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Eni — Earnings Release 2021
Apr 30, 2021
4348_rns_2021-04-30_0f192b50-5ca5-4513-991b-812c9aae43c1.pdf
Earnings Release
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1Q 2021 Results
April 30, 2021
NATURAL RESOURCES
OIL, GAS, LNG CCS/CCUS AND FORESTRY
- PRODUCTION: 1.7 MBOED IN LINE WITH YEARLY GUIDANCE
- DISCOVERED RESOURCES: 120 MBOE FROM INFRASTRACTURE LED EXP MAINLY IN NORWAY AND ANGOLA
- GAS & LNG: DAMIETTA RESTARTED, SYNERGIES WITH ZOHR
ENERGY EVOLUTION
TRADITIONAL TO BIO, BLUE, GREEN PRODUCTS
- RETAIL G&P + RENEWABLES: ENTRANCE IN THE SPANISH RETAIL AND RENEWABLES MARKET; COMPLETION OF DOGGER BANK ACQUISITION
- R&M: WEAK MARKET DUE TO LOCKDOWNS; GELA READY FOR 100% 2° GEN FEEDSTOCK; ENTERED THE BIO GAS MARKET
- VERSALIS: BEST RESULT SINCE 2018
FINANCIALS
- EBIT Adj: 1.3 BLN, FLAT VERSUS LAST YEAR
- NET INCOME Adj: € 0.27 BLN, ~5 TIMES HIGHER YoY
- ORGANIC FCF: ~€ 0.6 BLN
- LEVERAGE: FLAT AT AROUND 0.3
FCF adjusted pre working capital at replacement cost Leverage: before IFRS 16 lease liabilities
NATURAL RESOURCES
UPSTREAM | EBIT Adj € BLN GGP | DAMIETTA LNG PLANT (EGYPT)
First Cargo: February 2021 YtD Cargoes: 9 Full Year 2021 Cargoes: ~40
2021 GGP EBIT ALMOST @ BREAKEVEN 2021 GGP FCF @ € 0.2 BLN
FCF post working capital
MERAKES: STARTED UP
ENI WI: 65%
Hydrocarbon: Gas
Start up: April 2021
2021 Equity: ~ 30 kboed
2022 Equity: ~ 50 kboed
FAST AND LOW-COST TIE IN TO JANGKRIK HUB
ENERGY EVOLUTION
ENI GAS E LUCE, POWER & REN| EBITDA Adj €Bln R&M AND CHEMICALS
RETAIL & RENEWABLE EXCELLENT PERFORMANCE
Gela Biomass Treatment Unit launched: enabled to receive up to 100% waste and residue feedstock
Versalis: positive EBIT capturing better scenario
DOWNSTREAM RESULTS IMPROVING THROUGH THE REST OF THE YEAR
CASH RESULTS
1Q CASHFLOW| € bln
2021 LEVERAGE <0.3
CFFO & FCF are adjusted and pre working capital at replacement cost Leverage: before IFRS 16 lease liabilities
RETAIL+RENEWABLES: DISTINCTIVE GROWTH PATH
RETAIL+RENEWABLES: A UNIQUE PROPOSITION
MARKET SCENARIO
2021 GUIDANCE
| PRODUCTION | 1.7 MBOED |
|---|---|
| EXPLORATION DISCOVERIES | 500 MLN BOE |
| GGP | EBIT ALMOST AT BREAKEVEN FCF € 0.2 BLN |
| RETAIL + RENEWABLES EBIT | € 0.35 BLN |
| R&M + VERSALIS EBIT | € 0.4 BLN |
| CAPEX | € 6 BLN |
| LEVERAGE | <0.3 |
R&M: SERM refining margin @ 1.9 \$/bbl Leverage: before IFRS 16 lease liabilities
UPSTREAM PORTFOLIO QUALITY
Peers: BP, CVX, COP, EQUINOR, RDS, TOT, XOM.