Eni S.p.a. · MIL:ENI
Eni — H1 2020 Earnings Presentation
18 slides from Eni's earnings presentation, Jul 30, 2020
Slide 1: The New Eni: Accelerating the Energy Transition
The New Eni: Acceler ating the Ener gy Tr ansition Str ategy Update and H1 2020 Results July 30, 2020
Slide 2: The New Eni: Organizational Structure
THE NEW ENI: ORGANIZATIONAL STRUCTURE SUPPORT FUNCTIONS TECHNOLOGY, R&D & DIGITAL NATURAL RESOURCES ENERGY EVOLUTION CCS/CCUS/FORESTRY OIL, GAS, LNG CCS/CCUS AND FORESTRY TRADITIONAL TO BIO, BLUE, GREEN PRODUCTS TO BE A LEADER IN THE ENERGY TRANSITION 2
Slide 3: Long Term Strategy Unchanged
LONG TERM STRATEGY UNCHANGED OIL & GAS REFINING GAS SHARE: ~85% 5 MTPA BIOFUELS CHEMICALS MARKETING BIO & RECYCLED PRODUCTS 2050 100% SUSTAINABLE FUELS RENEWABLES RETAIL GAS & POWER INSTALLED CAPACITY > 55 GW > 20 MLN CUSTOMERS 3
Slide 4: Improved 2020 and 2021 Capex and Cost Reduction
IMPROVED 2020 AND 2021 CAPEX AND COST REDUCTION CAPEX REDUCTION TARGET | € Bln COST REDUCTION TARGET| € Bln -0.6 -2.3 -2.4 -2.6 -1.4 -1.4 -2.5 / 3.0 > 30% Cut vs Original Plan 25% - 30% Structural 2020 ACTIONS: >€1 Bln vs previous guidance 2020+2021 ACTIONS: ~€ 8 Bln vs original plan 4
Slide 5: Group Capex Plan
GROUP CAPEX PLAN NEW 2020-2023 CAPEX | € Bln ORIGINAL PLAN: AVG <€ 8 BLN ~8 GREEN: 26% ACCELERATING THE ~6 vs 20% in Original Plan ENERGY TRANSITION 5.2 NEW VS ORIGINAL 2020 -2023 PLAN GREEN: + € 0.8 Bln UPSTREAM: - € 6 Bln 2020 2021 2022 2023 ~€ 5 Bln CUT vs Original Plan 5
Slide 6: Upstream Production
UPSTREAM PRODUCTION | Mboed 2020 – 2023 MAIN START UPS CAGR 2019-23 +1.7% 2023-2025 RANGE 2020 2021 Berkine North (ALGERIA) Cabaça North (ANGOLA) 2.0-2.1 Merakes (INDONESIA) 2020 RANGE Nené ph. 2B (CONGO) Mahani (UAE – SHARJAH) Area 1 Full Field (MEXICO) 1.71-1.76 Fenja (NORWAY) 2022 2023 Coral (MOZ
Slide 7: Growth in Decarbonized Products
GROWTH IN DECARBONIZED PRODUCTS RENEWABLES BIO - REFINERIES ENI GAS E LUCE VERSALIS MARKETING INSTALLED INSTALLED CUSTOMER SHARE OF SHARE OF CAPACITY (GW) CAPACITY (MTPA) BASE (MLN) BIO AND RECYCLED SUSTAINABLE PRODUCTS >30% FUELS >55 5 100% >20 25% >25 11 >9.5 ∼15 25% 1 0.3 3 1% 5% 2020 2023 2030 2
Slide 8: Shareholders Remuneration Policy
SHAREHOLDERS REMUNERATION POLICY DIVIDEND BASED UPON ENI’S ANNUAL BRENT SCENARIO | € 0.7 TOTAL DIVIDEND 0.56 0.45 0.41 0.36 $45 Brent $48 Brent $50 Brent $55 Brent $60 Brent PROGRESSIVE €0.36 dividend when Brent Scenario is $45 / bbl or above FLOOR DIVIDEND Floor is evaluated yearly for growth consi
Slide 9: Highlights H1 2020
HIGHLIGHTS H1 2020 RESPONSE TO People health measures implemented worldwide COVID19 Assets integrity maintained Exploration success in Egypt, Angola, Mexico and Sharjah (UAE) UPSTREAM Production: 1.74 Mboed (-5% YoY). Start up in Angola and Algeria G&P: EBIT adj € 0.65 Bln (+70% YoY). Strong optimiz
Slide 10: Upstream: Still Positive in a Very Weak Environment
UPSTREAM: STILL POSITIVE IN A VERY WEAK ENVIRONMENT EBIT ADJ| € Bln VOLUME/MIX & OTHER 2020 PRODUCTION CONFIRMED SCENARIO POST OPEC CUTS 4.4 0.2 1.71 – 1.76 1H 2019 1H 2020 Mboed Brent ($/bbl) 66.0 39.7 PSV (€/kmc) 200 98 FX 1.13 1.10 10
Slide 11: Strong Mid-Downstream Result
STRONG MID-DOWNSTREAM RESULT H1 2020 EBIT ADJ| € bln GUIDANCE: 2020 EBIT ADJ| € bln R&M G&P VERSALIS R&M G&P VERSALIS SCENARIO, COVID 0.40 0.65 0.65 0.40 0.38 0.30 0.35 0.11 0.17 -0.07 -0.13 -0.10 -0.20 1H 2019 1H 2020 @ Q1 NEW 11 2020 GUIDANCE: € 0.8 bln (+33%) R&M includes pro-forma ADNOC Refining
Slide 12: Cash Results and Liquidity
CASH RESULTS CFFO before WC | € BLN 7.6 6.8 SCENARIO, COVID LIQUIDITY 4.3 CAPEX € 17.7 bln 3.3 1H 2019 1H 2020 2020 CFFO @ $ 40/BBL: € 6.5 bln 12
Slide 13: The New Eni
THE NEW ENI NATURAL ENERGY RESOURCES EVOLUTION SELECTIVE TRANSFORMATION AND SUSTAINABLE AND GROWTH FINANCIAL FRAMEWORK PROGRESSIVE REMUNERATION RESILIENT IN A WEAKER ENVIRONMENT 13
Slide 14: Annex
ANNEX Annex
Slide 15: Market Scenario
MARKET SCENARIO BRENT| $/bbl EXCHANGE RATE| €/$ 66.0 1.130 39.7 1.102 1H 2019 1H 2020 1H 2019 1H 2020 EUROPEAN GAS PRICES| €/kcm STANDARD ENI REFINING MARGIN| $/bbl PSV TTF PSV 3.6 200 TTF 2.9 167 98 80 15 1H 2019 1H 2020 1H 2019 1H 2020
Slide 16: Assumptions and Sensitivity
ASSUMPTIONS AND SENSITIVITY 4YP Scenario 2020 2021 2022 2023 Brent dated ($/bbl) 40 48 55 60 FX avg ($/€) 1.116 1.130 1.150 1.180 Ural MED c.i.f. - Med Dated Strip ($/bbl) -0.5 -1.3 -1.4 -1.5 Std. Eni Refining Margin ($/bbl) 3.8 4.3 4.5 4.6 NBP ($/mmbtu) 2.4 4.1 4.8 5.1 PSV (€/kcm) 99 147 163 167 Se
Slide 17: Key Projects Starting Up in 2020-23 [1/2]
KEY PROJECTS STARTING UP IN 2020-23 [1/2] ALGERIA Berkine North & BRN Pipeline 49% WI CONGO ANGOLA Nené ph. 2B 65% WI GAS LIQ Gas Start up: March 2020 LIQ LIBYA EP Start up: March 2020 (FF: 2022) 2020 Equity: 13 kboed 2020 Equity: 2 kboed Production (kboed): Production (kboed): 71 (100%) – 35 (equit
Slide 18: Key Projects Starting Up in 2020-23 [2/2]
KEY PROJECTS STARTING UP IN 2020-23 [2/2] Balder X 63% WI GAS Coral FLNG 25% WI INDONESIA LIQ Start up: 2022 Start up: 2022 Progress: 14% Progress: 74% Production (kboed): Production (kboed): 78 (100%) – 49 (equity) @2023 105 (100%) – 27 (equity) @2023 NORWAY MOZAMBIQUE Johan Castberg 21% WI GAS Dal