Eni S.p.a. · MIL:ENI
Eni — Investor Day (March 2024)
32 slides from Eni's investor day presentation, Mar 14, 2024
Slide 1: Breakout Sessions: Upstream, Plenitude, Enilive, Versalis
BREAKOUT SESSIONS Upstream, Plenitude, Enilive, Versalis Capital Markets Update
Slide 2: Natural Resources presentation: From Exploration to Production
Natural Resources presentation From Exploration to Production March 14th 2024
Slide 3: From Exploration…
From Exploration… Consistent and unmatched exploration approach
Slide 4: A Constant Focus on Exploration
A CONSTANT FOCUS ON EXPLORATION 15 CONSECUTIVE YEARS OF GIANT AND HIGH IMPACT DISCOVERIES IN DIVERSIFIED GEOGRAPHIES AND GEOLOGIES, ALWAYS AS OPERATOR Gas Liquids …and the long run continues… Ghana Mozambique Congo Egypt Angola Ivory Coast Indonesia Sankofa Mamba Marine XII Nooros Agogo Baleine Geng
Slide 5: Fastest Value Creation
FASTEST VALUE CREATION HIGHEST PRODUCTION, VALUE AND RETURN GENERATED FROM EXPLORATION PRODUCTION FROM NEW VALUE CREATION FROM IRR FROM EXPLORATION IN FIELD DISCOVERIES IN EXPLORATION IN 2013-2022* 2013-2022 | Kboed 2013-2022 | US$M 500 20,000 25% 400 20% 10,000 300 15% 200 10% 0 100 5% 0 -10,000 0%
Slide 6: Key Factors for the Exploration Success
KEY FACTORS FOR THE EXPLORATION SUCCESS AN INTEGRATED AND SUCCESSFUL OPERATING MODEL SOLID & SIMPLE STRATEGY CENTRALISED COMPUTATIONAL PROCESSES CAPABILITY High equity shares, Presidium of basins knowledge Proprietary algorithms simple JVs, rigorous project ranking master in seismic imaging operator
Slide 7: Extraordinary Evolution of Super-Computing
EXTRAORDINARY EVOLUTION OF SUPER-COMPUTING UNDISPUTED LEADERSHIP IN COMPUTATIONAL POWER IN THE INDUSTRY PetaFlops ENI HPC EVOLUTION Peak >600 operations 1 PetaFlop = 1015 second Peer 1 Peer 2 7 HPC 6 CURRENTLY TO BE AMONG THE TOP 5 WORLDWIDE SUPERCOMPUTERS
Slide 8: … To Production
… To Production Development Model based on Low Carbon Fast Track & CAPEX Efficiency
Slide 9: Low Carbon Fast Track
LOW CARBON FAST TRACK FROM DISCOVERY TO PRODUCTION FROM TRADITIONAL … CAPEX PRODUCTION Start Up FREE CASH FLOW MORE ROBUST ECONOMICS DISCOVERY Phased and fast developments improve Rate of Returns with reduced industrial risks HIGH FINANCIAL EXPOSURE … TO FAST TRACK Anticipated FREE CASH FLOW Start U
Slide 10: Low Carbon Fast Track – Key Enablers
LOW CARBON FAST TRACK – Key Enablers LOW CARBON IN-HOUSE “DEVELOPING WHILE DEVELOPMENT COMPETENCIES APPRAISING” Application of Best Available Parallelization of activities reservoir, Phased development approach to Technologies engineering and procurement de-risk the full field exploitation Discovery
Slide 11: Baleine – Phased Development Approach
BALEINE – Phased development approach «DEVELOPING WHILE APPRAISING» S/U Ph.1 S/U Ph.2 S/U Ph.3 Ph.3 120000 Phase 1 100000 Phase 2 Phase 3 80000 Oil Rate 60000 40000 20000 Ph.1 Ph.2 0 2043 2023 2025 2027 2029 2031 2033 2035 2037 2039 2041 2045 2047 Years 11
Slide 12: GHG Emissions Reduction: Baleine Case Study
GHG EMISSIONS REDUCTION BALEINE CASE STUDY Baleine – Ivory Coast DESIGN TO MINIMIZE EMISSIONS New Design approach allowing~40% GHG emission reduction Full electric and Best Available Technologies application Combined Cycle Gas Sea Water Turbines Turbine Energy Recovery Zero flaring % GHG REDUCTION -
Slide 13: Baleine, Côte d'Ivoire
BALEINE, Côte D’Ivoire First net zero green field development in Africa (Scope 1&2) Baleine Gas supplied to Domestic Market >70% of country Gas Production before Baleine* Fast track: Time To Market 1.9 years 5 months from discovery to FID * Gas export at full development
Slide 14: Capex Efficiency
CAPEX EFFICIENCY THROUGH KEY STRATEGIC PILLARS… MARINE XII – CONGO LNG CROSS-FUNCTIONAL AGILE APPROACH Leaner upstream platforms, with power generation Systemic use during Projects Front End Loading, from central hub with CAPEX reduction in the order of 10% Optimization of number of wells e trajecto
Slide 15: Capex Efficiency Across the Supply Chain
CAPEX EFFICIENCY …AND ACROSS THE ENTIRE SUPPLY CHAIN MARINE XII – CONGO LNG FROM TRADITIONAL … FLEXIBLE CONTRACTING IN TIGHT LUMP SUM COST-PLUS/TARGET COST MARKET ENVIRONMENT From Traditional «EPC Lump Sum» formula to risk 3rd party service 60% sharing models and collaborative approach Contractor se
Slide 16: Congo LNG – Fast & Efficient
CONGO LNG – fast & efficient … Gas resources produced for country needs Excess gas for LNG export Zero routine flaring Associated gas valorization Fast track: From FID to production in less than 1 year First LNG Cargo completed in March
Slide 17: Breakout Sessions: Plenitude
BREAKOUT SESSIONS: PLENITUDE CAPITAL MARKETS UPDATE 14 MARCH 2024
Slide 18: Consistent Growth: Guidance and Track Record
CONSISTENT GROWTH GUIDANCE AND TRACK RECORD EBITDA | € BLN 2 1 0.9 0.6 0.7 0.4 0.5 0.3 2018 2019 2020 2021 2022 2023 2024 2027 2030 INST. CAPACITY CUSTOMERS CPs EBITDA GW MLN k € BLN GUIDANCE 2023 (March 2023) 3✓ 10 ✓ 20 ✓ >0.7 ✓ GUIDANCE 2022 (March 2022) 2✓ 10 ✓ 12 ✓ >0.6 ✓ 18 EBITDA is adjusted a
Slide 19: Business Focus
BUSINESS FOCUS RENEWABLES RETAIL E-MOBILITY 2027 EBITDA: >€0.8 BLN (3x vs 2024) 2027 EBITDA: >€0.8 BLN (+15% vs 2024) 2027 SALES: €1.5 BLN (6x vs 2024) >20 GW pipeline Growing in power Integrated model: CSO+CPO+MSP Retail as route to market Focus on Energy solutions Capillarity in Italy, DC focus in
Slide 20: Key Data
KEY DATA CFFO ante WC (€ BLN) CAPEX (€ BLN) NET DEBT/ EBITDA 1.0 1.6 <3x 2.5x 1.2 >0.6 2023 AVG 24-27 2023 AVG 24-27 2023 AVG 24-27 NET DEBT YE23: €2.4 BLN 20
Slide 21: Breakout Sessions: Enilive
BREAKOUT SESSIONS: ENILIVE CAPITAL MARKETS UPDATE 14 MARCH 2024
Slide 22: Macro: View of the RD/SAF Market
MACRO: VIEW OF THE RD/SAF MARKET ROBUST LONG-TERM PERSPECTIVES DRIVEN BY MOUNTING REGULATORY SUPPORT WORLD RENEWABLE DIESEL/SAF DEMAND | Mton/y KEY RECENT REGULATORY UPDATE N. AMERICA EUROPE 46 RD SAF RD SAF 40 IN PLACE 35 30 EU NEW MEXICO 20 RED3 (‘Nov 23) LCFS (‘Mar 24) 15 16 29% renewable fuels -
Slide 23: Feedstock: Vertical Integration Strategy Advantage
FEEDSTOCK: VERTICAL INTEGRATION STRATEGY ADVANTAGE DEEP DIVE ON UNIQUE AGRI-FEEDSTOCK MODEL AGRI-FEEDSTOCK PRODUCTION OBJECTIVES Production for agri-feedstock supply chains > 1mmt 700kt Strong growth from 40kt in 2024 to 700kt+ SECURITY OF SUPPLY in 2027 FIRST CARGO 20-30% saving vs market benchmark
Slide 24: SAF Optionality: Accelerated Target
SAF OPTIONALITY: ACCELERATED TARGET FOCUS ON HIGH-VALUE ADDED PRODUCTS OPTIONALITY IN A FLEXIBLE PRODUCTION SYSTEM HVO DIESEL HVO NAPHTHA HVO-LPG Pure HVO already available in 640+ Integration with Gasoline blending optionality retail stations Versalis crackers and JV with international Invested to
Slide 25: Marketing & Trading
MARKETING & TRADING DOWNSTREAM INTEGRATION AND TRADING TO SUPPORT BIOFUELS GLOBAL FOOTPRINT IN FEEDSTOCK SOURCING ENILIVE STATION AS A GROWING HVO OUTLET 5,267 Total number of stations 527 Venice Livorno 157 325 Chalmette 265 Gela Daesan Biorefineries (existing) 3,976 17 Pengerang Biorefineries (pla
Slide 26: Breakout Sessions: Versalis
BREAKOUT SESSIONS: VERSALIS CAPITAL MARKETS UPDATE 14 MARCH 2024
Slide 27: Global Chemical Industry
GLOBAL CHEMICAL INDUSTRY GROWTH WITH DIFFERENT GEOGRAPHIC DYNAMICS EUROPE IS FOCUSING ON EUROPE SPECIALIZATION & Sustainability and specialization CHINA SUSTAINABILITY High capacity 606 760 growth USA 2390 Low cost raw materials HIGH ENERGY COSTS and energy 135 CO2 EMISSIONS COSTS MIDDLE EAST CAGR 5
Slide 28: Strategic Sustainable Markets
STRATEGIC SUSTAINABLE MARKETS CHEMICALS AS KEY ENABLER COMPETITIVE LANDSCAPE Evolution of sustainable chem market for priority applications | ~B€ DUAL APPROACH TOWARDS 2022 2030F SUSTAINABLE CHEM: SPECIALIZATION VS. “NEW CORE” EBITDA % INCREASE FOCUS ON SPECIALIZATION REINFORCE / TRANSFORM CORE BUSI
Slide 29: Regulatory Approach by Geography
REGULATORY APPROACH BY GEOGRAPHY DIFFERENTIATED NEED FOR INNOVATION & SPECIALIZATION TO SUSTAINABILITY REQUIREMENTS European Union • Front-runner on targets China • Relying on standards setting, but enforcement not always set (state • Limited effort on disclosure / fragmentation) corporate accountab
Slide 30: Versalis: Long Term Value Through Restructuring & New Platforms
VERSALIS LONG TERM VALUE THROUGH RESTRUCTURING & NEW PLATFORMS RESTRUCTURING BASE CHEMICALS PERIMETER REDUCTION & EBITDA BREAKEVEN HIGH CAPITAL INTENSITY SITE RECONFIGURATION IN 2025 HIGH SCALE CIRCULARITY INVESTMENTS HIGH MARGIN VOLATILITY THROUGH COMPLEMENTARY EBIT POSITIVE SOLUTIONS IN 2026 FCF B
Slide 31: Capital Spending Allocation
CAPITAL SPENDING ALLOCATION BOOST TRANSFORMATION Enabling integrity & safety ~30% of total capex target HSE & ASSET INTEGRITY TOTAL CAPITAL SPENDING TARGET ~1 B€ (24-27) New platforms development ~ 40% of total capex target LOWER CAPITAL INTENSITY IN NEW PLATFORMS OPPORTUNITIES FROM SATELLITE MODEL
Slide 32: Versalis Decarbonization Plan
VERSALIS DECARBONIZATION PLAN DECARBONIZATION LEVERS CHEMISTRY CIRCULAR FROM RENEWABLE ECONOMY RAW MATERIALS SCOPE 3 2018 2025 2035 2050 SCOPE 3 BASELINE -15% -30% CARBON NEUTRALITY SCOPE 1+2 SCOPE 1+2 SCOPE 1+2+3 LOW EMISSIONS TECHNOLOGIES AND RENEWABLE ENERGY SCOPE 1 AND 2 32