Eni S.p.a. · MIL:ENI

Eni — Q2 2011 Earnings Presentation

24 slides from Eni's earnings presentation, Jul 29, 2011

  1. Slide 1: Interim update and Q2 results

    interim update and Q2 results July 29th, 2011 eni.com

  2. Slide 2: H1 results: impacted by two uncertainties

    H1 results: impacted by two uncertainties… Libya: suspended production and Greenstream closure  E&P: full impact in Q2, reduced volumes by >230kboe/d  G&P: impact on ebit from lower shipper volumes and supply source substitution  Refining & Petchem: higher costs from replacing Libyan feedstocks O

  3. Slide 3: But showing good progress on strategic drivers

    … but showing good progress on strategic drivers  Excellent exploration performance  Skrugard: new potential hub in Barents Sea  Jangkrik: substantial upside in Indonesia  Sankofa and Gye Nyame: significant gas discoveries in Ghana  Additional resources in new giants (Perla, Block 15/06)  Prog

  4. Slide 4: Market environment

    market environment Average European Brent €/$ exchange rate refining margin* $/bl €/bl $/bl €/bl USD Euro * Brent/Ural FOB Mediterranean market. Eni calculations on Platt’s Oilgram data 4

  5. Slide 5: Q2 consolidated results

    Q2 consolidated results Adj. operating profit Adj. net profit Million € Million € 4,128 4,003 1,667 1,436 5

  6. Slide 6: E&P performance

    E&P performance Oil & gas production Adj. operating profit kboe/d Million € 4,120 1,954 4,028 3,826 1,758 1,705 1,684 3,442 3,296 1,489 Oil Gas 6

  7. Slide 7: G&P performance

    G&P performance Gas sales Adj. operating profit Bcm Million € 31.6 27.2 958 20.3 17.8 17.4 777 629 446 251 Italy International* * Including associates 7

  8. Slide 8: G&P: ebitda proforma adjusted

    G&P: ebitda proforma adjusted* million € 1,432 1,159 1,054 921 825 675 338 International Regulated Marketing Transport businesses in Italy * Ebitda pro forma includes: pro-quota ebitda contribution from SRG and associates 8

  9. Slide 9: R&M performance

    R&M performance Process utilization index Adj. operating profit % Million € 86 14 84 82 77 73 -39 -52 -114 -176 Q2 10 Q3 10 Q410 Q1 11 Q2 11 9

  10. Slide 10: Other businesses: adjusted operating profit

    other businesses: adjusted operating profit million € Q2 Q2 Δ% 2010 2011  Petrochemicals (11) (30) -173  Engineering & Construction 343 378 10  Other activities (51) (60) -18  Corporate (75) (69) 8 10

  11. Slide 11: Sources and uses of cash

    sources and uses of cash billion € 6.9 0.4 Sources 6.0 Uses 0.1 2.2 5.0 Cash flow from 4.6 Capex 0.6 2.2 operations Dividends Divestments and others Exchange differences and others 4.6 4.3 4.4 3.7 Q2 2010 Q2 2011 11

  12. Slide 12: Financial debt: high quality

    financial debt: high quality Debt by instrument Debt by maturity Commercial >5 yrs paper 10% 3-5 yrs Bonds 51% 2-3 yrs Banks 39%  Extension of debt maturity: >80% long term  Over 50% of long term debt at fixed interest rates  No bonds due to expire in 2011 Data @ June 2011 12

  13. Slide 13: 2011 Outlook

    2011 Outlook E&P  Production in line with 2010 at $100/bbl and net of Libya impact (ca – 200kboe/d) G&P  Ebit broadly in line with 2010 including renegotiation benefits and net of Libya impact (ca - €300m) R&M  Ongoing focus on cost optimization and increase flexibility of refining system Leverag

  14. Slide 14: Appendix

    Appendix 29 July 2011 eni.com

  15. Slide 15: Results of operations

    results of operations million € Q2 10 Q2 11 1H 10 1H 11 Δ% 22.902 24.596 Net sales from operations 47.706 53.375 4.305 3.810 Operating Profit 9.152 9.448 3.2 (368) (240) Inventory holding gains (losses) (777) (909) 3.937 3.570 Replacement Cost Operating Profit 8.375 8.539 2.0 191 433 Special items 8

  16. Slide 16: G&P: adjusted operating profit by activities

    G&P: adjusted operating profit by activities million € -60.1% 629 251 International Transport Regulated business in Italy Marketing 3

  17. Slide 17: Unrealized profit in stocks (UPIS)

    unrealized profit in stocks (UPIS) million € Q2 10 Q2 11 E&P vs R&M (78) (150) E&P vs G&P (14) (14) E&C vs Eni Group (6) (14) Total UPIS (98) (178) 4

  18. Slide 18: Eni share of profit from associates

    eni share of profit from associates Q2 2010 2011 Equity method accounted for 114 145  Gas transportation abroad 24 36  EnBw (GVS) 0 (2)  Union Fenosa 25 36  Blue Stream 11 10  Others 54 65 Dividends 200 268 Disposals 1 - Others (4) 1 Net income from associates 311 414 5

  19. Slide 19: G&P share of profit from associates

    G&P share of profit from associates million € 8.8% 98 90 Marketing Regulated business in Italy International Transport 6

  20. Slide 20: Main operating data

    main operating data Q2 10 Q2 11 H1 10 H1 11 Δ% 1,758 1,489  Hydrocarbon prod. (kboe/d) 1,800 1,586 (11.9) 154.1 129.1  Production sold* (mmboe) 312.7 274.8 (12.1) 6.3 7.1  Natural gas sales in Italy**(bcm) 17.1 19.1 11.4 10.9 11.6  Natural gas sales in Europe*** (bcm) 28.5 29.9 4.9 9.6 9.7  Pow

  21. Slide 21: Production growth by geographical area

    production growth by geographical area kboe/d -15.3% 1,758 1,489 8

  22. Slide 22: Oil & gas production

    oil & gas production kboe/d -15.3% 1,758 1,758 1,489 1,489 793 1,638 1,498 9

  23. Slide 23: Capex

    capex million € -13.6% 4,328 246 3,740 137 3,186 2,767 10

  24. Slide 24: Eni consolidated results

    eni consolidated results -31% -14% EPS 0.50 0.46 0.40 Euro per share* 0.35 Q2 10 Q2 11 Q2 10 Q2 11 Adjusted Adjusted -17% -14% 1.13 1.07 0.94 0.92 CFPS Euro per share* Q2 10 Q2 11 Q2 10 Q2 11 Adjusted Adjusted * Average shares: Q2 10 3,622.4 million; Q2 11 3,622.4 million Note: Cash Flow calculated

Eni — Q2 2011 Earnings Presentation on 6ix