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 March 2016
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 o
(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 o No x
(If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): )
Press Release dated March 11, 2016
Press Release dated March 17, 2016
Press Release dated March 18, 2016
Press Release dated March 24, 2016
Press Release dated March 24, 2016
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. |
||||
Name: Antonio Cristodoro | ||||
Title: | Head of Corporate Secretary's Staff Office | |||
Date: March 31, 2016
Eni: sale of a stake in
Saipem - last condition subsequent not triggered
due to full repayment of the Saipem Groups debt to the Eni
Group
San Donato Milanese (Milan), March 11, 2016 - Following
previous announcements regarding the sale and purchase agreement
between Eni SpA ("Eni") and Fondo Strategico Italiano
SpA ("FSI"), concerning the sale by Eni to FSI of a
12.5% stake in Saipem SpAs ("Saipem") share
capital (the "Agreement") and further to Saipems
press release of February 26, 2016 concerning the repayment of
the Saipem Groups cash debt to the Eni Group, Eni hereby
announces that remaining activities relating to the full
repayment of the debt have been fulfilled today, in accordance
with the acknowledgement agreement entered into between Eni and
Saipem on October 27, 2015.
Consequently, following the fulfillment of the above activities
all the conditions subsequent under the sale and purchase
agreement were not triggered and the deal is officially
completed.
Company Contacts:
Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +80011223456
Switchboard: +39-0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
Web site: www.eni.com
2015 Consolidated
Financial Statements
and Draft Financial Statements of the Parent Company
Convening of the Annual
Shareholders Meeting
| Consolidated and separate financial statements: confirmed 2015 preliminary results announced on February 26, 2016; | |||
| Dividend proposal: euro 0.80 per share. |
Rome, March 17, 2016 - Today, the Board of Directors approved Enis consolidated financial statements and the separate draft financial statements of the parent company for the year ending December 31, 2015. They confirm 2015 preliminary results announced on February 26, 2016, as summarized below.
(euro million) |
Full year | |||
2014 |
2014 |
||
RESULTS (a) | |||||
Continuing operations: | |||||
Adjusted operating result (b) | 11,442 | 4,104 | |||
Adjusted net result (b) | 3,854 | 334 | |||
Net result | 101 | (7,680 | ) | ||
- per share (euro) | 0.03 | (2.13 | ) | ||
- per ADR ($) | 0.08 | (4.73 | ) | ||
Group net result | 1,291 | (8,783 | ) | ||
- per share (euro) | 0.36 | (2.44 | ) | ||
- per ADR ($) | 0.96 | (5.42 | ) | ||
(a) Pertaining to Eni's shareholders.
(b) Adjusted results from continuing operations exclude as usual
the items "profit/loss on stock" and extraordinary
gains and losses (special items), while they reinstate the
effects relating to the elimination of gains and losses on
intercompany transactions with sectors which are in the disposal
phase, E&C and Chemical, represented as discontinued
operations under the IFRS 5.
The Board of Directors intends to submit a proposal for the distribution of a cash dividend of euro 0.80 per share (euro 1.60 per ADR) at the Annual Shareholders Meeting. Included in this annual distribution is euro 0.401 per share which was paid as an interim dividend in September 2015. The balance of euro 0.40 per share (euro 0.80 per ADR) is payable to shareholders on May 25, 2016, the ex-dividend date being May 23, 2016 and the record date being May 24, 2016.
The review of the sustainability performance has been included in the 2015 Integrated Annual Report, to provide a comprehensive insight into the Companys business model.
An Annual Report on Form 20-F will be filed with the U.S. Sec and the Italian market authorities as early as in the in the first half of April 2016. This report will be disseminated through the Companys headquarters and on Eni's website eni.com and through other sources provided by the regulation in force. Enclosed are the 2015 IFRS consolidated statements of the companies within the Eni group as included in the approved Consolidated financial statements and the statements of the parent company Eni SpA.
The Board of Directors also approved the Report on Corporate Governance and Shareholding Structure and the Remuneration Report which have been prepared in accordance to Article No. 123-bis and ter of the Italian comprehensive code for exchanges and securities, respectively.
__________________
(1) | Dividends are not entitled to tax credit and, depending on the receiver, are subject to a withholding tax on distribution or are partially cumulated to the receivers taxable income. |
- 1 -
These reports will be filed with the Italian Exchange Authority, made available at the Company's headquarters and published on Enis website, in the "Governance", "Documentation" and "Investor Relations" sections, together with the 2015 Annual Report.
Convening of the Ordinary Shareholders' Meeting on May 12,
2016 (single call)
The Board of Directors convened the Annual Shareholders'
Meeting on May 12, 2016 Ordinary Meeting to approve
the 2015 financial statements of the parent company and the
dividend proposal, the appointment of a director pursuant to
article 2386 of the Italian Civil Code, and also to express its
consultative vote about the remuneration policy that the Company
intends to adopt in 2016 as disclosed in the first section of the
Remuneration Report.
Enis Chief Financial and Risk Management Officer, Massimo Mondazzi, in his capacity as manager responsible for the preparation of the Companys financial reports, certifies pursuant to rule 154-bis paragraph 2 of Legislative Decree No. 58/1998, that data and information disclosed in this press release correspond to the Companys evidence and accounting books and records.
* * *
Company Contacts:
Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +80011223456
Switchboard: +39-0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
Web site: www.eni.com
* * *
Eni
Società per Azioni Roma, Piazzale Enrico Mattei, 1
Share capital: euro 4,005,358,876 fully paid
Tax identification number 00484960588
Tel.: +39 0659821 - Fax: +39 0659822141
* * *
This press release is also available on the Eni website eni.com.
- 2 -
Attachment
IFRS Consolidated Financial Statements
PROFIT AND LOSS ACCOUNT
(euro million) |
Full year | |||
2014 |
2014 |
||
REVENUES | ||||||
Net sales from operations | 93,187 | 67,740 | ||||
Other income and revenues | 1,039 | 1,205 | ||||
Total revenues | 94,226 | 68,945 | ||||
OPERATING EXPENSES | ||||||
Purchases, services and other | 74,067 | 53,983 | ||||
Payroll and related costs | 2,572 | 2,778 | ||||
OTHER OPERATING (EXPENSE) INCOME | 145 | (485 | ) | |||
DEPRECIATION, DEPLETION, AMORTIZATION AND IMPAIRMENTS | 10,147 | 14,480 | ||||
OPERATING PROFIT | 7,585 | (2,781 | ) | |||
FINANCE INCOME (EXPENSE) | ||||||
Finance income | 5,672 | 8,576 | ||||
Finance expense | (7,042 | ) | (10,062 | ) | ||
Income (expense) from other financial activities held for trading | 24 | 3 | ||||
Derivative financial instruments | 165 | 1,620 | ||||
(1,181 | ) | (1,323 | ) | |||
INCOME (EXPENSE) FROM INVESTMENTS | ||||||
Share of profit (loss) of equity-accounted investments | 104 | (452 | ) | |||
Other gain (loss) from investments | 365 | 576 | ||||
469 | 124 | |||||
PROFIT BEFORE INCOME TAXES | 6,873 | (3,980 | ) | |||
Income taxes | (6,681 | ) | (3,147 | ) | ||
Net profit (loss) - continuing operations | 192 | (7,127 | ) | |||
Net profit (loss) - discontinued operations | 658 | (2,251 | ) | |||
Net profit (loss) | 850 | (9,378 | ) | |||
Attributable to Eni: | ||||||
- continuing operations | 101 | (7,680 | ) | |||
- discontinued operations | 1,190 | (1,103 | ) | |||
1,291 | (8,783 | ) | ||||
Non-controlling interests: | ||||||
- continuing operations | 91 | 553 | ||||
- discontinued operations | (532 | ) | (1,148 | ) | ||
(441 | ) | (595 | ) | |||
Earnings per share attributable to Eni (euro per share) | ||||||
- basic | 0.36 | (2.44 | ) | |||
- diluted | 0.36 | (2.44 | ) | |||
Earnings per share attributable to Eni - continuing operations (euro per share) | ||||||
- basic | 0.03 | (2.13 | ) | |||
- diluted | 0.03 | (2.13 | ) | |||
- 3 -
BALANCE SHEET
(euro million) |
|
Dec. 31, 2014 |
Dec. 31, 2015 |
|||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | 6,614 | 5,200 | ||||
Other financial activities held for trading | 5,024 | 5,028 | ||||
Other financial assets available for sale | 257 | 282 | ||||
Trade and other receivables | 28,601 | 21,159 | ||||
Inventories | 7,555 | 3,910 | ||||
Current tax assets | 762 | 351 | ||||
Other current tax assets | 1,209 | 622 | ||||
Other current assets | 4,385 | 3,639 | ||||
54,407 | 40,191 | |||||
Non-current assets | ||||||
Property, plant and equipment | 71,962 | 63,795 | ||||
Inventory - compulsory stock | 1,581 | 909 | ||||
Intangible assets | 3,645 | 2,433 | ||||
Equity-accounted investments | 3,115 | 2,619 | ||||
Other investments | 2,015 | 644 | ||||
Other financial assets | 1,022 | 788 | ||||
Deferred tax assets | 5,231 | 4,349 | ||||
Other non-current receivables | 2,773 | 1,548 | ||||
91,344 | 77,085 | |||||
Discontinued operations and assets held for sale | 456 | 17,516 | ||||
TOTAL ASSETS | 146,207 | 134,792 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Current liabilities | ||||||
Short-term debt | 2,716 | 5,712 | ||||
Current portion of long-term debt | 3,859 | 2,671 | ||||
Trade and other payables | 23,703 | 14,615 | ||||
Income taxes payable | 534 | 422 | ||||
Other taxes payable | 1,873 | 1,442 | ||||
Other current liabilities | 4,489 | 4,703 | ||||
37,174 | 29,565 | |||||
Non-current liabilities | ||||||
Long-term debt | 19,316 | 19,393 | ||||
Provisions for contingencies | 15,898 | 15,266 | ||||
Provisions for employee benefits | 1,313 | 1,056 | ||||
Deferred tax liabilities | 7,847 | 6,921 | ||||
Other non-current liabilities | 2,285 | 1,852 | ||||
46,659 | 44,488 | |||||
Liabilities directly associated with discontinued operations and assets held for sale | 165 | 7,070 | ||||
TOTAL LIABILITIES | 83,998 | 81,123 | ||||
SHAREHOLDERS' EQUITY | ||||||
Non-controlling interest | 2,455 | 1,916 | ||||
Eni shareholders' equity | ||||||
Share capital | 4,005 | 4,005 | ||||
Reserve related to the fair value of cash flow hedging derivatives net of tax effect | (284 | ) | (475 | ) | ||
Other reserves | 57,343 | 59,027 | ||||
Treasury shares | (581 | ) | (581 | ) | ||
Interim dividend | (2,020 | ) | (1,440 | ) | ||
Net profit | 1,291 | (8,783 | ) | |||
Total Eni shareholders' equity | 59,754 | 51,753 | ||||
TOTAL SHAREHOLDERS' EQUITY | 62,209 | 53,669 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 146,207 | 134,792 | ||||
- 4 -
STATEMENT OF CASH FLOWS
(euro million) |
Full year | |||
2014 |
2015 |
||
Net profit - continuing operations | 192 | (7,127 | ) | |||
Adjustments to reconcile net profit to net cash provided by operating activities: | ||||||
Depreciation, depletion and amortization | 9,134 | 9,654 | ||||
Impairments of tangible and intangible assets, net | 1,013 | 4,826 | ||||
Share of loss of equity-accounted investments | (104 | ) | 452 | |||
Gain on disposal of assets, net | (99 | ) | (559 | ) | ||
Dividend income | (384 | ) | (402 | ) | ||
Interest income | (162 | ) | (153 | ) | ||
Interest expense | 687 | 667 | ||||
Income taxes | 6,681 | 3,147 | ||||
Other changes | 864 | 588 | ||||
Changes in working capital: | ||||||
- inventories | 1,557 | 1,228 | ||||
- trade receivables | 1,969 | 4,910 | ||||
- trade payables | (1,520 | ) | (2,248 | ) | ||
- provisions for contingencies | (218 | ) | 70 | |||
- other assets and liabilities | 360 | 490 | ||||
Cash flow from changes in working capital | 2,148 | 4,450 | ||||
Net change in the provisions for employee benefits | 12 | 1 | ||||
Dividends received | 601 | 544 | ||||
Interest received | 107 | 79 | ||||
Interest paid | (857 | ) | (692 | ) | ||
Income taxes paid, net of tax receivables received | (6,671 | ) | (4,294 | ) | ||
Net cash provided by operating activities - continuing operations | 13,162 | 11,181 | ||||
Net cash provided by operating activities - discontinued operations | 1,948 | 722 | ||||
Net cash provided by operating activities | 15,110 | 11,903 | ||||
Investing activities: | ||||||
- tangible assets | (10,685 | ) | (10,619 | ) | ||
- intangible assets | (1,555 | ) | (937 | ) | ||
- consolidated subsidiaries and businesses | (36 | ) | ||||
- investments | (372 | ) | (228 | ) | ||
- securities | (77 | ) | (201 | ) | ||
- financing receivables | (1,289 | ) | (1,103 | ) | ||
- change in payables and receivables in relation to investments and capitalized depreciation | 669 | (1,058 | ) | |||
Cash flow from investments | (13,345 | ) | (14,146 | ) | ||
Disposals: | ||||||
- tangible assets | 97 | 373 | ||||
- intangible assets | 8 | 86 | ||||
- consolidated subsidiaries and businesses | 0 | 73 | ||||
- investments | 3,579 | 1,726 | ||||
- securities | 57 | 18 | ||||
- financing receivables | 506 | 533 | ||||
- change in payables and receivables in relation to disposals | 155 | 160 | ||||
Cash flow from disposals | 4,402 | 2,969 | ||||
Net cash used in investing activities | (8,943 | ) | (11,177 | ) | ||
- 5 -
(continued) STATEMENT OF CASH FLOWS
(euro million) |
Full year | |||
2014 |
2015 |
||
Proceeds from long-term debt | 1,916 | 3,376 | ||||
Repayments of long-term debt | (2,751 | ) | (4,466 | ) | ||
Increase (decrease) in short-term debt | 207 | 3,216 | ||||
(628 | ) | 2,126 | ||||
Net capital contributions by non-controlling interest | 1 | 1 | ||||
Dividends paid to Eni's shareholders | (4,006 | ) | (3,457 | ) | ||
Dividends paid to non-controlling interests | (49 | ) | (21 | ) | ||
Net purchase of treasury shares | (380 | ) | ||||
Net cash used in financing activities | (5,062 | ) | (1,351 | ) | ||
Effect of change in consolidation (inclusion/exclusion of significant/insignificant subsidiaries) | 2 | (13 | ) | |||
Effect of exchange rate changes on cash and cash equivalents and other changes | 76 | (776 | ) | |||
Net cash flow for the period | 1,183 | (1,414 | ) | |||
Cash and cash equivalents - beginning of the period | 5,431 | 6,614 | ||||
Cash and cash equivalents - end of the period | 6,614 | 5,200 | ||||
- 6 -
IFRS Financial Statements of the parent company
PROFIT AND LOSS ACCOUNT
(euro million) |
Full year | |||
2014 |
2015 |
||
REVENUES | ||||||
Net sales from operations | 42,364 | 33,653 | ||||
Other income and revenues | 360 | 337 | ||||
42,724 | 33,990 | |||||
OPERATING EXPENSES | ||||||
Purchases, services and other | (41,668 | ) | (33,238 | ) | ||
Payroll and related costs | (1,080 | ) | (1,148 | ) | ||
OTHER OPERATING (EXPENSE) INCOME | (79 | ) | (622 | ) | ||
DEPRECIATION, DEPLETION, AMORTIZATION AND IMPAIRMENTS | (1,282 | ) | (1,042 | ) | ||
OPERATING PROFIT | (1,385 | ) | (2,060 | ) | ||
FINANCE INCOME (EXPENSE) | ||||||
Finance income | 1,437 | 2,642 | ||||
Finance expense | (1,933 | ) | (2,982 | ) | ||
Income (expense) from other financial activities held for trading | 24 | 3 | ||||
Derivative financial instruments | 330 | (94 | ) | |||
(142 | ) | (431 | ) | |||
INCOME (EXPENSE) FROM INVESTMENTS | 6,101 | 6,682 | ||||
NET PROFIT BEFORE TAXES - continuing operations | 4,574 | 4,191 | ||||
Income taxes | 482 | (487 | ) | |||
NET PROFIT - continuing operations | 5,056 | 3,704 | ||||
NET PROFIT - discontinued operations | (546 | ) | (1,786 | ) | ||
NET PROFIT | 4,510 | 1,918 | ||||
(*) 2014 restated data: results take into account the effects of the "discontinued operations" and the mergers of Est Più SpA and Società Ionica Gas SpA, effective since December 1, 2015. Results of operations of merged companies relate to results since January 1, 2015 also for fiscal purposes.
- 7 -
BALANCE SHEET
(euro million) |
|
Dec. 31, 2014 |
Dec. 31, 2015 |
|||
ASSETS | ||||||
Current assets | ||||||
Cash and cash equivalents | 4,281 | 4,132 | ||||
Other financial activities held for trading | 5,024 | 5,028 | ||||
Trade and other receivables: | 20,832 | 14,561 | ||||
- financial receivables | 6,786 | 5,991 | ||||
- trade and other receivables | 14,046 | 8,570 | ||||
Inventories | 1,699 | 1,452 | ||||
Current income tax assets | 172 | 107 | ||||
Other current tax assets | 405 | 244 | ||||
Other current assets | 2,417 | 1,047 | ||||
34,830 | 26,571 | |||||
Non-current assets | ||||||
Property, plant and equipment | 7,605 | 7,503 | ||||
Inventory - compulsory stock | 1,530 | 899 | ||||
Intangible assets | 1,208 | 1,203 | ||||
Equity-accounted investments | 32,196 | 32,871 | ||||
Other financial assets | 3,980 | 6,969 | ||||
Deferred tax assets | 1,894 | 1,445 | ||||
Other non-current receivables | 1,673 | 786 | ||||
50,086 | 51,676 | |||||
Discontinued operations and assets held for sales | 14 | 236 | ||||
TOTAL ASSETS | 84,930 | 78,483 | ||||
LIABILITIES AND SHAREHOLDERS EQUITY | ||||||
Current liabilities | ||||||
Short-term debt | 3,616 | 3,687 | ||||
Current portion of long-term debt | 3,488 | 2,514 | ||||
Trade and other payables | 9,520 | 6,369 | ||||
Income taxes payable | 5 | 4 | ||||
Other taxes payable | 1,248 | 1,073 | ||||
Other current liabilities | 2,648 | 1,838 | ||||
20,525 | 15,485 | |||||
Non-current liabilities | ||||||
Long-term debt | 17,400 | 17,959 | ||||
Provisions for contingencies | 4,622 | 3,971 | ||||
Provisions for employee benefits | 382 | 366 | ||||
Other non-current liabilities | 1,698 | 1,881 | ||||
24,102 | 24,177 | |||||
Liabilities directly associated with discontinued operations | 251 | |||||
TOTAL LIABILITIES | 44,627 | 39,913 | ||||
SHAREHOLDERS EQUITY | ||||||
Share capital | 4,005 | 4,005 | ||||
Legal reserve | 959 | 959 | ||||
Other reserves | 33,430 | 33,709 | ||||
Interim dividend | (2,020 | ) | (1,440 | ) | ||
Treasury shares | (581 | ) | (581 | ) | ||
Net profit | 4,510 | 1,918 | ||||
TOTAL SHAREHOLDERS EQUITY | 40,303 | 38,570 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY | 84,930 | 78,483 | ||||
(*) 2014 restated data: results take into account the effects of the mergers of Est Più SpA and Società Ionica Gas SpA, effective since December 1, 2015. Results of operations of merged companies relate to results since January 1, 2015 also for fiscal purposes.
- 8 -
Eni 2016-2019 Strategic Plan
Succeeding in the downturn and fuelling long-term growth
Main targets
Profitable growth - CEO Descalzi: "Our industry is facing a very complex challenge: reducing costs to fulfill short term constraints while enhancing long term value. Thanks to our successful strategy of restructuring and transforming Eni into an integrated oil and gas company, we are well positioned to meet this challenge through a competitive cost structure, an efficient operating model and a flexible asset portfolio. We have started a new cycle of profitable growth and have the potential to extract more value in the future". |
- | Production CAGR > 3% per year, cumulative +13% by 2019 | |||
- | Upstream CAPEX -18% vs. previous plan | |||
- | Group CAPEX -21% at euro 37 bln, OPEX steadily below $7/bbl throughout the plan | |||
- | Exploration: 1.6 bln boe of new resources at a unit exploration cost of $2.3 during the plan period | |||
- | New projects average breakeven: drastically reduced from $45/boe to $27/boe average | |||
Restructuring - CEO Descalzi: "We are continuing to restructure our Mid-Downstream businesses successfully. Gas & Power will benefit from the renegotiation of long-term contracts and reductions in logistics costs. In Refining & Marketing, we are focused on lowering our breakeven while enhancing the efficiency of our operations and defending our retail market share". |
- | G&P in structural breakeven from 2017 | |||
- | Refining: lowering breakeven to around $3/bbl in 2018 with existing capacity | |||
Transformation - CEO Descalzi: "In 2015, we achieved 90% of the previous 4-year plan disposal target. We have now increased our 4-year target and will dispose of another 7 billion euros of assets by 2019, mainly through the dilution of our stakes in recent and material discoveries as part of our dual exploration model strategy". |
- | New disposals target: euro 7 bln by 2019 | |||
Financials - CEO Descalzi: "We will continue to deliver strong cash generation through sustainable growth in the upstream, the completion of restructuring across the Groups other businesses, cost efficiency and flexible portfolio management. Thanks to our financial flexibility, our shareholder remuneration policy continues to be sustainable even in a lower-than-expected oil price environment". |
| Cost reduction |
- | euro 3.5 bln of cost reductions from renegotiations, reducing the gap between costs and oil prices | |||
- | Cumulative G&A savings: euro 2.5 bln by 2019, vs. euro 2 bln in previous plan |
- 1 -
| Cash Flow From Operations |
- | to cover CAPEX at $50/bbl Brent in 2016 vs. $63/bbl in the previous plan | |||
- | to cover CAPEX and dividend at $60/bbl in 2017 vs. <$75/bbl in the previous plan | |||
- | to cover CAPEX and dividend at <$60/bbl in 2018-2019 |
| Shareholder remuneration |
- | Confirmed 2016 dividend proposal of euro 0.8 per share full cash |
London, March 18, 2016 - Claudio Descalzi,
Enis CEO, presents today the Companys 2016-2019
Strategic Plan to the financial community.
Eni is completing its transformation, crucial in such a complex
oil price environment, in order to enhance long-term growth while
meeting short-term financial constraints. This process will
provide cumulative production growth of 13% over
the plan period, despite an 18% reduction in Upstream CAPEX,
positive and resilient EBIT across the Groups other
businesses, strong cash generation and proceeds with the
execution of a new disposal program of euro 7 bln by 2019.
Another crucial aspect of Enis operating model is the
outstanding result in terms of safety and environment, which
remain among the companys top priorities.
In Safety, Eni was the best performer in the industry for the
last three years, with a Total Recordable Injury Rate of 0.7 in
2014, compared with a peer average of 1.24. In 2015 this was
further reduced by 37% reaching a TRIR of 0.45. For 2016 and
beyond we target a zero level of injuries.
In the period 2010-2014, Eni reduced greenhouse gasses (GHG) by
27% from 59 MtCO2 per year to 43 MtCO2. In
the upstream sector, Eni reached a level of unitary emission of
0.2 tCO2 per ton of oil equivalent produced, and for
the future Eni is planning to further improve these levels,
targeting a 43% reduction of unitary emissions by 2025.
Taking into account the Groups transformation process and the targets set out in the plan, Eni intends to confirm a 2016 dividend of euro 0.8/share full cash. The distribution policy will be progressive based on underlying earnings growth and the macro environment.
Upstream
Hydrocarbon production is expected to grow by over 3% per
year across the 2016-2019 period, and will be achieved mainly
through the ramp-up and start-up of new projects with a total
contribution of around 800 kboe/d in 2019.
Exploration remains an important value driver for the company.
Over the last 8 years, Eni has discovered 11.9 billion barrels
of resources at a unit cost of 1.2$/bbl, representing 2.4
times the overall production in the period, which is far
above the peer average of 0.3. Throughout the plan, Eni expects
new discoveries of 1.6 billion boe at a competitive cost
of 2.3$/b and short time-to-market for start-ups,
maintaining average exploration spending in line with 2015
levels. Notwithstanding an 18% reduction in overall upstream
CAPEX, cumulative production growth of 13% to 2019
will be achieved. Thanks to Enis portfolio flexibility,
ongoing successful exploration strategy, synergies with existing
assets and contract renegotiations, the average breakeven price
of new projects has been radically reduced from $45 to $27/boe.
- 2 -
Gas & Power
In 2015, Enis G&P business was close to breakeven,
thanks to the renegotiation of long-term gas contracts and cost
reduction in logistics. The new plan will enhance the
businesss profitability, focused on:
long-term contracts renegotiation, in order to fully
align gas contracts to market conditions
right-sizing the operating and logistics cost base
maximizing value through the expansion of the retail
customer base by 20%, leveraging on our synergistic sales
channels.
The cumulative cash flow from operations in the period
2016-19 will amount to euro 2.8 billion, with an EBIT of
euro 900 million in 2019. G&P is expected to reach structural
breakeven in 2017.
Refining & Marketing
In order to address the structural weaknesses in the Refining
sector, Enis target is to lower its breakeven to around
$3/bbl by 2018, while maintaining its current refining
capacity. This will generate a cumulative cash flow from
operations contribution of euro 2.9 billion over the plan
period.
The Refining business reached adjusted EBIT breakeven in 2015, 2
years ahead of plan; Refining & Marketing is expected to
reach an adjusted EBIT of euro 700 million by 2019.
Financial strategy
Investment during the four-year plan is focused on high value
projects with accelerated returns and the development of
conventional projects. CAPEX of approximately euro 37
billion represents a 21% reduction at constant foreign
exchange rates versus the previous plan. Eni plans to keep OPEX
below $7/boe, notwithstanding the possible future recovery
of oil prices and the start-up of giant fields with
higher-than-average costs. The new disposal program targets euro 7
billion of asset sales mainly through the dilution of high
working interest stakes in recent material discoveries, in line
with our "dual exploration" strategy. Moreover,
uncommitted CAPEX represents around 40% of the total investments
in 2017-2019, and gives Enis portfolio significant
flexibility should the current low oil price scenario continue
into the future.
In conclusion, the strategic transformation outlined in the
plan will lead to a much more robust Eni, well positioned to face
a period of lower oil prices while continuing to create value in
a sustainable way.
- 3 -
Company Contacts:
Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +39.80011223456
Switchboard: +39-0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
Web site: www.eni.com
- 4 -
Standard & Poors reduces Enis rating
San Donato Milanese (Milan), March 24, 2016 - Rating agency Standard & Poors lowered Enis long-term corporate credit rating to 'BBB+', outlook Stable, from 'A-' with CreditWatch with negative implications. Standard & Poors confirmed the 'A-2' short term credit rating. The rating action has been adopted mainly following the reduction of the oil prices assumed by Standard & Poors within its evaluations.
Company Contacts:
Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +80011223456
Switchboard: +39-0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
Web site: www.eni.com
Moodys reduces Enis rating
San Donato Milanese (Milan), March 24, 2016 - Rating agency Moody's Investors Service lowered Enis long-term corporate credit rating to Baa1, outlook Stable, from A3 on review for downgrade. The rating agency confirmed the P-2 short term credit rating.
Company Contacts:
Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +80011223456
Switchboard: +39-0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
Web site: www.eni.com