Earnings Release • Jul 29, 2022
Earnings Release
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Strategic Delivery, Security of Supply and Financial Performance
JULY 29, 2022
IMPORTANT: You must read the following before continuing.
The following applies to this document, the oral presentation of the information in this document by Eni S.p.A., Eni Plenitude S.p.A. società benefit, and their affiliates (collectively, the "Company") or any person on behalf of the Company, and any question-and-answer session that follows the oral presentation (collectively, the "Information"). In accessing the Information, you agree to be bound by the following terms and conditions.
The Information may not be reproduced, redistributed, published or passed on to any other person, directly or indirectly, in whole or in part, for any purpose. This document may not be removed from the premises. If this document has been received in error it must be returned immediately to the Company.
The Information is not intended for potential investors and does not constitute or form part of, and should not be construed as an offer or the solicitation of an offer to subscribe for or purchase securities of the Company, and nothing contained therein shall form the basis of or be relied on in connection with any contract or commitment whatsoever.
The Information contains forward-looking statements. Forward-looking statements give the Company's current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. Such statements, that may include statements with regard to management objectives, trends in results of operations, margins, costs, return on capital, risk management and competition are forward looking in nature. Words such as 'expects', 'anticipates', 'targets', 'goals', 'projects', 'intends', 'plans' 'believes', 'seeks', 'estimates', variations of such words, and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and assumptions that are difficult to predict because they relate to events and depend on circumstances that will occur in the future. Therefore, the Company's actual results may differ materially and adversely from those expressed or implied in any forward-looking statements. Factors that might cause or contribute to such differences include, but are not limited to, those discussed in the Company's Annual Reports on Form 20-F filed with the U.S. Securities and Exchange Commission (the "SEC") under the section entitled "Risk factors" and in other sections. These factors include but are not limited to: (i) fluctuations in the prices of crude oil, natural gas, oil products and chemicals; (ii) strong competition worldwide to supply energy to the industrial, commercial and residential energy markets; (iii) safety, security, environmental and other operational risks, and the costs and risks associated with the requirement to comply with related regulation, including regulation on GHG emissions; (iv) risks associated with the exploration and production of oil and natural gas, including the risk that exploration efforts may be unsuccessful and the operational risks associated with development projects; (v) uncertainties in the estimates of natural gas reserves; (vi) the time and expense required to develop reserves; (vii) material disruptions arising from political, social and economic instability, particularly in light of the areas in which the Company operates; (viii) risks associated with the trading environment, competition, and demand and supply dynamics in the natural gas market, including the impact under the Company take-or-pay long-term gas supply contracts; (ix) laws and regulations related to climate change; (x) risks related to legal proceedings and compliance with anti-corruption legislation; (xii) risks arising from potential future acquisitions; and (xiii) exposure to exchange rate, interest rate and credit risks.
No representation, warranty or undertaking, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the Information or the opinions contained therein. The Information has not been independently verified and will not be updated. The Information, including but not limited to forward-looking statements, applies only as of the date of this document and is not intended to give any assurances as to future results. The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to the Information, including any financial data or forward-looking statements, and will not publicly release any revisions it may make to the Information that may result from any change in the Company's expectations, any change in events, conditions or circumstances on which these forward-looking statements are based, or other events or circumstances arising after the date of this document. Market data used in the Information not attributed to a specific source are estimates of the Company and have not been independently verified.
BALEINE FID IN IVORY COAST CFS SITE CONSTRUCTION
AZULE ENERGY SUSTAINABLE MOBILITY SET-UP CORAL FLNG FIRST GAS VAR ENERGY AND SPAC IPO
AGRI-HUB DEVELOPMENTS QATAR NFE LNG PARTNERSHIP ENI-SONATRACH AGREEMENT
UP TO 20 BCM BY 2024-2025
Ebit and Net Profit are adjusted. Cash Flows are adjusted pre working capital at replacement cost and exclude effects of derivatives. Net debt and leverage: before IFRS 16.
DISCOVERED 300 MBOE WITH SHORT TIME TO MARKET ACHIEVED STARTUP AT CORAL & NDUNGU PRODUCTION RECOVERING IN 2H 2022 GUIDANCE AT 1.67 MBOED YTD OPERATIONAL HIGHLIGHTS AND OUTLOOK
IN LINE WITH 2Q 2021
GROWING LNG CONTRIBUTION KEY TO PERFORMANCE AND RISK MITIGATION, BUILDING INVENTORIES IN PREPARATION FOR WINTER
DELIVERING ON OUR INTEGRATED NATURAL GAS LEVERAGE
INCREASED 2022 DOWNSTREM EBIT GUIDANCE € 1.8-2.0 BLN (PREVIOUSLY POSITIVE)
* R&M and Downstream EBIT are pro-forma adjusted.
EBITDA is pro-forma adjusted.
9
JULY BUYBACK BRENT REFERENCE PRICE 105 \$/BBL
RAISING 2022 BUYBACK BY € 1.3 BLN TO € 2.4 BLN
CONSISTENT WITH STRATEGY OF SHARING UPSIDE FROM STRONG SCENARIO AND PERFORMANCE
| PRODUCTION | 1.67 MBOED | in line with 1.7 Mboed guidance adj. for FM and price effects |
|---|---|---|
| DISCOVERED RESOURCES | 700 MBOE | |
| GGP EBIT | € 1.2 BLN | |
| PLENITUDE EBITDA | € >0.6 BLN | |
| DOWNSTREAM EBIT | € 1.8-2.0 BLN | |
| CFFO | € 20 BLN AT \$105 BRENT |
|
| CAPEX | € 8.3 BLN | at constant FX |
| CASH NEUTRALITY | \$40/BBL | |
| LEVERAGE | 13% | |
| BUYBACK | € 2.4 BLN |
Plenitude: EBITDA is pro-forma; Downstream: EBIT is pro-forma and it assumes SERM of 6 \$/bbl in 2H 2022. Cash Flows are adjusted pre working capital at replacement cost and exclude effects of derivatives. Cash Neutrality defined as the oil price to cover organic capex and floor dividend, excluding one off impacts. Leverage: before IFRS 16 lease liabilities.
DELIVERED STRATEGIC PROGRESS AMID VOLATILITY AND CHALLENGES
WORKING ON CRITICAL GAS SUPPLIES AND RENEWABLE GENERATION TO SECURE AND DECARBONISE ENERGY SYSTEM
TRACK-RECORD OF STRONG OPERATIONAL AND FINANCIAL PERFORMANCE
ENHANCED SHAREHOLDER REMUNERATION REWARDING CRITICAL INVESTOR SUPPORT
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| (€ BLN) | |||
|---|---|---|---|
| BRENT | EBIT ADJ: | 0.21 | |
| (+1 \$/BBL) | NET ADJ: | 0.15 | |
| FCF: | 0.13 | ||
| STD. ENI REFINING MARGIN (+1 \$/BBL) |
(€ BLN) | ||
| EBIT ADJ: | 0.14 | ||
| NET ADJ: | 0.10 | ||
| FCF: | 0.14 | ||
| (€ BLN) | |||
| EXCHANGE RATE \$/€ | EBIT ADJ: | 1.00 | |
| (-0.05 \$/€) | NET ADJ: | 0.70 | |
| FCF: | 0.70 |
"Brent" standard sensitivity assumes oil and gas price changes are directional and proportional; Sensitivities are valid for limited price variation.
NOTE: Average yearly production in peak year/ at plateau
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