Eni - Regulatory Filings 2011 | FinancialReports.eu

6-K 1 sj0411iien6k.htm HTML PUBLIC "-//IETF//DTD HTML//EN" sj0411iien6k

Table of Contents

SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN ISSUER Pursuant to Rule 13a-16 or 15d-16 of the Securities Exchange Act of 1934

For the month of April 2011

Eni S.p.A. (Exact name of Registrant as specified in its charter)

Piazzale Enrico Mattei 1 - 00144 Rome, Italy (Address of principal executive offices)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

Form 20-F x Form 40-F o

(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2b under the Securities Exchange Act of 1934.)

Yes o No x

(If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): )

Table of Contents

TABLE OF CONTENTS TOC

Press Release dated April 1, 2011

Press Release dated April 7, 2011

Press Release dated April 27, 2011

Table of Contents

/TOC

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorised.

Eni S.p.A.
Name: Antonio Cristodoro
Title:	Deputy Corporate Secretary

Date: April 30, 2011

Table of Contents

Eni makes an important hydrocarbon discovery in the Norwegian Barents Sea

San Donato Milanese (Milan), April 1, 2011 - Eni has made an important hydrocarbon discovery in the Norwegian Barents Sea, approximately 150 kilometres northwest of Goliat oil field. The discovery, called Skrugard, has been made through the 7220/8-1 exploration well, the first drilled in the PL532 license awarded in 2009 within the 20 th international Norwegian round.

The well has been drilled at a water depth of 373 metres and encountered a significant hydrocarbon column. Eni is in process in completing drilling of the exploration well. The exploration well will be drilled to a vertical depth of 2,250 metres.

Extensive data and sample collection has been carried out. The well proved columns of 33 metres of gas and 90 metres of oil. Proven recoverable resources are preliminarily estimated between 150 and 250 million barrels of oil equivalent. Further appraisal drilling on the structure will be evaluated shortly.

The license also contains additional mineral potential that will be addressed with future exploration drilling activities: the license is estimated to produce up to 250 million additional barrels of oil equivalent reaching an overall potential of 500 million barrels.

The licenses in PL532 are Statoil Petroleum AS (50%, operator), Eni (30%) and Petoro AS (20%).

Eni has been present in Norway since 1965 with current equity production of approximately 130,000 boe/day. Eni operates in Norway through its subsidiary Eni Norge AS and is the operator of the ongoing development of the first oil field in the Barents Sea (the important Goliat discovery) and of the Marulk gas field in the Norwegian Sea.

Table of Contents

Furthermore in the country Eni has interests in the country in a number of exploration licenses and fields under development and in operation, including Ekofisk, Norne, Åsgard, Heidrun, Kristin, Mikkel and Urd.

This discovery further increases the presence of Eni in the country and gives greater prominence to its role as a major player in the Barents Sea, together with Statoil. It also confirms that Norway represents a key country in companys organic growth of strategy.

Company contacts:

Press Office: Tel. +39.0252031875 - +39.0659822030 Freephone for shareholders (from Italy): 800940924 Freephone for shareholders (from abroad): +39. 800 11 22 34 56 Switchboard: +39-0659821

[email protected] [email protected] [email protected]

Web site : www.eni.com

Table of Contents

ANNUAL REPORT ON FORM 20-F 2010

Rome, April 7, 2011 - Today Enis Annual Report on Form 20-F for the year ended December 31, 2010, has been filed with the U.S. Securities and Exchange Commission (SEC).

The Annual Report on Form 20-F 2010 is available in the Publications section of Enis website, www.eni.com.

Shareholders can receive a hard copy of Enis Annual Report on Form 20-F 2010, free of charge, by filling in the request form found in the Publications section or by emailing a request to [email protected] or to [email protected].

Contacts E-mail : [email protected]

Investor Relations E-mail : [email protected] Tel.: +39 0252051651 - Fax: +39 0252031929

Eni Press Office E-mail : [email protected] Tel.: +39 0252031287 - +39 0659822040

Eni Società per Azioni Rome, Piazzale Enrico Mattei, 1 Share capital : euro 4,005,358,876 fully paid Tax identification number 00484960588 Tel.: +39 0659821 - Fax: +39 0659822141

About Eni Eni is one of the leading integrated energy companies in the world operating in the oil and gas, power generation, petrochemicals, engineering and construction industries. Eni is present in 79 countries and is Italys largest company by market capitalization.

Table of Contents

ENI ANNOUNCES RESULTS FOR THE FIRST QUARTER OF 2011

Rome, April 27, 2011 - Eni, the international oil and gas company, today announces its group results for the first quarter of 2011 1 (unaudited).

Financial Highlights

| | Adjusted
operating profit: up 18.4% to euro 5.13 billion |
| --- | --- |
| | Adjusted
net profit: up 21.6% to euro 2.22 billion |
| | Net
profit: up 14.6% to euro 2.55 billion |
| | Cash flow:
euro 4.19 billion |

Operational Highlights

| | Oil and
natural gas production for the quarter was down by 8.6%
due to the shutdown of activities in Libya |
| --- | --- |
| | Natural
gas sales for the quarter rebounded from a year ago, up
by 6% |
| | Acquisition
of two important exploration and development leases in
Ukraine |
| | Continuing
exploration success with the Perla 4 appraisal well and
offshore discoveries in Ghana, the Barents Sea and the UK
North Sea |

Paolo Scaroni, Chief Executive Officer, commented: "In the first quarter of 2011, marked by the Libyan events, Eni delivered a solid set of financial results on the back of a favorable oil price environment. In spite of ongoing uncertainties regarding resumption of our activities in Libya, the profitability and growth outlook for our Company has remained positive underpinned by a sound financial position, the quality of our asset portfolio, and a strong projects pipeline".

(1) i This press release represents the quarterly report prepared in compliance with Italian listing standards as provided by Article 154-ter of the Italian code for securities and exchanges (Testo Unico della Finanza).

Table of Contents

Financial Highlights

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011 % Ch.

| 2,875 | SUMMARY GROUP RESULTS — Operating
profit | (euro million) | 4,847 | 5,638 | 16.3 |
| --- | --- | --- | --- | --- | --- |
| 4,739 | Adjusted operating profit (a) | | 4,331 | 5,127 | 18.4 |
| 548 | Net
profit (b) | | 2,222 | 2,547 | 14.6 |
| 0.15 | - per share (c) | (euro) | 0.61 | 0.70 | 14.8 |
| 0.41 | - per ADR (c) (d) | ($) | 1.69 | 1.91 | 13.0 |
| 1,723 | Adjusted net profit (a) (b) | | 1,822 | 2,216 | 21.6 |
| 0.48 | - per
share (c) | (euro) | 0.50 | 0.61 | 22.0 |
| 1.30 | - per ADR (c) (d) | ($) | 1.38 | 1.67 | 21.0 |

| (a) | For a
detailed explanation of adjusted operating profit and net
profit see paragraph "Reconciliation of reported
operating and net profit to results on an adjusted
basis" page 21. |
| --- | --- |
| (b) | Profit
attributable to Enis shareholders. |
| (c) | Fully
diluted. Dollar amounts are converted on the basis of the
average EUR/USD exchange rate quoted by the ECB for the
periods presented. |
| (d) | One ADR
(American Depositary Receipt) is equal to two Eni
ordinary shares. |

Adjusted operating profit Adjusted operating profit was euro 5.13 billion, up 18.4% from the first quarter of 2010. This was due to a better operating performance reported by the Exploration & Production Division (up 32.1%) on the back of stronger oil prices. The Engineering & Construction Division reported a strong performance. The Petrochemical Division also improved versus a year ago as operating losses were substantially cut. These positive trends were partially offset by poor performance reported by the Refining & Marketing Division due to high costs for oil feedstock which were only partially transferred to refined product prices and the Gas & Power Division which was affected by weaker margins on gas sales.

Adjusted net profit Adjusted net profit was euro 2.22 billion, up 21.6% compared with a year ago, as a result of better operating performance and a decreased adjusted tax rate (from 53% to 50.5%).

Capital expenditure Capital expenditure for the quarter amounted to euro 2.87 billion mainly related to continuing development of oil and gas reserves, the construction of rigs and offshore vessels in the Engineering & Construction segment and the upgrading of gas transport infrastructure.

Cash flow Net cash generated by operating activities amounted to euro 4.19 billion and were used to fund capital expenditure (euro 2.87 billion) as well as pay down net borrowings 2 which was down by euro 1.17 billion from December 31, 2010, to euro 24.95 billion. Cash flow from operating activities was negatively affected by a lower cash inflow of euro 347 million associated with transferring trade receivables due beyond end of 2010 to factoring institutions amounting to euro 1,279 million in the fourth quarter 2010, while the current quarter benefited from transferring euro 932 million of trade receivables due beyond March 31, 2011 to those institutions.

Financial Ratios Return on Average Capital Employed (ROACE) 3 calculated on an adjusted basis for the twelve-month period ending on March 31, 2011, was 11.4%. The ratio of net borrowings to shareholders equity including non-controlling interest leverage 3 decreased to 0.44 at March 31, 2011, from 0.47 as of December 31, 2010. This change was due to profit for the period and reduced net borrowings, notwithstanding the appreciation of the euro against the US dollar as recorded at March 31, 2011, vs. December 31, 2010 (up 6.4%) which reduced shareholders equity by euro 1.9 billion.

| (2) | i | Information
on net borrowings composition is furnished on page 28. |
| --- | --- | --- |
| (3) | i | Non-GAAP
financial measures disclosed throughout this press
release are accompanied by explanatory notes and tables
to help investors to gain a full understanding of said
measures in line with guidance provided for by CESR
Recommendation No. 2005-178b. See pages 29 and 28 for
leverage and ROACE, respectively. |

Table of Contents

Operational Highlights and Trading Environment

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011 % Ch.

1,954	Production of oil and natural gas (a)	(kboe/d)	1,842	1,684	(8.6	)
1,049	- Liquids	(kbbl/d)	1,011	899	(11.1	)
5,021	- Natural gas	(mmcf/d)	4,615	4,356	(6.1	)
28.76	Worldwide
gas sales	(bcm)	30.51	32.33	6.0
1.52	of which: E&P sales in Europe and the
Gulf of Mexico		1.60	0.75	(53.1	)
10.23	Electricity
sales	(TWh)	9.00	9.68	7.6
2.92	Retail sales of refined products in Europe	(mmtonnes)	2.68	2.64	(1.5	)

(a) Production of oil and natural gas has been expressed on the basis of the updated natural gas conversion factor of 5,550 cubic feet of gas per barrel of oil equivalent.

Exploration & Production Eni reported liquids and gas production of 1,684 kboe/d for the first quarter of 2011, down by 8.6% from the first quarter of 2010 (down 158 kboe/d). The magnitude of this reduction was the result of the shutdown of activities at several of Enis producing sites in Libya and the closure of the GreenStream pipeline transporting gas from Libya to Italy which occurred on February 22, 2011, as a result of ongoing political instability and conflict in the Country. From April 2011, Eni production in Libya has been flowing at a level of 50-55 kboe/d and with the full supply supporting local production of electricity. Performance in the quarter was negatively impacted by lower entitlements in the Companys PSAs due to higher oil prices with an overall effect of 32 kboe/d compared to the year-earlier quarter, in addition to the above mentioned Libyan shutdown that caused a production loss of 129 kboe/d compared to the first quarter of 2010. These negatives were partly offset by continuing production ramp-up in Egypt, Iraq and Italy.

Gas & Power Enis worldwide natural gas sales recovered from the first quarter of 2010 (up 6% to 32.33 bcm). Sales on the Italian market increased by 10.2% due to client additions in the industrial, power generation and wholesale segments as well as higher volumes supplied. In Europe, Eni sales showed growth in all of the Companys major markets (up by 14.2% on average), excluding Belgium as a result of strong competitive pressures. Turkey, France, the Iberian Peninsula and Germany/Austria were the markets posting the largest increases. Sales to shippers which import gas to Italy decreased by 42.5%. This was due to lower availability of Libyan production and lower volumes purchased.

Refining & Marketing The marker Brent margin decreased by 27.5% from the first quarter of 2010 (down $0.66 per barrel) as high costs for oil feedstock were only partially transferred to refined products prices due to weak underlying fundamentals (sluggish demand and excess capacity). Eni s margins performed better than the market benchmark as a result of a good performance registered by Enis complex cycles on the back of widened sweet-sour crude differentials, also due to lower availability of Libyan oil in the Mediterranean area, as well as higher pricing premiums on gasoline and gasoil compared to fuel oil. Eni's refining margins were also supported by optimization and integration efforts.

Currency The exchange rate of the euro vs. the US dollar for the period was on average nearly unchanged (down by 1.2%) affecting marginally the results of the quarter.

Portfolio developments

Ukraine In April 2011, Eni reached an agreement with Cadogan Petroleum plc for the acquisition of an interest in two exploration and development licenses located in the Dniepr-Donetz basin, in Ukraine. This agreement is part

Table of Contents

of the development of cooperation initiatives in hydrocarbon exploration and production in the Country also reaffirmed in a Memorandum of Understanding with the Ukrainian Ministry of Ecology and Natural Resources.

Alaska In February 2011, production start-up was achieved at the Nikaitchuq operated field (Eni 100%), located in the North Slope basins offshore Alaska, with resources of 220 million barrels. Production is expected to peak at 28 kbbl/d.

China In January 2011, Eni signed a Memorandum of Understanding with CNPC/PetroChina to promote common opportunities to jointly expand operations in conventional and unconventional hydrocarbons in China and outside China. The parties will also cooperate in the field of advanced technology, with a special focus on the exploitation of unconventional oil and gas resources.

Angola In January 2011, Eni was awarded rights to explore and the operatorship of offshore Block 35 in Angola, with a 30% interest. The agreement foresees drilling 2 wells and 3D seismic surveys to be carried out in the first 5 years of exploration. This deal is subject to the approval of the relevant authorities.

Exploration activities In the first quarter of 2011, significant exploratory success was achieved in:

| (i) | Ghana with the appraisal
well Sankofa-2 in the offshore license Cape Three Points
(Eni 47.22%, operator); |
| --- | --- |
| (ii) | the Norwegian sector of the
Barents Sea with the Skrugard oil and gas discovery in
the PL532 license (Eni 30%); |
| (iii) | Venezuela with the Perla 4
appraisal well of the homonymous discovery in the Cardon
IV offshore block (Eni 50%, operator); |
| (iv) | United Kingdom with the
appraisal of the Culzean discovery (Eni 16.95%). |

Outlook Management expects that the global economic recovery will progressively strengthen across the year 2011. Nonetheless, the 2011 outlook is characterized by a certain degree of uncertainty and volatility also in light of ongoing political instability and conflict in Libya. Eni forecasts an upward trend for Brent crude oil prices supported by healthier global oil demand. For short-term economic and financial projections, Eni assumes an average Brent price of 101 $/bbl for the full year 2011. Management expects that the European gas market will remain weak as sluggish demand growth is insufficient to absorb current oversupplies. Refining margins are expected to remain unprofitable due to weak underlying fundamentals and high feedstock costs. Against this backdrop, management expectations about the main trends in the Companys businesses for 2011 and beyond are disclosed below.

Production of liquids and natural gas is forecast to decline from 2010 (1.815 million boe/d was the actual level in 2010 at 80 $/bbl) at the Companys pricing scenario of 101 dollar a Brent barrel for the full year. The decline is expected as a result of volumes losses in Libya following the shutdown of almost all of the Companys production facilities. Better production performance at the Companys assets elsewhere in the world will help offset the impact associated with rising crude oil prices on PSAs entitlements. The magnitude of the Libyan production loss will depend on how long the situation lasts, which management cannot predict for the time being. From April 2011, Enis production in Libya has been flowing at the rate of 50-55 kboe/d, down from the expected level of 280 kboe/d for the year. Management estimates that each day in which production remains at current levels will cause a reduction of approximately 600 boe/d in the full-year average daily production. Management has been implementing its plans to target production growth in the Company assets by ramping up fields that were started in 2010, growing the production plateau at the giant Zubair oilfield in Iraq, starting up new fields in Australia, Algeria and the US, as well as executing production optimizations in particular in Nigeria, Egypt, Angola and the United Kingdom;
4 -

Table of Contents

| - | Worldwide gas sales are
expected to grow from 2010 (in 2010 actual sales amounted
to 97.06 bcm), in spite of sales losses to certain
Italian importers due to lower availability of gas from
Libya. Management plans to drive volume growth in Italy
leveraging clients additions in the power generation,
industrial and wholesale segments, as well as organic
growth in key European markets. Considering mounting
competitive pressure in the gas market, the achievement
of the planned volumes target will be underpinned by
strengthening the Companys leadership on the
European market; marketing actions intended to strengthen
the customer base in the domestic market and
renegotiating the Companys long-term gas purchase
contracts. The cash flow impact associated with lower
sales to Italian shippers will be offset by expected
lower cash outflows associated with the Companys
take-or-pay gas purchase contracts as the Company is
planning to meet lower availability of Libyan gas with
gas from other sources in its portfolio; |
| --- | --- |
| - | Regulated businesses in
Italy will benefit from the pre-set regulatory return
on new capital expenditures and continuing efficiency
actions; |
| - | Refining throughputs on
Enis account are expected to slightly decline
compared to 2010 (actual throughputs in 2010 were 34.8
mmtonnes). The decline is mainly expected at the Venice
refinery due to difficulties in supplying Libyan crude
oil. Higher volumes are expected to be processed on more
competitive refineries and the optimization of refinery
cycles, as well as efficiency actions, are expected to be
implemented in response to a volatile trading
environment; |
| - | Retail sales of refined
products in Italy and the rest of Europe are expected
to be substantially in line with 2010 (11.73 mmtonnes in
2010) against the backdrop of weaker demand. Management
plans to improve sales leveraging selective pricing and
marketing initiatives, starting new service stations,
developing the "non-oil" business and service
upgrade; |
| - | The Engineering &
Construction business confirms solid results due to
increasing turnover and a robust order backlog. |

In 2011, management plans to make capital expenditures broadly in line with 2010 (euro 13.87 billion was invested in 2010) and will mainly be directed to developing giant fields and starting production at new important fields in the Exploration & Production Division, refinery upgrading related in particular to the realization of the EST project, completing the program of enhancing Saipems fleet of vessels and rigs, and upgrading the natural gas transport infrastructure. Assuming a Brent price of 101 $/barrel and the planned divestment of certain assets, management forecasts that the ratio of net borrowings to total equity (leverage) at year-end will be lower than in 2010.

Table of Contents

This press release for the first quarter of 2011 (unaudited) provides data and information on business and financial performance in compliance with Article 154-ter of the Italian code for securities and exchanges ("Testo Unico della Finanza" - TUF). Results are presented for the first quarter of 2011 and the first quarter and the fourth quarter of 2010. Information on liquidity and capital resources relates to end of the period as of March 31, 2011, and December 31, 2010. Tables contained in this press release are comparable with those presented in the managements disclosure section of the Companys annual report and interim report. Quarterly accounts set forth herein have been prepared in accordance with the evaluation and recognition criteria set by the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and adopted by the European Commission according to the procedure set forth in Article 6 of the European Regulation (CE) No. 1606/2002 of the European Parliament and European Council of July 19, 2002. The evaluation and recognition criteria applied during the preparation of this report for the first quarter of 2011 results are unchanged from those adopted for the preparation of the 2010 Annual Report. Investors are urged to see section "Summary of significant accounting policies" in the notes to 2010 Consolidated Financial Statements. Non-GAAP financial measures and other performance indicators disclosed throughout this press release are accompanied by explanatory notes and tables to help investors gain full understanding of said measures in line with guidance provided by recommendation CESR/05-178b.

Enis Chief Financial Officer, Alessandro Bernini, in his position as manager responsible for the preparation of the Companys financial reports, certifies pursuant to rule 154-bis paragraph 2 of Legislative Decree No. 58/1998, that data and information disclosed in this press release correspond to the Companys evidence and accounting books and records.

Cautionary statement This press release, in particular the statements under the section "Outlook", contains certain forward-looking statements particularly those regarding capital expenditures, development and management of oil and gas resources, dividends, allocation of future cash flow from operations, future operating performance, gearing, targets of production and sales growth, new markets, and the progress and timing of projects. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Actual results may differ from those expressed in such statements, depending on a variety of factors, including the timing of bringing new fields on stream; managements ability in carrying out industrial plans and in succeeding in commercial transactions; future levels of industry product supply; demand and pricing; operational problems; general economic conditions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; development and use of new technology; changes in public expectations and other changes in business conditions; the actions of competitors and other factors discussed elsewhere in this document. Due to the seasonality in demand for natural gas and certain refined products and the changes in a number of external factors affecting Enis operations, such as prices and margins of hydrocarbons and refined products, Enis results from operations and changes in net borrowings for the first quarter of the year cannot be extrapolated on an annual basis.

Table of Contents

Contacts E-mail: [email protected]

Investor Relations E-mail: [email protected] Tel.: +39 0252051651 - Fax: +39 0252031929

Eni Press Office E-mail: [email protected] Tel.: +39 0252031287 - +39 0659822040

Eni Società per Azioni Rome, Piazzale Enrico Mattei, 1 Share capital: euro 4,005,358,876 fully paid Tax identification number 00484960588 Tel.: +39 0659821 - Fax: +39 0659822141

This press release for the first quarter of 2011 (unaudited) is also available on the Eni web site eni.com.

Table of Contents

| Summary results for the first
quarter of 2011 |
| --- |
| (euro million) |

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011 % Ch.

| 28,113 — 2,875 | | Net sales from operations — Operating
profit | | 24,804 — 4,847 | | 28,779 — 5,638 | | 16.0 — 16.3 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (132 | ) | Exclusion of inventory holding (gains) losses | | (409 | ) | (669 | ) | | |
| 1,996 | | Exclusion
of special items | | (107 | ) | 158 | | | |
| | | of which: | | | | | | | |
| (246 | ) | -
non-recurring items | | | | | | | |
| 2,242 | | - other special items | | (107 | ) | 158 | | | |
| 4,739 | | Adjusted
operating profit | | 4,331 | | 5,127 | | 18.4 | |
| (184 | ) | Net finance (expense) income (a) | | (245 | ) | (83 | ) | | |
| 82 | | Net income
from investments (a) | | 210 | | 265 | | | |
| (2,618 | ) | Income taxes (a) | | (2,277 | ) | (2,681 | ) | | |
| 56.5 | | Tax
rate | (%) | 53.0 | | 50,5 | | | |
| 2,019 | | Adjusted net profit | | 2,019 | | 2,628 | | 30.2 | |
| | | Breakdown
by Division (a) : | | | | | | | |
| 1,587 | | Exploration & Production | | 1,245 | | 1,833 | | 47.2 | |
| 644 | | Gas &
Power | | 955 | | 763 | | (20.1 | ) |
| (48 | ) | Refining & Marketing | | (30 | ) | (79 | ) | .. | |
| (37 | ) | Petrochemicals | | (43 | ) | (5 | ) | 88.4 | |
| 266 | | Engineering & Construction | | 197 | | 259 | | 31.5 | |
| (40 | ) | Other
activities | | (61 | ) | (45 | ) | 26.2 | |
| (228 | ) | Corporate and financial companies | | (202 | ) | (95 | ) | 53.0 | |
| (125 | ) | Impact of
unrealized intragroup profit elimination (b) | | (42 | ) | (3 | ) | | |
| 548 | | Net profit attributable to Enis
shareholders | | 2,222 | | 2,547 | | 14.6 | |
| (96 | ) | Exclusion
of inventory holding (gains) losses | | (280 | ) | (474 | ) | | |
| 1,271 | | Exclusion of special items | | (120 | ) | 143 | | | |
| | | of
which: | | | | | | | |
| (246 | ) | - non recurring items | | | | | | | |
| 1,517 | | - other
special items | | (120 | ) | 143 | | | |
| 1,723 | | Adjusted net profit attributable to
Enis shareholders | | 1,822 | | 2,216 | | 21.6 | |
| | | Net
profit attributable to Enis shareholders | | | | | | | |
| 0.15 | | per share | (euro) | 0.61 | | 0.70 | | 14.8 | |
| 0.41 | | per ADR | ($) | 1.69 | | 1.91 | | 13.0 | |
| | | Adjusted net profit attributable to
Enis shareholders | | | | | | | |
| 0.48 | | per share | (euro) | 0.50 | | 0.61 | | 22.0 | |
| 1.30 | | per ADR | ($) | 1.38 | | 1.67 | | 21.0 | |
| 3,622.5 | | Weighted
average number of outstanding shares (c) | | 3,622.4 | | 3,622.5 | | | |
| 3,146 | | Net cash provided by operating activities | | 4,554 | | 4,185 | | (8.1 | ) |
| 3,912 | | Capital
expenditures | | 2,779 | | 2,875 | | 3.5 | |

i	i	i
(a)	i	Excluding
special items. For a detailed explanation of adjusted net
profit by division see page 21.
(b)	i	This item
mainly pertained to intra-group sales of commodities,
services and capital goods recorded in the assets of the
purchasing business segment as of the end of the period.
(c)	i	Fully diluted
(million shares).

Trading environment indicators i

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011 % Ch.

86.48	Average price of Brent dated crude oil (a)		76.24	104.97	37.7
1.359	Average
EUR/USD exchange rate (b)		1.384	1.367	(1.2	)
63.64	Average price in euro of Brent dated crude oil		55.09	76.79	39.4
2.74	Average
European refining margin (c)		2.40	1.74	(27.5	)
3.78	Average European refining margin Brent/Ural (c)		3.20	3.30	3.1
2.02	Average
European refining margin in euro		1.74	1.27	(27.0	)
1.0	Euribor - three-month euro rate	(%)	0.6	1.1	83.3
0.3	Libor -
three-month dollar rate	(%)		0.3	0.3

| (a) | In USD
dollars per barrel. Source: Platts Oilgram. |
| --- | --- |
| (b) | Source: ECB. |
| (c) | In USD per
barrel FOB Mediterranean Brent dated crude oil. Source:
Eni calculations based on Platts Oilgram data. |

Table of Contents

Group results Net profit attributable to Enis shareholders for the first quarter of 2011 was euro 2,547 million, an increase of euro 325 million from the first quarter of 2010, up 14.6%. The result was driven by an improved operating performance (up euro 791 million, or 16.3%) which was mainly reported by the Exploration & Production Division on the back of stronger oil prices. The first quarter result also benefited from lower net finance and exchange rate charges (up euro 162 million) due to net positive change in fair value of certain derivatives on exchange rates which did not meet the formal criteria for hedging accounting provided by IAS 39 reflecting the steep movement in the euro vs. the US dollar exchange rate recorded at the end of the quarter. These positive factors were partly offset by higher income taxes (down euro 479 million) due to higher taxable profit.

Adjusted net profit attributable to Enis shareholders amounted to euro 2,216 million, an increase of euro 394 million from the first quarter of 2010, up 21.6%. Adjusted net profit was calculated by excluding an inventory holding gain amounting to euro 474 million and special charges of euro 143 million, resulting in a net negative adjustment of euro 331 million. Special charges in operating profit included negative fair value evaluation of certain commodity derivatives which did not meet the formal criteria for hedge accounting provided by IAS 39. Other special charges related to immaterial expenses for redundancy incentives, impairment losses and environmental provisions. Special gains were recognized on the divestment of marginal assets in the Exploration & Production Division. Special charges in net profit mainly related to an adjustment to deferred taxation which was taken in connection with a proposed increase in the rate of a supplementary charge in respect of profits made by Exploration & Production activities in the UK Continental Shelf (euro 27 million). The rate change was considered to be substantively enacted for the purpose of preparing the 2011 first quarter consolidated accounts.

Results by division The increase in the Group adjusted net profit reflected higher results reported by the following Divisions:

| - | The Exploration &
Production Division reported better net
adjusted profit which was up by euro 588 million, or
47.2%, from the year-earlier quarter. This was driven by
an improved operating performance (up by euro 1,002
million, or 32.1%) on the back of stronger oil and gas
prices (up by 34.4% and 4.5%, respectively), which
effects were partly absorbed by lower results made in
Libya due to the shutdown of the GreenStream pipeline for
gas exports to Europe from February 22, 2011, as well as
the fact that almost all of Enis production
facilities in the Country have been progressively halted
throughout the period. From April 2011, Enis
production in Libya has been flowing at 50-55 kboe/d net
to Eni, mainly from the Wafa field to feed local
production of electricity. The first quarter performance
was also helped by a reduced adjusted tax rate, down by 4
percentage points. |
| --- | --- |
| - | The Petrochemical
Division almost zeroed adjusted net loss on the back
of an improved operating performance which reduced losses
by 80% from the first quarter of 2010 (up euro 47
million). This was driven by better products margins,
mainly in the olefins business. |
| - | The Engineering &
Construction business (up euro 62 million, or 31.5%)
reported a strong operating performance which was up by
euro 53 million, or 18.3% from 2010. This reflected
higher revenues and better return on the works executed
in the quarter, mainly in the onshore construction and
offshore drilling business units. |

These increases were partly offset by a decrease in the adjusted net profit reported in the following Divisions:

| - | The Gas & Power
Division (down by euro 192 million, or 20.1%) was
negatively affected by sharply lower results reported by
the Marketing business (down by euro 326 million, or
53.1%). This negative performance was driven by weaker
margins on gas sales in both the Italian market and key
European markets due to rising competitive pressures. In
addition, performance for the quarter was hit by lower
seasonal sales. Lower results of the Marketing business
were partly offset by a steady performance delivered by
the Regulated businesses in Italy (up by 3.9%). |
| --- | --- |
| - | The Refining &
Marketing Division reported an increase in adjusted
net loss (from minus euro 30 million to minus euro 79
million). This was driven by a poor operating performance
(down by euro 54 million) due to high costs for oil
feedstock which were only partially transferred to
product prices pressured by weak demand. Performance for
the quarter was also hit by rising costs of energy
utilities which are indexed to the costs of oil. Actions
to improve efficiency and optimization partially helped
the performance. |

Table of Contents

| Liquidity and capital resources Summarized
Group Balance Sheet 4 — (euro
million) | Dec. 31, 2010 | March 31, 2011 | Change |
| --- | --- | --- | --- |

| Fixed assets — Property,
plant and equipment | 67,404 | | 65,949 | | (1,455 | ) |
| --- | --- | --- | --- | --- | --- | --- |
| Inventories - compulsory stock | 2,024 | | 2,312 | | 288 | |
| Intangible
assets | 11,172 | | 11,072 | | (100 | ) |
| Equity-accounted investments and other
investments | 6,090 | | 6,132 | | 42 | |
| Receivables
and securities held for operating purposes | 1,743 | | 1,675 | | (68 | ) |
| Net payables related to capital expenditures | (970 | ) | (732 | ) | 238 | |
| | 87,463 | | 86,408 | | (1,055 | ) |
| Net working capital | | | | | | |
| Inventories | 6,589 | | 6,414 | | (175 | ) |
| Trade receivables | 17,221 | | 17,665 | | 444 | |
| Trade
payables | (13,111 | ) | (11,665 | ) | 1,446 | |
| Tax payables and provisions for net deferred tax
liabilities | (2,684 | ) | (4,374 | ) | (1,690 | ) |
| Provisions | (11,792 | ) | (11,501 | ) | 291 | |
| Other current assets and liabilities (a) | (1,286 | ) | (521 | ) | 765 | |
| | (5,063 | ) | (3,982 | ) | 1,081 | |
| Provisions for employee post-retirement
benefits | (1,032 | ) | (1,019 | ) | 13 | |
| Net
assets held for sale including net borrowings | 479 | | 410 | | (69 | ) |
| CAPITAL EMPLOYED, NET | 81,847 | | 81,817 | | (30 | ) |
| Shareholders
equity : | | | | | | |
| - Eni shareholders equity | 51,206 | | 51,966 | | 760 | |
| -
Non-controlling interest | 4,522 | | 4,900 | | 378 | |
| | 55,728 | | 56,866 | | 1,138 | |
| Net
borrowings | 26,119 | | 24,951 | | (1,168 | ) |
| TOTAL LIABILITIES AND SHAREHOLDERS
EQUITY | 81,847 | | 81,817 | | (30 | ) |
| Leverage | 0.47 | | 0.44 | | (0.03 | ) |

i	i	i
(a)	i	Includes
receivables and securities for financing operating
activities for euro 380 million (euro 436 million at
December 31, 2010) and securities covering technical
reserves of Enis insurance activities for euro 272
million (euro 267 million at December 31, 2010).

The appreciation of the euro versus the US dollar, from December 31, 2010 (the EUR/USD exchange rate was 1.421 as of March 31, 2011, as compared to 1.336 as of December 31, 2010, up by 6.4%) reduced net capital employed, net equity and net borrowings by euro 2,180 million, euro 1,880 million, and euro 300 million, respectively, as a result of exchange rate translation differences.

Fixed assets amounted to euro 86,408 million, representing a decrease of euro 1,055 million from December 31, 2010, reflecting depreciation, depletion, amortization and impairment charges (euro 2,124 million) and exchange rate translation differences, partly offset by capital expenditures incurred in the period (euro 2,875 million).

Net working capital amounted to a negative euro 3,982 million, representing an increase of euro 1,081 million, mainly due to the payment of a portion of payables in respect of the Companys gas suppliers outstanding as of end of 2010 due to the take-or-pay position accrued in 2010 (euro 170 million) and a higher balance of receivables and payables from joint-venture partners in the Exploration & Production Division (up euro 492 million). Lower trade payables were offset by increased tax payables and net provisions for deferred tax liabilities accrued in the quarter.

Net assets held for sale including related liabilities (euro 410 million) mainly related to the following assets: the subsidiary Gas Brasiliano Distribuidora, following the preliminary agreement signed with a third party to divest its entire share capital, and Enis subsidiaries and associates engaged in gas transport in Germany, Switzerland and Austria for which a divestment plan has been agreed upon with the European Commission as part of Enis commitments to settle an antitrust proceeding.

Shareholders equity including non-controlling interest of euro 56,866 million increased by euro 1,138 million, reflecting comprehensive income for the period (euro 1,110 million) which consisted of net profit for the period (euro 2,959 million), partly offset by negative foreign currency exchange differences (down euro 1,883 million).

(4) The summarized group balance sheet aggregates the amount of assets and liabilities derived from the statutory balance sheet in accordance with functional criteria which consider the enterprise conventionally divided into the three fundamental areas focusing on resource investments, operations and financing. Management believes that this summarized group balance sheet is useful information in assisting investors to assess Enis capital structure and to analyze its sources of funds and investments in fixed assets and working capital. Management uses the summarized group balance sheet to calculate key ratios such as return on capital employed (ROACE) and the proportion of net borrowings to shareholders equity (leverage) intended to evaluate whether Enis financing structure is sound and well-balanced.

10 -

Table of Contents

Summarized Group Cash Flow Statement 5

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011 Change

844		Net profit	2,419		2,959		540
		Adjustments
to reconcile net profit to net cash provided by operating
activities:
2,979		- depreciation, depletion and amortization and
other non-monetary items	1,901		2,003		102
(173	)	- net
gains on disposal of assets	(169	)	(19	)	150
2,292		- dividends, interest, taxes and other changes	2,471		2,907		436
(35	)	Changes in
working capital related to operations	(370	)	(1,729	)	(1,359	)
(2,761	)	Dividends received, taxes paid, interest (paid)
received during the period	(1,698	)	(1,936	)	(238	)
3,146		Net
cash provided by operating activities	4,554		4,185		(369	)
(3,912	)	Capital expenditures	(2,779	)	(2,875	)	(96	)
(109	)	Investments
and purchase of consolidated subsidiaries and businesses	(39	)	(41	)	(2	)
211		Disposals	729		26		(703	)
330		Other cash
flow related to capital expenditures, investments and
disposals	(118	)	(195	)	(77	)
(334	)	Free cash flow	2,347		1,100		(1,247	)
(44	)	Borrowings
(repayment) of debt related to financing activities	(88	)	(67	)	21
548		Changes in short and long-term financial debt	(1,484	)	(637	)	847
(143	)	Dividends
paid and changes in non-controlling interest and reserves	13		5		(8	)
10		Effect of changes in consolidation and exchange
differences	49		(28	)	(77	)
37		NET
CASH FLOW FOR THE PERIOD	837		373		(464	)

Change in net borrowings

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011 Change

(334	)	Free cash flow	2,347		1,100	(1,247	)
(33	)	Net
borrowings of acquired companies
(348	)	Exchange differences on net borrowings and other
changes	(357	)	63	420
(143	)	Dividends
paid and changes in non-controlling interest and reserves	13		5	(8	)
(858	)	CHANGE IN NET BORROWINGS	2,003		1,168	(835	)

Net cash provided by operating activities (euro 4,185 million) funded cash outflows relating to capital expenditures totaling euro 2,875 million and helped pay down finance debt (down by euro 1,168 million). Cash flow from operating activities was negatively affected by a lower cash inflow of euro 347 million associated with transferring trade receivables due beyond end of 2010 to factoring institutions in the fourth quarter of 2010 amounting to euro 1,279 million, while the current quarter benefited from transferring euro 932 million of trade receivables due beyond March 31, 2011 to the same institutions.

Other information Continuing listing standards provided by Article No. 36 of Italian exchanges regulation about issuers that control subsidiaries incorporated or regulated in accordance with laws of extra-EU countries. Certain provisions have been recently enacted regulating continuing Italian listing standards of issuers controlling subsidiaries that are incorporated or regulated in accordance with laws of extra-EU Countries, also having a material impact on the consolidated financial statements of the parent company. Regarding the aforementioned provisions, as of March 31, 2011, nine of Enis subsidiaries Burren Energy (Bermuda) Ltd, Eni Congo SA, Eni Norge AS, Eni Petroleum Co Inc, NAOC-Nigerian Agip Oil Co Ltd, Nigerian Agip Exploration Ltd, Trans Tunisian Pipeline Co Ltd, Burren Energy (Congo) Ltd and Eni Finance USA Inc fall within the scope of the new continuing listing standard as stated in the Annual Report 2010 as of December 31, 2010. Eni has already adopted adequate procedures to ensure full compliance with the new regulation.

Financial and operating information by Division for the first quarter of 2011 is provided in the following pages.

(5) Enis summarized group cash flow statement derives from the statutory statement of cash flows. It enables investors to understand the link existing between changes in cash and cash equivalents (deriving from the statutory cash flows statement) and in net borrowings (deriving from the summarized cash flow statement) that occurred from the beginning of the period to the end of period. The measure enabling such a link is represented by the free cash flow which is the cash in excess of capital expenditure needs. Starting from free cash flow it is possible to determine either: (i) changes in cash and cash equivalents for the period by adding/deducting cash flows relating to financing debts/receivables (issuance/repayment of debt and receivables related to financing activities), shareholders equity (dividends paid, net repurchase of own shares, capital issuance) and the effect of changes in consolidation and of exchange rate differences; (ii) changes in net borrowings for the period by adding/deducting cash flows relating to shareholders equity and the effect of changes in consolidation and of exchange rate differences. The free cash flow is a non-GAAP measure of financial performance.

11 -

Table of Contents

Exploration & Production

Fourth Quarter 2010 RESULTS First Quarter 2010 First Quarter 2011 % Ch.

| 8,280 — 3,799 | | Net sales from operations — Operating
profit | (euro million) | 7,385 — 3,297 | | 7,474 — 4,106 | 24.5 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 229 | | Exclusion of special items: | | (179 | ) | 14 | | |
| 30 | | -
environmental charges | | | | | | |
| 97 | | - asset impairments | | | | | | |
| (17 | ) | - gains
on disposal of assets | | (160 | ) | (17 | ) | |
| 84 | | - provision for redundancy incentives | | 2 | | 2 | | |
| 31 | | -
re-measurement gains/losses on commodity derivatives | | (21 | ) | 29 | | |
| 4 | | - other | | | | | | |
| 4,028 | | Adjusted
operating profit | | 3,118 | | 4,120 | 32.1 | |
| (49 | ) | Net financial income (expense) (a) | | (49 | ) | (57 | ) | |
| (8 | ) | Net income
(expense) from investments (a) | | 67 | | 117 | | |
| (2,384 | ) | Income taxes (a) | | (1,891 | ) | (2,347 | ) | |
| 60.0 | | Tax
rate | (%) | 60.3 | | 56.1 | | |
| 1,587 | | Adjusted net profit | | 1,245 | | 1,833 | 47.2 | |
| | | Results
also include: | | | | | | |
| 2,015 | | - amortization and depreciation | | 1,680 | | 1,588 | (5.5 | ) |
| | | of
which: | | | | | | |
| 318 | | exploration expenditures | | 312 | | 266 | (14.7 | ) |
| 201 | | -
amortization of exploratory drilling expenditures and
other | | 231 | | 163 | (29.4 | ) |
| 117 | | - amortization of geological and geophysical
exploration expenses | | 81 | | 103 | 27.2 | |
| 2,573 | | Capital
expenditures | | 1,964 | | 1,952 | (0.6 | ) |
| | | of which: | | | | | | |
| 294 | | -
exploratory expenditure (b) | | 256 | | 236 | (7.8 | ) |
| | | Production (c) (d) | | | | | | |
| 1,049 | | Liquids (e) | (kbbl/d) | 1,011 | | 899 | (11.1 | ) |
| 5,021 | | Natural gas | (mmcf/d) | 4,615 | | 4,356 | (6.1 | ) |
| 1,954 | | Total
hydrocarbons | (kboe/d) | 1,842 | | 1,684 | (8.6 | ) |
| | | Average realizations | | | | | | |
| 76.72 | | Liquids (e) | ($/bbl) | 70.93 | | 95.36 | 34.4 | |
| 6.75 | | Natural gas | ($/mmcf) | 5.73 | | 5.99 | 4.5 | |
| 59.55 | | Total
hydrocarbons | ($/boe) | 53.48 | | 66.62 | 24.6 | |
| | | Average oil market prices | | | | | | |
| 86.48 | | Brent
dated | ($/bbl) | 76.24 | | 104.97 | 37.7 | |
| 63.64 | | Brent dated | (euro/bbl) | 55.09 | | 76.79 | 39.4 | |
| 85.06 | | West
Texas Intermediate | ($/bbl) | 78.67 | | 93.98 | 19.5 | |
| 134.20 | | Gas Henry Hub | ($/kcm) | 181.90 | | 146.91 | (19.2 | ) |

| (a) | Excluding
special items. |
| --- | --- |
| (b) | Includes
exploration bonuses. |
| (c) | Supplementary
operating data is provided on page 38. |
| (d) | Includes
Enis share of production of equity-accounted
entities. |
| (e) | Includes
condensates. |

Results The Exploration & Production Division reported adjusted operating profit amounting to euro 4,120 million for the first quarter of 2011, representing an increase of euro 1,002 million from the first quarter of 2010, up 32.1%. The positive performance was driven by higher oil and gas prices (up 34.4% and 4.5%, respectively), whose effects were partly absorbed by lower results reported in Libya due to the shutdown of the GreenStream pipeline for gas exports to Europe from February 22, 2011, as well as the fact that almost all of Enis production facilities in the Country have been progressively halted throughout the period. From April 2011, Enis production in Libya has been flowing at 50-55 kboe/d net to Eni, mainly from the Wafa field to serve local production of electricity. The first quarter performance was also helped by lower exploration expenditures.

12 -

Table of Contents

Special charges excluded from adjusted operating profit amounted to euro 14 million and consisted mainly of gains from the divestment of certain non-strategic assets and re-measurement gains recorded on fair value evaluation of the ineffective portion of certain cash flow hedge commodity derivatives.

First-quarter adjusted net profit increased by euro 588 million to euro 1,833 million (up by 47.2%) from the first quarter of 2010 due to an improved operating performance and higher results from associates. This increase was also supported by a lower tax rate (down 4 percentage points) mainly due to non-taxable dividends earned in the quarter and the reversal to profit of certain provisions which were taxed in previous quarters.

Operating review Eni reported liquids and gas production of 1,684 kboe/d for the first quarter of 2010, down by 8.6% from the first quarter of 2010 (down 158 kboe/d). The size of this reduction was explained by the shutdown of activities at several of Enis producing sites in Libya and the closure of the GreenStream pipeline transporting gas from Libya to Italy occurred on February 22, 2011, as a result of ongoing political instability and conflict in the Country. From April 2011, Eni production in Libya has been flowing at 50-55 kboe/d entirely supplied to local production of electricity. Performance for the quarter was negatively impacted by lower entitlements in the Companys PSAs due to higher oil prices with an overall effect of 32 kboe/d compared to the year-earlier quarter, in addition to the above mentioned Libyan shutdown that caused a production loss of 129 kboe/d compared to the first quarter of 2010. These negatives were partly offset by continuing production ramp-up in Egypt, Iraq and Italy. The share of oil and natural gas produced outside Italy was 89% (90% in the first quarter of 2010).

Liquids production (899 kbbl/d) decreased by 112 kbbl/d, or 11.1% due to production losses in Libya and lower entitlements in the Companys PSAs. The main increases were registered in Italy, as a result of the Val dAgri phase 2 (Eni 60.77%) ramp-up, Iraq due to growth in the Zubair field (Eni 32.8%) and an improved performance in Egypt.

Natural gas production (4,356 mmcf/d) decreased by 259 mmcf/d from the first quarter of 2010 (down 6.1%) due to production losses in Libya, partly offset by a better performance achieved in Nigeria, Congo and Egypt.

Liquids and gas realizations for the first quarter in dollar terms increased by 34.4% on average driven by higher oil prices for market benchmarks (the Brent crude price increased by 37.7%). Enis average liquids realizations decreased by 1.30 $/bbl due to the settlement of certain commodity derivatives relating to the sale of 2.2 mmbbl in the quarter. This was part of a derivative transaction the Company entered into in order to hedge exposure to the variability in future cash flows expected from the sale of a portion of the Companys proved reserves for an original amount of approximately 125.7 mmbbl in the 2008-2011 period, decreasing to approximately 6.8 mmbbl as of end of March 2011. Enis average gas realizations increased at a slower pace in the quarter (up 4.5%) due to time lags in oil-linked pricing formulae.

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011

100.2		Sales volumes	(mmbbl)	85.8		75.7
7.2		Sales volumes
hedged by derivatives (cash flow hedge)		7.1		2.2
78.39		Total price per barrel, excluding derivatives	($/bbl)	72.06		96.66
(1.67	)	Realized
gains (losses) on derivatives		(1.13	)	(1.30	)
76.72		Total average price per barrel		70.93		95.36

13 -

Table of Contents

Gas & Power

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011 % Ch.

| 9,096 | | RESULTS — Net
sales from operations | (euro million) | 8,708 | | 10,614 | 21.9 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 550 | | Operating profit | | 1,316 | | 910 | (30.9 | ) |
| 11 | | Exclusion
of inventory holding (gains) losses | | (81 | ) | (41 | ) | |
| 216 | | Exclusion of special items | | 32 | | 89 | | |
| | | of which: | | | | | | |
| (270 | ) | Non-recurring items | | | | | | |
| 486 | | Other
special items: | | 32 | | 89 | | |
| 14 | | - environmental charges | | 5 | | 1 | | |
| 426 | | - asset
impairments | | 10 | | | | |
| 2 | | - gains on disposal of assets | | | | | | |
| 78 | | - risk
provisions | | | | | | |
| 64 | | - provision for redundancy incentives | | 6 | | 3 | | |
| (60 | ) | -
re-measurement gains/losses on commodity derivatives | | 11 | | 80 | | |
| (38 | ) | - other | | | | 5 | | |
| 777 | | Adjusted
operating profit | | 1,267 | | 958 | (24.4 | ) |
| 180 | | Marketing | | 614 | | 288 | (53.1 | ) |
| 529 | | Regulated
businesses in Italy | | 533 | | 554 | 3.9 | |
| 68 | | International transport | | 120 | | 116 | (3.3 | ) |
| 5 | | Net
finance income (expense) (a) | | (2 | ) | 5 | | |
| 93 | | Net income from investments (a) | | 100 | | 116 | | |
| (231 | ) | Income
taxes (a) | | (410 | ) | (316 | ) | |
| 26.4 | | Tax rate | (%) | 30.0 | | 29.3 | | |
| 644 | | Adjusted
net profit | | 955 | | 763 | (20.1 | ) |
| 615 | | Capital expenditures | | 310 | | 279 | (10.0 | ) |
| | | Natural
gas sales | (bcm) | | | | | |
| 10.55 | | Italy | | 10.87 | | 11.98 | 10.2 | |
| 18.21 | | International
sales | | 19.64 | | 20.35 | 3.6 | |
| 16.16 | | - Rest of Europe | | 17.61 | | 18.28 | 3.8 | |
| 0.53 | | - Extra
European markets | | 0.43 | | 1.32 | .. | |
| 1.52 | | - E&P sales in Europe and in the Gulf of
Mexico | | 1.60 | | 0.75 | (53.1 | ) |
| 28.76 | | WORLDWIDE
GAS SALES | | 30.51 | | 32.33 | 6.0 | |
| | | of which: | | | | | | |
| 24.42 | | - Sales of
consolidated subsidiaries | | 26.45 | | 28.77 | 8.8 | |
| 2.82 | | - Enis share of sales of natural gas of
affiliates | | 2.46 | | 2.81 | 14.2 | |
| 1.52 | | - E&P
sales in Europe and in the Gulf of Mexico | | 1.60 | | 0.75 | (53.1 | ) |
| 10.23 | | Electricity sales | (TWh) | 9.00 | | 9.68 | 7.6 | |
| 23.00 | | Gas
volumes transported in Italy | (bcm) | 23.98 | | 23.59 | (1.6 | ) |

i	i
(a)	Excluding
special items.

Results In the first quarter of 2011, the Gas & Power Division reported adjusted operating profit of euro 958 million, a decrease of euro 309 million from the first quarter of 2010, down 24.4%. The decrease was due to sharply lower results delivered by the Marketing business (down 53.1%). The Marketing business results were also affected by higher gains on non-hedging commodity derivatives amounting to euro 80 million which could be associated with future sales of gas and electricity. As those derivatives did not meet the formal criteria to be designated as hedges under IFRS, the Company was barred from applying hedge accounting and thus gains and losses associated with those derivatives cannot be brought forward to the reporting periods when the associated sales occur. However, in assessing the underlying performance of the Marketing business, management calculates the EBITDA pro-forma adjusted which represents those derivatives as being hedges with associated gains and losses recognized in the reporting period when the relevant sales occur. Management believes that disclosing this measure is helpful in assisting investors to understand these particular business trends (see page 17). The EBITDA pro-forma adjusted also includes Enis share of results of entities which are equity-accounted for statutory reporting purposes and confirms the size of the decline of the business reflecting underlying business trends.

14 -

Table of Contents

Special items excluded from operating profit amounted to net charges of euro 89 million. These mainly related to negative fair value evaluation of certain commodity derivatives which did not meet the formal criteria for hedging accounting in the Marketing business (euro 80 million), as well as provisions for redundancy incentives.

Adjusted net profit for the first quarter of 2011 was euro 763 million, declining by euro 192 million from 2010 (down 20.1%) due to a lowered operating performance.

Operating review

Marketing In the first quarter of 2011, the Marketing business reported a sharply lower adjusted operating profit of euro 288 million, down euro 326 million, or 53.1% from the first quarter of 2010. Considering the impact associated with the above mentioned non-hedging commodity derivatives, Marketing results were negatively impacted by: (i) lower margins on gas sales registered in Italy, due to increasing competitive pressures, as a results of prevaling oversupply in the marketplace and sluggish demand growth, which pressured prices to customers during the marketing campaign for the thermal year 2010-2011; (ii) lower margins on gas sales registered in European markets due to competitive pressure; (iii) a negative impact associated with lower seasonal gas sales and an unfavorable trend in energy parameters to which gas purchase costs and selling prices are indexed.

These negatives were partly offset by higher sales in key European markets and Italy (up by an overall 8.8% for consolidated entities), as well as the renegotiation of a number of long-term supply contracts. Performance for the quarter also included a gain of euro 61 million recorded on fair value evaluation of certain commodity derivatives the Company entered into to manage economic margins as provided by the new business model of the Marketing activity.

NATURAL GAS SALES BY MARKET

(bcm)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011 % Ch.

10.55	ITALY	10.87	11.98	10.2
1.76	-
Wholesalers	1.93	2.24	16.1
	- Gas release	0.40		..
1.69	- Italian
exchange for gas and spot markets	1.04	1.60	53.8
1.89	- Industries	1.58	1.99	25.9
0.37	-
Medium-sized enterprises and services	0.52	0.46	(11.5	)
1.14	- Power generation	0.75	1.17	56.0
2.14	-
Residential	3.11	2.87	(7.7	)
1.56	- Own consumption	1.54	1.65	7.1
18.21	INTERNATIONAL
SALES	19.64	20.35	3.6
16.16	Rest of Europe	17.61	18.28	3.8
1.72	-
Importers in Italy	3.22	1.85	(42.5	)
14.44	- European markets	14.39	16.43	14.2
1.86	Iberian
Peninsula	1.63	2.04	25.2
1.61	Germany/Austria	1.82	2.07	13.7
4.15	Belgium	5.22	4.02	(23.0	)
0.84	Hungary	1.09	1.07	(1.8	)
2.04	UK/Northern
Europe	1.41	1.67	18.4
1.47	Turkey	0.98	1.86	89.8
2.00	France	1.77	2.55	44.1
0.47	Other	0.47	1.15	..
0.53	Extra
European markets	0.43	1.32	..
1.52	E&P sales in Europe and in the Gulf of
Mexico	1.60	0.75	(53.1	)
28.76	WORLDWIDE
GAS SALES	30.51	32.33	6.0

15 -

Table of Contents

Sales of natural gas for the first quarter of 2011 were 32.33 bcm, demonstrating an important progress from the first quarter of 2010 (up by 1.82 bcm, or 6%). Sales included Enis own consumption, Enis share of sales made by equity-accounted entities and upstream sales in Europe and the Gulf of Mexico.

Sales volumes in the Italian market amounted to 11.98 bcm, up 1.11 bcm, or 10.2%, due to higher spot volumes on the PVS and the power exchange (up 0.56 bcm), power generation (up 0.42 bcm), industrial (up 0.41 bcm) and wholesalers (up 0.31 bcm) segments due to the recapture of clients. The residential segment registered a decrease due to unfavorable weather conditions (down 0.24 bcm).

Sales in European markets increased by 2.04 bcm, up 14.2%, to 16.43 bcm reflecting organic growth achieved in key markets, with the exception of the Belgian market where sales were affected by competitive pressures (down 1.20 bcm). The European markets which posted the largest increases were: (i) the Turkish market (up 0.88 bcm); (ii) the French market (up 0.78 bcm), due to the consolidation of the subsidiary Altergaz controlled by Eni since the end of 2010 and ongoing marketing activities; (iii) the Iberian Peninsula markets (up 0.41 bcm); and (iv) Germany/Austria (up 0.25 bcm).

Sales to importers in Italy declined by 1.37 bcm (down 42.5%) due to lower volumes purchased and lower availability of Libyan gas as a result of the closure of the GreenStream pipeline transporting gas from Libya to Italy.

Electricity sales for the first quarter of 2011 increased by 7.6% to 9.68 TWh from the first quarter of 2010, due to higher volumes traded on the Italian power exchange (up 0.57 TWh) benefiting from greater availability of power from production and trading activities. The clients portfolio registered an increase particularly in the large segment.

Regulated businesses in Italy These businesses reported an adjusted operating profit of euro 554 million for the first quarter of 2011, up euro 21 million, or 3.9%, from the same period of 2010. This was due to an improved performance from all the regulated activities reflecting higher yields of new capital expenditures and efficiency actions.

Volumes of gas transported in Italy in the first quarter of 2011 were 23.59 bcm decreasing by 0.39 bcm, or 1.6%, from the first quarter of 2010.

16 -

Table of Contents

Other performance indicators

Follows a breakdown of the pro-forma adjusted EBITDA by business:

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011 % Ch.

921		Pro-forma adjusted EBITDA	1,432	1,054		)
387		Marketing	856	456	(46.7	)
(13	)	of which: +/(-) adjustment on commodity
derivatives	21	(59	)
389		Regulated
businesses in Italy	379	393	3.7
145		International transport	197	205	4.1

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization charges) on an adjusted basis is calculated by adding amortization and depreciation charges to adjusted operating profit, which is also modified to take into account the impact associated with certain derivatives instruments as detailed below. This performance indicator includes the adjusted EBITDA of Enis wholly owned subsidiaries and Enis share of adjusted EBITDA generated by certain associates which are accounted for under the equity method for IFRS purposes. Snam Rete Gas EBITDA is included according to Enis share of equity (55.55% as of March 31, 2011, which takes into account the amount of own shares held in treasury by the subsidiary itself) although this Company is fully consolidated when preparing consolidated financial statements in accordance with IFRS, due to its listed company status. Italgas SpA and Stoccaggi Gas Italia SpA results are also included according to the same share of equity as Snam Rete Gas, due to the restructuring which involved Enis regulated business in the Italian gas sector. The parent company Eni SpA, divested the entire share capital of the two subsidiaries to Snam Rete Gas. In order to calculate the EBITDA pro-forma adjusted, the adjusted operating profit of the Marketing business has been modified to take into account the impact of the settlement of certain commodity and exchange rate derivatives that do not meet the formal criteria to be classified as hedges under the IFRS. These are entered into by the Company in respect of certain amounts of gas and electricity that the Company expects to supply at fixed prices during future periods. The impact of those derivatives has been allocated to the EBITDA pro-forma adjusted relating to the reporting periods during which those supplies at fixed prices are recognized. Management believes that the EBITDA pro-forma adjusted is an important alternative measure to assess the performance of Enis Gas & Power Division, taking into account evidence that this Division is comparable to European utilities in the gas and power generation sector. This measure is provided in order to assist investors and financial analysts in assessing the divisional performance of Eni Gas & Power, as compared to its European peers, as EBITDA is widely used as the main performance indicator for utilities. The EBITDA pro-forma adjusted is a non-GAAP measure under IFRS.

17 -

Table of Contents

Refining & Marketing

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011 % Ch.

| 12,211 | | RESULTS — Net
sales from operations | (euro million) | 9,346 | | 11,806 | | 26.3 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (146 | ) | Operating profit | | 105 | | 303 | | .. | |
| (167 | ) | Exclusion
of inventory holding (gains) losses | | (232 | ) | (508 | ) | | |
| 274 | | Exclusion of special items: | | 33 | | 57 | | | |
| 133 | | -
environmental charges | | 17 | | 14 | | | |
| 29 | | - asset impairments | | 22 | | 16 | | | |
| (6 | ) | - gains
on disposal of assets | | (10 | ) | (4 | ) | | |
| 2 | | - risk provisions | | | | | | | |
| 105 | | -
provision for redundancy incentives | | 2 | | 3 | | | |
| 7 | | - re-measurement gains/losses on commodity
derivatives | | 2 | | 26 | | | |
| 4 | | - other | | | | 2 | | | |
| (39 | ) | Adjusted operating profit | | (94 | ) | (148 | ) | 57.4 | |
| (7 | ) | Net income
(expense) from investments (a) | | 45 | | 27 | | | |
| (2 | ) | Income taxes (a) | | 19 | | 42 | | | |
| .. | | Tax
rate | (%) | .. | | .. | | | |
| (48 | ) | Adjusted net profit | | (30 | ) | (79 | ) | .. | |
| 381 | | Capital
expenditures | | 118 | | 132 | | 11.9 | |
| | | Global indicator refining margin | | | | | | | |
| 2.74 | | Brent | ($/bbl) | 2.40 | | 1.74 | | (27.5 | ) |
| 2.02 | | Brent | (euro /bbl) | 1.74 | | 1.27 | | (27.0 | ) |
| 3.78 | | Brent/Ural | ($/bbl) | 3.20 | | 3.30 | | 3.1 | |
| | | REFINING THROUGHPUTS AND SALES | (mmtonnes) | | | | | | |
| 6.66 | | Refining
throughputs of wholly-owned refineries | | 5.86 | | 5.96 | | 1.7 | |
| 7.66 | | Refining throughputs on own account Italy | | 6.88 | | 7.03 | | 2.2 | |
| 1.32 | | Refining
throughputs on own account Rest of Europe | | 1.26 | | 1.11 | | (11.9 | ) |
| 8.98 | | REFINING THROUGHPUTS ON OWN ACCOUNT | | 8.14 | | 8.14 | | | |
| 2.17 | | Retail
sales Italy | | 2.01 | | 1.94 | | (3.5 | ) |
| 0.75 | | Retail sales Rest of Europe | | 0.67 | | 0.70 | | 4.5 | |
| 2.92 | | Total
retail sales in Europe | | 2.68 | | 2.64 | | (1.5 | ) |
| 2.58 | | Wholesale Italy | | 2.04 | | 2.19 | | 7.4 | |
| 0.99 | | Wholesale
Rest of Europe | | 0.86 | | 0.81 | | (5.8 | ) |
| 3.57 | | Total wholesale in Europe | | 2.90 | | 3.00 | | 3.4 | |
| 0.11 | | Wholesale
other | | 0.09 | | 0.10 | | 11.1 | |
| 5.55 | | Other sales | | 5.20 | | 4.60 | | (11.5 | ) |
| 12.15 | | TOTAL
SALES | | 10.87 | | 10.34 | | (4.9 | ) |
| | | Refined product sales by region | | | | | | | |
| 7.01 | | Italy | | 6.17 | | 6.17 | | | |
| 1.74 | | Rest of Europe | | 1.53 | | 1.51 | | (1.3 | ) |
| 3.40 | | Rest of
World | | 3.17 | | 2.66 | | (16.1 | ) |

i	i	i
(a)	i	Excluding
special items.

Results In the first quarter of 2011 the Refining & Marketing business reported an adjusted operating loss amounting to euro 148 million, down euro 54 million, or 57.4%, from the same period of 2010. The poor performance reflected an unfavorable pricing scenario due to high costs for oil feedstock which were only partially transferred to product prices pressured by weak demand. In addition, performance for the quarter was it by rising costs for plant utilities which are indexed to the cost of crude oil. The negative impact of the trading environment for the refining business was mitigated by improved profitability of Enis complex refineries helped by widening price differentials between sweet and sour crudes,

18 -

Table of Contents

higher pricing premiums for gasoline and gasoil compared to fuel oil as well efficiency and integration of refinery cycles. Marketing activities were negatively affected by rapidly rising oil costs that were only partially transferred to product prices, as well as a time-lag in the indexation of certain selling prices in respect to supply costs mainly in the avio business.

Special charges excluded from adjusted operating loss amounted to euro 57 million and mainly related to re-measurement losses recorded on fair value evaluation of certain commodity derivatives which did not meet the formal criteria for hedging accounting, impairment of capital expenditures on assets impaired in previous reporting periods, environmental provisions, and a provisions for redundancy incentives.

In the first quarter of 2011, adjusted net loss was euro 79 million (down euro 49 million from the first quarter of 2010) mainly due to a lower operating performance.

Operating review Enis refining throughputs for the first quarter of 2011 were 8.14 mmtonnes, unchanged from 2010. Higher volumes were processed in Italy (up approximately 150 ktonnes, or 2.2%) reflecting the better performance of the Taranto refinery as a result of an improved environment for complex cycles, and Sannazzaro due to unplanned facility downtime in the corresponding quarter of 2010. These positives were partly offset by lower volumes processed at the Gela refinery, due to unplanned facility downtime, and lower capacity utilization in response to a weak market environment at the Venezia and Livorno refineries.

Retail sales in Italy (1.94 mmtonnes) decreased by approximately 70 ktonnes, down 3.5% also due to lower consumption. Lower gasoline and gasoil sales were recorded particularly in the premium segment which was impacted the most by rising fuel prices. Enis retail market share for the first quarter was 30.0%, down 0.5 percentage points from the first quarter 2010 (30.5%).

Wholesale sales in Italy (2.19 mmtonnes) increased by approximately 150 ktonnes, up 7.4%, due to higher sales of jet fuel for the aviation segment, bitumen and coke, partly offset by lower sales of gasoil and LPG in relation to lower demand for products.

Retail sales in the rest of Europe (approximately 700 ktonnes) registered a slight increase from the first quarter of 2010 (up 4.5%), mainly driven by volume additions in Austria, reflecting the purchase of service stations in 2010, but partly offset by lower sales in Germany.

Wholesale sales in the rest of Europe (810 ktonnes) decreased by approximately 50 ktonnes, mainly in Germany and the Czech Republic due to lower availability of refined products.

19 -

Table of Contents

Summarized Group profit and loss account

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011 % Ch.

| 28,113 — 208 | | Net sales from operations — Other
income and revenues | | 24,804 — 285 | | 28,779 — 233 | | 16.0 — (18.2 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (22,456 | ) | Operating expenses | | (18,096 | ) | (21,222 | ) | (17.3 | ) |
| 246 | | of
which non-recurring items | | | | | | | |
| 61 | | Other operating income (expense) | | 38 | | (28 | ) | .. | |
| (3,051 | ) | Depreciation,
depletion, amortization and impairments | | (2,184 | ) | (2,124 | ) | 2.7 | |
| 2,875 | | Operating profit | | 4,847 | | 5,638 | | 16.3 | |
| (186 | ) | Finance
income (expense) | | (245 | ) | (83 | ) | 66.1 | |
| 287 | | Net income from investments | | 225 | | 291 | | 29.3 | |
| 2,976 | | Profit
before income taxes | | 4,827 | | 5,846 | | 21.1 | |
| (2,132 | ) | Income taxes | | (2,408 | ) | (2,887 | ) | (19.9 | ) |
| 71.6 | | Tax
rate | (%) | 49.9 | | 49.4 | | | |
| 844 | | Net profit | | 2,419 | | 2,959 | | 22.3 | |
| | | of
which attributable to: | | | | | | | |
| 548 | | - Enis shareholders | | 2,222 | | 2,547 | | 14.6 | |
| 296 | | -
Non-controlling interest | | 197 | | 412 | | .. | |
| 548 | | Net profit attributable to Enis
shareholders | | 2,222 | | 2,547 | | 14.6 | |
| (96 | ) | Exclusion
of inventory holding (gains) losses | | (280 | ) | (474 | ) | | |
| 1,271 | | Exclusion of special items | | (120 | ) | 143 | | | |
| | | of
which: | | | | | | | |
| (246 | ) | - non-recurring items | | | | | | | |
| 1,517 | | - other
special items | | (120 | ) | 143 | | | |
| 1,723 | | Adjusted net profit attributable to
Enis shareholders (a) | | 1,822 | | 2,216 | | 21.6 | |

| (a) | For a
detailed explanation of adjusted operating profit and
adjusted net profit see the paragraph
"Reconciliation of reported operating profit and
reported net profit to results on an adjusted
basis". |
| --- | --- |

20 -

Table of Contents

Non-GAAP measures

Management evaluates Group and business performance on the basis of adjusted operating profit and adjusted net profit, which are arrived at by excluding inventory holding gains or losses and special items. Furthermore, finance charges on finance debt, interest income, gains or losses deriving from the evaluation of certain derivative financial instruments at fair value through profit or loss (as they do not meet the formal criteria to be assessed as hedges under IFRS, excluding commodity derivatives), and exchange rate differences are all excluded when determining adjusted net profit of each business segment. The taxation effect of the items excluded from adjusted operating or net profit is determined based on the specific rate of taxes applicable to each of them. The Italian statutory tax rate is applied to finance charges and income (34% is applied to charges recorded by companies in the energy sector, whilst a tax rate of 27.5% is applied to all other companies). Adjusted operating profit and adjusted net profit are non-GAAP financial measures under either IFRS, or US GAAP. Management includes them in order to facilitate a comparison of base business performance across periods and allow financial analysts to evaluate Enis trading performance on the basis of their forecasting models. In addition, management uses segmental adjusted net profit when calculating return on average capital employed (ROACE) by each business segment.

The following is a description of items that are excluded from the calculation of adjusted results. Inventory holding gain or loss is the difference between the cost of sales of the volumes sold in the period based on the cost of supplies of the same period and the cost of sales of the volumes sold calculated using the weighted average cost method of inventory accounting.

Special items include certain significant income or charges pertaining to either: (i) infrequent or unusual events and transactions, being identified as non-recurring items under such circumstances; or (ii) certain events or transactions which are not considered to be representative of the ordinary course of business, as in the case of environmental provisions, restructuring charges, asset impairments or write ups and gains or losses on divestments even though they occurred in past periods or are likely to occur in future ones. As provided for in Decision No. 15519 of July 27, 2006, of the Italian market regulator (CONSOB), non recurring material income or charges are to be clearly reported in the managements discussion and include gains and losses on re-measurement at fair value of certain commodity derivatives, which do not meet formal criteria to the classified as hedges under IFRS, including the ineffective portion of cash flow hedges.

Finance charges or income related to net borrowings excluded from the adjusted net profit of business segments are comprised of interest charges on finance debt and interest income earned on cash and cash equivalents not related to operations. In addition gains or losses on the fair value evaluation of the aforementioned derivative financial instruments, excluding commodity derivatives, and exchange rate differences are excluded from the adjusted net profit of business segments. Therefore, the adjusted net profit of business segments includes finance charges or income deriving from certain segment-operated assets, i.e., interest income on certain receivable financing and securities related to operations and finance charge pertaining to the accretion of certain provisions recorded on a discounted basis (as in the case of the asset retirement obligations in the Exploration & Production Division). Finance charges or interest income and related taxation effects excluded from the adjusted net profit of the business segments are allocated on the aggregate Corporate and financial companies.

For a reconciliation of adjusted operating profit and adjusted net profit to reported operating profit and reported net profit see tables below.

21 -

Table of Contents

| First
Quarter of 2011 |
| --- |
| (euro
million) |

Reported operating profit	4,106		910		303		108		354		(27	)	(112	)	(4	)	5,638
Exclusion
of inventory holding (gains) losses			(41	)	(508	)	(120	)									(669	)
Exclusion of special items:
environmental
charges			1		14												15
asset impairments					16						1						17
gains
on disposal of assets	(17	)			(4	)			1								(20	)
provision for
redundancy incentives	2		3		3								4				12
re-measurement
gains/losses on commodity derivatives	29		80		26				(13	)							122
other			5		2						(19	)	24				12
Special
items of operating profit	14		89		57				(12	)	(18	)	28				158
Adjusted operating profit	4,120		958		(148	)	(12	)	342		(45	)	(84	)	(4	)	5,127
Net
finance (expense) income (a)	(57	)	5										(31	)			(83	)
Net income from investments (a)	117		116		27				5								265
Income
taxes (a)	(2,347	)	(316	)	42		7		(88	)			20		1		(2,681	)
Tax rate (%)	56.1		29.3		..				25.4								50.5
Adjusted
net profit	1,833		763		(79	)	(5	)	259		(45	)	(95	)	(3	)	2,628
of which:
- Adjusted
net profit of non-controlling interest																	412
- Adjusted net profit attributable to
Enis shareholders																	2,216
Reported
net profit attributable to Enis shareholders																	2,547
Exclusion of inventory holding (gains) losses																	(474	)
Exclusion
of special items																	143
Adjusted net profit attributable to
Enis shareholders																	2,216

(a) Excluding special items.

22 -

Table of Contents

| First
Quarter of 2010 |
| --- |
| (euro
million) |

Reported operating profit	3,297		1,316		105		36		291		(60	)	(70	)	(68	)	4,847
Exclusion
of inventory holding (gains) losses			(81	)	(232	)	(96	)									(409	)
Exclusion of special items:
environmental
charges			5		17												22
asset impairments			10		22												32
gains
on disposal of assets	(160	)			(10	)											(170	)
provision for
redundancy incentives	2		6		2		1				1		5				17
re-measurement
gains/losses on commodity derivatives	(21	)	11		2				(2	)							(10	)
other											2						2
Special
items of operating profit	(179	)	32		33		1		(2	)	3		5				(107	)
Adjusted operating profit	3,118		1,267		(94	)	(59	)	289		(57	)	(65	)	(68	)	4,331
Net
finance (expense) income (a)	(49	)	(2	)									(194	)			(245	)
Net income (expense) from investments (a)	67		100		45				2		(4	)					210
Income
taxes (a)	(1,891	)	(410	)	19		16		(94	)			57		26		(2,277	)
Tax rate (%)	60.3		30.0		..				32.3								53.0
Adjusted
net profit	1,245		955		(30	)	(43	)	197		(61	)	(202	)	(42	)	2,019
of which:
- Adjusted
net profit of non-controlling interest																	197
- Adjusted net profit attributable to
Enis shareholders																	1,822
Reported
net profit attributable to Enis shareholders																	2,222
Exclusion of inventory holding (gains) losses																	(280	)
Exclusion
of special items																	(120	)
Adjusted net profit attributable to
Enis shareholders																	1,822

(a) Excluding special items.

23 -

Table of Contents

| Fourth
Quarter of 2010 |
| --- |
| (euro
million) |

Reported operating profit	3,799		550		(146	)	(163	)	350		)	(162	)	(202	)	2,875
Exclusion
of inventory holding (gains) losses			11		(167	)	24									(132	)
Exclusion of special items
of
which:
Non-recurring (income) charges			(270	)					24							(246	)
Other
special (income) charges:	229		486		274		65		4	1,108		76				2,242
environmental
charges	30		14		133					1,092						1,269
asset
impairments	97		426		29		43		3	(1	)					597
gains on disposal
of assets	(17	)	2		(6	)			5							(16	)
risk
provisions			78		2					1		8				89
provision for
redundancy incentives	84		64		105		22		4	8		68				355
re-measurement
gains/losses on commodity derivatives	31		(60	)	7				(8	)						(30	)
other	4		(38	)	4					8						(22	)
Special
items of operating profit	229		216		274		65		28	1,108		76				1,996
Adjusted operating profit	4,028		777		(39	)	(74	)	378	(43	)	(86	)	(202	)	4,739
Net
finance (expense) income (a)	(49	)	5							1		(141	)			(184	)
Net income from investments (a)	(8	)	93		(7	)	(1	)	3	2						82
Income
taxes (a)	(2,384	)	(231	)	(2	)	38		(115	)		(1	)	77		(2,618	)
Tax rate (%)	60.0		26.4		..				30.2							56.5
Adjusted
net profit	1,587		644		(48	)	(37	)	266	(40	)	(228	)	(125	)	2,019
of which:
- Adjusted
net profit of non-controlling interest																296
- Adjusted net profit attributable to
Enis shareholders																1,723
Reported
net profit attributable to Enis shareholders																548
Exclusion of inventory holding (gains) losses																(96	)
Exclusion
of special items:																1,271
- non-recurring (income) charges																(246	)
- other
special (income) charges																1,517
Adjusted net profit attributable to
Enis shareholders																1,723

(a) Excluding special items.

24 -

Table of Contents

Breakdown of special items

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011

| (246 — (246 | ) — ) | Non-recurring charges (income) — of
which: - settlement/payments on antitrust and other
Authorities proceedings | | | | |
| --- | --- | --- | --- | --- | --- | --- |
| 2,242 | | Other special charges (income): | (107 | ) | 158 | |
| 1,269 | | environmental
charges | 22 | | 15 | |
| 597 | | asset impairments | 32 | | 17 | |
| (16 | ) | gains on
disposal of assets | (170 | ) | (20 | ) |
| 89 | | risk provisions | | | | |
| 355 | | provisions
for redundancy incentives | 17 | | 12 | |
| (30 | ) | re-measurement gains/losses on commodity
derivatives | (10 | ) | 122 | |
| (22 | ) | other | 2 | | 12 | |
| 1,996 | | Special items of operating profit | (107 | ) | 158 | |
| 2 | | Net
finance (income) expense | | | | |
| (190 | ) | Net (income) expense from investments | | | 24 | |
| | | of
which: | | | | |
| (175 | ) | - gains on disposal of assets | | | | |
| 8 | | -
impairments | | | | |
| (537 | ) | Income taxes | (13 | ) | (39 | ) |
| | | of
which: | | | | |
| 29 | | - other special items | | | 27 | |
| (566 | ) | - taxes
on special items of operating profit | (13 | ) | (66 | ) |
| 1,271 | | Total special items of net profit | (120 | ) | 143 | |

Adjusted operating profit

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011 % Ch.

| 4,028 — 777 | | Exploration & Production — Gas &
Power | 3,118 — 1,267 | | 4,120 — 958 | | 32.1 — (24.4 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (39 | ) | Refining & Marketing | (94 | ) | (148 | ) | (57.4 | ) |
| (74 | ) | Petrochemicals | (59 | ) | (12 | ) | 79.7 | |
| 378 | | Engineering & Construction | 289 | | 342 | | 18.3 | |
| (43 | ) | Other
activities | (57 | ) | (45 | ) | 21.1 | |
| (86 | ) | Corporate and financial companies | (65 | ) | (84 | ) | (29.2 | ) |
| (202 | ) | Impact of
unrealized intragroup profit elimination | (68 | ) | (4 | ) | | |
| 4,739 | | | 4,331 | | 5,127 | | 18.4 | |

25 -

Table of Contents

Net sales from operations

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011 % Ch.

| 8,280 — 9,096 | | Exploration & Production — Gas &
Power | 7,385 — 8,708 | | 7,474 — 10,614 | 21.9 |
| --- | --- | --- | --- | --- | --- | --- |
| 12,211 | | Refining & Marketing | 9,346 | | 11,806 | 26.3 |
| 1,474 | | Petrochemicals | 1,476 | | 1,797 | 21.7 |
| 2,787 | | Engineering & Construction | 2,512 | | 2,785 | 10.9 |
| 28 | | Other
activities | 25 | | 25 | |
| 419 | | Corporate and financial companies | 302 | | 303 | 0.3 |
| 192 | | Impact of
unrealized intragroup profit elimination | 64 | | (101 | ) |
| (6,374 | ) | Consolidation adjustment | (5,014 | ) | (5,924 | ) |
| 28,113 | | | 24,804 | | 28,779 | 16.0 |

Operating expenses

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011 % Ch.

20,961		Purchases, services and other	17,051	20,103	17.9
		of
which:
(246	)	- non-recurring (income) charges
1,185		- other
special items	37	3
1,495		Payroll and related costs	1,045	1,119	7.1
		of
which:
355		- provision for redundancy incentives	17	12
22,456			18,096	21,222	17.3

Gains and losses on non-hedging commodity derivate instruments

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011

		Exploration & Production	21		(29	)
31		-
settled transactions
(31	)	- re-measurement gains/losses	21		(29	)
100		Gas &
Power	19		4
40		- settled transactions	30		84
60		-
re-measurement gains/losses	(11	)	(80	)
(39	)	Refining & Marketing	(5	)	(78	)
(32	)	-
settled transactions	(3	)	(52	)
(7	)	- re-measurement gains/losses	(2	)	(26	)
		Petrochemicals	1		2
		- settled transactions	1		2
		Engineering
& Construction	2		12
(8	)	- settled transactions			(1	)
8		-
re-measurement gains/losses	2		13
61		Derivatives lacking formal criteria for
hedge accounting	38		(89	)
31		-
settled transactions	28		33
30		- re-measurement gains/losses	10		(122	)
		Trading
derivatives Gas & Power			61
61		Total	38		(28	)

26 -

Table of Contents

Depreciation, depletion, amortization and impairments

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011 % Ch.

1,922		Exploration & Production	1,680		1,588		)
258		Gas &
Power	244		248	1.6
93		Refining & Marketing	80		92	15.0
22		Petrochemicals	19		22	15.8
145		Engineering & Construction	114		145	27.2
1		Other
activities	1			..
23		Corporate and financial companies	18		17	(5.6	)
(6	)	Impact of
unrealized intragroup profit elimination	(4	)	(5	)
2,458		Total depreciation, depletion and
amortization	2,152		2,107	(2.1	)
593		Impairments	32		17	(46.9	)
3,051			2,184		2,124	(2.7	)

Net income from investments

(euro million)

First Quarter of 2011 Exploration & Production Gas & Power Refining & Marketing Engineering & Construction Other activities Group

| Share of gains (losses) from equity-accounted
investments | 34 | 113 | 48 | 5 | | | 200 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Dividends | 82 | 3 | 29 | | | | 114 | |
| Other income (expense), net | 1 | | | | (24 | ) | (23 | ) |
| | 117 | 116 | 77 | 5 | (24 | ) | 291 | |

Income taxes

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011 Change

(641	)	Profit before income taxes — Italy	1,151	1,312	161
3,617		Outside Italy	3,676	4,534	858
2,976			4,827	5,846	1,019
		Income taxes
(144	)	Italy	450	538	88
2,276		Outside Italy	1,958	2,349	391
2,132			2,408	2,887	479
		Tax rate	(%)
22.5		Italy	39.1	41.0	1.9
62.9		Outside Italy	53.3	51.8	(1.5	)
71.6			49.9	49.4	(0.5	)

27 -

Table of Contents

Leverage and net borrowings

Leverage is a measure used by management to assess the Companys level of indebtedness. It is calculated as a ratio of net borrowings which is calculated by excluding cash and cash equivalents and certain very liquid assets from financial debt to shareholders equity, including minority interest. Management periodically reviews leverage in order to assess the soundness and efficiency of the Group balance sheet in terms of optimal mix between net borrowings and net equity, and to carry out benchmark analysis with industry standards.

(euro million)

Dec. 31, 2010 March 31, 2011 Change

Total debt	27,783		27,058		(725	)
Short-term
debt	7,478		6,156		(1,322	)
Long-term debt	20,305		20,902		597
Cash and
cash equivalents	(1,549	)	(1,922	)	(373	)
Securities held for non-operating purposes	(109	)	(110	)	(1	)
Financing
receivables for non-operating purposes	(6	)	(75	)	(69	)
Net borrowings	26,119		24,951		(1,168	)
Shareholders
equity including non-controlling interest	55,728		56,866		1,138
Leverage	0.47		0.44		(0.03	)

Bonds maturing in the 18-months period starting on March 31, 2011

(euro million)

| Issuing
entity | Amount at March 31, 2011 (a) |
| --- | --- |
| Eni Coordination Center SA | 43 |
| Eni
Coordination Center SA | 118 |
| Eni Coordination Center SA | 26 |
| Altergaz | 8 |
| | 195 |

(a) Amounts include interest accrued and discount on issue.

Bonds issued in the First Quarter of 2011 (granted by Eni SpA)

Issuing entity Nominal amount (million) Currency Amounts at March. 31, 2011 (a) (euro million) Maturity Rate %

| Eni
Coordination Center SA |
| --- |
| 114 |

(a) Amounts include interest accrued and discount on issue.

28 -

Table of Contents

Return On Average Capital Employed (ROACE)

Return on Average Capital Employed for the Group, on an adjusted basis is the return on the Group average capital invested, calculated as ratio of net adjusted profit before minority interests, plus net finance charges on net borrowings net of the related tax effect, to net average capital employed. The tax rate applied on finance charges is the Italian statutory tax rate of 34%. The capital invested, as of the period end, used for the calculation of net average capital invested is obtained by deducting inventory gains or losses in the period, net of the related tax effect. ROACE by Division is determined as ratio of adjusted net profit to net average capital invested pertaining to each division and rectifying the net capital invested as of period-end, from net inventory gains or losses (after applying the Division specific tax rate).

| (euro
million) — Calculated
on a 12-month period ending on March 31, 2011 | Exploration & Production | Gas & Power | Refining & Marketing | Group |
| --- | --- | --- | --- | --- |

Adjusted net profit	6,188	2,366	(98	)	8,543
Exclusion
of after-tax finance expense/interest income	-	-	-		365
Adjusted net profit unlevered	6,188	2,366	(98	)	8,908
Adjusted
capital employed, net
- at the beginning of period	34,572	25,067	7,884		75,374
- at the
end of period	35,806	27,849	8,633		81,013
Adjusted average capital employed, net	35,189	26,458	8,259		78,194
Adjusted
ROACE (%)	17.6	8.9	(1.2	)	11.4

| (euro
million) — Calculated
on a 12-month period ending on March 31, 2010 | Exploration & Production | Gas & Power | Refining & Marketing | Group |
| --- | --- | --- | --- | --- |

Adjusted net profit	4,215	2,883	(295	)	6,211
Exclusion
of after-tax finance expense/interest income	-	-	-		316
Adjusted net profit unlevered	4,215	2,883	(295	)	6,527
Adjusted
capital employed, net
- at the beginning of period	33,667	22,300	7,120		68,534
- at the
end of period	34,572	25,107	7,306		74,812
Adjusted average capital employed, net	34,120	23,704	7,213		71,673
Adjusted
ROACE (%)	12.4	12.2	(4.1	)	9.1

| (euro
million) — Calculated
on a 12-month period ending on December 31, 2010 | Exploration & Production | Gas & Power | Refining & Marketing | Group |
| --- | --- | --- | --- | --- |

Adjusted net profit	5,600	2,558	(49	)	7,934
Exclusion
of after-tax finance expense/interest income	-	-	-		337
Adjusted net profit unlevered	5,600	2,558	(49	)	8,271
Adjusted
capital employed, net:
- at the beginning of period	32,455	24,754	8,105		73,106
- at the
end of period	37,646	27,270	7,859		81,237
Adjusted average capital employed, net	35,051	26,012	7,982		77,172
Adjusted
ROACE (%)	16.0	9.8	(0.6	)	10.7

29 -

Table of Contents

GROUP BALANCE SHEET

| (euro
million) | |
| --- | --- |
| Dec. 31, 2010 | March 31, 2011 |

ASSETS
Current
assets
Cash and cash equivalents	1,549		1,922
Other
financial assets held for trading or available for sale	382		387
Trade and other receivables	23,636		24,274
Inventories	6,589		6,414
Current tax assets	467		269
Other
current tax assets	938		936
Other current assets	1,350		1,664
	34,911		35,866
Non-current assets
Property,
plant and equipment	67,404		65,949
Inventory - compulsory stock	2,024		2,312
Intangible
assets	11,172		11,072
Equity-accounted investments	5,668		5,725
Other
investments	422		407
Other financial assets	1,523		1,520
Deferred
tax assets	4,864		4,186
Other non-current receivables	3,355		3,520
	96,432		94,691
Assets held for sale	517		458
TOTAL
ASSETS	131,860		131,015
LIABILITIES AND SHAREHOLDERS EQUITY
Current
liabilities
Short-term debt	6,515		5,196
Current
portion of long-term debt	963		960
Trade and other payables	22,575		20,235
Income
taxes payable	1,515		2,108
Other taxes payable	1,659		2,474
Other
current liabilities	1,620		1,930
	34,847		32,903
Non-current
liabilities
Long-term debt	20,305		20,902
Provisions
for contingencies	11,792		11,501
Provisions for employee benefits	1,032		1,019
Deferred
tax liabilities	5,924		5,344
Other non-current liabilities	2,194		2,432
	41,247		41,198
Liabilities directly associated with assets
held for sale	38		48
TOTAL
LIABILITIES	76,132		74,149
SHAREHOLDERS EQUITY
Non-controlling
interest	4,522		4,900
Eni shareholders equity:
Share
capital	4,005		4,005
Reserves	49,450		52,169
Treasury
shares	(6,756	)	(6,755	)
Interim dividend	(1,811	)
Net profit	6,318		2,547
Total Eni shareholders equity	51,206		51,966
TOTAL
SHAREHOLDERS EQUITY	55,728		56,866
TOTAL LIABILITIES AND SHAREHOLDERS
EQUITY	131,860		131,015

30 -

Table of Contents

GROUP PROFIT AND LOSS ACCOUNT

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011

| 28,113 | | REVENUES — Net sales
from operations | 24,804 | | 28,779 | |
| --- | --- | --- | --- | --- | --- | --- |
| 208 | | Other income and revenues | 285 | | 233 | |
| 28,321 | | | 25,089 | | 29,012 | |
| | | OPERATING EXPENSES | | | | |
| 20,961 | | Purchases,
services and other | 17,051 | | 20,103 | |
| (246 | ) | - of which non recurrent (income) charge | | | | |
| 1,495 | | Payroll
and related costs | 1,045 | | 1,119 | |
| 61 | | OTHER OPERATING (EXPENSE) INCOME | 38 | | (28 | ) |
| 3,051 | | DEPRECIATION,
DEPLETION, AMORTIZATION AND IMPAIRMENTS | 2,184 | | 2,124 | |
| 2,875 | | OPERATING PROFIT | 4,847 | | 5,638 | |
| | | FINANCE
INCOME (EXPENSE) | | | | |
| 1,139 | | Finance income | 1,363 | | 3,117 | |
| (1,354 | ) | Finance
expense | (1,422 | ) | (3,397 | ) |
| 29 | | Derivative financial instruments | (186 | ) | 197 | |
| (186 | ) | | (245 | ) | (83 | ) |
| | | INCOME (EXPENSE) FROM INVESTMENTS | | | | |
| 95 | | Share of
profit (loss) of equity-accounted investments | 184 | | 200 | |
| 192 | | Other gain (loss) from investments | 41 | | 91 | |
| 287 | | | 225 | | 291 | |
| 2,976 | | PROFIT BEFORE INCOME TAXES | 4,827 | | 5,846 | |
| (2,132 | ) | Income
taxes | (2,408 | ) | (2,887 | ) |
| 844 | | Net profit | 2,419 | | 2,959 | |
| | | Attributable
to: | | | | |
| 548 | | - Enis shareholders | 2,222 | | 2,547 | |
| 296 | | -
Non-controlling interest | 197 | | 412 | |
| 844 | | | 2,419 | | 2,959 | |
| | | Earnings
per share attributable to Enis shareholders (euro per share) | | | | |
| 0.15 | | Basic | 0.61 | | 0.70 | |
| 0.15 | | Diluted | 0.61 | | 0.70 | |

31 -

Table of Contents

Comprehensive income

(euro million)

First Quarter 2010 First Quarter 2011

Net profit	2,419		2,959
Other
items of comprehensive income:
- foreign currency translation differences	1,870		(1,883	)
-
change in the fair value of cash flow hedging derivatives	(23	)	54
- taxation	10		(20	)
	1,857		(1,849	)
Total comprehensive income	4,276		1,110
Attributable
to:
- Enis shareholders	4,036		741
-
Non-controlling interest	240		369

Changes in shareholders' equity

(euro million)

| Shareholders equity including
non-controlling interest at December 31, 2010 | |
| --- | --- |
| Total
comprehensive income | 1,110 |
| Shareholders' contributions in cash | 6 |
| Other
changes | 22 |
| Total changes | 1,138 |
| Shareholders
equity including non-controlling interest at March 31,
2011 | 56,866 |
| Attributable to: | |
| - Enis
shareholders | 51,966 |
| - Non-controlling interest | 4,900 |

32 -

Table of Contents

GROUP CASH FLOW STATEMENT

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011

844		Net profit	2,419		2,959
		Adjustments
to reconcile net profit to net cash provided by operating
activities:
2,458		Depreciation, depletion and amortization	2,152		2,107
593		Impairments
of tangible and intangible assets, net	32		17
(95	)	Share of result of equity-accounted investments	(184	)	(200	)
(173	)	Gain on
disposal of assets, net	(169	)	(19	)
(4	)	Dividend income	(43	)	(114	)
9		Interest
income	(39	)	(25	)
155		Interest expense	145		159
2,132		Income
taxes	2,408		2,887
11		Other changes	(95	)	86
		Changes
in working capital:
283		- inventories	(120	)	(270	)
(2,335	)	- trade
receivables	(2,724	)	(601	)
2,794		- trade payables	1,801		(1,222	)
915		-
provisions for risks and contingencies	56		(48	)
(1,692	)	- other assets and liabilities	617		412
(35	)	Cash
flow from changes in working capital	(370	)	(1,729	)
12		Net change in the provisions for employee
benefits	(4	)	(7	)
240		Dividends
received	35		118
53		Interest income received	47		(14	)
(182	)	Interest
expense paid	(143	)	(216	)
(2,872	)	Income taxes paid, net of reimbursed tax credit	(1,637	)	(1,824	)
3,146		Net
cash provided by operating activities	4,554		4,185
		Investing activities:
(3,363	)	- tangible
assets	(2,447	)	(2,533	)
(549	)	- intangible assets	(332	)	(342	)
(41	)	-
acquisition of controlling interests and businesses
(68	)	- investments	(39	)	(41	)
(37	)	-
securities	(4	)	(8	)
(290	)	- financing receivables	(366	)	(513	)
290		- change
in payables and receivables in relation to investing
activities and capitalized depreciation	(104	)	(225	)
(4,058	)	Cash flow from investments	(3,292	)	(3,662	)
		Disposals:
21		- tangible assets	203		7
21		-
intangible assets			18
167		- consolidated subsidiaries and businesses
2		-
investments	526		1
(24	)	- securities	6
291		-
financing receivables	306		480
56		- change in payables and receivables in relation
to disposals	(44	)	4
534		Cash
flow from disposals	997		510
(3,524	)	Net cash used in investing activities (*)	(2,295	)	(3,152	)

33 -

Table of Contents

GROUP CASH FLOW STATEMENT (continued)

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011

| 1,278 — (2,585 | ) | Proceeds from long-term debt — Repayments
of long-term debt | 22 — (2,198 | ) | 771 — (308 | ) |
| --- | --- | --- | --- | --- | --- | --- |
| 1,855 | | Increase (decrease) in short-term debt | 692 | | (1,100 | ) |
| 548 | | | (1,484 | ) | (637 | ) |
| | | Net capital contributions by non-controlling
interest | | | 6 | |
| 17 | | Net
acquisition of treasury shares from consolidated
subsidiaries | 13 | | 7 | |
| | | Acquisition of interests in consolidated
subsidiaries | | | (8 | ) |
| (160 | ) | Dividends
paid by consolidated subsidiaries to non-controlling
interest | | | | |
| 405 | | Net cash used in financing activities | (1,471 | ) | (632 | ) |
| | | Effect of
change in consolidation (inclusion/exclusion of
significant/insignificant subsidiaries) | | | (6 | ) |
| 10 | | Effect of exchange rate changes on cash and cash
equivalents and other changes | 49 | | (22 | ) |
| 37 | | Net
cash flow for the period | 837 | | 373 | |
| 1,512 | | Cash and cash equivalents - beginning of the
period | 1,608 | | 1,549 | |
| 1,549 | | Cash
and cash equivalents - end of the period | 2,445 | | 1,922 | |

(*) Net cash used in investing activities included investments in certain financial assets to absorb temporary surpluses of cash or as a part of our ordinary management of financing activities. Due to their nature and the circumstance that they are very liquid, these financial assets are netted against finance debt in determining net borrowings. Cash flows of such investments were as follows:

	(euro million)
i
i	Fourth Quarter 2010	i	i	i	First Quarter 2010	i	First Quarter 2011
i
i			Investing activities:
i	(37	)	-
securities				(3	)
i	(11	)	- financing receivables		(106	)	(77	)
i	(48	)			(106	)	(80	)
i			Disposals:
i	(9	)	-
securities		6
i	13		- financing receivables		12		13
i	4				18		13
i	(44	)	Net cash flows		(88	)	(67	)

34 -

Table of Contents

SUPPLEMENTAL CASH FLOW INFORMATION

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011

| 300 | | Effect of investment in companies included in
consolidation and businesses — Current
assets |
| --- | --- | --- |
| 155 | | Non-current assets |
| (35 | ) | Net
borrowings |
| (291 | ) | Current and non-current liabilities |
| 129 | | Net
effect of investments |
| (7 | ) | Non-controlling interest |
| (65 | ) | Fair value
of investments held before the acquisition of control |
| 57 | | Purchase price |
| | | less: |
| (16 | ) | Cash and cash equivalents |
| 41 | | Cash
flow on investments |
| | | Effect of disposal of consolidated
subsidiaries and businesses |
| 2 | | Current
assets |
| 159 | | Non-current assets |
| 15 | | Net
borrowings |
| (166 | ) | Current and non-current liabilities |
| 10 | | Net
effect of disposals |
| 169 | | Gain on disposal |
| 179 | | Selling
price |
| | | less: |
| (12 | ) | Cash
and cash equivalents |
| 167 | | Cash flow on disposals |

35 -

Table of Contents

CAPITAL EXPENDITURE

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011 % Ch.

2,573		Exploration & Production	1,964		1,952	(0.6	)
615		Gas &
Power	310		279	(10.0	)
381		Refining & Marketing	118		132	11.9
126		Petrochemicals	26		39	50.0
386		Engineering & Construction	412		345	(16.3	)
1		Other
activities	9		2	(77.8	)
33		Corporate and financial companies	17		40	..
(203	)	Impact of
unrealized intragroup profit elimination	(77	)	86
3,912			2,779		2,875	3.5

In the first quarter of 2011, capital expenditure amounting to euro 2,875 million (euro 2,779 million in the first quarter 2010) related mainly to:

| - | development activities (euro
1,700 million) deployed mainly in Algeria, Kazakhstan,
Norway, Congo, Italy and the Unites States and
exploratory activities (euro 236 million) of which 96%
was spent outside Italy, primarily in Angola, Australia,
Ghana, Norway, Indonesia and East Timor; |
| --- | --- |
| - | development and upgrading of
Enis natural gas transport network in Italy (euro
157 million) and distribution network (euro 64 million),
as well as development as well as the increase of storage
capacity (euro 39 million); |
| - | projects aimed at improving
the conversion capacity and flexibility of refineries
(euro 107 million), as well as building and upgrading
service stations in Italy and outside Italy (euro 20
million); |
| - | upgrading of the fleet used
in the Engineering & Construction Division (euro 345
million). |

36 -

Table of Contents

Capital expenditure by Division

EXPLORATION & PRODUCTION

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011

184	Italy	152	164
320	Rest of
Europe	177	330
546	North Africa	445	426
606	West
Africa	588	488
264	Kazakhstan	223	217
164	Rest of
Asia	116	112
446	America	247	153
43	Australia
and Oceania	16	62
2,573		1,964	1,952

GAS & POWER

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011

88	Marketing and Power generation	42	18
519	Regulated
businesses in Italy	268	260
300	- Transport	164	157
135	-
Distribution	58	64
84	- Storage	46	39
8	International
transport		1
615		310	279

REFINING & MARKETING

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011

251	Refining, Supply and Logistic	95	107
125	Marketing	17	20
5	Other activities	6	5
381		118	132

37 -

Table of Contents

Exploration & Production

PRODUCTION OF OIL AND NATURAL GAS BY REGION

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011

| 1,954 | Production of oil and natural gas (a)
(b) | (kboe/d) | 1,842 | 1,684 |
| --- | --- | --- | --- | --- |
| 182 | Italy | | 182 | 186 |
| 236 | Rest of Europe | | 243 | 224 |
| 688 | North
Africa | | 589 | 505 |
| 403 | West Africa | | 402 | 375 |
| 117 | Kazakhstan | | 121 | 117 |
| 155 | Rest of Asia | | 122 | 120 |
| 145 | America | | 159 | 131 |
| 28 | Australia and Oceania | | 24 | 26 |
| 173.6 | Production
sold (a) | (mmboe) | 158.6 | 145.7 |

PRODUCTION OF LIQUIDS BY REGION

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011

1,049	Production of liquids (a)	1,011	899
63	Italy	58	67
129	Rest of Europe	132	123
329	North
Africa	287	239
302	West Africa	341	286
72	Kazakhstan	72	71
74	Rest of Asia	36	38
71	America	77	67
9	Australia and Oceania	8	8

PRODUCTION OF NATURAL GAS BY REGION

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011

5,021	Production of natural gas (a) (b)	4,615	4,356
658	Italy	687	661
592	Rest of Europe	618	563
1,990	North
Africa	1,679	1,474
564	West Africa	339	496
250	Kazakhstan	272	257
447	Rest of Asia	479	452
414	America	453	353
106	Australia and Oceania	88	100

| (a) | Includes
Enis share of production of equity-accounted
entities. |
| --- | --- |
| (b) | Includes
volumes of gas consumed in operations (321 and 316 mmcf/d
in the first quarter 2011 and 2010, respectively, and 342
mmcf/d in the fourth quarter 2010). |

38 -

Table of Contents

Petrochemicals

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011

| 648 | Sales of petrochemical products — Basic
petrochemicals | (million) — 673 | 847 |
| --- | --- | --- | --- |
| 771 | Polymers | 758 | 903 |
| 55 | Other
revenues | 45 | 47 |
| 1,474 | | 1,476 | 1,797 |
| | Production | (ktonnes) | |
| 1,136 | Basic petrochemicals | 1,241 | 1,171 |
| 560 | Polymers | 607 | 553 |
| 1,696 | | 1,848 | 1,724 |

Engineering & Construction

(euro million)

Fourth Quarter 2010 First Quarter 2010 First Quarter 2011

| 1,241 | Orders acquired — Offshore
construction | 1,105 | 1,727 |
| --- | --- | --- | --- |
| 2,050 | Onshore construction | 1,247 | 933 |
| 10 | Offshore
drilling | 140 | 75 |
| 11 | Onshore drilling | 186 | 173 |
| 3,312 | | 2,678 | 2,908 |

(euro million)

	Dec. 31, 2010	March 31, 2011
Order backlog	20,505	20,459

39 -

Table of Contents

Eni: Board of Directors approves bond issue

San Donato Milanese (Milan), April 27, 2011 - The Eni Board of Directors approved the issue of one or more bonds, in one or more tranches. The bond are approved for placement with retail investors in Italy and to be listed on one or more regulated markets, including on the Mercato Telematico Obbligazionario (MOT), by April 27, 2012, for an overall maximum amount of euro 2 billion.

The bonds will enable Eni to maintain a broad investor base and a well-balanced financial structure in terms of short term and medium/long-term debt.

Company Contacts:

Press Office: Tel. +39.0252031875 - +39.0659822030 Freephone for shareholders (from Italy): 800940924 Freephone for shareholders (from abroad): +39. 800 11 22 34 56 Switchboard: +39-0659821

[email protected] [email protected] [email protected]

Web site : www.eni.com

AI assistant

Eni Regulatory Filings 2011

4348_ffr_2011-05-03_38ec3f73-c902-427f-b8e0-ffbd3689e681.zip

AI assistant

Eni — Regulatory Filings 2011

4348_ffr_2011-05-03_38ec3f73-c902-427f-b8e0-ffbd3689e681.zip

More from Eni

Eni Regulatory Filings 2011