Eni S.p.a. · MIL:ENI
Eni — Q1 2020 Earnings Presentation
16 slides from Eni's earnings presentation, Apr 24, 2020
Slide 1: 2020 Update & Q1 2020 Results
2020 Update & Q1 2020 Results April 24, 2020
Slide 2: Eni Transformation: 2019 vs 2014
ENI TRANSFORMATION: 2019 vs 2014 PRODUCTION kboe/d +17% EBIT MID-DOWNSTREAM € Mln +850 BUSINESS KPI 2014 2019 CAPEX € Bln -37% CASH NEUTRALITY $/boe -52% NET DEBT € Bln -16% FINANCIAL KPI 2 STRONGER AND MORE EFFICIENT TO FACE THE CURRENT DOWNTURN
Slide 3: Our Priorities in 2020
OUR PRIORITIES IN 2020 PEOPLE: HEALTH, SAFETY AND ENVIRONMENT COSTS OPERATIONS FINANCIAL CAPEX PRESERVE ASSET KEEP STRONG REDUCTION INTEGRITY & CONTINUITY BALANCE SHEET IN A SAFE ENVIRONMENT OPEX/G&A MAINTAIN SIZEABLE SAVINGS FLEXIBILITY LIQUIDITY RESERVE CAPITAL DISCIPLINE 3
Slide 4: Leveraging Capex Flexibility
2020 – LEVERAGING CAPEX FLEXIBILITY € Bln NEW PROJECTS & PRODUCTION OPTIMIZATION POSTPONEMENTS 2020 CAPEX 2.3 ~€ 5.5 bln <8 ~ 5.5 -30% vs original guidance ORIGINAL COVID + CUTS NEW POSTPONED PRODUCTION CAN BE QUICKLY REACTIVATED 4
Slide 5: Cost Optimization
2020 – COST OPTIMIZATION PRODUCTION COST | $/boe 2020 12 COST SAVINGS 10 Peers 8 Eni 6 € 0.6 bln 4 2 Peers: BP, CVX, EQNR, XOM, RDS, TOT, COP 0 2017 2018 2019 2020 INCREASING EFFICIENCY ACROSS ALL BUSINESSES 5
Slide 6: Focus on Upstream
2020 – FOCUS ON UPSTREAM 2020 UPSTREAM FREE CASH FLOW| € Bln 2020 PRODUCTION BEFORE OPEC + CUTS 1.5 1.75-1.80 Mboed $45/BBL BRENT 2020 Free Cash Flow sensitivity: $1 Brent: €180-190 mln Sensitivity assumes oil and gas prices move proportionally. It excludes scenario effects on equity participations.
Slide 7: Focus on Mid-Downstream
2020 – FOCUS ON MID-DOWNSTREAM 2020 EBIT ADJUSTED| € bln 2020 vs 2019 ITALIAN OIL PRODUCTS DEMAND xx-20% ITALIAN GAS DEMAND xx-8% 2020 EBIT ADJ MID-DOWNSTREAM € 0.6 Bln + 3% vs 19 7
Slide 8: Group Cash Generation
2020 – GROUP CASH GENERATION € bln 3.3 - € 2.3 Bln vs original guidance 11.5 1.7 0.8 7.3 ~ 5.5 2020 CFFO SCENARIO COVID-19 & ACTION 2020 CFFO 2020 CAPEX @60 $/bbl PRODUCTION PLAN @45 $/bbl CFFO represented before working capital 8 Scenario includes JV dividends
Slide 9: Highlights 1Q 2020
HIGHLIGHTS 1Q 2020 SOCIAL People health measures implemented worldwide RESPONSE TO Support to local stakeholders in fight against virus COVID19 HPC5 supercomputer contribution to Coronavirus research Exploration success in Angola, Mexico and UAE BUSINESS Production: 1.77 Mboed OVERVIEW G&P: EBIT +29
Slide 10: 1Q 2020 - EBIT
1Q 2020 – EBIT UPSTREAM EBIT ADJ| € Bln MID-DOWNSTREAM EBIT ADJ| € Bln +85% YoY Scenario effect 1.1 2.3 1.0 1Q 2019 1Q 2020 Brent ($/bbl) 63.2 50.3 PSV (€/kmc) 222 121 10
Slide 11: 1Q 2020 - Cash and Economic Results
1Q 2020 - CASH AND ECONOMIC RESULTS CFFO before WC | € BLN Scenario, LEVERAGE Covid & NET DEBT/EQUITY other (PRE IFRS 16) 3.4 1.6 CAPEX 2.0 28% 1Q 2019 1Q 2020 11
Slide 12: Conclusions
2020 CONCLUSIONS MID- ACTIONS TAKEN PRODUCTION DOWNSTREAM LIQUIDITY GUIDANCE AVAILABLE ADJ EBIT € 3.3 bln 1.75-1.8 MBOED > € 600 mln € 16 bln READY TO NAVIGATE THE DOWNTURN 12
Slide 13: 2020 Update & Q1 2020 Results Annex
2020 Update & Q1 2020 Results Annex April 24, 2020
Slide 14: Market Scenario
MARKET SCENARIO BRENT| $/bbl EXCHANGE RATE| €/$ 63.2 1.136 50.3 1.103 1Q 2019 1Q 2020 1Q 2019 1Q 2020 EUROPEAN GAS PRICES| €/kcm STANDARD ENI REFINING MARGIN| $/bbl TTF PSV 222 195 3.4 3.6 121 102 1Q 2019 1Q 2020 14 1Q 2019 1Q 2020
Slide 15: Revised Scenario
2020 REVISED SCENARIO 2020 Brent ($/bbl) 45 PSV (€/1000m3) 127 PSV – TTF Spread (€/1000m3) 20 SERM ($/bbl) 4.5 FX ($/€) 1.115 15
Slide 16: DNCF Confirms Upstream Portfolio Quality
DNCF CONFIRMS UPSTREAM PORTFOLIO QUALITY Unit DNCF| $/boe 8.8 7.9 7.0 6.6 5.9 5.2 5.0 4.0 peer 1 Eni peer 2 peer 3 peer 4 peer 5 peer 6 peer 7 Life Index 10.2 10.7 8.0 10.3 8.6 11.5 13.7 15.1 Oil reserves 57% 50% 47% 63% 49% 47% 59% 65% Prod & dev & aband. 15.2 16.6 22.5 24.4 17.3 18.5 23.6 22.3 cos