (up by 33%); more than doubled y-o-y at €5.17 billion.

Gas & Power

Structurally positive EBIT a year ahead of expectations thanks to business restructuring.

Retail business: better performance in converting revenues into cash; growth in the customer base, excluding the impact of disposals.

Portfolio rationalization: divested the retail activity in Belgium; signed a preliminary agreement to dispose of the gas distribution business in Hungary.

G&P adjusted operating profit: €0.21 billion in the fourth quarter and in the full year of 2017, a substantial improvement both q-o-q (up by €0.29 billion) and y-o-y (up by €0.6 billion).

-2-

Refining & Marketing and Chemicals

Refining breakeven margin below 4 $/barrel in the FY of 2017.

Achieving value from our expertise: signed a licensing agreement with Sinopec, the largest refining company in the world, for the use of the EST conversion proprietary technology.

International development of Versalis: started operations at the Lotte-Versalis Elastomers joint venture for the production of elastomers in South Korea.

R&M adjusted operating profit: €77 million in the fourth quarter of 2017, up by 13% despite the partial downtime of the Sannazzaro refinery and a negative scenario. Best full year result in the last eight years at €532 million, up by 91% y-o-y.

Record results in the Chemical business: adjusted operating profit of €37 million in the fourth quarter of 2017 (up by 400%) and €460 million in the FY 2017 (up by 51%).

Group results

Strong increase in adjusted operating profit: up by 55% q-o-q to €1.99 billion; FY operating profit more than doubled to €5.79 billion (up by €3.48 billion).

Adjusted net profit: more than doubled in the fourth quarter of 2017 to €0.98 billion; €2.41 billion in the full year of 2017 compared to a net loss in 2016.

Net profit: €2.10 billion in the fourth quarter; €3.43 billion in the full year of 2017.

Strong structural improvement in underlying cash generation¹: €3.22 billion in the fourth quarter and €9.99 billion in the full year of 2017.

Adjusted cash flow from operations before changes in working capital at replacement cost²: €2.42 billion in the fourth quarter and €9.26 billion in the full year of 2017.

FY net capex: €7.6 billion¹, down by 18% y-o-y. Self-financing ratio of net capex at approximately 130%.

Organic cash neutrality covering capex and dividend at a Brent price of 57$/bl; 39$/bl, factoring in proceeds from disposals.

FY net disposals³: cashed in €3.8 billion, mainly relating to the Dual Exploration Model.

Net debt: €10.92 billion.

2017 dividend proposal⁴: €0.80, of which €0.40 already paid as interim dividend.

¹ See note (d) in the table of page 1.

² See note (c) in the table of page 1.

³ See note (d) in the table of page 1.

⁴The Board of Directors intends to submit a proposal for distributing a dividend of €0.80 per share (€0.80 in 2016) at the Annual Shareholders’ Meeting convened for May 10, 2018. Included in this annual payment is €0.40 per share paid as interim dividend in September 2017. The balance of €0.40 per share is payable to shareholders on May 23, 2018, the ex-dividend date being May 21, 2018.

-3-

Outlook

Eni’s business outlook and financial and operational targets of the 2018-2021 industrial plan will be illustrated during a strategy presentation scheduled March 16, 2018. The key strategic guidelines and targets will be disclosed in a press release to be published on March 16, 2018, that will be available at our website “eni.com” and publicly disseminated as required by applicable listing standards. The outlook for the year 2018 is summarized below:

Exploration & Production

Expected a 3% growth rate in 2018 FY production. This will be driven by ramp-ups of fields entered into operation in 2017, mainly in Egypt, Angola and Indonesia and start-up of a number of satellites phases at giant producing fields (Libya, Angola and Ghana).

Gas & Power

Expected an enhanced performance with an adjusted EBIT projected at €0.3 billion due to new renegotiation of long-term supply contracts, reduction of logistic costs and synergies from upstream integration in the LNG business.

Refining & Marketing and Chemicals

Expected a refining breakeven margin at around 3 $/barrel at 2018 year end, leveraging on new initiatives of plants set-up and supply optimization.

Group

2018 FY capex projected at approximately €8 billion.

Sustainability

		2017		2016		% Ch.
Total recordable injury rate (TRIR)	(total recordable injury rate/worked hours) x 1,000,000		0.33		0.35		(6.8)
Direct GHG emissions E&P/production	(tonnes CO₂eq./toe)		0.163		0.167		(2.7)
Direct GHG emissions	(mmtonnes CO₂eq.)		41.49		40.18		3.3
- of which CO₂ from combustion and process			31.62		30.71		3.0
- of which CO₂ eq from methane			1.45		2.40		(39.4)
- of which CO₂ eq from flaring			6.83		5.40		26.5
- of which CO₂ eq from venting			1.58		1.67		(5.3)
Oil spills due to operations (>1 barrel)	(barrels)		3,228		1,231		..
Water reinjection	(%)		59		58

Total recordable injury rate (down by 6.8% y-o-y) confirmed the improving trend, benefitting from performances recorded by both employees (down by 17.2%) and contractors (down by 2%).

Direct GHG emissions E&P/production: 0.163 tCO₂ eq/toe, declining by 2.7% y-o-y.

Direct GHG emissions from combustion and process increased, reflecting higher production level in the E&P segment (in particular for Libyan activities and start-ups in Ghana, Angola and Indonesia) and G&P (due to higher power generation and natural gas volumes transported).

Emissions from methane were down by 39.4% due to the regular maintenance and monitoring of fugitive emissions in the E&P and G&P segments.

Emissions from flaring in the E&P segment were up by 26.5% due to the aforementioned start-ups and the restart of Abu Attifel field in Libya.

Water reinjection at the E&P segment was 59%, an increase from 2016, benefitting from the Abu Attifel restart in Libya and the continuous positive performance in water reinjection in Ecuador and Egypt.

-4-

Business segments operating review

Exploration & Production

Production, reserves and prices

IIIQ				IVQ						Full Year
2017				2017		2016		% Ch.		2017		2016		% Ch.
		Production
	885	Liquids	kbbl/d		861		906		(5.0)		852		878		(3.0)
	5,012	Natural gas	mmcf/d		5,625		5,184		8.2		5,261		4,807		9.6
	1,803	Hydrocarbons	kboe/d		1,892		1,856		1.9		1,816		1,759		3.2
		Adjusted net proved reserves	mmboe								6,990		7,142		(2.1)
		Adjusted reserves replacement ratio	(%)								151		139
		Reserves replacement ratio									103		193
		Average realizations
	48.03	Liquids	$/bbl		57.64		44.56		29.4		50.06		39.18		27.8
	3.80	Natural gas	$/kcf		3.89		3.50		10.9		3.69		3.27		12.8
	35.14	Hydrocarbons	$/boe		39.12		32.95		18.7		35.06		29.14		20.3

In the fourth quarter of 2017, oil and natural gas production averaged 1,892 kboe/d, up by 1.9% from the same period a year ago, the highest level achieved in the last seven years. For the full year of 2017, production was 1,816 kboe/d, up by 3.2% and a record level. This performance was driven by new project start-ups and the ramp-ups at fields started up in 2016, mainly in Angola, Egypt, Ghana, Indonesia and Kazakhstan as well as by restarting production at certain Libyan fields thanks to better safety conditions. These positives were partly offset by OPEC production cuts, negative price effects at PSAs contracts and lower production as a result of planned and unplanned shutdowns in Norway, the United Kingdom and the Gulf of Mexico, as well as declines from mature fields. When excluding price effects at PSAs contracts and OPEC cuts (overall 32 kboe/d and 35 kboe/d in the fourth quarter and in the full year of 2017, respectively), hydrocarbon production increased by 3.7% (up by 5.3% in the full year of 2017).

Liquids production (861 kbbl/d) decreased by 45 kbbl/d, or 5% from the fourth quarter of 2016 (852 kbbl/d in the full year of 2017, down by 3%). Price effect, OPEC cuts and shutdowns in Norway, the United Kingdom and the Gulf of Mexico were partly offset by start-ups and ramp-ups of the period and higher production in Libya.

Natural gas production (5,625 mmcf/d) increased by 441 mmcf/d, or 8.2% compared to the fourth quarter of 2016 (5,261 mmcf/d in the full year of 2017, up by 9.6%). Start-ups and ramp-ups of producing assets in Indonesia and Egypt and the increasing production in Libya were partly offset by shutdowns, mature fields decline and price effect.

-5-

Net proved hydrocarbon reserves

(mmboe)
Net proved reserves at December 31, 2016			7,490

40% sale of Zohr reserves signed in 2016			(348)

Adjusted net proved reserves at December 31, 2016			7,142

Organic additions (a)			999

Production (b)			(663)

De-booking of the Perla Phase 2 project reserves (c)			(315)

Portfolio: 25% sale of Area 4 in Mozambique and other (d)			(173)

Net proved reserves at December 31, 2017			6,990

Adjusted reserves replacement ratio	(a/b)	(%)	151
Reserves replacement ratio, organic	(a+c/b)		103
Adjusted reserves replacement ratio, all sources	(a+c+d/b)		77

In 2017, net proved reserves were 6,990 million boe. Additions to proved reserves booked in 2017 were 684 mmboe and mainly derived from the final investment decisions made for the Coral project offshore Mozambique and the Johan Castberg project offshore Norway and progress in development activities at the Zohr, Jangkrik and Kashagan projects. These additions were partly offset by the de-booking of 315 million boe of proved undeveloped reserves at the Perla gas project in Venezuela due to the Country’s current outlook. Production for the year was 663 million boe. Disposals of minerals in place were 521 million boe and related to the divestment of a 40% stake in the Zohr project and of a 25% interest in Area 4 in Mozambique where the Coral project is located. Therefore, the organic reserves replacement ratio was 103%. The ratio increased to 151% when excluding the Venezuelan de-booking. The all-sources replacement ratio was 77% considering the disposal of a 25% interest in Area 4 offshore Mozambique, while the divestment of a 40% stake in Zohr, substantially finalized in 2016, is considered in reduction of the reserves opening balance. The reserves life index was 10.5 years (11.6 years in 2016). More information on our reserve activities will be reported in the Annual Report on Form 20-F for the 2017 fiscal year.

-6-

Results

IIIQ				IVQ						Full Year
2017			(€ million)	2017		2016		% Ch.		2017		2016		% Ch.
	1,041		Operating profit (loss)		4,149		1,720		..		7,669		2,567		..
	5		Exclusion of special items		(2,285)		(320)				(2,499)		(73)
	1,046		Adjusted operating profit (loss)		1,864		1,400		33.1		5,170		2,494		..
	(39	)	Net finance (expense) income		(39)		123				(50)		(55)
	104		Net income (expense) from investments		118		77				409		68
	(670	)	Income taxes		(847)		(741)				(2,801)		(1,999)
	60.3		tax rate (%)		43.6		46.3				50.7		79.7
	441		Adjusted net profit (loss)		1,096		859		..		2,728		508		..
			Results also include:
	69		Exploration expenses:		135		73		84.9		525		374		40.4
	61		- prospecting, geological and geophysical expenses		73		45		62.2		273		204		33.8
	8		- write-off of unsuccessful wells ^(a)		62		28		..		252		170		48.2
	1,343		Capital expenditure		1,781		1,871		(4.8)		7,739		8,254		(6.2)

(a) Also includes write-off of unproved exploration rights, if any, related to projects with negative outcome.

In the fourth quarter of 2017, the Exploration & Production segment reported an adjusted operating profit of €1,864 million, an increase of 33% from the fourth quarter of 2016. This improvement reflected the recovery in crude oil prices (with the Brent price up by 24%) and production growth. These positives were partly offset by a weaker dollar compared to the euro, lower appreciation of Eni’s average realizations than the Brent benchmark, which has not been yet fully reflected in gas prices due to the time lags in oil-linked price formulas, and higher depreciation charges taken in connection with project start-ups and ramp-ups. For the FY 2017, adjusted operating profit was €5,170 million, more than doubled y-o-y (up by €2,676 million from 2016), due to the same drivers mentioned in the quarter, except for a lower penalization due to EUR/USD exchange rate movements than in the quarter.

In the fourth quarter of 2017, adjusted net profit was €1,096 million compared to €859 million in the fourth quarter of 2016, up by €237 million (an increase of approximately €2.2 billion in the full year of 2017 compared to the previous year). This was due to a recovery in operating performance and a reduced tax rate (down by approximately 2 percentage points, from 46% to 44%) due to higher profit before taxes, which helped improve the deductibility of operating expenses including those incurred in connection with PSA schemes and reduce the incidence of non-deductible expenses. Furthermore, in the FY 2017 the tax rate reported a more pronounced reduction (from 80% to 51%) due to the recognition of certain deferred tax assets in connection with the FID of the Coral project in Mozambique and with the production start-up at the Ghana project.

For the disclosure of the business segment special charges/gains see page 12.

-7-

Gas & Power

Sales

IIIQ				IVQ						Full Year
2017				2017		2016		% Ch.		2017		2016		% Ch.
	192	PSV	€/kcm		241		202		19.3		211		168		25.6
	171	TTF			202		182		11.0		183		148		23.6
		Natural gas sales	bcm
	7.93	Italy			9.62		10.25		(6.1)		37.43		38.43		(2.6)
	8.21	Rest of Europe			10.26		11.79		(13.0)		38.23		42.43		(9.9)
	0.97	of which: Importers in Italy			0.99		1.15		(13.9)		3.89		4.37		(11.0)
	7.24	European markets			9.27		10.64		(12.9)		34.34		38.06		(9.8)
	1.30	Rest of World			1.60		1.22		31.1		5.17		5.45		(5.1)
	17.44	Worldwide gas sales			21.48		23.26		(7.7)		80.83		86.31		(6.3)
	8.91	Power sales	Twh		8.66		9.79		(11.5)		35.33		37.05		(4.6)

In the fourth quarter of 2017, natural gas sales were 21.48 bcm, down by 7.7% from the fourth quarter of 2016, in line with the reduction of take-or-pay contracts obligations. Sales in Italy were down by 6.1% to 9.62 bcm, due to declining sales across all the market segments, partly offset by higher sales at the thermoelectric segment driven by lower production from renewable sources and lower power imports. Sales in European markets (9.27 bcm) decreased by 12.9% reflecting lower sales in France, the United Kingdom, Benelux and the Iberian Peninsula. On a yearly basis, natural gas sales were 80.83 bcm, down by 6.3% or by 5.48 bcm from the full year of 2016. Sales in Italy decreased by 2.6% from 2016 to 37.43 bcm due to the same drivers mentioned in the quarter. Lower sales in European markets (34.34 bcm) mainly reflected the disposal of the retail business in Belgium and Hungary as well as lower volumes sold in France and Germany/Austria.

Power sales were 8.66 TWh in the fourth quarter of 2017, down by 11.5% (35.33 TWh in 2017, down by 4.6% from 2016) mainly due to lower volumes sold to the wholesale segment and to the middle market, partly offset by higher sales to the industries segment.

Results

IIIQ				IVQ						Full Year
2017			(€ million)	2017		2016		% Ch.		2017		2016		% Ch.
	(120	)	Operating profit (loss)		201		5		..		70		(391)		..
	15		Exclusion of inventory holding (gains) losses		29		(56)						90
	(88	)	Exclusion of special items		(17)		(21)				142		(89)
	(193	)	Adjusted operating profit (loss)		213		(72)		..		212		(390)		..
	3		Net finance (expense) income		1		(1)				10		6
	(2	)	Net income (expense) from investments		(4)		(8)				(9)		(20)
	53		Income taxes		(97)		50				(162)		74
	..		tax rate (%)		46.2		..				76.1		..
	(139	)	Adjusted net profit (loss)		113		(31)		..		51		(330)		..
	33		Capital expenditure		60		53		13.2		142		120		18.3

In the fourth quarter of 2017, the Gas & Power segment reported an adjusted operating profit of €213 million, up by €285 million from the loss reported in the fourth quarter of 2016. This result reflected better margins from the renegotiation of long-term supply contracts, including some contract terminations, lower logistic costs, as well as the improved performance in trading, LNG and Power businesses. In the full year of 2017, the Gas & Power segment reported an adjusted operating profit of €212 million (up by €602 million from 2016), the best result over the latest seven years, targeting structural positive profit one year ahead of plans due to the drivers disclosed in the fourth quarter. From 2017, the profit/loss on stock has been included in the business underlying performance due to a changed regulatory framework on gas storage in Italy, on which basis management has elected to leverage gas stocks as a way to improve margins.

Adjusted net profit amounted to €113 million, an improvement of €144 million from the fourth quarter of 2016. In the full year of 2017, adjusted net profit was €51 million.

For the disclosure of the business segment special charges/gains see page 12.

-8-

Refining & Marketing and Chemicals

Production and sales

IIIQ				IVQ						Full Year
2017				2017		2016		% Ch.		2017		2016		% Ch.
	6.4	Standard Eni Refining Margin (SERM)	$/bbl		4.3		4.7		(8.5)		5.0		4.2		19.0
	5.63	Throughputs in Italy	mmtonnes		5.46		5.22		4.6		21.15		21.61		(2.1)
	0.76	Throughputs in the rest of Europe			0.72		0.75		(4.0)		2.87		2.91		(1.4)
	6.39	Total throughputs			6.18		5.97		3.5		24.02		24.52		(2.0)
	0.08	Green throughputs			0.07		0.06		16.7		0.24		0.21		14.3
		Marketing
	2.24	Retail sales	mmtonnes		2.11		2.08		1.4		8.54		8.59		(0.6)
	1.56	Retail sales in Italy			1.49		1.47		1.4		6.01		5.93		1.3
	0.68	Retail sales in the rest of Europe			0.62		0.61		1.6		2.53		2.66		(4.9)
	25.2	Retail market share in Italy	%		25.1		24.3				25.0		24.3
	2.83	Wholesale sales	mmtonnes		2.71		2.92		(7.2)		10.66		11.34		(6.0)
	2.04	Wholesale sales in Italy			1.94		2.08		(6.7)		7.64		8.16		(6.4)
	0.79	Wholesale sales in the rest of Europe			0.77		0.84		(8.3)		3.02		3.18		(5.0)
		Chemicals
	1,360	Production of petrochemical products	ktonnes		1,425		1,337		6.6		5,818		5,646		3.0
	68.1	Average plant utilization rate	%		70.8		66.1				72.8		71.4

In the fourth quarter of 2017, the Eni’s Standard Refining Margin (SERM) decreased by 8.5% y-o-y at a level of 4.3 $/barrel due to compressed relative prices of products compared to the cost of the petroleum feedstock reflecting the swift upward movements in the Brent price reported in the last part of 2017 (in the full year of 2017, SERM increased by 19% to 5 $/barrel).

Eni refining throughputs were 6.18 mmtonnes, up by 3.5% from the fourth quarter of 2016 reflecting higher throughputs at the Livorno refinery due to fewer shutdowns and improved performance of the Taranto and Milazzo refineries, partially offset by the downtime of the EST plant at the Sannazzaro refinery. Refining throughputs in the full year of 2017 (24.02 mmtonnes) decreased by 2% from 2016 and were mainly affected by the downtime of some plants at Sannazzaro refinery and the shutdown at the Taranto refinery, partly offset by a better performance of Milazzo and Livorno refineries.

Green throughputs processed at the Venice green refinery increased by 16.7% in the fourth quarter of 2017 (up by 14.3% in the full year of 2017).

Retail sales in Italy of 1.49 mmtonnes increased by 1.4% in the fourth quarter (6.01 mmtonnes, up by 1.3% in the full year of 2017) despite declining consumption, due to higher volumes mainly sold at company-owned fuel stations partially offset by lower sales in the highway and lease concession segment. Eni’s retail market share was 25.1%, higher than in the fourth quarter of 2016 (24.3%) and was also driven by effective marketing initiatives.

Wholesale sales in Italy were 1.94 mmtonnes, down by 6.7% compared to the fourth quarter of 2016 (7.64 mmtonnes in the full year of 2017; down by 6.4% compared to 2016). Lower sales of gasoil and bunkering were partly offset by higher sales of jet fuel and bitumen.

Retail and wholesale sales in the rest of Europe decreased by 4.1% in the fourth quarter of 2017 (down by 5% in the full year of 2017) due to lower sales volumes in the wholesale business in France and Austria, partly offset by higher sales in Germany.

Petrochemical production of 1,425 ktonnes increased by 6.6% in the fourth quarter compared to 2016 reflecting higher productions of polyethylene and elastomers. In the full year of 2017, production was 5,818 ktonnes, up by 3%.

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Results

IIIQ			IVQ						Full year
2017		(€ million)	2017		2016		% Ch.		2017		2016		% Ch.
	367	Operating profit (loss)		218		168		29.8		982		723		35.8
	(95)	Exclusion of inventory holding (gains) losses		(174)		(181)				(213)		(406)
	65	Exclusion of special items		70		88				223		266
	337	Adjusted operating profit (loss)		114		75		52.0		992		583		70.2
	224	- Refining & Marketing		77		68		13.2		532		278		91.4
	113	- Chemicals		37		7		428.6		460		305		50.8
	1	Net finance (expense) income		2		1				5		1
	15	Net income (expense) from investments		5		9				21		32
	(111)	Income taxes		(56)		(35)				(357)		(197)
	31.4	tax rate (%)		46.3		41.2				35.1		32.0
	242	Adjusted net profit (loss)		65		50		30.0		661		419		57.8
	188	Capital expenditure		290		303		(4.3)		729		664		9.8

In the fourth quarter of 2017, the Refining & Marketing and Chemicals segment reported an adjusted operating profit of €114 million (€992 million in the full year of 2017), an increase compared to the fourth quarter of 2016 (up by 52% and 70% in the quarter and in the full year of 2017 respectively).

In the fourth quarter of 2017, the Refining & Marketing business reported an adjusted operating profit of €77 million, an increase of €9 million or 13% q-o-q. This was driven by lower facility downtime at the Livorno and Milazzo plants and a gain from the licensing of the EST conversion technology to Sinopec, which helped offset an unfavorable SERM scenario and the Sannazzaro shutdown. Marketing activity’s performance was barely unchanged from the comparative period. In the full year of 2017 adjusted operating profit amounted to €532 million (up by €254 million or 91% compared to the full year of 2016), benefitting from the initiatives implemented over the last years, which were designed to improve the set-up of Eni’s refining system allowing to reduce the break-even margin below the 4 $/barrel threshold. The improved cost structure enabled the Company to fully capture the upside in the scenario recorded in the first nine months of 2017. The marketing business reported a positive performance driven by the effective commercial initiatives, which supported the premium segments.

In the fourth quarter of 2017, the Chemical business reported an adjusted operating profit of €37 million representing a five-fold increase compared to the same period of 2016, benefitting from the restructuring plan to optimize plant setup at core hubs and reposition the product portfolio towards higher-value segments. Thanks to a streamlined industrial structure, the business was able to fully capture the upside in the trading environment and to achieve volume upsides. In the full year of 2017, adjusted operating profit achieved a record of €460 million (up by 51% from 2016). This result represents the best performance reported in the recent history of Eni’s Chemical business and demonstrates the value of the progress in the turnaround process.

Adjusted net profit amounting to €65 million in the fourth quarter (€661 million in the full year of 2017) increased by €15 million in the fourth quarter (up by €242 million in the full year of 2017).

For the disclosure on the business segment special charges see page 12.

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Group results

IIIQ				IVQ						Full Year
2017			(€ million)	2017		2016		% Ch.		2017		2016		% Ch.
	15,684		Net sales from operations		17,547		15,807		11.0		66,921		55,762		20.0
	998		Operating profit (loss)		4,350		1,640		..		8,022		2,157		..
	(63	)	Exclusion of inventory holding (gains) losses		(149)		(237)				(219)		(175)
	12		Exclusion of special items ^(a)		(2,206)		(117)				(2,008)		333
	947		Adjusted operating profit (loss)		1,995		1,286		55.1		5,795		2,315		150.3
			Breakdown by segment:
	1,046		Exploration & Production		1,864		1,400		33.1		5,170		2,494		107.3
	(193	)	Gas & Power		213		(72)		395.8		212		(390)		154.4
	337		Refining & Marketing and Chemicals		114		75		52.0		992		583		70.2
	(151	)	Corporate and other activities		(116)		(118)		1.7		(542)		(452)		(19.9)
	(92	)	Impact of unrealized intragroup profit elimination and other consolidation adjustments ^(b)		(80)		1				(37)		80
	344		Net profit (loss) attributable to Eni's shareholders - continuing operations		2,100		340		517.6		3,427		(1,051)		426.1
	(45	)	Exclusion of inventory holding (gains) losses		(105)		(162)				(156)		(120)
	(70	)	Exclusion of special items ^(a)		(1,020)		281				(860)		831
	229		Adjusted net profit (loss) attributable to Eni's shareholders - continuing operations		975		459		112.4		2,411		(340)		809.1
	344		Net profit (loss) attributable to Eni's shareholders		2,100		340		..		3,427		(1,464)		..
	344		Net profit (loss) attributable to Eni's shareholders - continuing operations		2,100		340		517.6		3,427		(1,051)		426.1
			Net profit (loss) attributable to Eni's shareholders - discontinued operations										(413)		..

(a) For further information see table "Breakdown of special items"

(b) Unrealized intragroup profit elimination mainly pertained to intra-group sales of commodities and services recorded in the assets of the purchasing business segment as of the end of the period.

Adjusted results

In the fourth quarter of 2017, Eni’s consolidated adjusted operating profit increased by 55% to €1.99 billion (up by €0.71 billion). The improvement was driven by an excellent performance of the E&P segment (up by €0.46 billion) due to an ongoing recovery in crude oil prices (the Brent benchmark in dollar terms was up by 24%; however, it was up by 14% in euro terms) and production growth. All the other Eni’s businesses reported steady performances. The G&P segment, driven by an acceleration in the fourth quarter (€0.21 billion of EBIT, up by €0.29 billion from the fourth quarter of 2016) achieved the target of structural positive results one year ahead of plans. This was driven by the renegotiation of long-term supply contracts, the reduction in logistic costs and other optimizations. The R&M and Chemicals segment reported an improvement of 52% y-o-y, even in a less favorable trading environment, leveraging on continued initiatives to improve the breakeven margin and optimization of plant set-up.

In the full-year of 2017, all of Eni’s businesses recorded markedly better performances y-o-y, leveraging on a strategy based on the reduction in the time-to-market of reserves, efficiency actions, the renegotiation of gas supply contracts and plant restructuring in the R&M and Chemicals business. These actions enabled the Company to fully capture the recovery in the commodity scenario. The consolidated adjusted operating profit of €5.79 billion increased by €3.48 billion (up by 150%) due to a strong performance in the E&P segment (up by €2.68 billion), the return to profitability in the G&P business for the first time in seven years (up by €0.60 billion), and record results reported by the R&M and Chemicals segment with a total operating profit of approximately €1 billion (up by €0.41 billion). The €3.5 billion increase was explained for €3.1 billion by scenario effects and for €0.6 billion by volumes growth and efficiency and optimization gains, partly offset by OPEC cuts and one-off effects (€0.2 billion).

Adjusted net profit for the quarter of €0.98 billion improved by €0.52 billion compared to the fourth quarter of 2016, driven by the increasing operating performance and a reduced tax rate (down by 9

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percentage points, from 58% in the fourth quarter of 2016 to 49% in the fourth quarter of 2017). This trend reflected improved profitability mainly in the E&P segment, which allowed higher deductibility of operating expenses including those incurred in connection with PSA schemes, as well as a lower incidence of non-deductible expenses. In the full year of 2017, adjusted net profit was €2.41 billion compared to a loss of €0.34 billion in 2016. The full-year result benefitted from better operating performance and a sharp decline in the adjusted Group tax rate (from 121% to 56%), which was due to the quarter’s drivers and to the recognition of deferred tax assets due to the start-up of the execution phase of the Coral project in Mozambique and to the production start-up of the Ghana project by mid of 2017.

Special items

Special items were represented by net gains of €1,020 million in the fourth quarter and €860 million in the full year of 2017. The business segment breakdown is disclosed below:

E&P: the main gains were recorded on the disposal of a 40% interest in the Zohr asset (€1,281 million) and of a 25% interest in the exploration Area 4 offshore Mozambique where development is underway (€1,985 million). Furthermore, previously recorded impairment losses were reversed at certain oil&gas CGUs (€349 million) driven by upward reserve revisions and the impact of the new tax laws in the USA, as well as improved market fundamentals factored in the upward revision of management’s long-term assumption for the benchmark Brent price to 72 $/barrel from the previous 70 $/barrel adopted in the impairment review of 2016. Extraordinary charges mainly related to impairment losses recorded at certain oil&gas projects in Venezuela and the associated trade receivables owed by the National Oil Company PDVSA, respectively for €623 million and €135 million, driven by the Venezuelan financial crisis, which was factored in the evaluation of assets recoverability, also considering lower future capex. Other charges related to a valuation allowance for doubtful accounts in connection with cost recovery and other matters due to the limited progress made in the course of 2017 for recovering the disputed amounts (for an amount of €258 million), as well as the recognition of losses on certain contractual and commercial disputes (for an amount of €298 million in the year), accounted for mainly in the quarter;

G&P: the main charges comprised the effects of fair-valued commodity derivatives that lacked the formal criteria to be accounted as hedges under IFRS (net loss of €157 million in the year), an adjustment of €125 million in the fourth quarter and €223 million in the year to the allowance for doubtful accounts of the retail G&P business (included in the G&P reportable segment) to include the allowance determination made in accordance with the “expected loss” accounting model thus replacing the incurred loss accounting method, provisions for redundancy incentives (€38 million in the year), as well as a downward revision of revenues accrued on the sale of gas and power in past reporting periods (€22 million in the fourth quarter and €64 million in the year). The G&P adjusted operating result also includes the negative balance of €172 million in the year, related to derivative financial instruments entered to manage margin exposure to foreign currency exchange rate movements and exchange translation differences of commercial payables and receivables. These charges were totally or partly offset by the reversal of asset impairment losses recorded in previous reporting periods for €142 million, mainly relating to the alignment of the book value of the Hungarian gas distribution activity to its fair value, being a sale negotiation ongoing at the balance sheet date in order to close the transaction in 2018. Furthermore, extraordinary gains included the one recorded on the divestment of the retail activity in Belgium (€163 million) in the year;

R&M and Chemicals: as far as R&M is concerned, net charges were mainly composed of the write down of capital expenditure relating to certain Cash Generating Units, which were impaired in previous reporting periods and continued to lack any profitability prospects (€41 million in the fourth quarter and €130 million in the year) as well as environmental provisions (€73 million in the fourth quarter and €111 million in the year). Referring to Versalis, the asset impairment reversal of €76 million reflects improved profitability prospects of the unique Cash Generation Unit of the Chemical business, environmental provisions and restoration costs of certain no more operation industrial hubs (€20 million in the quarter and €48 milion in the year) as well as the impairment of Eni’s interest and the financial receivables due to Eni by an industrial joint venture because of lower profitability prospects (€207 million).

Special items of taxes included the tax effects relating to operating special items, the write-off of deferred tax asset of subsidiaries in the USA following the recognition of the impact of the newly enacted

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tax regime, offset by the recognition of higher deferred tax assets at Versalis driven by the projection of improving future taxable profit.

Reported results

Net profit attributable to Eni’s shareholders for the full year of 2017 was €3,427 million, a substantial improvement y-o-y. In 2016, a loss of €1,464 million was incurred from both continuing and discontinued operations, with the latter including a one-off charge of €400 million on the Saipem shareholding following the loss of control over the investee. The reported operating profit for the full year of 2017 was €8,022 million, representing a three-fold increase from the full year of 2016 (up by €5,865 million). Net of the Saipem transaction, the Eni Group recorded a substantial recovery in profitability across all business segments. This trend benefitted from the progress in the implementation of the Group’s strategy, in terms of accelerating the time-to-market of discoveries, production growth, efficiency gains, restructuring of long-term gas contracts portfolio, as well as the restructuring of the refinery and petrochemical plant setup.

Leveraging on the turnaround achievements, Eni was able to fully captured an ongoing recovery in the oil price scenario, supported by growing demand and shrinking oversupplies due to the production curtailment from members of OPEC and other non-member countries. The downstream businesses were helped by higher global demand for commodities. These market trends drove a rebound in crude oil prices (the marker Brent was up by 24% y-o-y), in the SERM refining margin (up by 19%) and a substantial increase in petrochemical margins. The 2017 net profit benefitted not only from an improved operating performance but also from approximately €2.7 billion of net gains achieved in connection with the Dual Exploration Model, i.e. the closing of the disposal of a 40% stake of Zohr and a 25% interest in Area 4 in Mozambique. Two-thirds of these positives were offset by non-recurring charges mainly relating to the impairment of oil&gas projects in Venezuela and trade receivables towards the Country.

Furthermore, the increase in net profit for the full year of 2017 (€4.48 billion, excluding Saipem) reflected the normalization of the tax rate as disclosed in the adjusted results. Similar trends featured in the fourth quarter of 2017 with operating profit increasing by 165% y-o-y (up by €2.71 billion) and net profit improving by €1.76 billion.

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Net borrowings and cash flow from operations

IIIQ			IVQ							Full Year
2017		(€ million)	2017		2016		Change			2017		2016		Change
	345	Net profit (loss)		2,100		341		1,759			3,430		(1,044)		4,474
		Adjustments to reconcile net profit (loss) to net cash provided by operating activities:
	1,991	- depreciation, depletion and amortization and other non monetary items		2,175		1,740		435			8,688		7,773		915
	(159)	- net gains on disposal of assets		(2,951)		(11)		(2,940)			(3,446)		(48)		(3,398)
	678	- dividends, interests and taxes		1,471		749		722			3,672		2,229		1,443
	376	Changes in working capital related to operations		1,275		1,455		(180)			1,401		2,112		(711)
	(1,070)	Dividends received, taxes paid, interests (paid) received		(748)		(1,026)		278			(3,624)		(3,349)		(275)
	2,161	Net cash provided by operating activities		3,322		3,248		74			10,121		7,673		2,448
	(1,570)	Capital expenditure		(2,184)		(2,250)		66			(8,677)		(9,180)		503
	(453)	Investments		(7)		(6)		(1)			(510)		(1,164)		654
	368	Disposal of consolidated subsidiaries, businesses tangible and intangible assets and investments		4,463		33		4,430			5,455		1,054		4,401
	1,128	Other cash flow related to capital expenditure, investments and disposals		(1,742)		614		(2,356)			(375)		465		(840)
	1,634	Free cash flow		3,852		1,639		2,213			6,014		(1,152)		7,166
	(10)	Borrowings (repayment) of debt related to financing activities		450		42		408			336		5,271		(4,935)
	754	Changes in short and long-term financial debt		(2,789)		(798)		(1,991	)		(1,713)		(766)		(947)
	(1,440)	Dividends paid and changes in non-controlling interests and reserves				(33)		33			(2,883)		(2,885)		2
	(14)	Effect of changes in consolidation, exchange differences and cash and cash equivalent related to discontinued operations		(13)		22		(35	)		(65)		(3)		(62)
	924	NET CASH FLOW		1,500		872		628			1,689		465		1,224

Change in net borrowings

IIIQ			IVQ						Full Year
2017		(€ million)	2017		2016		Change		2017		2016		Change
	1,634	Free cash flow		3,852		1,639		2,213		6,014		(1,152)		7,166
	(3)	Net borrowings of divested companies		264				264		261		5,848		(5,587)
	311	Exchange differences on net borrowings and other changes		(67)		(374)		307		468		284		184
	(1,440)	Dividends paid and changes in non-controlling interest and reserves				(33)		33		(2,883)		(2,885)		2
	502	CHANGE IN NET BORROWINGS		4,049		1,232		2,817		3,860		2,095		1,765

Cash flow from operating activities amounted to €10.12 billion in the full year of 2017, €3.32 billion in the fourth quarter of 2017. Income taxes on the disposals of Eni’s interests in Zohr and in Area 4 in Mozambique (€0.44 billion) were netted against cash flow from disposals, as provided by international accounting standards. In the full year of 2017, cash flow from operations was also influenced by a higher level of receivables due beyond the end of the reporting period being sold to financing institutions compared to the amount sold at the end of the previous reporting period (approximately €0.3 billion).

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Adjusted cash flow from operating activities

Adjusted cash flow from operating activities amounted to €2,423 million in the quarter and €9,256 million in the full year of 2017 and was determined by excluding from net cash provided by operating activities the movements of working capital, the profit/loss on stock and an extraordinary valuation allowance (see page 12).

(€ million)

GAAP measures		Profit/loss on stock			Extraordinary allowance for trade receivables			Tax settlement ^(a)			Advances on future gas supplies to the Egyptian partners to fund the Zohr project			Purchase of trade receivables from the JV Cardon IV		Other			Non-GAAP measures
Full year 2017

Net cash before changes in working capital	8,720		(219	)		616			150								(11	)		9,256	Adjusted net cash before changes in working capital
Changes in working capital	1,401		219			(616	)					(192	)				68			880
Net cash provided by operating activities	10,121											(192	)				57			9,986	Underlying net cash provided by operating activities

IVQ 2017

Net cash before changes in working capital	2,047		(149	)		518											7			2,423	Adjusted net cash before changes in working capital
Changes in working capital	1,275		149			(518	)					(112	)				1			795
Net cash provided by operating activities	3,322											(112	)				8			3,218	Underlying net cash provided by operating activities

Full year 2016

Net cash before changes in working capital	5,561		(175	)		688			105											6,179	Adjusted net cash before changes in working capital
Changes in working capital	2,112		175			(688	)		(105	)					298					1,792
Net cash provided by operating activities	7,673														298					7,971	Underlying net cash provided by operating activities

IVQ 2016

Net cash before changes in working capital	1,793		(237	)		568											(1	)		2,123	Adjusted net cash before changes in working capital
Changes in working capital	1,455		237			(568	)								298		1			1,423
Net cash provided by operating activities	3,248														298					3,546	Underlying net cash provided by operating activities

(a) In 2017 includes tax settlement in Angola not accrued in the year.

Organic coverage of capex and floor dividend

Management is disclosing below certain alternative measures of cash performance to factor in the retroactive economic effects of the disposals of the Dual Exploration Model, namely a 40% interest in Zohr located in Egypt sold to BP and Rosneft and a 25% interest of Area 4 located in Mozambique divested to ExxonMobil, whereby the consideration of these disposals included the share of 2017 capex incurred until the completion date and attributable to the buyers. In addition, in 2017 Eni cashed in advances for €0.2 billion on future gas supplies to the Egyptian State-owned partners, with the aim of financing their capex share in the Zohr project. Therefore, cash flow from operating activities including changes in working capital was netted of those advances and other minor items to €9.99 billion, whereas capex for the FY 2017 was netted of the share reimbursed by the buyers of the minority interests in the Zohr and Mozambique projects and other minor items to €7.62 billion, respectively, yielding a surplus of approximately €2.3 billion, which funded approximately 80% of the total amount of the cash dividend (€2.9 billion). Consequently, on the basis of the Group cash flow sensitivity to the Brent scenario which is assuming an increase of approximately €0.2 billion in free cash flow for each one-dollar increase in the Brent price (and vice versa), the organic cash neutrality for funding FY capex and the floor dividend is achieved at 57$/bbl, better than management’s expectations at 60$/bbl and in line with the long-term Company’s target of a cash neutrality structurally below the 60$/bbl threshold. 2017 disposals net of the share of the transaction price relating to capex reimbursements amounted to €3.80 billion. When considering this cash inflow, the Brent level at which cash neutrality was achieved in 2017 reduced to 39$/bbl.

(€ million)	Full year 2017
	GAAP measures		Advances on future gas supplies to the Egyptian partners to fund the Zohr project		Share of 2017 capex reimbursed at closing of the disposals relating to the Dual Exploration Model		Non-recurring items		Reimbursement of net debt as part of the Area 4 deal (25% sale to Exxon)		Zohr disposal expected to be cashed-in 2018 and 2019		Non-GAAP measures

Net cash provided by operating activities		10,121		(192)				57					9,986	Underlying net cash provided by operating activities
Capital expenditure		(9,187)		192		1,227		149					(7,619)	Net capital expenditure
Disposals		5,455				(1,151)		(48)		185		(644)	3,797	Net disposals

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Summarized Group Balance Sheet

Sept. 30, 2017		Change		(€ million)	Dec. 31, 2017		Dec. 31, 2016		Change

	73,001		(1,532)	Fixed assets		71,469		79,729		(8,260)
				Net working capital
	4,638		(20)	Inventories		4,618		4,637		(19)
	9,886		324	Trade receivables		10,210		11,186		(976)
	(9,522)		(1,369)	Trade payables		(10,891)		(11,038)		147
	(3,018)		596	Tax payables and provisions for, net deferred tax liabilities		(2,422)		(3,073)		651
	(13,410)		4	Provisions		(13,406)		(13,896)		490
	834		(565)	Other current assets and liabilities		269		1,171		(902)
	(10,592)		(1,030)			(11,622)		(11,013)		(609)
	(880)		(142)	Provisions for employee post-retirements benefits		(1,022)		(868)		(154)
	13		223	Assets held for sale including related liabilities		236		14		222
	61,542		(2,481)	CAPITAL EMPLOYED, NET		59,061		67,862		(8,801)

	46,529		1,567	Eni's shareholders equity		48,096		53,037		(4,941)
	48		1	Non-controlling interest		49		49
	46,577		1,568	Shareholders' equity		48,145		53,086		(4,941)
	14,965		(4,049)	Net borrowings		10,916		14,776		(3,860)
	61,542		(2,481)	TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		59,061		67,862		(8,801)
	0.32		(0.09)	Leverage		0.23		0.28		(0.05)
	0.24		(0.06)	Gearing		0.18		0.22		(0.04)

· Net borrowings⁵ at December 31, 2017 was €10.92 billion, lower by €3.86 billion from 2016 leveraging on the business operations and the finalization of portfolio transactions due to the Dual Exploration Model and other non-strategic assets (retail activity in Belgium).

· As of December 31, 2017, the ratio of net borrowings to shareholders’ equity including non-controlling interest – leverage⁶ – was 0.23, down from 0.28 as of December 31, 2016. This was driven by a reduction in net borrowings, partly offset by a decrease in total equity (down by €4.94 billion) driven by unfavorable foreign currency translation differences (about €5.56 billion) and the payment of the 2016 final dividend and the 2017 interim dividend (€2.88 billion), partly offset by the income of the period.

· As of December 31, 2017, gearing – the ratio of net borrowings to net capital employed – was 0.18, lower than 0.22 at December 31, 2016.

⁵ Details on net borrowings are furnished on page 27.

⁶ Non-GAAP financial measures and other alternative performance indicators disclosed throughout this press release are accompanied by explanatory notes and tables in line with guidance provided by ESMA guidelines on alternative performance measures (ESMA/2015/1415), published on October 5, 2015. For further information see the section “Non-GAAP measures” of this press release. See pages 18 and subsequent.

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Other information, basis of presentation and disclaimer

Article No. 15 (former Article No. 36) of Italian regulatory exchanges (Consob Resolution No. 20249 published on December 28, 2017).

Continuing listing standards about issuers that control subsidiaries incorporated or regulated in accordance with laws of extra-EU Countries. Certain provisions have been enacted to regulate continuing Italian listing standards of issuers controlling subsidiaries that are incorporated or regulated in accordance with laws of extra-EU Countries, also having a material impact on the consolidated financial statements of the parent company. Regarding the aforementioned provisions, as of December 31, 2017, Eni’s subsidiaries - Eni Congo SA, Eni Norge AS, Eni Petroleum Co Inc, Nigerian Agip Oil Co Ltd, Nigerian Agip Exploration Ltd, Eni Finance USA Inc, Eni Trading & Shipping Inc, Eni Canada Holding Ltd, Eni Turkmenistan Ltd and Eni Ghana Exploration and Production Ltd – fall within the scope of the new continuing listing standards. Eni has already adopted adequate procedures to ensure full compliance with the new regulations.

This press release for the fourth quarter and full year of 2017 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 each quarter. Results and cash flow are presented for the third and fourth quarter of 2017, the full year of 2017 and for the fourth quarter and the full year of 2016. Information on the Company’s financial position relates to end of the periods as of December 31, September 30, 2017 and December 31, 2016.

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 2016 Annual report on form 20-F filed with the US SEC on March 22, 2017, which investors are urged to read.

Non-GAAP financial measures and other alternative performance indicators disclosed throughout this press release are accompanied by explanatory notes and tables in line with guidance provided by ESMA guidelines on alternative performance measures (ESMA/2015/1415), published on October 5, 2015. For further information see the section “Alternative performance measures (Non-GAAP measures)” of this press release.

Eni’s Chief Financial Officer, Massimo Mondazzi, in his position as manager responsible for the preparation of the Company’s financial reports, certifies that data and information disclosed in this press release correspond to the Company’s evidence and accounting books and records, pursuant to rule 154-bis paragraph 2 of Legislative Decree No. 58/1998.

* * *

Disclaimer

This press release, in particular the statements under the section “Outlook”, contains certain forward-looking statements particularly those regarding capital expenditure, development and management of oil and gas resources, dividends, 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 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 fourth 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 Reserve Replacement Ratio is a measure used by management to indicate the extent to which production is replaced by proved oil and gas reserves. The Reserve Replacement Ratio 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.

* * *

Company Contacts

Press Office: +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 2017 (unaudited) is also available on Eni’s website eni.com.

-17-

Alternative performance measures (Non-GAAP measures)

Management evaluates underlying business performance on the basis of Non-GAAP financial measures under IFRS (“Alternative performance measures”), such as adjusted operating profit and adjusted net profit, which are arrived at 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. From 2017, the recognition of the inventory holding (gains) losses has been revised in the Gas & Power segment considering a recently-enacted, less restrictive regulatory framework relating the legal obligation on part of gas wholesalers to retain gas volumes in storage to ensure an adequate level of modulation to the retail segment. On this basis, management has progressively reduced gas quantities held in storage and has commenced to leverage those quantities to improve margins by seeking to capture the seasonality in gas prices existing between the phase of gas injection (which typically occurs in summer months) vs. the phase of gas off-take (which typically occurs during the winter months). Therefore, from the closure of the statutory period of gas injection, i.e. from the fourth quarter of 2017, the determination of the stock profit or loss in the Gas&Power segment has changed and currently gas off-takes from storage are valued at the average cost incurred during the injection period net of the effects of hedging derivatives, ensuring when the purchased volumes are matched by the corresponding sales (net of the effects of hedging derivatives) the proper measurement and accountability of the economic performances.

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 affect 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. Management includes them in order 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 and 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; in this respect, from the reporting period 2017 special items comprise an adjustment to align the doubtful credit allowance of the retail G&P business (included in the G&P reportable segment) to the “expected loss” accounting model replacing the criteria of the incurred loss in the evaluation of the recoverability of trade receivables. The new criterion will be adopted in GAAP accounts effective January 1, 2018. This result adjustment is consistent with management assessment of this business performance and improves the correlation between revenues and costs incurred in the period with respect to the current accounting method; or (iii) 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. Those items 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 exchange rate market.

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. Also, special items allow to allocate to future reporting periods gains and losses on re-measurement at fair value of certain non hedging commodity derivatives and exchange rate derivatives relating to commercial exposures, lacking the criteria to be designed as hedges, including the ineffective portion of cash flow hedges and certain derivative financial instruments embedded in the pricing formula of long-term gas supply agreements of the Exploration & Production segment.

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.

-18-

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.

Adjusted cash flow

Adjusted cash flow is defined as net cash provided from operating activities before changes in working capital at replacement cost.

Free cash flow

Free cash flow represents the link existing between changes in cash and cash equivalents (deriving from the statutory cash flows statement) and in net borrowings (deriving from the summarized cash flow statement) that occurred from the beginning of the period to the end of period. Free cash flow is the cash in excess of capital expenditure needs. Starting from free cash flow it is possible to determine either: (i) changes in cash and cash equivalents for the period by adding/deducting cash flows relating to financing debts/receivables (issuance/repayment of debt and receivables related to financing activities), shareholders’ equity (dividends paid, net repurchase of own shares, capital issuance) and the effect of changes in consolidation and of exchange rate differences; (ii) changes in net borrowings for the period by adding/deducting cash flows relating to shareholders’ equity and the effect of changes in consolidation and of exchange rate differences.

Net borrowings

Net borrowings is calculated as total finance debt less cash, cash equivalents and certain very liquid investments not related to operations, including among others non-operating financing receivables and securities not related to operations. Financial activities are qualified as “not related to operations” when these are not strictly related to the business operations.

(€ million)
Full Year 2017	Exploration & Production		Gas & Power		Refining & Marketing and Chemicals		Corporate and other activities		Impact of unrealized intragroup profit elimination		GROUP
Reported operating profit (loss)		7,669		70		982		(668)		(31)		8,022
Exclusion of inventory holding (gains) losses						(213)				(6)		(219)
Exclusion of special items:
environmental charges		46				136		26				208
impairment losses (impairment reversals), net		(142)		(142)		54		25				(205)
net gains on disposal of assets		(3,269)				(13)		(1)				(3,283)
risk provisions		333						82				415
provision for redundancy incentives		19		38		(6)		(2)				49
commodity derivatives				157		(11)						146
exchange rate differences and derivatives		(68)		(172)		(9)						(249)
other		582		261		72		(4)				911
Special items of operating profit (loss)		(2,499)		142		223		126				(2,008)
Adjusted operating profit (loss)		5,170		212		992		(542)		(37)		5,795
Net finance (expense) income ^(a)		(50)		10		5		(723)				(758)
Net income (expense) from investments ^(a)		409		(9)		21		70				491
Income taxes ^(a)		(2,801)		(162)		(357)		187		19		(3,114)
Tax rate (%)		50.7		76.1		35.1						56.3
Adjusted net profit (loss)		2,728		51		661		(1,008)		(18)		2,414
of which:
- Adjusted net profit (loss) of non-controlling interest												3
- Adjusted net profit (loss) attributable to Eni's shareholders												2,411

Reported net profit (loss) attributable to Eni's shareholders												3,427
Exclusion of inventory holding (gains) losses												(156)
Exclusion of special items												(860)
Adjusted net profit (loss) attributable to Eni's shareholders												2,411

^(a) Excluding special items.

-19-

(€ million)
Full Year 2016	Exploration & Production		Gas & Power		Refining & Marketing and Chemicals		Corporate and other activities		Impact of unrealized intragroup profit elimination			GROUP		DISCONTINUED OPERATIONS		CONTINUING OPERATIONS
Reported operating profit (loss)		2,567		(391)		723		(681)		(61)			2,157				2,157
Exclusion of inventory holding (gains) losses				90		(406)				141			(175)				(175)
Exclusion of special items:
environmental charges				1		104		88					193				193
impairment losses (impairment reversals), net		(684)		81		104		40					(459)				(459)
impairment of exploration projects		7											7				7
net gains on disposal of assets		(2)				(8)							(10)				(10)
risk provisions		105		17		28		1					151				151
provision for redundancy incentives		24		4		12		7					47				47
commodity derivatives		19		(443)		(3)							(427)				(427)
exchange rate differences and derivatives		(3)		(19)		3							(19)				(19)
other		461		270		26		93					850				850
Special items of operating profit (loss)		(73)		(89)		266		229					333				333
Adjusted operating profit (loss)		2,494		(390)		583		(452)		80			2,315				2,315
Net finance (expense) income ^(a)		(55)		6		1		(721)					(769)				(769)
Net income (expense) from investments ^(a)		68		(20)		32		(6)					74				74
Income taxes ^(a)		(1,999)		74		(197)		188		(19	)		(1,953)				(1,953)
Tax rate (%)		79.7		..		32.0							120.6				120.6
Adjusted net profit (loss)		508		(330)		419		(991)		61			(333)				(333)
of which:
- Adjusted net profit (loss) of non-controlling interest													7				7
- Adjusted net profit (loss) attributable to Eni's shareholders													(340)				(340)

Reported net profit (loss) attributable to Eni's shareholders													(1,464)		413		(1,051)
Exclusion of inventory holding (gains) losses													(120)				(120)
Exclusion of special items													1,244		(413)		831
Adjusted net profit (loss) attributable to Eni's shareholders													(340)				(340)

^(a) Excluding special items.

-20-

(€ million)
IVQ 2017	Exploration & Production		Gas & Power		Refining & Marketing and Chemicals		Corporate and other activities		Impact of unrealized intragroup profit elimination		GROUP
Reported operating profit (loss)		4,149		201		218		(142)		(76)		4,350
Exclusion of inventory holding (gains) losses				29		(174)				(4)		(149)
Exclusion of special items:
environmental charges		46				83		8				137
impairment losses (impairment reversals), net		(143)		(137)		(35)		16				(299)
net gains on disposal of assets		(2,926)				(11)						(2,937)
risk provisions		246						3				249
provision for redundancy incentives		12		4		(10)		(4)				2
commodity derivatives				4		(4)
exchange rate differences and derivatives		(36)		(14)		2						(48)
other		516		126		45		3				690
Special items of operating profit (loss)		(2,285)		(17)		70		26				(2,206)
Adjusted operating profit (loss)		1,864		213		114		(116)		(80)		1,995
Net finance (expense) income ^(a)		(39)		1		2		(187)				(223)
Net income (expense) from investments ^(a)		118		(4)		5		24				143
Income taxes ^(a)		(847)		(97)		(56)		31		29		(940)
Tax rate (%)		43.6		46.2		46.3						49.1
Adjusted net profit (loss)		1,096		113		65		(248)		(51)		975
of which:
- Adjusted net profit (loss) of non-controlling interest
- Adjusted net profit (loss) attributable to Eni's shareholders												975

Reported net profit (loss) attributable to Eni's shareholders												2,100
Exclusion of inventory holding (gains) losses												(105)
Exclusion of special items												(1,020)
Adjusted net profit (loss) attributable to Eni's shareholders												975

^(a) Excluding special items.

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(€ million)
IVQ 2016	Exploration & Production		Gas & Power		Refining & Marketing and Chemicals		Corporate and other activities		Impact of unrealized intragroup profit elimination		GROUP
Reported operating profit (loss)		1,720		5		168		(254)		1		1,640
Exclusion of inventory holding (gains) losses				(56)		(181)						(237)
Exclusion of special items:
environmental charges				1		18		9				28
impairment losses (impairment reversals), net		(789)		81		40		28				(640)
net gains on disposal of assets		(3)				(3)						(6)
risk provisions		(1)		17		27						43
provision for redundancy incentives		19		3		7		4				33
commodity derivatives				(265)		(14)						(279)
exchange rate differences and derivatives		(1)		33		5						37
other		455		109		8		95				667
Special items of operating profit (loss)		(320)		(21)		88		136				(117)
Adjusted operating profit (loss)		1,400		(72)		75		(118)		1		1,286
Net finance (expense) income ^(a)		123		(1)		1		(391)				(268)
Net income (expense) from investments ^(a)		77		(8)		9		4				82
Income taxes ^(a)		(741)		50		(35)		81		5		(640)
Tax rate (%)		46.3		..		41.2						58.2
Adjusted net profit (loss)		859		(31)		50		(424)		6		460
of which:
- Adjusted net profit (loss) of non-controlling interest												1
- Adjusted net profit (loss) attributable to Eni's shareholders												459

Reported net profit (loss) attributable to Eni's shareholders												340
Exclusion of inventory holding (gains) losses												(162)
Exclusion of special items												281
Adjusted net profit (loss) attributable to Eni's shareholders												459

^(a) Excluding special items.

-22-

(€ million)
IIIQ 2017	Exploration & Production		Gas & Power		Refining & Marketing and Chemicals		Corporate and other activities		Impact of unrealized intragroup profit elimination		GROUP
Reported operating profit (loss)		1,041		(120)		367		(181)		(109)		998
Exclusion of inventory holding (gains) losses				15		(95)				17		(63)
Exclusion of special items:
environmental charges						29						29
impairment losses (impairment reversals), net				1		31		1				33
net gains on disposal of assets		(1)						(1)				(2)
risk provisions		(1)						30				29
provision for redundancy incentives		2				1		(1)				2
commodity derivatives				(90)		1						(89)
exchange rate differences and derivatives		(20)		(64)		(4)						(88)
other		25		65		7		1				98
Special items of operating profit (loss)		5		(88)		65		30				12
Adjusted operating profit (loss)		1,046		(193)		337		(151)		(92)		947
Net finance (expense) income ^(a)		(39)		3		1		(146)				(181)
Net income (expense) from investments ^(a)		104		(2)		15		18				135
Income taxes ^(a)		(670)		53		(111)		29		28		(671)
Tax rate (%)		60.3		..		31.4						74.5
Adjusted net profit (loss)		441		(139)		242		(250)		(64)		230
of which:
- Adjusted net profit (loss) of non-controlling interest												1
- Adjusted net profit (loss) attributable to Eni's shareholders												229

Reported net profit (loss) attributable to Eni's shareholders												344
Exclusion of inventory holding (gains) losses												(45)
Exclusion of special items												(70)
Adjusted net profit (loss) attributable to Eni's shareholders												229

(a) Excluding special items.

-23-

Breakdown of special items

IIIQ			IVQ				Full Year
2017		(€ million)	2017		2016		2017		2016
	29	Environmental charges		137		28		208		193
	33	Impairment losses (impairment reversals), net		(299)		(640)		(205)		(459)
		Impairment of exploration projects								7
	(2)	Net gains on disposal of assets		(2,937)		(6)		(3,283)		(10)
	29	Risk provisions		249		43		415		151
	2	Provisions for redundancy incentives		2		33		49		47
	(89)	Commodity derivatives				(279)		146		(427)
	(88)	Exchange rate differences and derivatives		(48)		37		(249)		(19)
	98	Other		690		667		911		850
	12	Special items of operating profit (loss)		(2,206)		(117)		(2,008)		333
	103	Net finance (income) expense		244		56		478		166
		of which:
	88	- exchange rate differences and derivatives reclassified to operating profit (loss)		48		(37)		249		19
	(162)	Net income (expense) from investments		454		362		358		817
		of which:
	(164)	- gains on disposal of assets		1		(5)		(163)		(57)
	2	- impairment/revaluation of equity investments		453		415		523		896
	(23)	Income taxes		488		(20)		312		(72)
		of which:
		- net impairment of deferred tax assets of Italian subsidiaries				122				170
		- net impairment of deferred tax assets of upstream business outside Italy				6				6
		- USA tax reform		115				115
	(23)	- taxes on special items of operating profit and other special items		373		(148)		197		(248)
	(70)	Total special items of net profit (loss)		(1,020)		281		(860)		1,244

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Analysis of Profit and Loss account items

Net sales from operations

IIIQ			IVQ						Full Year
2017		(€ million)	2017		2016		% Ch.		2017		2016		% Ch.
	4,628	Exploration & Production		5,571		4,855		14.7		19,525		16,089		21.4
	11,430	Gas & Power		13,540		11,986		13.0		50,622		40,961		23.6
	5,449	Refining & Marketing and Chemicals		5,802		5,125		13.2		22,110		18,733		18.0
	4,440	- Refining & Marketing		4,787		4,141		15.6		17,688		14,932		18.5
	1,120	- Chemicals		1,134		1,082		4.8		4,855		4,196		15.7
	(111)	- Consolidation adjustments		(119)		(98)				(433)		(395)
	344	Corporate and other activities		431		391		10.2		1,462		1,343		8.9
	(6,167)	Consolidation adjustments		(7,797)		(6,550)				(26,798)		(21,364)
	15,684			17,547		15,807		11.0		66,921		55,762		20.0

Operating expenses

IIIQ			IVQ						Full Year
2017		(€ million)	2017		2016		% Ch.		2017		2016		% Ch.
	12,064	Purchases, services and other		14,307		12,346		15.9		52,437		44,124		18.8
	58	of which: other special items		390		87				627		360
	702	Payroll and related costs		687		741		(7.3)		2,951		2,994		(1.4)
	2	of which: provision for redundancy incentives and other		2		33				49		47
	12,766			14,994		13,087		14.6		55,388		47,118		17.6

DD&A, impairments, reversals and write-off

IIIQ			IVQ						Full Year
2017		(€ million)	2017		2016		% Ch.		2017		2016		% Ch.
	1,761	Exploration & Production		1,583		1,757		(9.9)		6,748		6,772		(0.4)
	83	Gas & Power		85		92		(7.6)		345		354		(2.5)
	88	Refining & Marketing and Chemicals		93		106		(12.3)		360		389		(7.5)
	75	- Refining & Marketing		77		95		(18.9)		304		359		(15.3)
	13	- Chemicals		16		11		45.5		56		30		86.7
	14	Corporate and other activities		15		17		..		60		72		(16.7)
	(8)	Impact of unrealized intragroup profit elimination		(7)		(7)				(29)		(28)
	1,938	Total depreciation, depletion and amortization		1,769		1,965		(10.0)		7,484		7,559		(1.0)
	33	Impairment losses (impairment reversals), net		(303)		(656)		53.8		(209)		(475)		56.0
	1,971	Depreciation, depletion, amortization, impairments and reversals		1,466		1,309		12.0		7,275		7,084		2.7
	9	Write-off of tangible and intangible assets		61		212		(71.2)		263		350		(24.9)
	1,980			1,527		1,521		0.4		7,538		7,434		1.4

-25-

IIIQ			IVQ				Full Year
2017		(€ million)	2017		2016		2017		2016
	33	Asset impairments		777		849		893		1,067
		Impairment reversals		(1,080)		(1,505)		(1,102)		(1,542)
	33	Subtotal		(303)		(656)		(209)		(475)
		Impairment of receivables identified as non-recurring activities		4		16		4		16
	33	Total impairment losses (impairment reversals), net		(299)		(640)		(205)		(459)

Income (expense) from investments

(€ million)
Full Year 2017	Exploration & Production		Gas & Power		Refining & Marketing and Chemicals		Corporate and other activities		Group
Share of gains (losses) from equity-accounted investments		(98)		(10)		(55)		(39)		(202)
Dividends		179				25		1		205
Net gains (losses) on disposals				163						163
Other income (expense), net		(2)		(35)		(3)		7		(33)
		79		118		(33)		(31)		133

-26-

Leverage and net borrowings

Leverage is a measure used by management to assess the Company’s level of indebtedness. It is calculated as a ratio of net borrowings to shareholders’ equity, including non-controlling interest. Management periodically reviews leverage in order to assess the soundness and efficiency of the Group balance sheet in terms of optimal mix between net borrowings and net equity, and to carry out benchmark analysis with industry standards.

Sept. 30, 2017		Change		(€ million)	Dec. 31, 2017		Dec. 31, 2016		Change
	27,508		(2,801)	Total debt		24,707		27,239		(2,532)
	7,108		(2,581)	- Short-term debt		4,527		6,675		(2,148)
	20,400		(220)	- Long-term debt		20,180		20,564		(384)
	(5,863)		(1,500)	Cash and cash equivalents		(7,363)		(5,674)		(1,689)
	(6,365)		146	Securities held for trading and other securities held for non-operating purposes		(6,219)		(6,404)		185
	(315)		106	Financing receivables held for non-operating purposes		(209)		(385)		176
	14,965		(4,049)	Net borrowings		10,916		14,776		(3,860)
	46,577		1,568	Shareholders' equity including non-controlling interest		48,145		53,086		(4,941)
	0.32		(0.09)	Leverage		0.23		0.28		(0.05)

Net borrowings are calculated under Consob provisions on Net Financial Position (Com. no. DEM/6064293 of 2006).

Bonds maturing in the 18-months period starting on December 31, 2017

(€ million)
Issuing entity	Amount at Dec. 31, 2017 ^(a)
Eni SpA		1,795
Eni Finance International SA		404

		2,199

(a) Amounts include interest accrued and discount on issue.

Bonds issued in the full year of 2017 (guaranteed by Eni Spa)

Issuing entity	Nominal amount (€ million)		Currency	Amount at Dec. 31, 2017 ^(a) (€ million)		Maturity		Rate	%
Eni SpA		750	EUR		754		2027	fixed		1.50
Eni SpA		650	EUR		649		2025	fixed		1.00
Eni Finance International SA		417	USD		414		2026	variable

		1,817			1,817

(a) Amounts include interest accrued and discount on issue.

-27-

Consolidated financial statements

BALANCE SHEET

			(€ million)
Sept. 30, 2017				Dec. 31, 2017			Dec. 31, 2016
			ASSETS
			Current assets
	5,863		Cash and cash equivalents		7,363			5,674
	6,157		Other financial activities held for trading		6,013			6,166
	208		Other financial assets available for sale		206			238
	15,117		Trade and other receivables		15,741			17,593
	4,638		Inventories		4,618			4,637
	286		Current tax assets		193			383
	896		Other current tax assets		729			689
	1,263		Other current assets		1,573			2,591
	34,428				36,436			37,971
			Non-current assets
	65,336		Property, plant and equipment		63,134			70,793
	1,209		Inventory - compulsory stock		1,283			1,184
	2,956		Intangible assets		2,925			3,269
	4,360		Equity-accounted investments		3,586			4,040
	222		Other investments		220			276
	1,804		Other financial assets		1,675			1,860
	4,071		Deferred tax assets		4,126			3,790
	1,483		Other non-current assets		1,323			1,348
	81,441				78,272			86,560
	13		Assets held for sale		323			14
	115,882		TOTAL ASSETS		115,031			124,545
			LIABILITIES AND SHAREHOLDERS' EQUITY
			Current liabilities
	2,712		Short-term debt		2,241			3,396
	4,396		Current portion of long-term debt		2,286			3,279
	15,948		Trade and other payables		16,739			16,703
	388		Income taxes payable		470			426
	2,310		Other taxes payable		1,489			1,293
	1,323		Other current liabilities		1,517			2,599
	27,077				24,742			27,696
			Non-current liabilities
	20,400		Long-term debt		20,180			20,564
	13,410		Provisions for contingencies		13,406			13,896
	880		Provisions for employee benefits		1,022			868
	6,017		Deferred tax liabilities		5,976			6,667
	1,521		Other non-current liabilities		1,473			1,768
	42,228				42,057			43,763
			Liabilities directly associated with assets held for sale		87
	69,305		TOTAL LIABILITIES		66,886			71,459
			SHAREHOLDERS' EQUITY
	48		Non-controlling interest		49			49
			Eni shareholders' equity:
	4,005		Share capital		4,005			4,005
	63		Reserve related to the fair value of cash flow hedging derivatives net of tax effect		240			189
	43,156		Other reserves		42,446			52,329
	(581	)	Treasury shares		(581	)		(581	)
	(1,441	)	Interim dividend		(1,441	)		(1,441	)
	1,327		Net profit (loss)		3,427			(1,464	)
	46,529		Total Eni shareholders' equity		48,096			53,037
	46,577		TOTAL SHAREHOLDERS' EQUITY		48,145			53,086
	115,882		TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		115,031			124,545

-28-

GROUP PROFIT AND LOSS ACCOUNT

IIIQ				IVQ				Full Year
2017			(€ million)	2017		2016		2017		2016
			REVENUES
	15,684		Net sales from operations		17,547		15,807		66,921		55,762
	99		Other income and revenues		3,334		347		4,059		931
	15,783		Total revenues		20,881		16,154		70,980		56,693
			OPERATING EXPENSES
	12,064		Purchases, services and other		14,307		12,346		52,437		44,124
	702		Payroll and related costs		687		741		2,951		2,994
	(39	)	Other operating (expense) income		(10)		94		(32)		16
	1,938		Depreciation, Depletion and Amortization		1,769		1,965		7,484		7,559
	33		Impairment Losses (Impairment reversals), net		(303)		(656)		(209)		(475)
	9		Write-off of tangible and intangible assets		61		212		263		350
	998		OPERATING PROFIT (LOSS)		4,350		1,640		8,022		2,157
			FINANCE INCOME (EXPENSE)
	985		Finance income		665		1,898		3,922		5,850
	(1,424	)	Finance expense		(1,225)		(1,920)		(5,879)		(6,232)
	(41	)	Income (expense) from other financial activities held for trading		(25)		68		(117)		(21)
	196		Derivative financial instruments		118		(370)		838		(482)
	(284	)			(467)		(324)		(1,236)		(885)
			INCOME (EXPENSE) FROM INVESTMENTS
	79		Share of profit (loss) of equity-accounted investments		(366)		(199)		(202)		(326)
	218		Other gain (loss) from investments		55		(81)		335		(54)
	297				(311)		(280)		133		(380)
	1,011		PROFIT (LOSS) BEFORE INCOME TAXES		3,572		1,036		6,919		892
	(666	)	Income taxes		(1,472)		(695)		(3,489)		(1,936)
	345		Net profit (loss) - continuing operations		2,100		341		3,430		(1,044)
			Net profit (loss) - discontinued operations								(413)
	345		Net profit (loss)		2,100		341		3,430		(1,457)
			Eni's shareholders:
	344		- continuing operations		2,100		340		3,427		(1,051)
			- discontinued operations								(413)
	344				2,100		340		3,427		(1,464)
			Non controlling interest
	1		- continuing operations				1		3		7
			- discontinued operations
	1						1		3		7
			Net profit (loss) per share attributable to Eni's shareholders (€ per share)
	0.10		- basic		0.58		0.09		0.95		(0.41)
	0.10		- diluted		0.58		0.09		0.95		(0.41)
			Net profit (loss) per share - continuing operations attributable to Eni's shareholders (€ per share)
	0.10		- basic		0.58		0.09		0.95		(0.29)
	0.10		- diluted		0.58		0.09		0.95		(0.29)

-29-

COMPREHENSIVE INCOME

	IVQ				Full Year
(€ million)	2017		2016		2017		2016
Net profit (loss)		2,100		341		3,430		(1,457)
Items that may not be reclassified to profit in later periods		(4)		(19)		(4)		(19)
Remeasurements of defined benefit plans		(33)		16		(33)		16
Taxation		29		(35)		29		(35)

Items that may be reclassified to profit in later periods		(535)		2,574		(5,501)		1,889
Currency translation differences		(656)		2,291		(5,563)		1,198
Change in the fair value of cash flow hedging derivatives		157		391		(6)		883
Change in the fair value of other available-for-sale financial instruments				(4)		2		(4)
Share of "Other comprehensive income" on equity-accounted entities				(12)		65		32
Taxation		(36)		(92)		1		(220)

Total other items of comprehensive income (loss)		(539)		2,555		(5,505)		1,870
Total comprehensive income (loss)		1,561		2,896		(2,075)		413
attributable to:
Eni's shareholders		1,561		2,895		(2,078)		406
- continuing operations		1,561		2,895		(2,078)		819
- discontinued operations								(413)
Non-controlling interest				1		3		7
- continuing operations				1		3		7
- discontinued operations

CHANGES IN SHAREHOLDERS’ EQUITY

(€ million)
Shareholders' equity at January 1, 2016:		57,409
Total comprehensive income (loss)	413
Dividends paid to Eni's shareholders	(2,881)
Deconsolidation of Saipem's non-controlling interest	(1,872)
Dividends distributed by consolidated subsidiaries	(4)
Other changes	21
Total changes		(4,323)
Shareholders' equity at Dec. 31, 2016:		53,086
attributable to:
- Eni's shareholders		53,037
- Non-controlling interest		49
Shareholders' equity at January 1, 2017:		53,086
Total comprehensive income (loss)	(2,075)
Dividends paid to Eni's shareholders	(2,881)
Dividends distributed by consolidated subsidiaries	(3)
Other changes	18
Total changes		(4,941)
Shareholders' equity at Dec. 31, 2017:		48,145
attributable to:
- Eni's shareholders		48,096
- Non-controlling interest		49

-30-

GROUP CASH FLOW STATEMENT

IIIQ				IVQ						Full Year
2017			(€ million)	2017			2016			2017			2016
	345		Net profit (loss)		2,100			341			3,430			(1,044	)
			Adjustments to reconcile net profit (loss) to net cash provided by operating activities:
	1,938		Depreciation, depletion and amortization		1,769			1,965			7,484			7,559
	33		Impairment losses (impairment reversals), net		(303	)		(656	)		(209	)		(475	)
	9		Write-off of tangible and intangible assets		61			212			263			350
	(79	)	Share of (profit) loss of equity-accounted investments		366			199			202			326
	(159	)	Gains on disposal of assets, net		(2,951	)		(11	)		(3,446	)		(48	)
	(59	)	Dividend income		(77	)		(66	)		(205	)		(143	)
	(117	)	Interest income		(68	)		(41	)		(283	)		(209	)
	188		Interest expense		144			161			671			645
	666		Income taxes		1,472			695			3,489			1,936
	78		Other changes		286			20			910			(9	)
			Changes in working capital:
	132		- inventories		(119	)		(145	)		(343	)		(273	)
	(102	)	- trade receivables		(294	)		(648	)		636			1,286
	123		- trade payables		1,483			1,827			283			1,495
	(156	)	- provisions for contingencies		78			(280	)		55			(1,043	)
	379		- other assets and liabilities		127			701			770			647
	376		Cash flow from changes in working capital		1,275			1,455			1,401			2,112
	12		Net change in the provisions for employee benefits		(4	)					38			22
	75		Dividends received		114			83			291			212
	28		Interest received		53			70			104			160
	(181	)	Interest paid		(90	)		(360	)		(582	)		(780	)
	(992	)	Income taxes paid, net of tax receivables received		(825	)		(819	)		(3,437	)		(2,941	)
	2,161		Net cash provided by operating activities		3,322			3,248			10,121			7,673
			Investing activities:
	(1,551	)	- tangible assets		(2,139	)		(2,185	)		(8,486	)		(9,067	)
	(19	)	- intangible assets		(45	)		(65	)		(191	)		(113	)
	(453	)	- investments		(7	)		(6	)		(510	)		(1,164	)
	(142	)	- securities		(105	)		(53	)		(321	)		(1,336	)
	(57	)	- financing receivables		(216	)		(268	)		(657	)		(1,208	)
	(229	)	- change in payables in relation to investing activities and capitalized depreciation		(164	)		42			150			(8	)
	(2,451	)	Cash flow from investing activities		(2,676	)		(2,535	)		(10,015	)		(12,896	)
			Disposals:
	44		- tangible assets		2,138			7			2,745			19
			- intangible assets		2						2
	301		- consolidated subsidiaries and businesses net of cash and cash equivalent disposed of		2,361						2,662			(362	)
			- income taxes paid on disposals		(436	)					(436	)
	23		- investments		398			26			482			508
	11		- securities		188			4			224			20
	123		- financing receivables		545			777			999			8,063
	1,412		- change in receivables in relation to disposals		(1,540	)		154			(434	)		205
	1,914		Cash flow from disposals		3,656			968			6,244			8,453
	(537	)	*Net cash used in investing activities ^()**		980			(1,567	)		(3,771	)		(4,443	)

-31-

GROUP CASH FLOW STATEMENT (continued)

IIIQ			IVQ				Full Year
2017		(€ million)	2017		2016		2017		2016
	650	Increase in long-term debt		437		272		1,842		4,202
	(22)	Repayments of long-term debt		(2,682)		(143)		(2,973)		(2,323)
	126	Increase (decrease) in short-term debt		(544)		(927)		(582)		(2,645)
	754			(2,789)		(798)		(1,713)		(766)
	(1,440)	Dividends paid to Eni's shareholders				(33)		(2,880)		(2,881)
		Dividends paid to non-controlling interests						(3)		(4)
	(686)	Net cash used in financing activities		(2,789)		(831)		(4,596)		(3,651)
		Effect of change in consolidation (inclusion/exclusion of significant/insignificant subsidiaries)				(4)		7		(5)
		Effect of cash and cash equivalents relating to discontinued operations								889
	(14)	Effect of exchange rate changes on cash and cash equivalents and other changes		(13)		26		(72)		2
	924	Net cash flow for the period		1,500		872		1,689		465
	4,939	Cash and cash equivalents - beginning of the period (excluding discontinued operations)		5,863		4,802		5,674		5,209
	5,863	Cash and cash equivalents - end of the period (excluding discontinued operations)		7,363		5,674		7,363		5,674

(*) Net cash used in investing activities included investments and divestments (on net basis) in held-for-trading financial assets and other investments/divestments in certain short-term financial assets. Due to their nature and the circumstance that they are very liquid, these financial assets are netted against finance debt in determing net borrowings. Cash flows of such investments were as follows:

IIIQ			IVQ				Full Year
2017		(€ million)	2017		2016		2017		2016
	(10)	Net cash flow from financing activities		450		42		336		5,271

SUPPLEMENTAL INFORMATION

IIIQ			IVQ				Full Year
2017		(€ million)	2017		2016		2017		2016
		Effect of disposals of consolidated subsidiaries and businesses
	144	Current assets		22				166		6,526
	123	Non-current assets		691		1		814		8,615
	12	Net borrowings		(264)				(252)		(5,415)
	(133)	Current and non-current liabilities		(72)				(205)		(6,334)
	146	Net effect of disposals		377		1		523		3,392
		Reclassification of exchange rate differences included in other comprehensive income								7
		Current value of residual interests following the loss of control								(1,006)
	164	Gains (losses) on disposal		1,984		(1)		2,148		11
		Non-controlling interest								(1,872)
	310	Selling price		2,361				2,671		532
		less:
	(9)	Cash and cash equivalents disposed of						(9)		(894)
	301	Cash flow on disposals		2,361				2,662		(362)

-32-

Capital expenditure

IIIQ			IVQ						Full Years
2017		(€ million)	2017		2016		% Ch.		2017		2016		% Ch.
	1,404	Exploration & Production		1,854		1,916		(3.2)		8,012		8,458		(5.3)
		- acquisition of proved and unproved properties		5						5		2
	61	- g&g costs		73		45		62.2		273		204		33.8
	102	- exploration		56		134		(58.2)		442		417		6.0
	1,229	- development		1,698		1,725		(1.6)		7,236		7,770		(6.9)
	12	- other expenditure		22		12		83.3		56		65		(13.8)
	33	Gas & Power		60		53		13.2		142		120		18.3
	188	Refining & Marketing and Chemicals		290		303		(4.3)		729		664		9.8
	132	- Refining & Marketing		215		184		16.8		526		421		24.9
	56	- Chemical		75		119		(37.0)		203		243		(16.5)
	13	Corporate and other activities		58		26		..		87		55		58.2
	(7)	Impact of unrealized intragroup profit elimination		(5)		(3)				(20)		87
	1,631	Capital expenditure		2,257		2,295		(1.7)		8,950		9,384		(4.6)
	61	Cash out in net cash flow from operating activities		73		45		62.2		273		204		33.8
	1,570	Cash out in net cash flow from investment activities		2,184		2,250		(2.9)		8,677		9,180		(5.5)

In the full year of 2017, capital expenditure amounted to €8,677 million (€9,180 million in the FY 2016) and mainly related to:

- development activities (€7,236 million) deployed mainly in Egypt, Ghana, Angola, Congo, Algeria, Iraq and Norway; exploration activities (€442 million) concerned mainly Cyprus, Norway, Mexico, Egypt, Libya and Ivory Coast;

- refining activity in Italy and outside Italy (€395 million) aimed at assets integrity, reconversion of refinery system, as well as initiatives in the field of health, security and environment; marketing activity, mainly regulation compliance and stay in business initiatives in the refined product retail network in Italy and in the Rest of Europe (€131 million);

- initiatives relating to gas marketing (€102 million) as well as initiatives to improve flexibility and upgrade combined-cycle power plants (€36 million).

Cash-outs comprised in net cash from operating activities (€273 million) relate to geological and geophysical studies as part of the exploration activities, which are charged to expenses.

-33-

Exploration & Production

PRODUCTION OF OIL AND NATURAL GAS BY REGION

IIIQ				IVQ				Full Year
2017				2017		2016		2017		2016
	1,803	Production of oil and natural gas ^{(a) (b)}	(kboe/d)		1,892		1,856		1,816		1,759
	136	Italy			146		159		134		133
	174	Rest of Europe			163		240		189		201
	685	North Africa			782		680		713		647
	374	Sub-Saharan Africa			365		334		347		339
	118	Kazakhstan			130		133		132		111
	137	Rest of Asia			139		103		119		127
	160	America			144		184		160		177
	19	Australia and Oceania			23		23		22		24
	156.3	Production sold ^(a)	(mmboe)		165.0		161.1		622.3		608.6

PRODUCTION OF LIQUIDS BY REGION

IIIQ				IVQ				Full Year
2017				2017		2016		2017		2016
	885	Production of liquids ^(a)	(kbbl/d)		861		906		852		878
	56	Italy			64		67		53		47
	96	Rest of Europe			80		140		102		109
	243	North Africa			251		241		233		244
	277	Sub-Saharan Africa			265		237		250		249
	77	Kazakhstan			83		78		83		65
	56	Rest of Asia			47		58		54		78
	78	America			69		82		75		83
	2	Australia and Oceania			2		3		2		3

PRODUCTION OF NATURAL GAS BY REGION

IIIQ				IVQ				Full Year
2017				2017		2016		2017		2016
	5,012	Production of natural gas ^{(a) (b)}	(mmcf/d)		5,625		5,184		5,261		4,807
	436	Italy			448		504		442		471
	424	Rest of Europe			453		543		476		502
	2,413	North Africa			2,900		2,394		2,620		2,197
	527	Sub-Saharan Africa			545		527		533		493
	222	Kazakhstan			256		301		264		254
	447	Rest of Asia			502		247		357		265
	449	America			407		555		464		511
	94	Australia and Oceania			114		113		105		114

(a) Includes Eni’s share of production of equity-accounted entities.

(b) Includes volumes of gas consumed in operation (578 and 556 mmcf/d in the fourth quarter of 2017 and 2016, respectively, 527 mmcf/d and 478 mmcf/d in the FY 2017 and 2016, respectively, and 527 mmcf/d in the third quarter 2017).

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Gas & Power

Natural gas sales by market

IIIQ			IVQ						Full Year
2017		(bcm)	2017		2016		% Ch.		2017		2016		% Ch.
	7.93	ITALY		9.62		10.25		(6.1)		37.43		38.43		(2.6)
	1.03	- Wholesalers		2.25		2.55		(11.8)		8.36		7.93		5.4
	2.75	- Italian exchange for gas and spot markets		2.31		2.63		(12.2)		10.81		12.98		(16.7)
	1.04	- Industries		1.09		1.19		(8.4)		4.42		4.54		(2.6)
	0.14	- Medium-sized enterprises and services		0.27		0.44		(38.6)		0.93		1.72		(45.9)
	1.17	- Power generation		0.52		0.25		..		2.22		0.77		..
	0.25	- Residential		1.54		1.53		0.7		4.51		4.39		2.7
	1.55	- Own consumption		1.64		1.66		(1.2)		6.18		6.10		1.3
	9.51	INTERNATIONAL SALES		11.86		13.01		(8.8)		43.40		47.88		(9.4)
	8.21	Rest of Europe		10.26		11.79		(13.0)		38.23		42.43		(9.9)
	0.97	- Importers in Italy		0.99		1.15		(13.9)		3.89		4.37		(11.0)
	7.24	- European markets		9.27		10.64		(12.9)		34.34		38.06		(9.8)
	1.31	Iberian Peninsula		1.24		1.52		(18.4)		5.06		5.28		(4.2)
	1.53	Germany/Austria		1.91		1.84		3.8		6.95		7.81		(11.0)
	0.96	Benelux		1.35		1.68		(19.6)		5.06		7.03		(28.0)
		Hungary										0.93		..
	0.40	UK		0.56		0.95		(41.1)		2.21		2.01		10.0
	2.14	Turkey		2.08		1.99		4.5		8.03		6.55		22.6
	0.87	France		1.94		2.46		(21.1)		6.38		7.42		(14.0)
	0.03	Other		0.19		0.20		(5.0)		0.65		1.03		(36.9)
	1.30	Rest of World		1.60		1.22		31.1		5.17		5.45		(5.1)
	17.44	WORLDWIDE GAS SALES		21.48		23.26		(7.7)		80.83		86.31		(6.3)

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Eni SpA parent company accounts

Profit and loss account

(€ million)
	Full year
	2017		2016

REVENUES
Net sales from operations		28,983		27,718
Other income and revenues		2,316		547
Total Revenues		31,299		28,265
OPERATING EXPENSES
Purchases, services and other		(27,362)		(27,247)
Payroll and related costs		(1,159)		(1,179)
OTHER OPERATING (EXPENSE) INCOME		(239)		(50)
DEPRECIATION, DEPLETION AND AMORTIZATION		(727)		(815)
IMPAIRMENT LOSSES (IMPAIRMENT REVERSALS), NET		(124)		(443)
WRITE-OFF OF TANGIBLE AND INTANGIBLE ASSETS		(5)		(209)
OPERATING PROFIT (LOSS)		1,683		(1,678)
FINANCE INCOME (EXPENSE)
Finance income		1,682		2,149
Finance expense		(2,698)		(2,540)
Income (expense) from other financial activities held for trading		(110)		(21)
Derivative financial instruments		481		(34)
		(645)		(446)
INCOME (EXPENSE) FROM INVESTMENTS		2,702		6,058
NET PROFIT BEFORE TAXES - continuing operations		3,740		3,934
Income taxes		(218)		232
NET PROFIT - continuing operations		3,522		4,166
NET PROFIT - discontinued operations				355
NET PROFIT		3,522		4,521

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Balance sheet

(€ million)
	Dec. 31, 2017		Dec. 31, 2016

ASSETS
Current Assets
Cash and cash equivalents		6,214		4,583
Other financial activities held for trading		5,793		6,062
Trade and other receivables:		8,587		15,658
- financial receivables		2,700		7,763
- trade and other receivables		5,887		7,895
Inventories		1,389		1,277
Current income tax assets		59		92
Other current tax assets		267		346
Other current assets		693		1,011
		23,002		29,029
Non-current assets
Property, plant and equipment		7,166		8,046
Inventory - compulsory stock		1,297		1,172
Intangible assets		195		1,205
Equity-accounted investments		42,337		40,009
Other financial assets		4,832		1,428
Deferred tax assets		1,104		1,185
Other non-current receivables		481		700
		57,412		53,745
Discontinued operations and assets held for sales		2		4
TOTAL ASSETS		80,416		82,778
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Short-term debt		4,146		4,159
Current portion of long-term debt		1,973		3,014
Trade and other payables		6,226		6,209
Income taxes payable		64		4
Other taxes payable		809		887
Other current liabilities		872		1,205
		14,090		15,478
Non-current liabilities
Long-term debt		18,843		19,554
Provisions for contingencies		3,785		4,054
Provisions for employee benefits		353		391
Other non-current liabilities		880		1,366
		23,861		25,365
TOTAL LIABILITIES		37,951		40,843
SHAREHOLDERS’ EQUITY
Share capital		4,005		4,005
Legal reserve		959		959
Other reserves		36,001		34,472
Interim dividend		(1,441)		(1,441)
Treasury shares		(581)		(581)
Net profit		3,522		4,521
TOTAL SHAREHOLDERS’ EQUITY		42,465		41,935
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		80,416		82,778

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Cash Flow Statement

(€ million)
	Full Year
	2017			2016
Net profit	3,583			4,166
Adjustments to reconcile net profit to net cash provided by operating activities:
Depreciation, depletion and amortization		727			815
Impairment losses (impairment reversals), net		124			443
Write-off of tangible and intangible assets		5			209
Impairment losses (impairment reversals) of investments		367			374
Gain on disposal of assets, net		(1,996	)		29
Dividend income		(3,061	)		(6,486	)
Interest income		(204	)		(161	)
Interest expense		599			588
Income taxes		218			(232	)
Other changes		230			159
Changes in working capital:
- inventories		(238	)		(66	)
- trade receivables		241			1,353
- trade payables		335			93
- provisions for contingencies		(192	)		(30	)
- other assets and liabilities		(194	)		(585	)
Cash flow from changes in working capital		(48	)		765
Net change in the provisions for employee benefits		42			16
Dividends received		3,076			6,458
Interest received		201			165
Interest paid		(576	)		(692	)
Income taxes paid, net of tax receivables received		55			7
Net cash provided from operating activities		3,281			6,623
Investing activities:
- tangible assets		(738	)		(788	)
- intangible assets		(35	)		(58	)
- consolidated subsidiaries and businesses		(2,586	)		(8,299	)
- securities held for operating purposes
- financing receivables held for operating purposes		(3,041	)		(1,585	)
- change in payables and receivables in relation to investments and capitalized depreciation					(507	)
Cash flow from investments		(6,400	)		(11,237	)
Disposals:
- tangible assets		14			5
- intangible assets
- consolidated subsidiaries and businesses net of cash and cash equivalent disposed of		2,062
- income taxes paid on disposals		(301	)
- investments		1,033			2,209
- securities		1
- financing receivables held for operating purposes		1,901			5,405
- change in payables and receivables in relation to disposals		382
Cash flow from disposals		5,392			7,619
Net cash used in investing activities		(1,008	)		(3,618	)

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Cash Flow Statement (continued)

(€ million)
	Full Year
	2017		2016
Other financial activities held for trading		1		(1,257)
New borrowings (repayments) of long-term finance debt		(1,345)		2,135
Increase (decrease) in short-term financial debt		26		548
Financing receivables held for non-operating purposes		3,556		(1,105)
Dividends paid to Eni's shareholders		(2,880)		(2,881)
Net cash used in financing activities		(642)		(2,560)
Effect of change in consolidation (inclusion/exclusion of significant/insignificant subsidiaries)				6
Net cash flow for the period		1,631		451
Cash and cash equivalents - beginning of the period		4,583		4,132
Cash and cash equivalents - end of the period		6,214		4,583

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