Eni S.p.a. · MIL:ENI

Eni — Q2 2012 Earnings Presentation

24 slides from Eni's earnings presentation, Aug 1, 2012

  1. Slide 1: Interim update and Q2 results

    interim update and Q2 results August 1st, 2012 eni.com

  2. Slide 2: H1 2012: delivering on strategic refocusing

    H1 2012: delivering on strategic refocusing... Snam disposal  Agreed disposal of 30% of Snam to CdP for €3.5bn  Succesful placement of further 5% at favourable conditions Galp disposal  Completed sale of 5% of Galp at €14.25/sh  Increased optionality following exit from shareholder pact Sharehol

  3. Slide 3: Continuing extraordinary exploration success

    … and continuing extraordinary exploration success USA Egypt Norway Ukraine Russia  Heidelberg 3  Emry Deep  Havis  Unconventional  Acreage in Barents 1X  Skrugard -2 blocks (Lviv Basin) and Black Sea Vietnam  3 new blocks Nigeria  Tinpa  Afiando Angola Mozambique Kenya Indonesia  Vandumbu

  4. Slide 4: H1 2012: good performance in a worsening economic situation

    H1 2012: good performance in a worsening economic situation E&P  Production growth driven by swift  Resilient oil price and strong dollar recovery in Libyan volumes G&P  Reflecting market weakness in supply renegotiations  Demand hit by economic recession and coal, renewable competitiveness  St

  5. Slide 5: Market environment

    market environment Average European Brent €/$ exchange rate refining margin* $/bl €/bl $/bl €/bl 135 135 7 7 1,5 120 120 6 6 1,45 5 5 105 105 1,4 4 4 90 90 1,35 3 3 75 75 1,3 2 2 60 60 1,25 1 1 45 45 0 0 1,2 Q211 Q311 Q411 Q112 Q212 Q211 Q311 Q411 Q112 Q212 Q211 Q311 Q411 Q112 Q212 USD Euro * Brent/

  6. Slide 6: Q2 consolidated results

    Q2 consolidated results Adj. operating profit Adj. net profit* Million € Million € 4,243 3,717 1,377 1,381 Q2 11 E&P G&P R&M Other Q2 12 Q2 11 Op. Profit Inv/Fin Taxes Minor Q2 12 adj Charges * From continuing operations. Adj. net profit from discontinued operations: € 76m 6

  7. Slide 7: E&P performance

    E&P performance Oil & gas production Adj. operating profit kboe/d Million € 5,091 1,678 1,674 1,647 1,489 4,214 4,234 1,473 3,908 3,822 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Gas Oil 7

  8. Slide 8: G&P performance

    G&P performance Gas sales Adj. operating profit Bcm Million € 922 29.9 24.7 20.3 19.6 17.3 -201 -69 -314 -369 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 International* Italy * Including associates 8

  9. Slide 9: G&P: EBITDA pro forma adjusted

    G&P: ebitda proforma adjusted* Million € 1,221 592 475 532 307 -88 236 162 -100 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 International Marketing Transport * Ebitda pro forma includes pro-quota ebitda contribution from associates 9

  10. Slide 10: R&M performance

    R&M performance Process utilization index Adj. operating profit % Million € 2 83 75 73 72 64 -124 -144 -226 -268 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 10

  11. Slide 11: Other businesses: adjusted operating profit

    other businesses: adjusted operating profit Million € Q2 Q2 Δ% 2011 2012  Chemicals (32) (26) 18.8  Engineering & Construction 378 388 2.6  Other activities (60) (57) 5.0  Corporate (69) (100) -44.9 11

  12. Slide 12: Net debt evolution

    net debt evolution Billion € 3.3 0.4 1.5 27.4 4.2 26.9 2.3 Mar-12 Operating Dividends Capex Other Others Jun-12 cashflow Investments 12

  13. Slide 13: 2012 Outlook

    2012 Outlook  Production up ca. 10% net of PSA, Elgin Franklin and E&P Nigeria bunkering impact  Ebit higher than in 2011 despite significant market G&P headwinds  Weak demand for refined products to offset continuous R&M effort for efficiency improvements 13

  14. Slide 14: Appendix

    appendix August 1st, 2012 eni.com

  15. Slide 15: Results of operations

    results of operations million € Q2 11 Q2 12 1H 11 1H 12 Δ% 24.118 30.063 Net sales from operations 52.526 63.203 3.604 2.780 Operating Profit 9.187 9.317 1.4 (240) 326 Inventory holding (gains) losses (909) (86) 3.364 3.106 Replacement Cost Operating Profit 8.278 9.231 11.5 353 1.137 Special items 4

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

    G&P: adjusted operating profit by activities million € -17.5% -314 -369 International Transport Marketing 3

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

    unrealized profit in stocks (UPIS) million € Q2 11 Q2 12 E&P vs R&M (150) 107 E&P vs G&P (14) (5) E&C vs Eni Group (14) (9) Total UPIS (178) 93 4

  18. Slide 18: Eni share of profit from associates

    eni share of profit from associates Q2 2011 2012 Equity method accounted for 130 167  Gas transportation abroad 28 5  EnBw (GVS) (2) 2  Union Fenosa 36 45  Blue Stream 10 10  Others 58 105 Dividends 268 130 Disposals - - Others 1 0 Net income from associates 399 297 5

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

    G&P share of profit from associates million € -6.0% 83 78 Marketing International Transport 6

  20. Slide 20: Main operating data

    main operating data Q2 11 Q2 12 H1 11 H1 12 Δ% 1,489 1,647  Hydrocarbon prod. (kboe/d) 1,586 1,661 4.7 129.1 143.9  Production sold* (mmboe) 274.8 292.3 6.4 7.1 6.5  Natural gas sales in Italy**(bcm) 19.1 18.7 (2.2) 11.6 11.1  Natural gas sales in Europe*** (bcm) 29.9 27.4 (8.1) 9.7 9.6  Power

  21. Slide 21: Production growth by geographical area

    production growth by geographical area kboe/d 10.6% 1,647 1,489 8

  22. Slide 22: Oil & gas production

    oil & gas production kboe/d 10.6% 1,647 1,647 1,489 1,489 856 1,317 1,461 9

  23. Slide 23: Capex

    capex million € -9.8% 137 3,343 3,015 128 184 166 49 53 2,767 2,437 10

  24. Slide 24: Eni consolidated results

    eni consolidated results -87% 0.3% 0.33 EPS 0.380 0.381 Euro per share* 0.04 Q2 11 Q2 12 Q2 11 Q2 12 Adjusted Adjusted 14% 19% 0.89 1.02 1.04 CFPS 0.87 Euro per share* Q2 11 Q2 12 Q2 11 Q2 12 Adjusted Adjusted * Average shares: Q2 11 3,622.6 million; Q2 12 3,622.8 million Note: Cash Flow calculated

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