Slide 1: Interim update and Q2 results
interim update and Q2 results August 1st, 2013 eni.com
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains certain forward-looking statements particularly those regarding capital expenditures, development and management of oil and gas resources, dividends, allocation of future cash flow from operations, future operating performance, gearing, targets of prod
Slide 3: H1 was affected by volatility, economic headwinds…
H1 was affected by volatility, economic headwinds… Production disruptions Libya unrest, escalation of bunkering, volatility in Nigeria Libya security issues, labour disputes: ca. 20 kboe/d in H1 Nigeria flooding, bunkering, sabotage: ca. 30 kboe/d in H1 Weak European economy G&P Italian gas
Slide 4: ... but underlying progress was strong in E&P...
... but underlying progress was strong in E&P... E&P: strengthened building blocks of long-term growth Key start-ups: achieved 6 out of 8 scheduled for 2013 ((MLE,, CAFC,, El Merk,, Junin EP,, Abo Ph.3 & A-LNG)) Exploration: continuing track record with almost 1bn resources boe in H1 (Congo, Gha
Slide 5: ... and we took more incisive steps to counter market weakness
... and we took more incisive steps to counter market weakness G&P: further strengthened renegotiation efforts Closed o d satisfactory a a o y agreements ag with some o major ajo suppliers upp Working on further significant cuts to gas supply prices Continuing focus on premium commercial segme
Slide 6: ... whilst delivering a much improved balance sheet
... whilst delivering a much improved balance sheet Net financial position (€bn) 26.9 16 13 Q212 YE 2012 Q213 Pro forma* €0.55/share interim dividend proposal, in line with expectations *adjusted to include €3.5bn of proceeds from Mozambique disposal 6
Slide 7: Market environment
market environment Average European Brent €/$ exchange rate refining margin* $/bbl €/bbl $/bbl €/bbl 120 120 8 8 1,35 7 7 110 110 6 6 1,3 100 100 5 5 90 90 4 4 1,25 3 3 80 80 2 2 70 70 Q212 Q312 Q412 Q113 Q213 1 1 1,2 Q212 Q312 Q412 Q113 Q213 Q212 Q312 Q412 Q113 Q213 Euro USD * Brent/Ural FOB Medite
Slide 8: Q2 consolidated results
Q2 consolidated results Adj. operating profit * Adj. net profit * Million € Million € 3,997 1,289 1,947 576 5 6 Q212 Q213 Q212 E&P G&P R&M E&C and Q2 13 Other *Figures exclude Snam contribution in Q2 2012 8
Slide 9: E&P performance
E&P performance Oil & gas production Adj. operating profit kboe/d Million € 1,718 1,747 1,656 1,600 1,648 4,867 4,239 4 331 4,331 3,999 3,409 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Gas Oil 9
Slide 10: G&P performance
G&P performance Gas sales Adj. operating profit Bcm Million € 29.5 42 24.4 19.6 18.8 18.4 -227 -304 -401 401 -436 436 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 International* Italy * Including associates and excluding e&p sales in Europe and in the Gulf of Mexico 10
Slide 11: R&M performance
R&M performance Process utilization index Adj. operating profit % Million € 51 69 70 68 61 60 -7 -142 -152 -174 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 Q2 12 Q3 12 Q4 12 Q1 13 Q2 13 11
Slide 12: Other businesses: adjusted operating profit
other businesses: adjusted operating profit million € Q2 Q2 Δ% 2012 2013 Versalis (25) (82) n.s. Engineering & Construction 389 (680) n.s. Other activities (57) (52) 9 Corporate (99) (76) 23 12
Slide 13: Net debt evolution
net debt evolution billion € 2.2 0.1 16.5 16.0 2.0 2.8 2.4 Mar 2013 Operating Divestments Capex Dividends Others Jun 2013 cashflow 13
Slide 14: 2013 Outlook
2013 Outlook 2013 production: E&P up >3% at $90/bbl, excluding Nigeria, Libya impact broadly flat at current prices, Libya and Nigeria at H1 levels 2013 results: lt G&P temporarily lower than guidance where benefits are deferred effects of price reviews to be retroactive 2013 scenario expe
Slide 15: Appendix
Appendix August 1st, 2013 eni.com
Slide 16: Results of operations
results of operations million € Q2 12 Q2 13 H1 12 H1 13 Δ% 30,063 28,111 Net sales from operations 63,203 59,276 2,791 1,459 Operating Profit 9,340 5,293 (43.3) 326 326 Exclusion of inventory holding (gains) losses (86) 336 3,117 1,785 Replacement Cost Operating Profit 9,254 5,629 (39.2) 1,104 162 S
Slide 17: G&P: adjusted operating profit by activities
G&P: adjusted operating profit by activities million € -8.7% (401) (436) 93 International Transport 21 Marketing -494 -457 Q2 12 Q2 13 3
Slide 18: Unrealized intragroup profit eliminations
unrealized intragroup profit eliminations million € Q2 12 Q2 13 E&P vs R&M 107 42 E&P vs G&P (5) (28) E&C vs Eni Group (9) 16 Insurance vs Eni Group 0 8 Total 93 38 4
Slide 19: Eni share of profit from investments
eni share of profit from investments million € Q2 2012 2013 Equity method accounted for 167 135 Gas transportation abroad 5 4 EnBw (GVS) – 50% 2 4 Union Fenosa 45 35 Blue Stream Pipeline Co BV 10 12 Others 105 80 Dividends 130 269 Disposals 0 0 Others 0 (73) Net income from investments 297
Slide 20: G&P share of profit from associates
G&P share of profit from associates million € -28% 78 5 56 4 73 52 Q2 12 Q2 13 Marketing International Transport 6
Slide 21: Main operating data
main operating data Q2 12 Q2 13 H1 12 H1 13 Δ% 1,656 1,648 Hydrocarbon prod. (kboe/d) 1,669 1,624 (2.7) 144.6 140.3 Production sold* (mmboe) 293.8 276.1 (6.0) Natural gas sales: 6.52 6.50 • in Italy**(bcm) 18.67 19.03 1.9 13.03 11.91 • international*** (bcm) 30.79 28.89 (6.2) 9.62 8.69 Elect
Slide 22: Production by geographical area
production by geographical area kboe/d -0.5% 1,656 1,648 337 332 120 120 110 110 106 105 333 322 573 598 187 181 Q2 12 Q2 13 Italy North Africa Sub-Saharan Africa Kazakhstan America RoW 8
Slide 23: Oil & gas production
oil & gas production kboe/d -0.5% 1,656 1,648 1,656 1,648 187 181 856 845 1,469 1,467 800 803 Q2 12 Q2 13 Q2 12 Q2 13 Abroad Italy Gas Liquids 9
Slide 24: Capex
capex million € (6.7)% 128 3,015 2,812 166 151 126 231 57 53 2,437 2,563 Q2 12 Q2 13 -85 E&P G&P R&M E&C Other 10
Slide 25: Eni consolidated results
eni consolidated results 75% -58% 0.38 EPS 0.07 0.04 Euro per share* 0.16 Q2 12 Q2 13 Q2 12 Q2 13 Adjusted Adjusted 6% -18% 1.01 0.83 CFPS 0.70 0.74 Euro per share* Q2 12 Q2 13 Q2 12 Q2 13 Adjusted Adjusted * Continuing operations. Average shares: Q2 12 3,622.7 million; Q2 13 3,622.8 million Note: C