Eni - Regulatory Filings 2011 | FinancialReports.eu

6-K 1 sj0211en6k.htm HTML PUBLIC "-//IETF//DTD HTML//EN" sj0211en6k

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 February 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 February 16, 2011

Press Release dated February 22, 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: February 28, 2011

Table of Contents

ENI ANNOUNCES RESULTS FOR THE FOURTH QUARTER AND THE FULL YEAR 2010

San Donato Milanese, February 16, 2011 - Eni, the international oil and gas company, today announces the Group preliminary results for the fourth quarter and the full year 2010 (unaudited).

Financial Highlights

| | Adjusted
operating profit: euro 4.74 billion in the quarter (up
28%); euro 17.3 billion for the full year (up 31.9%). |
| --- | --- |
| | Adjusted
net profit: euro 1.72 billion in the quarter (up 23.6%);
euro 6.87 billion for the full year (up 31.9%). |
| | Net
profit: euro 0.55 billion in the quarter (up 40.2%); euro
6.32 billion for the full year (up 44.7%). |
| | Cash flow:
euro 3.15 billion in the quarter; euro 14.69 billion for
the full year. |
| | Dividend
proposal for the full year of euro 1.00 per share
(includes an interim dividend of euro 0.50 per share paid
in September 2010). |

Operational Highlights

| | Oil and
natural gas production: 1.954 million barrels per day in
the quarter, up 2% from 2009 on a comparable basis 1 (up 1.1% for the full year). |
| --- | --- |
| | Preliminary
year-end proved reserves estimate: 6.84 bboe with a
reference Brent price of $79 per barrel. All sources
reserve replacement ratio was 125% on a comparable basis 1 . |
| | Natural
gas sales: up 1.3% to 28.76 billion cubic meters in the
quarter (down 6.4% for the full year). |
| | Junin 5 in
Venezuela: established a joint venture for developing the
giant oilfield with first oil expected in 2013. |
| | Giant
Zubair field in Iraq: first production booked in the
fourth quarter. |
| | Giant
Perla field: appraised to be the largest gas discovery
ever in Venezuela with volumes of gas in place of 400
billion cubic meters. |
| | Poland:
awarded licenses in high potential areas for shale gas. |
| | Ecuador:
renewed the service contract for the Villano oilfield
with extension in the Oglan discovery area. |
| | Started
production at all 12 fields planned for the year. |

Paolo Scaroni, Chief Executive Officer, commented: " In 2010, Eni delivered operating and financial results which rank among the best in its peer group. In E&P, where we reported record production, we paved the way for future growth thanks to our entry into new countries, including Togo, Democratic Republic of Congo and Poland. We also strengthened our position in established areas of operation, such as Venezuela and Iraq, where we expect high productive potential. Thanks to our excellent strategic positioning, Eni will continue to generate industry-leading results, and create value for its shareholders."

(1) Excluding the impact of natural gas conversion factor update. For further information see page 8.

Table of Contents

Financial Highlights

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 % Ch. 4 Q. 10 vs 4 Q. 09 Full Year 2009 Full Year 2010 % Ch.

| 2,466 | 4,084 | 2,875 | 16.6 | SUMMARY GROUP RESULTS — Operating
profit | (euro million) | 12,055 | 16,111 | 33.6 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 3,702 | 4,106 | 4,739 | 28.0 | Adjusted operating profit (a) | | 13,122 | 17,304 | 31.9 |
| 391 | 1,724 | 548 | 40.2 | Net
profit (b) | | 4,367 | 6,318 | 44.7 |
| 0.11 | 0.48 | 0.15 | 36.4 | - per share (c) | (euro) | 1.21 | 1.74 | 43.8 |
| 0.33 | 1.24 | 0.41 | 24.2 | - per ADR (c)
(d) | ($) | 3.36 | 4.62 | 37.5 |
| 1,394 | 1,699 | 1,723 | 23.6 | Adjusted net profit (a) (b) | | 5,207 | 6,869 | 31.9 |
| 0.38 | 0.47 | 0.48 | 26.3 | - per
share (c) | (euro) | 1.44 | 1.90 | 31.9 |
| 1.12 | 1.21 | 1.30 | 16.1 | - per ADR (c) (d) | ($) | 4.01 | 5.04 | 25.7 |

| (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 29. |
| --- | --- |
| (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 for the fourth quarter of 2010 was euro 4.74 billion, an increase of 28% compared with the fourth quarter of 2009. For the full year, adjusted operating profit was euro 17.3 billion, an increase of 31.9% from a year ago. These results reflected excellent operating performance reported by the Exploration & Production division (an increase of 43.7% and 46.4% compared with the fourth quarter and the full year 2009) driven by higher oil prices and the appreciation of the dollar vs. the euro. Also, the Engineering & Construction division reported a robust performance (up 33.1% and 18.4% in both reporting periods). The downstream refining and petrochemical businesses both reported consistent improvement in operating performance, thanks to a more favorable trading environment. In contrast, the Gas & Power division reported sharply lower results as unit margins and gas volumes sold in the first three quarters were hit by strong competitive pressures.

Adjusted net profit Adjusted net profit for the fourth quarter of 2010 was euro 1.72 billion, up 23.6% compared with a year ago. For the full year, net profit increased by 31.9% to euro 6.87 billion, as a result of improved operating performance in both reporting periods. These positives were partly offset by a higher adjusted tax rate (up 2 percentage points and 0.8 percentage points on a quarterly and yearly basis, respectively).

Capital expenditures Capital expenditures amounted to euro 3.9 billion for the quarter and euro 13.9 billion for the full year, mainly relating to the continuing development of oil and gas reserves, the upgrading of rigs and offshore vessels in the Engineering & Construction segment and of the gas transport infrastructure.

Cash flow The main cash inflows for the quarter were net cash generated by operating activities amounting to euro 3,146 million (euro 14,694 million for the full year) benefiting from a cash inflow from transferring certain account receivables without recourse to factoring institutions, amounting to euro 1,279 million due in 2011. These inflows were balanced by outflows for pre-payments to the Companys suppliers of gas under long-term contracts upon triggering the take-or-pay clause (euro 937 million for the quarter and euro 1,238 million for the full year). Proceeds from divestments amounted euro 211 million (euro 1,113 million for the full year). These inflows were used to fund part of the financing requirements associated with capital expenditures of euro 3,912 million (euro 13,870 million for the full year), the dividend payments to Enis shareholders amounting to euro 3,622 million, relating to the interim dividend for fiscal year 2010 and the payment of the balance of 2009 dividend. Other dividend payments to non-controlling interests amounted to euro 514 million. As a result, net borrowings 2 as of December 31, 2010 amounted to euro 26,119 million, representing an increase of euro 858 million from September 30, 2010 and euro 3,064 million from December 31, 2009.

(2) Information on net borrowings composition is furnished on page 38.

Table of Contents

Financial Ratios The ratio of net borrowings to shareholders equity including non-controlling interest leverage 3 was 0.47 at December 31, 2010 up from 0.46 as of December 31, 2009. Return on Average Capital Employed (ROACE) 3 calculated on an adjusted basis for the twelve-month period to December 31, 2010 was 10.7% (9.2% at December 31, 2009).

Dividend 2010 The Board of Directors intends to submit a proposal for distributing a cash dividend of euro 1.00 per share 4 (euro 1.00 in 2009) at the Annual Shareholders Meeting. Included in this annual payment is euro 0.50 per share which was paid as interim dividend in September 2010. The balance of euro 0.50 per share is payable to shareholders on May 26, 2011, the ex-dividend date being May 23, 2011.

Operational highlights and trading environment

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 % Ch. 4 Q. 10 vs 4 Q. 09 Full Year 2009 Full Year 2010 % Ch.

| 1,886 | 1,705 | 1,954 | n.m. | | KEY STATISTICS — Production
of oil and natural gas (a) | (kboe/d) | 1,769 | 1,815 | n.m. | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1,886 | 1,679 | 1,924 | 2.0 | | Production of oil and natural gas net of
updating the natural gas conversion factor | | 1,769 | 1,789 | 1.1 | |
| 1,073 | 948 | 1,049 | (2.2 | ) | - Liquids | (kbbl/d) | 1,007 | 997 | (1.0 | ) |
| 4,668 | 4,203 | 5,021 | 7.6 | | - Natural gas | (mmcf/d) | 4,374 | 4,540 | 4.0 | |
| 28.39 | 18.60 | 28.76 | 1.3 | | Worldwide
gas sales | (bcm) | 103.72 | 97.06 | (6.4 | ) |
| 1.82 | 1.19 | 1.52 | (16.5 | ) | - of which: E&P sales in Europe and the
Gulf of Mexico | | 6.17 | 5.65 | (8.4 | ) |
| 9.42 | 10.70 | 10.23 | 8.6 | | Electricity
sales | (TWh) | 33.96 | 39.54 | 16.4 | |
| 3.00 | 3.19 | 2.92 | (2.7 | ) | Retail sales of refined products in Europe | (mmtonnes) | 12.02 | 11.73 | (2.4 | ) |

(a) From April 1, 2010, the natural gas conversion factor from cubic feet to boe has been updated to 1 barrel of oil = 5,550 cubic feet of gas (it was 1 barrel of oil = 5,742 cubic feet of gas). For further information see page 8.

Exploration & Production In the fourth quarter of 2010, Enis reported liquids and gas production reached the record level of 1.954 mmboe/d (1,815 kboe/d for the full year). This was calculated assuming a natural gas conversion factor to barrel equivalent which was updated to 5,550 cubic feet of gas equals 1 barrel of oil (it was 5,742 cubic feet of gas per barrel in previous reporting periods; for further disclosures on this matter see page 8). On a comparable basis, i.e. when excluding the effect of updating the gas conversion factor, production showed an increase of 2% on a quarter-to-quarter basis, and was up 1.1% for the full year. Production growth was driven by additions from new field start-ups, particularly the Zubair field in Iraq started up in the fourth quarter, amounting to 90 and 40 kboe/d in the quarter and full year, respectively. Those trends were partly offset by mature field declines. Lower entitlements in the Companys Production Sharing Agreements (PSAs) due to higher oil prices, as well as lower gas uplifts in Libya as a result of oversupply conditions in the European market were partly offset by lower OPEC restrictions resulting in a net negative impact of approximately 7 kboe/d on an annual basis and in a net positive impact of approximately 10 kboe/d in the quarter.

Gas & Power Enis gas sales in the fourth quarter of 2010 amounted to 28.76 bcm with an increase of 1.3% compared with the fourth quarter of 2009. Enis performance on European markets (up 1.11 bcm or 8.3%) was driven by organic growth in key markets such as Northern Europe (including UK), France, the Iberian Peninsula and higher spot volumes marketed at continental hubs. In Italy, volumes growth (up 0.54 bcm or 5.4%) was driven by higher spot sales due to seasonal effects, the recapture of customers in the wholesale segment, and a good performance in the industrial segment as Enis customers utilized more gas. These increases were partly offset

| (3) | Non-GAAP
financial measures disclosed throughout this press
release are accompanied by explanatory notes and tables
to help investors gain a full understanding of said
measures in line with guidance provided for by CESR
Recommendation No. 2005-178b. See pages 38 and 39 for
leverage and ROACE, respectively. |
| --- | --- |
| (4) | Dividends are
not entitled to tax credit and, depending on the
receiver, are subject to a withholding tax on
distribution or are partially cumulated to the
receivers taxable income. |

Table of Contents

by lower off-takes by importers to Italy (down 34.8%) due to oversupply in the Italian market. For the full year, gas sales (97.06 bcm) declined by 6.4% versus 2009, dragged down by sharply lower sales volumes in the Italian market (down by 5.75 bcm or 14.4%) as all market segments posted volume losses. Specifically, sales to the power generation segment declined as clients opted to directly purchase gas on the marketplace, while sales to industrial customers were dragged down by increased competitive pressures fuelled by oversupplies and sluggish demand growth. Sales to importers declined by 2.04 bcm or 19.5% due to negative market trends. On a positive note, European markets experienced a good performance as sales increased by 1.11 bcm or 2.5%, driven by growth in Northern Europe (including UK), France, Germany and the Iberian Peninsula, while sales decreased in Turkey, Belgium and Hungary.

Refining & Marketing Refining margins remained unprofitable due to weak underlying fundamentals (sluggish demand, excess capacity and high inventory levels) and high feedstock costs. In the fourth quarter of 2010, the marker Brent margin was $2.74 per barrel ($2.66 per barrel in the full year), higher than the extremely low levels touched in the fourth quarter 2009 (up $1.5 per barrel in the quarter, or 121%, and down by $0.5 per barrel, or 15%, for the full year). Enis margins in the same period slightly profited from a re-opening of light-heavy crude differentials in the Mediterranean area (the Brent vs Ural spread was up $0.9 a barrel) and from higher premiums on feedstock for gasoline compared to fuel oil. Both factors favored the profitability of Enis high conversion refineries. Higher utilities expenses were incurred due to rising costs for fuel oil. In the fourth quarter of 2010, volumes of refined products marketed on the Italian network declined by 4% (down 4.4% in the full year). The performance was affected by declining domestic consumption and increasing competitive pressures that caused Enis market share to drop by almost 0.8 percentage points to 30.4% in the quarter. On the positive side, volumes marketed on European markets increased by 1.4% and 3.7% in the fourth quarter and the full year respectively, benefiting from the purchase of a network of service stations in Austria and an improved performance in Eastern Europe, Germany and France.

Currency Results of operations were helped by the depreciation of the euro vs. the US dollar, down 8.1% and 4.7% in the fourth quarter and the full year, respectively.

Portfolio developments

In 2010, Eni continued to progress its growth strategy, particularly in the Exploration & Production segment, as foundations of a new development phase were laid. We strengthened our presence in two countries with tremendous mineral potential: in Venezuela, we signed agreements for developing the giant Junin 5 oilfield and discovered the maxi gas field Perla, offshore; and in Iraq we achieved development milestones at the giant Zubair oilfield. 2010 also marked Enis entry in new high potential countries such as Togo, the Democratic Republic of Congo and, in non conventional resources, Poland. In the Gas & Power segment, Eni consolidated its presence in the French market and renewed its strategic partnership with Gazprom. Enis portfolio was rationalized by divesting non strategic assets.

Venezuela In November 2010, Eni and Venezuelan company PDVSA signed the contracts for the development of the giant Junín 5 oilfield, located in the Orinoco Oil Belt with certified volumes of oil in place of 35 billion barrels. The two partners plan to achieve first oil by 2013 at an initial rate of 75,000 barrels per day, targeting a long-term production plateau of 240,000 barrels per day to be reached in 2018. In addition to development, the project provides for the construction of a refinery designed to process the field production. Appraisal activities performed in 2010 confirmed Perla as a major gas discovery, one of the most significant in recent years and the largest ever in Venezuela, with volumes of gas in place of over 400 bcm. The Perla field, located in the Cardón IV Block, in the shallow water of the Gulf of Venezuela, is currently licensed and operated by a 50/50 Joint Venture with an international oil company. The partners are planning to fast track development of Perla through an early production phase of 10 bcm per day, targeted to start-up by 2013. The Venezuelan state company PDVSA owns a 35% back-in right to be exercised in the development phase.

Table of Contents

Iraq Eni has achieved an increase in production by more than 10% above the initial production rate of approximately 180 kbbl/d at the giant Zubair oilfield. Lifting production above that level means that Eni has begun the cost recovery of its work on the field by booking its share of production for the fourth quarter, including receiving a remuneration fee for every extra barrel of oil produced above the 10% target. Eni, with a 32.8% share, is leading the consortium in charge of redeveloping the Zubair field over a 20 year period, targeting a production plateau of 1.2 mmbbl/d in the next six years.

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. Peak production is expected at 28 kbbl/d.

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.

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.

Ecuador In November 2010, Eni signed with the Government of Ecuador new terms for the service contract for the Villano oilfield, due to expire in 2023. Under the new agreement, the operated area is enlarged to include the Oglan oil discovery, with volumes in place of 300 mmbbl. Development will be achieved in synergy with existing facilities.

Democratic Republic of Congo In August 2010, Eni signed an agreement with UK-based Surestream Petroleum to acquire a 55% stake and operatorship in the Ndunda block located in the Democratic Republic of Congo. The agreement has already been sanctioned by the relevant authorities.

Togo In October 2010, Eni was awarded operatorship of offshore Block 1 and Block 2 (Eni 100%) in the Dahomey Basin as part of its agreements with the Government of Togo to develop the countrys offshore mineral resources. The area is located in a scarcely explored basin bordered to the west by the analogous Tano Basin where major discoveries have been made previously.

Poland In December 2010, Eni acquired the Minsk Energy Resources operating 3 licenses in the Polish Baltic Basin, a highly prospective shale gas play. Drilling operations are expected to start in 2011. Through this agreement, Eni makes its entrance into European unconventional gas, in line with the companys strategy of expanding its position in unconventional resources.

Signed an extension to the strategic agreement with Gazprom Eni and Gazprom signed the extension to 2012 of the strategic agreement signed in November 2006. This consolidates a long term partnership to launch joint projects in mid and downstream gas, in the upstream sector and in technological cooperation.

France In December 2010, Eni increased its share in Altergaz, a company marketing natural gas in France to retail and middle market clients, to 55.2%, as founding partners of the company exercised a put option on a 15% stake. Eni now controls the entity.

Table of Contents

Exploration activities In 2010, significant exploratory successes were achieved. In addition to Perla, the main discoveries were made in: (i) Angola with the exploratory wells Cabaca South East and Mpungi located in the 15/06 offshore block (Eni 35%, operator); (ii) offshore United Kingdom with the Culzean appraisal well (Eni 16.9%); (iii) Indonesia with a gas well in the Jangkrik (Eni 55%) field; (iv) Norway with the Fossekall (Eni 11.5%) and the Flyndretind oil discoveries (Eni 29.4%); (v) onshore Egypt with the North El Qara gas discovery (Eni 75%) and the Arcadia oil discovery (Eni 56%), both already in production; (vi) Nigeria with the Tuomo 4 oil discovery (Eni 20%).

Portfolio optimization

Divestment of Società Padana Energia On October 19, 2010, with a view to rationalizing its upstream portfolio, Eni divested its subsidiary Padana Energia to Gas Plus. The divested subsidiary includes exploration leases and concessions for developing and producing oil and natural gas in Northern Italy.

Divestment of interest in Gas Brasiliano Distribuidora In May 2010, Eni signed a preliminary agreement with an affiliate of Petrobras for the divestment of its 100% interest in Gas Brasiliano Distribuidora, a company that markets and distributes gas in an area of the Sao Paulo state, Brazil. The completion of the transaction is subject to approval of the relevant Brazilian authorities.

Sale of 25% of the share capital of GreenStream BV In April 2010, Eni sold to NOC (Libyan National Oil Corp) a 25% stake in the share capital and the control of GreenStream BV, the Company owning and managing the gas pipeline for importing to Italy natural gas produced in Libya.

Divestment of international pipelines

Procedures for the divestment of Enis interests in the German TENP, the Swiss Transitgas and the Austrian TAG gas transport pipelines are progressing. The divestment is part of the commitments presented by Eni to the European Commission to settle an antitrust proceeding related to alleged anti-competitive behavior in the natural gas market ascribed to Eni without the ascertainment of any illicit behavior and consequently without imposition of any fines or sanctions. The Commission accepted Enis commitments as of September 29, 2010.

Eni proposal to the Italian Ministry for the Environment for a global transaction on certain environmental issues

The parent company Eni SpA also on behalf of other Group companies (including in particular Syndial) filed a proposal with the Italian Ministry for the Environment to enter into a global transaction related to nine sites of national interest (Priolo, Napoli Orientale, Brindisi, Pieve Vergonte, Cengio, Crotone, Mantova, Porto Torres and Gela) where the Group companies have started, as guiltless owners of a number of industrial areas, environmental restoration and clean-up activities. The proposal includes a definition of a number of pending proceedings relating to clean-up issues and environmental damage. The framework of the transaction proposal includes: (i) a global environmental transaction as per article 2 of Law Decree 208/2008 (related to the Pieve Vergonte, Cengio, Crotone, Mantova, Porto Torres and Gela sites); (ii) the subscription of certain environmental framework agreements that have already been signed by relevant administrative bodies which interested businesses may opt for adhering to (related to the Priolo, Brindisi and Napoli Orientale sites); and (iii) the closing of a civil lawsuit regarding environmental damage at the Pieve Vergonte site. Briefly, Eni and its subsidiaries through the proposal:

| - | commit to execute
environmental investments amounting to euro 600 million
as provided by the 2011-2014 industrial plan in order to
achieve higher levels of efficiency and energy
sustainability of their plants; |
| --- | --- |
| - | reaffirm their commitment to
carry out a number of projects to clean up and restore
proprietary or |

Table of Contents

| | concession areas in the
above mentioned sites with overall expenditures amounting
to euro 1,250 million; |
| --- | --- |
| - | pledge to pay the Ministry
for the Environment a contribution in cash amounting to
euro 450 million in view of executing clean-up and
remediation works in public areas next to Eni and its
subsidiaries proprietary areas; |
| - | give certain proprietary
areas to interested public administrations for free in
order to pursue certain local development projects. |

As a result of the filing of the proposal of global transaction following thorough and extended contacts with the public bodies, Eni took a charge amounting to euro 1,109 million to the environmental provision in its 2010 consolidated accounts, with a net effect on profit for the year of euro 783 million including the tax impact of the operation. The charge had no effect on the Groups consolidated net borrowings at period end. In case of finalization of the global transaction, the payment of the accrued provision will be made progressively according to the achievement of executive agreements for each site. A complex administrative procedure is going to start following the presentation of Enis proposal to the Ministry. That entity is responsible for drafting a framework transaction which will undergo technical review on part of all interested administrative bodies including public and local authorities. Finally, the transaction signed by Eni is due to be ratified by the Italian Council of Ministers.

Outlook

Eni will host a strategy presentation on March 10, 2011 to outline the Companys targets for the 2011-2014 four-year plan. The 2011 outlook is still characterized by a certain degree of uncertainty and volatility. However the global economic recovery has been gaining momentum recently. Eni forecasts a solid trend for Brent crude oil prices supported by healthier global oil demand. For capital budgeting and financial planning purposes, Eni assumes an average Brent price of 70 $/barrel for the full year 2011. Management expects that the European gas market will remain depressed 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, key volumes trends for the year are expected to be the following:

| - | Production of liquids and
natural gas is forecast to slightly increase compared
to 2010 (1.815 million boe/d was the actual level in
2010). This estimate is based on the Companys
assumption of a Brent price of 70 $/barrel for the full
year. Growth will be driven by ramping-up fields started
in 2010 mainly in Iraq, and new field start-ups in
Australia, Algeria and the United States, partly offset
by mature field declines; |
| --- | --- |
| - | Worldwide gas sales: are
expected to be at least in line with 2010 (in 2010
actual sales amounted to 97.06 bcm). Considering mounting
competitive pressure in the gas market, the achievement
of this target as well as stabilizing the market share
will be supported 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
supply contracts; |
| - | Regulated businesses in
Italy will benefit from the pre-set regulatory return
on new capital expenditures and efficiency programs; |
| - | Refining throughputs on
Enis account are planned to be in line with
2010 (actual throughputs in 2010 were 34.8 mmtonnes), due
to higher volumes processed on more competitive
refineries, the optimization of refinery cycles, as well
as efficiency actions implemented in response to a
volatile trading environment; |
| - | Retail sales of refined
products in Italy and the rest of Europe are expected
to be in line with 2010 (11.73 mmtonnes in 2010) against
the backdrop of weaker demand. Management plans to
improve sales and profitability leveraging on selective
pricing and marketing initiatives, starting new service
stations and developing the "non-oil" business; |
| - | 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 70 $/barrel and the divestment of certain assets, management forecasts that the ratio of net borrowings to total equity (leverage) at year-end will be lower than the 2010 level.

Table of Contents

This press release has been prepared on a voluntary basis in accordance with the best practices on the marketplace. It provides data and information on the Companys business and financial performance for the fourth quarter and the full year 2010 (unaudited). Full year and 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 in the preparation of this report are unchanged from those adopted for the preparation of the 2009 Annual Report, with the exception of the international accounting standards that have come into force from January 1, 2010 described in the section of the 2009 Annual Report "Accounting standards and interpretations issued by IASB/IFRIC and endorsed by EU". Adoption of those accounting standards did not have any significant impacts on the financial results of the fourth quarter and full year 2010 with the sole exception of interpretation IFRIC12 "Service Concession Arrangements". IFRIC12 provides guidance on the accounting by operators for public-to-private service concession arrangements. An arrangement within the scope of this interpretation involves for a specified period of time an operator constructing, upgrading, operating and maintaining the infrastructure used to provide the public service. In particular when the grantor controls or regulates what services the operator must provide with the infrastructure, at what price and any significant residual interest in the infrastructure at the end of the term of the arrangement, the operator shall recognize the concession as an intangible asset or as a financial asset on the basis of the agreements. Based on existing arrangements in Eni Group companies, adoption of IFRIC12 has led to the Company classifying infrastructures used to provide the public service within intangible assets in the balance sheet as of June 30, 2010. Balance sheet data as of December 31, 2009 have been restated accordingly for an amount of euro 3,412 million (i.e. the net book value of infrastructures used to provide the public service which were presented within property, plant and equipment in prior years). Considering the tariff set-up of public services rendered under concessions arrangements and absent any benchmarks, the Company was in no position to reliably quantify margins for construction and upgrading activities and consequently capital expenditures made in the period have been recognized as contract work in progress for an equal amount as costs incurred. Infrastructures used to provide the public service are amortized on the basis of the expected pattern of consumption of expected future economic benefits embodied in those assets and their residual value, as provided by the relevant regulatory framework. From April 1, 2010, Eni has updated the natural gas conversion factor from 5,742 to 5,550 standard cubic feet of gas per barrel of oil equivalent. This update reflected changes in Enis gas properties that took place in recent years and was assessed by collecting data on the heating power of gas in all Enis 230 gas fields on stream at the end of 2009. The effect of this update on production expressed in boe was 26 kboe/d for the full year 2010. Other per-boe indicators were only marginally affected by the update (e.g. realization prices, costs per boe) and also negligible was the impact on depletion charges. Other oil companies use different conversion rates.

Non-GAAP financial measures and other performance indicators 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 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 entries.

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 nine months 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 Roma, 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 fourth quarter and full year 2010 (unaudited) is also available on the Eni web site: eni.com

Table of Contents

| Summary results for the fourth
quarter and the full year 2010 |
| --- |
| (euro million) |

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 % Ch. 4 Q. 10 vs 4 Q. 09 Full Year 2009 Full Year 2010 % Ch.

| 22,077 — 2,466 | | 22,704 — 4,084 | | 27,950 — 2,875 | 16.6 | Net sales from operations — Operating
profit | | 83,227 — 12,055 | | 98,360 — 16,111 | 33.6 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (135 | ) | 28 | | (132 | ) | Exclusion of inventory holding (gains) losses | | (345 | ) | (881 | ) |
| 1,371 | | (6 | ) | 1,996 | | Exclusion
of special items | | 1,412 | | 2,074 | |
| | | | | | | of which: | | | | | |
| 250 | | | | (246 | ) | - non
recurring items | | 250 | | (246 | ) |
| 1,121 | | (6 | ) | 2,242 | | - other special items | | 1,162 | | 2,320 | |
| 3,702 | | 4,106 | | 4,739 | 28.0 | Adjusted
operating profit | | 13,122 | | 17,304 | 31.9 |
| (157 | ) | 46 | | (184 | ) | Net finance (expense) income (a) | | (551 | ) | (692 | ) |
| 151 | | 178 | | 82 | | Net income
from investments (a) | | 700 | | 781 | |
| (2,015 | ) | (2,174 | ) | (2,618 | ) | Income taxes (a) | | (7,114 | ) | (9,459 | ) |
| 54.5 | | 50.2 | | 56.5 | | Tax
rate | (%) | 53.6 | | 54.4 | |
| 1,681 | | 2,156 | | 2,019 | 20.1 | Adjusted net profit | | 6,157 | | 7,934 | 28.9 |

| 1,019 | | 1,329 | | 1,587 | | 55.7 | | Breakdown
by division (a) : — Exploration & Production | 3,878 | | 5,600 | | 44.4 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 852 | | 438 | | 644 | | (24.4 | ) | Gas &
Power | 2,916 | | 2,558 | | (12.3 | ) |
| (118 | ) | 48 | | (48 | ) | 59.3 | | Refining & Marketing | (197 | ) | (49 | ) | 75.1 | |
| (85 | ) | 18 | | (37 | ) | 56.5 | | Petrochemicals | (340 | ) | (85 | ) | 75.0 | |
| 229 | | 258 | | 266 | | 16.2 | | Engineering & Construction | 892 | | 994 | | 11.4 | |
| (83 | ) | (54 | ) | (40 | ) | 51.8 | | Other
activities | (245 | ) | (216 | ) | 11.8 | |
| (95 | ) | 60 | | (228 | ) | .. | | Corporate and financial companies | (744 | ) | (699 | ) | 6.0 | |
| (38 | ) | 59 | | (125 | ) | | | Impact of
unrealized intragroupprofit elimination (b) | (3 | ) | (169 | ) | | |
| 391 | | 1,724 | | 548 | | 40.2 | | Net profit attributable to Enis
shareholders | 4,367 | | 6,318 | | 44.7 | |
| (31 | ) | 16 | | (96 | ) | | | Exclusion
of inventory holding (gains) losses | (191 | ) | (610 | ) | | |
| 1,034 | | (41 | ) | 1,271 | | | | Exclusion of special items | 1,031 | | 1,161 | | | |
| | | | | | | | | of
which: | | | | | | |
| 250 | | | | (246 | ) | | | - non recurring items | 250 | | (246 | ) | | |

| 784 | (41 | 1,517 | | - other
special items | | 781 | 1,407 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 1,394 | 1,699 | 1,723 | 23.6 | Adjusted net profit attributable to
Enis shareholders | | 5,207 | 6,869 | 31.9 |
| | | | | Net
profit attributable to Enis shareholders | | | | |
| 0.11 | 0.48 | 0.15 | 36.4 | per share | (euro) | 1.21 | 1.74 | 43.8 |
| 0.33 | 1.24 | 0.41 | 24.2 | per ADR | ($) | 3.36 | 4.62 | 37.5 |
| | | | | Adjusted net profit attributable to
Enis shareholders | | | | |
| 0.38 | 0.47 | 0.48 | 26.3 | per share | (euro) | 1.44 | 1.90 | 31.9 |
| 1.12 | 1.21 | 1.30 | 16.1 | per ADR | ($) | 4.01 | 5.04 | 25.7 |
| 3,622.4 | 3,622.5 | 3,622.5 | | Weighted
average number of outstanding shares (c) | | 3,622.4 | 3,622.5 | |
| 1,481 | 2,409 | 3,146 | 112.4 | Net cash provided by operating activities | | 11,136 | 14,694 | 32.0 |
| 3,894 | 2,851 | 3,912 | 0.5 | Capital
expenditures | | 13,695 | 13,870 | 1.3 |

| (a) | Excluding
special items. For a detailed explanation of adjusted net
profit by division see page 29. |
| --- | --- |
| (b) | Unrealized
intragroup profit concerns profit on intragroup sale of
products, goods, services and tangible and intangible
goods reported in the acquiring companys assets at
period end. |
| (c) | Fully diluted
(million shares). |

Trading environment indicators

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 % Ch. 4 Q. 10 vs 4 Q. 09 Full Year 2009 Full Year 2010 % Ch.

74.57	76.86	86.48	16.0		Average price of Brent dated crude oil (a)		61.51	79.47	29.2
1.478	1.291	1.359	(8.1	)	Average
EUR/USD exchange rate (b)		1.393	1.327	(4.7	)
50.45	59.54	63.64	26.1		Average price in euro of Brent dated crude oil		44.16	59.89	35.6
1.24	2.09	2.74	121.0		Average
European refining margin (c)		3.13	2.66	(15.0	)
1.80	2.44	3.78	110.0		Average European refining margin Brent/Ural (c)		3.56	3.47	(2.5	)
0.84	1.62	2.02	140.5		Average
European refining margin in euro		2.25	2.00	(11.1	)
0.7	0.8	1.0	42.9		Euribor - three-month euro rate	(%)	1.2	0.8	(33.3	)
0.3	0.4	0.3			Libor -
three-month dollar rate	(%)	0.7	0.3	(57.1	)

| (1) | In USD
dollars per barrel. Source: Platts Oilgram. |
| --- | --- |
| (2) | Source: ECB. |
| (3) | In USD per
barrel FOB Mediterranean Brent dated crude oil. Source:
Eni calculations based on Platts Oilgram data. |

10 -

Table of Contents

Group results

Net profit attributable to Enis shareholders for the fourth quarter of 2010 was euro 548 million, an increase of euro 157 million from the fourth quarter of 2009, or 40.2%. For the full year, net profit was euro 6,318 million, an increase of euro 1,951 million from 2009, or 44.7%. These increases reported in both reporting periods were driven by an improved operating performance (up by 16.6% and 33.6% in the fourth quarter and the full year, respectively) which was mainly reported by the Exploration & Production division, reflecting the favorable trading environment. These positives were partly offset by certain extraordinary charges amounting to approximately euro 2 billion both in the quarter and the full year, up euro 600 million from the same periods of the previous year. The results were helped by higher profits reported from equity-accounted and cost-accounted entities, including certain gains on divestments (approximately euro 300 million). These increases were partly offset by higher income taxes (down euro 484 million and euro 2,401 million in the fourth quarter of 2010 and the full year, respectively compared to the corresponding 2009 reporting periods).

Adjusted net profit attributable to Enis shareholders amounted to euro 1,723 million for the fourth quarter of 2010, an increase of euro 329 million from the fourth quarter of 2009, or 23.6%. Full-year adjusted net profit was euro 6,869 million, an increase of euro 1,662 million from 2009, or 31.9%. Adjusted net profit for the fourth quarter was calculated by excluding an inventory holding profit of euro 96 million and net special charges of euro 1,271 million, resulting in an overall adjustment equivalent to an increase of euro 1,175 million. For the full year, an inventory holding profit of euro 610 million and net special charges of euro 1,161 million resulted in an overall adjustment equivalent to an increase of euro 551 million. Special charges or gains of the operating profit for the full year mainly related to: (i) the impairment of goodwill allocated to the European gas marketing cash generating unit in the Gas & Power division, based on weak 2010 results and a reduced outlook for profitability (euro 426 million), impairment of oil&gas properties in the Exploration & Production division reflecting a changed pricing environment and downward reserve revisions (euro 127 million), as well as impairment charges of capital expenditures on assets impaired in previous reporting periods in the Refining & Marketing and Petrochemical divisions (euro 128 million); (ii) an environmental provision amounting to euro 1,109 million related to a proposal for a global transaction on certain environmental issues filed with the Italian Ministry for the Environment, as disclosed on page 6 of this press release; (iii) provisions for redundancy incentives (euro 423 million) following implementation of efficiency actions, and including a provision of euro 284 million representing the charge to be borne by Eni as part of a personnel mobility program in Italy for the period 2010-2011 in compliance with Law 223/1991; (iv) a gain amounting to euro 270 million reflecting the favorable outcome of an antitrust proceeding resulting in a provision accrued in previous reporting periods being reversed almost entirely to 2010 profit. The provision was originally accrued to take into account a resolution of the Italian Antitrust Authority, who charged Eni with anti-competitive behavior for having allegedly refused third party access to the pipeline for importing natural gas from Algeria.

Special items in net profit included a currency adjustment, amounting to euro 33 million, to the loss provision accrued in the 2009 financial statements to take account of the TSKJ proceeding. Certain special gains were also recorded relating to the divestment of Società Padana Energia (euro 169 million), a 25% stake in GreenStream (euro 93 million), including a gain from revaluing the residual interest in the venture, and a 100% interest in the Belgian company DistriRe (euro 47 million), as well as an impairment of the Companys interest in an industrial venture in Venezuela (euro 28 million) 5 .

*Results by division* The increase in the Group adjusted net profit in both the fourth quarter and the full year reflected a higher adjusted net profit mainly reported by the Exploration & Production, Refining & Marketing, Petrochemical and Engineering & Construction divisions. The Gas & Power division reported lower results.

(5) A further impairment of the Companys interest in the above mentioned industrial venture resulting from the Bolivar translation differences was accounted on the Companys equity for a total amount of euro 30 million.

11 -

Table of Contents

Exploration & Production The Exploration & Production division reported better adjusted net results (up 55.7% and 44.4% in the fourth quarter and the full year, respectively) driven by an improved operating performance (up euro 1,224 million, or 43.7%, in the fourth quarter; up euro 4,400 million, or 46.4%, for the full year). This was driven by higher hydrocarbon realizations in dollar terms (up 14% and 18.6% in the quarter and the full year, respectively), and the depreciation of the euro against the dollar (down 8.1% in the fourth quarter; down 4.7% in the full year).

Refining & Marketing In the fourth quarter of 2010 the Refining & Marketing division successfully reduced the adjusted operating loss by approximately 80% (from minus euro 196 million to minus euro 39 million) and the adjusted net profit by approximately 60%. This improvement reflected better results delivered by the refining business helped by a less unfavorable trading environment, cost efficiencies and optimization and integration efforts. The Marketing business results were dragged down by rapidly escalating supply prices, which were only partially transferred to prices at the pump, and lower sales volumes on the Italian network. Those negatives were partly offset by higher volumes sold in European retail markets. For the full year, the division reported a substantial recovery in losses with adjusted operating loss falling by 52.1% (from euro -357 million in the full year 2009 to euro -171 million in 2010) and adjusted net loss reduced by 75.1% (from euro -197 million to euro -49 million) due to an improved performance of the Marketing business and less negative trends in the Refining business.

Petrochemicals In the fourth quarter of 2010, the Petrochemical division reported a reduction in adjusted operating loss (down by 28.8%) from a prior-year loss of euro 104 million, to a loss of euro 74 million in the fourth quarter of 2010. For the full year, net operating loss was reduced by 73.5% (from euro -426 million to euro -113 million). These improvements were driven by increased sales volumes which were up by 8.6% and 10.9% in the fourth quarter and the full year respectively, following a recovery in demand on end-markets, higher product margins recorded in the first nine months of 2010 and cost efficiencies. In the fourth quarter of 2010, the Petrochemical division results were negatively impacted by higher supply costs of oil-based feedstock that were not fully recovered in sale prices. The adjusted net loss reduced by 56.5% and 75% in the fourth quarter and the full year respectively due to a better operating performance.

Engineering & Construction The Engineering & Construction division reported solid results in 2010. Adjusted operating profit increased by 33.1% and 18.4%, to euro 378 million and euro 1,326 million in the fourth quarter and the full year, respectively. These improvements were driven by revenue growth and higher profitability of acquired orders. Adjusted net profit increased by 16.2% and 11.4% in the fourth quarter and the full year, respectively.

Gas & Power The Gas & Power division reported a reduced adjusted operating profit, down by euro 350 million in the fourth quarter or 31.1%, and by euro 782 million for the full year or 20%. The Marketing operating performance was sharply lower in both reporting periods (down by 67.2% and 57.4%, respectively) as a result of shrinking marketing margins, and volume losses in Italy, against the backdrop of mounting competitive pressure fuelled by weak demand and over-supply. The Marketing results were also impacted by unfavorable trends recorded in spreads between spot prices at European hubs which have become a prevailing reference for selling prices on the marketplace outside Italy and oil-linked gas purchase costs in the Eni's portfolio. Lower results reported by the Marketing business were partly offset by a robust operating performance delivered by the Regulated Businesses in Italy (up 8.6% and 13.8% in the quarter and in the full year, respectively). Adjusted net profit of the Gas & Power division amounted to euro 644 million in the fourth quarter (down 24.4% from the fourth quarter of 2009) and euro 2,558 million in the full year (down 12.3% from a year ago).

12 -

Table of Contents

Liquidity and capital resources Summarized Group Balance Sheet 6

(euro million)

Dec. 31, 2009 Sep. 30, 2010 Dec. 31, 2010 Change vs. Dec. 31, 2009 Change vs. Sep. 30, 2010

| Fixed assets (a) — Property,
plant and equipment | 59,765 | | 64,583 | | 67,133 | | 7,368 | | 2,550 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Inventory - compulsory stock | 1,736 | | 1,909 | | 2,024 | | 288 | | 115 | |
| Intangible
assets | 11,469 | | 11,466 | | 11,171 | | (298 | ) | (295 | ) |
| Equity-accounted investments and other
investments | 6,244 | | 5,979 | | 6,090 | | (154 | ) | 111 | |
| Receivables
and securities held for operating purposes | 1,261 | | 1,810 | | 1,743 | | 482 | | (67 | ) |
| Net payables related to capital expenditures | (749 | ) | (663 | ) | (970 | ) | (221 | ) | (307 | ) |
| | 79,726 | | 85,084 | | 87,191 | | 7,465 | | 2,107 | |
| Net working capital | | | | | | | | | | |
| Inventories | 5,495 | | 6,797 | | 6,583 | | 1,088 | | (214 | ) |
| Trade receivables | 14,916 | | 14,818 | | 17,146 | | 2,230 | | 2,328 | |
| Trade
payables | (10,078 | ) | (10,219 | ) | (13,142 | ) | (3,064 | ) | (2,923 | ) |
| Tax payables and provisions for net deferred tax
liabilities | (1,988 | ) | (3,848 | ) | (2,719 | ) | (731 | ) | 1,129 | |
| Provisions | (10,319 | ) | (10,306 | ) | (11,651 | ) | (1,332 | ) | (1,345 | ) |
| Other current assets and liabilities (b) | (3,968 | ) | (2,533 | ) | (1,176 | ) | 2,792 | | 1,357 | |
| | (5,942 | ) | (5,291 | ) | (4,959 | ) | 983 | | 332 | |
| Provisions for employee post-retirement
benefits | (944 | ) | (1,008 | ) | (1,031 | ) | (87 | ) | (23 | ) |
| Net
assets held for sale including related liabilities | 266 | | 592 | | 646 | | 380 | | 54 | |
| CAPITAL EMPLOYED, NET | 73,106 | | 79,377 | | 81,847 | | 8,741 | | 2,470 | |
| Shareholders
equity | | | | | | | | | | |
| Eni shareholders equity | 46,073 | | 49,870 | | 51,206 | | 5,133 | | 1,336 | |
| Non-controlling
interest | 3,978 | | 4,246 | | 4,522 | | 544 | | 276 | |
| | 50,051 | | 54,116 | | 55,728 | | 5,677 | | 1,612 | |
| Net
borrowings | 23,055 | | 25,261 | | 26,119 | | 3,064 | | 858 | |
| TOTAL LIABILITIES AND SHAREHOLDERS
EQUITY | 73,106 | | 79,377 | | 81,847 | | 8,741 | | 2,470 | |
| Leverage | 0.46 | | 0.47 | | 0.47 | | 0.01 | | | |

| (a) | For the
effects deriving from the application of IFRIC 12, see
the methodology note at page 8. |
| --- | --- |
| (b) | Include
receivables and securities for financing operating
activities for euro 442 million (euro 339 million and
euro 386 million at December 31, 2009 and September 30,
2010, respectively) and securities covering technical
reserves of Enis insurance activities for euro 267
million (euro 284 million and euro 261 million at
December 31, 2009 and September 30, 2010, respectively). |

TThe Groups balance sheet as of December 31, 2010 was impacted by a drop in the exchange rate of the euro versus the US dollar, which was down by 7.3% from December 31, 2009 (from 1.441 to 1.336 dollars per euro as of December 31, 2010). This trend increased net capital employed, net equity and net borrowings by approximately euro 2,610 million, euro 2,130 million and euro 480 million, respectively, as a result of exchange rate translation differences. Compared to the consolidated balance sheet as of September 30, 2010, the depreciation of the euro versus the US dollar as recorded at December 31, 2010 vs. September 30, 2010 (down by 2.6%) increased net capital employed, net equity and net borrowings by approximately euro 710 million, euro 530 million and euro 180 million, respectively. These increases together with net profit for the year, partly absorbed the increased level of net borrowings, resulting in the Group leverage to be barely unchanged at 0.47 compared to the level of 0.46 as of December 31, 2009 and 0.47 as of September 30, 2010.

(6) 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.

13 -

Table of Contents

Fixed assets amounted to euro 87,191 million, representing an increase of euro 7,465 million from December 31, 2009, reflecting exchange rate translation differences and capital expenditure incurred in the year (euro 13,870 million), partly offset by depreciation, depletion, amortization and impairment charges (euro 9,579 million).

Net working capital amounting to a negative euro 4,959 million was barely unchanged from December 31, 2009. Increasing oil, gas and petroleum products inventories due to the impact of rising oil prices on inventories stated at the weighted average cost, were offset by a decreased balance of trade payables and trade receivables. Reduced trade receivables were influenced by transferring certain receivables without recourse to factoring institutions, amounting to euro 1,279 million due in 2011, increasing group cash inflows. A positive impact was also registered in connection with higher tax payables and net provisions for deferred tax liabilities accrued in the year, and increased provisions for environmental liabilities following the proposal of a global transaction filed with the Italian Ministry for the Environment disclosed on page 6 of this press release. Those were offset by increasing "Other current assets and liabilities" due to deferred costs accrued in connection with the Companys long-term gas supply contracts whereby the Company has the contractual obligation to lift minimum annual quantities of gas or in case of failure, pre-pay the whole price or a fraction of those quantities as provided by the so-called take-or-pay clause. The total amount accrued as of end of 2010 was euro 1,436 million (including 2009 amounts). Companys trade payables vs. suppliers of gas have been almost entirely paid at year end.

Net assets held for sale including related liabilities (euro 646 million) mainly related to the following assets: (i) the subsidiary Gas Brasiliano Distribuidora, following the preliminary agreement signed with a third party to divest its entire share capital and the subsidiaries and associates engaged in gas transport in Germany, Switzerland and Austria as the divestment plan has been ratified by the European Commission.

Shareholders equity including non-controlling interests increased by euro 5,677 million to euro 55,728 million, reflecting comprehensive income earned in the period (euro 9,801 million). This comprised the full year net profit (euro 7,383 million) and foreign currency translation differences, as well as dividend payments to Enis shareholders (euro 3,622 million), and non-controlling interests, mainly Snam Rete Gas and Saipem (euro 514 million).

14 -

Table of Contents

Summarized Group Cash Flow Statement 7

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010

678		2,181		844		Net profit	5,317		7,383
						Adjustments
to reconcile to cash generated from operating profit
before changes in working capital:
3,242		1,642		2,979		- depreciation, depletion and amortization and
other non monetary items	9,117		9,024
58		(135	)	(173	)	- net
gains on disposal of assets	(226	)	(552	)
1,764		2,243		2,292		- dividends, interest, taxes and other changes	6,843		9,368
(1,649	)	(1,798	)	(41	)	Changes in
working capital related to operations	(1,195	)	(1,726	)
(2,612	)	(1,724	)	(2,755	)	Dividends received, taxes paid, interest (paid)
received during the period	(8,720	)	(8,803	)
1,481		2,409		3,146		Net
cash provided by operating activities	11,136		14,694
(3,894	)	(2,851	)	(3,912	)	Capital expenditures	(13,695	)	(13,870	)
(46	)	(186	)	(109	)	Investments
and purchase of consolidated subsidiaries and businesses	(2,323	)	(410	)
28		107		211		Disposals	3,595		1,113
214		104		330		Other cash
flow related to capital expenditures, investments and
disposals	(295	)	228
(2,217	)	(417	)	(334	)	Free cash flow	(1,582	)	1,755
13		12		(44	)	Borrowings
(repayment) of debt related to financing activities	396		(26	)
2,167		2,090		548		Changes in short and long-term financial debt	3,841		2,272
(86	)	(1,808	)	(143	)	Dividends
paid and changes in non-controlling interest and reserves	(2,956	)	(4,099	)
(13	)	(40	)	10		Effect of changes in consolidation and exchange
differences	(30	)	39
(136	)	(163	)	37		NET
CASH FLOW FOR THE PERIOD	(331	)	(59	)

Change in net borrowings

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010

(2,217	)	(417	)	(334	)	Free cash flow	(1,582	)	1,755
				(33	)	Net
borrowings of acquired companies			(33	)
(212	)	306		(348	)	Exchange differences on net borrowings and other
changes	(141	)	(687	)
(86	)	(1,808	)	(143	)	Dividends
paid and changes in non-controlling interest and reserves	(2,956	)	(4,099	)
(2,515	)	(1,919	)	(858	)	CHANGE IN NET BORROWINGS	(4,679	)	(3,064	)

Net cash provided by operating activities amounted to euro 14,694 million for the full year and benefited from a cash inflow from transferring certain account receivables without recourse to factoring institutions, amounting to euro 1,279 million due in 2011. On a negative side, these inflows were impacted by cash outflows associated with pre-payments to the Companys suppliers of gas under long-term contracts upon triggering the take-or-pay clause (euro 1,238 million). Proceeds from divestments amounted to euro 1,113 million and related mainly to the divestment of a 25% interest in the GreenStream venture (euro 75 million), non-strategic assets in the Exploration & Production division (euro 456 million), also including the divestment of Società Padana Energia (euro 179 million), as

(7) 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) change 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.

15 -

Table of Contents

well as the divestment of the 51% stake in the joint venture OOO SeverEnergia to Gazprom (euro 526 million). Enis share of this transaction was collected in two tranches, the second one in March 2010. Those cash inflows were used to fund part of the cash outflows relating to capital expenditure totaling euro 13,870 million and dividend payments to Enis shareholders amounting to euro 3,622 million, which included payment of the interim dividend 2010 (euro 1,811 million). Dividends paid to non-controlling interests amounted to euro 514 million, mainly relating to Saipem and Snam Rete Gas. Net borrowings as of December 31, 2010 increased by euro 3,064 million from December 31, 2009.

*Other information*

Eni SpA parent company preliminary accounts for 2010 Enis Board of Directors also reviewed Eni SpAs preliminary results for 2010 prepared in accordance with IFRSs. Net profit for the full year was euro 6,179 million (euro 5,061 million in 2009). The euro 1,118 million increase was mainly due to (i) net profit from investments, largely relating to higher dividends received by controlled entities, partly offset by larger losses reported by certain controlled entities; (ii) lower income taxes; (iii) lower finance charges. These positives were partly offset by the lower operating performance reported by the Gas & Power division and the reduced inventory holding profit reported by the Refining & Marketing division overshadowing an improved underlying performance.

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 December 31, 2010, 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. Eni has already adopted adequate procedures to ensure full compliance with the new regulation.

Financial and operating information by division for the fourth quarter and the full year 2010 is provided in the following pages.

16 -

Table of Contents

Exploration & Production

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 % Ch. 4 Q. 10 vs 4 Q. 09 Full Year 2009 Full Year 2010 % Ch.

RESULTS (euro million)

| 6,648 — 2,411 | | 6,648 — 3,369 | | 8,280 — 3,799 | 57.6 | | Net
sales from operations — Operating profit | | 23,801 — 9,120 | | 29,497 — 13,866 | 52.0 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 393 | | (73 | ) | 229 | | | Exclusion
of special items: | | 364 | | 18 | | |
| | | | | 30 | | | - environmental charges | | | | 30 | | |
| 403 | | 1 | | 97 | | | - asset
impairments | | 618 | | 127 | | |
| 8 | | (57 | ) | (17 | ) | | - gains on disposal of assets | | (270 | ) | (241 | ) | |
| 20 | | 5 | | 84 | | | -
provision for redundancy incentives | | 31 | | 97 | | |
| (38 | ) | (23 | ) | 31 | | | - re-measurement gains/losses on commodity
derivatives | | (15 | ) | | | |
| | | 1 | | 4 | | | - other | | | | 5 | | |
| 2,804 | | 3,296 | | 4,028 | 43.7 | | Adjusted operating profit | | 9,484 | | 13,884 | 46.4 | |
| (57 | ) | (50 | ) | (49 | ) | | Net
finance income (expense) (a) | | (23 | ) | (205 | ) | |
| 24 | | 16 | | (8 | ) | | Net income from investments (a) | | 243 | | 274 | | |
| (1,752 | ) | (1,933 | ) | (2,384 | ) | | Income
taxes (a) | | (5,826 | ) | (8,353 | ) | |
| 63.2 | | 59.3 | | 60.0 | | | Tax rate | (%) | 60.0 | | 59.9 | | |
| 1,019 | | 1,329 | | 1,587 | 55.7 | | Adjusted
net profit | | 3,878 | | 5,600 | 44.4 | |
| | | | | | | | Results also include: | | | | | | |
| 2,436 | | 1,578 | | 2,015 | (17.3 | ) | -
amortization and depreciation | | 7,365 | | 7,051 | (4.3 | ) |
| | | | | | | | of which: | | | | | | |
| 350 | | 251 | | 318 | (9.1 | ) | exploration
expenditures | | 1,551 | | 1,199 | (22.7 | ) |
| 269 | | 185 | | 201 | (25.3 | ) | - amortization of exploratory drilling
expenditures and other | | 1,264 | | 802 | (36.6 | ) |
| 81 | | 66 | | 117 | 44.4 | | -
amortization of geological and geophysical exploration
expenses | | 287 | | 397 | 38.3 | |

2,490	1,967	2,573	3.3		Capital expenditures		9,486	9,690	2.2
					of
which:
284	203	294	3.5		- exploratory expenditure (b)		1,228	1,012	(17.6	)
					Production (c) (d) (e)
1,073	948	1,049	(2.2	)	Liquids (f)	(kbbl/d)	1,007	997	(1.0	)
4,668	4,203	5,021	7.6		Natural
gas	(mmcf/d)	4,374	4,540	4.0
1,886	1,705	1,954	n.m.		Total hydrocarbons	(kboe/d)	1,769	1,815	n.m.
1,886	1,679	1,924	2.0		Total
hydrocarbons net of updatingthe natural gas conversion
factor		1,769	1,789	1.1
					Average realizations
68.42	70.37	76.72	12.1		Liquids (f)	($/bbl)	56.95	72.76	27.8
5.20	5.67	6.75	29.9		Natural gas	($/mmcf)	5.62	6.02	7.1
52.24	53.63	59.55	14.0		Total
hydrocarbons	($/boe)	46.90	55.60	18.6
					Average oil market prices
74.57	76.86	86.48	16.0		Brent
dated	($/bbl)	61.51	79.47	29.2
50.45	59.54	63.64	26.1		Brent dated	(euro/bbl)	44.16	59.89	35.6
76.06	76.04	85.06	11.8		West Texas
Intermediate	($/bbl)	61.69	79.39	28.7
153.27	151.15	134.20	(12.4	)	Gas Henry Hub	($/kcm)	139.49	174.10	24.8

| (a) | Excluding
special items. |
| --- | --- |
| (b) | Includes
exploration bonuses. |
| (c) | Supplementary
operating data is provided on page 48. |
| (d) | Includes
Enis share of production of equity-accounted
entities. |
| (e) | From April 1,
2010, the natural gas conversion factor from cubic feet
to boe has been updated to 1 barrel of oil = 5,550 cubic
feet of gas (it was 1 barrel of oil = 5,742 cubic feet of
gas). For further information see page 8. |
| (f) | Includes
condensates. |

Results

The Exploration & Production division reported adjusted operating profit amounting to euro 4,028 million for the fourth quarter of 2010 , representing an increase of euro 1,224 million from the fourth quarter of 2009, or 43.7%. The performance was driven by higher oil and gas realizations in dollars (up 12.1% and 29.9%, respectively) and the positive impact associated with the depreciation of the euro over the US dollar (up approximately euro 150 million).

Special charges excluded from adjusted operating profit amounted to euro 229 million and mainly regarded impairments of proved and unproved properties due to changed pricing scenario and downward reserve

17 -

Table of Contents

revisions, provision for redundancy incentives as well as re-measurement gains recorded on fair value evaluation of the ineffective portion of certain cash flow hedges. Fourth-quarter adjusted net profit increased by euro 568 million to euro 1,587 million from the fourth quarter of 2009 due to improved operating performance.

Full-year adjusted operating profit was euro 13,884 million, an increase of euro 4,400 million compared to 2009, up 46.4%, mainly driven by higher oil and gas realizations in dollars (up 27.8% and 7.1%, respectively). Lower expenses were also incurred in connection with exploration activities and a positive impact associated with the depreciation of the euro over the US dollar (up approximately euro 400 million) was recorded. These positives were partly offset by rising operating costs and amortization charges resulting from development activities as new fields were brought into production. In 2010 special charges excluded from adjusted operating profit of euro 18 million related to gains on the divestment of certain exploration and production assets, impairments of oil&gas properties as well as provisions for redundancy incentives. Full-year adjusted net profit increased by euro 1,722 million to euro 5,600 million compared to 2009 due to improved operating performance.

Operating review

In the fourth quarter of 2010, Enis oil and natural gas production reached the record level of 1,954 kboe/d. When excluding the effect of the updated gas conversion factor as disclosed above (see page 8), production increased by 2% from the fourth quarter of 2009. Performance was positively influenced by new field start-ups and production ramp-ups at the 12 fields which were started-up in 2010, in particular the start up of the giant Zubair field in Iraq (for a total increase of 90 kboe/d). These increases were offset in part by mature field declines. Lower entitlements in the Companys PSAs due to higher oil prices and lack of OPEC restrictions resulted in a net positive impact of approximately 10 kboe/d. The share of oil and natural gas produced outside Italy was 91% (91% in the fourth quarter of 2009).

Liquids production (1,049 kbbl/d) decreased by 24 kbbl/d (down 2.2%). Mature field declines were partly offset by production start-ups, in particular the Zubair field (Enis interest 32.8%) in Iraq.

Gas production (5,021 mmcf/d) increased by 353 mmcf/d from the fourth quarter of 2009 (up 7.6%). Organic growth and production start-ups achieved in Nigeria, Australia and Norway were partially offset by mature field declines.

Eni reported oil and natural gas production for the full year of 1,815 kboe/d. Production grew by 1.1% in the full year when excluding the effect of the updated gas conversion factor as disclosed above (see page 8). Performance was mainly driven by new field start-ups and production ramp-ups at fields which were started-up in 2009 (for a total increase of 40 kboe/d). These increases were offset in part by mature field declines. Lower entitlements in the Companys PSAs due to higher oil prices, as well as lower gas uplifts in Libya as a result of oversupply conditions in the European market were partly offset by lower OPEC restrictions resulting in a net negative impact of approximately 7 kboe/d. The share of oil and natural gas produced outside Italy was 90% (90% in 2009).

Liquids production (997 kbbl/d) decreased by 10 kbbl/d (down 1%). The impact of mature field declines was partly offset by organic growth and production start-ups achieved in Nigeria, Italy and Iraq.

Natural gas production (4,540 mmcf/d) increased by 166 mmcf/d from 2009 (up 4%). The main increases were registered in Nigeria and Australia, partly offset by mature field declines.

In the fourth quarter of 2010, liquids realizations increased on average by 12.1% in dollar terms from the corresponding period a year ago (up 27.8% in the full year) driven by favorable market conditions (Brent increased by 16% and 29.2% in the fourth quarter and full year, respectively).

18 -

Table of Contents

Enis average liquids realizations decreased by 1.67 $/bbl in the fourth quarter of 2010 (1.33 $/bbl in the full year) due to the settlement of certain commodity derivatives relating to the sale of 7.2 mmbbl in the quarter (28.5 mmbbl in the full year). This was part of a derivative transaction the Company entered into to hedge exposure to 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. As of December 31, 2010, the residual amount of that hedging transaction was 9 mmbbl.

Enis average gas realizations increased by 29.9% in the fourth quarter and at a slower pace in the full year (7.1%) due to different pace in the first part of the year related to time lags in oil-linked pricing formulae and weak demand in areas where gas is sold on a spot basis.

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010

95.4		84.8		100.2		Sales volumes	(mmbbl)	373.5	357.1
10.5		7.1		7.2		Sales
volumes hedged by derivatives (cash flow hedge)		42.2		28.5
69.88		71.52		78.39		Total price per barrel, excluding derivatives	($/bbl)	56.98	74.09
(1.46	)	(1.15	)	(1.67	)	Realized
gains (losses) on derivatives		(0.03	)	(1.33	)
68.42		70.37		76.72		Total average price per barrel		56.95	72.76

19 -

Table of Contents

Estimated net proved reserves (preliminary)

Full Year 2009 Full Year 2010 % Ch.

Estimated net proved reserves (a) — Liquids	(mmbbl)	3,463	3,623	4.6
Natural Gas	(bcf)	17,850	17,882
Hydrocarbons	(mmboe)	6,571	6,843	4.1
of which:
- Italy		703	724	3.0
- Outside Italy		5,868	6,119	4.3
Estimated
net proved developed reserves
Liquids	(mmbbl)	2,035	2,003	(1.6	)
Natural
Gas	(bcf)	11,884	11,211	(5.9	)
Hydrocarbons	(mmboe)	4,104	4,022	(2.0	)

(a) Includes Enis share of proved reserves of equity-accounted entities.

Movements in Enis 2010 estimated proved reserves were as follows:

| (mmboe) — Estimated net proved reserves at December 31,
2009 | | 6,571 | |
| --- | --- | --- | --- |
| Extensions,
discoveries and other additions, revisions of previous
estimates, improved recovery and other factors | | 946 | |
| of which: | | | |
| - price
effect | (80 | ) | |
| - effect of updating the natural gas
conversion factor | 106 | | |
| Sales of
minerals-in-place | | (12 | ) |
| Production for the year | | (662 | ) |
| Estimated
net proved reserves at December 31, 2010 | | 6,843 | |
| Reserve replacement ratio, all sources (b) | (%) | 125 | |
| Reserve
replacement ratio, all sources and excluding price effect (b) | (%) | 135 | |

(b) Net of updating the natural gas conversion factor. This factor has been updated to 1 barrel of oil = 5,550 cubic feet of gas in 2010.

Net additions to proved reserves booked in 2010 were 946 mmboe. The amount includes the impact of gas conversion factor update (106 mmboe). Net additions pertaining to discoveries, extensions, improved recovery, revision of previous estimates and other factors were partly offset by the unfavorable effect of higher oil prices on reserve entitlements in certain PSAs and service contracts (down 80 mmboe) resulting from higher oil prices from a year ago (the Brent price used in the reserve estimation process was $79 per barrel in 2010 compared to $59.9 per barrel in 2009). Higher oil prices also resulted in upward revisions associated with improved economics of marginal productions.

Sales of mineral-in-place resulted mainly from the divestment of wholly-owned subsidiary Padana Energia to Gas Plus, which holds exploration, development and production properties in Northern Italy.

In 2010, Eni achieved an all-sources reserve replacement ratio net of gas conversion factor update of 125%. Excluding price effects, the replacement ratio would be 135%. The reserve life index is 10.3 years (10.2 years in 2009).

The Company will provide additional details relating to its 2010 reserve activity in its regular annual filings with Italian market authorities and the US SEC.

20 -

Table of Contents

Gas & Power

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 % Ch. 4 Q. 10 vs 4 Q. 09 Full Year 2009 Full Year 2010 % Ch.

RESULTS (euro million)

| 7,468 — 1,004 | | 5,812 — 438 | | 9,096 — 550 | (45.2 | ) | Net
sales from operations — Operating profit | | 30,447 — 3,687 | | 29,576 — 2,896 | (21.5 | ) — ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (9 | ) | (22 | ) | 11 | | | Exclusion
of inventory holding (gains) losses | | 326 | | (117 | ) | |
| 132 | | 30 | | 216 | | | Exclusion of special items | | (112 | ) | 340 | | |
| | | | | | | | of which: | | | | | | |
| | | | | (270 | ) | | Non-recurring items | | | | (270 | ) | |
| 132 | | 30 | | 486 | | | Other
special items: | | (112 | ) | 610 | | |
| 1 | | 7 | | 14 | | | - environmental charges | | 19 | | 25 | | |
| 27 | | | | 426 | | | - asset
impairments | | 27 | | 436 | | |
| (1 | ) | 1 | | 2 | | | - gains on disposal of assets | | (6 | ) | 4 | | |
| 115 | | | | 78 | | | - risk
provisions | | 115 | | 78 | | |
| 13 | | 3 | | 64 | | | - provision for redundancy incentives | | 25 | | 75 | | |
| (23 | ) | 19 | | (60 | ) | | -
re-measurement gains/losses on commodity derivatives | | (292 | ) | 30 | | |
| | | | | (38 | ) | | - other | | | | (38 | ) | |
| 1,127 | | 446 | | 777 | (31.1 | ) | Adjusted
operating profit | | 3,901 | | 3,119 | (20.0 | ) |
| 549 | | (112 | ) | 180 | (67.2 | ) | Marketing | | 1,721 | | 733 | (57.4 | ) |
| 487 | | 500 | | 529 | 8.6 | | Regulated
businesses in Italy (a) | | 1,796 | | 2,043 | 13.8 | |
| 91 | | 58 | | 68 | (25.3 | ) | International transport | | 384 | | 343 | (10.7 | ) |
| 4 | | 7 | | 5 | | | Net
finance income (expense) (b) | | (15 | ) | 19 | | |
| 94 | | 118 | | 93 | | | Net income from investments (b) | | 332 | | 406 | | |
| (373 | ) | (133 | ) | (231 | ) | | Income
taxes (b) | | (1,302 | ) | (986 | ) | |
| 30.4 | | 23.3 | | 26.4 | | | Tax rate | (%) | 30.9 | | 27.8 | | |
| 852 | | 438 | | 644 | (24.4 | ) | Adjusted
net profit | | 2,916 | | 2,558 | (12.3 | ) |
| 591 | | 393 | | 615 | 4.1 | | Capital expenditures | | 1,686 | | 1,685 | (0.1 | ) |
| | | | | | | | Natural
gas sales | (bcm) | | | | | |
| 10.01 | | 6.60 | | 10.55 | 5.4 | | Italy | | 40.04 | | 34.29 | (14.4 | ) |
| 18.38 | | 12.00 | | 18.21 | (0.9 | ) | International
sales | | 63.68 | | 62.77 | (1.4 | ) |
| 15.97 | | 9.88 | | 16.16 | 1.2 | | - Rest of Europe | | 55.45 | | 54.52 | (1.7 | ) |
| 0.59 | | 0.93 | | 0.53 | (10.2 | ) | - Extra
European markets | | 2.06 | | 2.60 | 26.2 | |
| 1.82 | | 1.19 | | 1.52 | (16.5 | ) | - E&P sales in Europe and in the Gulf of
Mexico | | 6.17 | | 5.65 | (8.4 | ) |
| 28.39 | | 18.60 | | 28.76 | 1.3 | | WORLDWIDE
GAS SALES | | 103.72 | | 97.06 | (6.4 | ) |
| 9.42 | | 10.70 | | 10.23 | 8.6 | | Electricity sales | (bcm) | 33.96 | | 39.54 | 16.4 | |
| 21.56 | | 17.26 | | 23.00 | 6.7 | | Gas
volumes transported in Italy | (TWh) | 76.90 | | 83.32 | 8.3 | |

| (a) | From January
1, 2010, amortization and depreciation in the
transportation business segment were determined taking
into account an increase in the useful life of pipelines
(from 40 to 50 years), which was revised recently by the
Authority for Electricity and Gas for tariff purposes.
Taking into account the ways of recognizing tariff
components linked to new amortization and depreciation,
the company decided to adjust the useful life of these
assets in line with the conventional tariff duration. The
impact on quarterly operating profit has been euro 5
million (euro 31 million in the full year 2010). |
| --- | --- |
| (b) | Excluding
special items. |

Results

In the fourth quarter of 2010 , the Gas & Power division reported adjusted operating profit of euro 777 million, a decrease of euro 350 million from the fourth quarter of 2009, down 31.1%. The decrease was due to a lower performance delivered by the Marketing business which reported an operating profit of euro 180 million, down 67.2% from the same period of the previous year. The negative trends in the Marketing business were caused by strong competitive pressures and an unfavorable trading environment, partly offset by the positive effect of the renegotiation of certain long-term supply contracts and supply optimization actions. Results were also impacted by certain gains on the settlement of non-hedging commodity derivatives associated with future sales of gas and electricity which were accounted for in the fourth quarter of 2009 and amounted to euro 143 million, while

21 -

Table of Contents

such gains amounted to euro 13 million in the fourth quarter of 2010. As those derivatives in both reporting periods did not meet all formal criteria to be designated as hedges under IFRS, the Company was barred from applying hedge accounting and thus bringing forward gains and losses associated with those derivatives 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 25). The EBITDA pro-forma adjusted delivered by the Marketing business in the fourth quarter of 2010 showed a smaller decline than that of the operating profit compared to the fourth quarter of 2009, in line with underlying business trends. The EBITDA pro-forma adjusted also includes Enis share of results of entities which are equity-accounted for statutory reporting purposes as disclosed on page 25. The adjusted operating performance of the regulated businesses in Italy was up by 8.6%.

Special items excluded from adjusted operating profit amounted to net charges of euro 216 million in the fourth quarter of 2010 (euro 340 million for the full year 2010). These mainly related to the impairment of goodwill attributed to the European marketing cash generating unit, based on 2010 results and on reduced growth expectations for this business, as well as risk provisions and provisions for redundancy incentives. In the fourth quarter of 2010, a non recurring gain amounting to euro 270 million was recorded. This item related to the favorable settlement of antitrust proceedings concerning alleged anti-competitive behavior attributed to Eni following an alleged unjustified refusal to grant access to the import pipeline from Algeria in 2003. This resulted in a significantly lower fine imposed than the one sanctioned by the antitrust authority in 2003.

Adjusted net profit for the fourth quarter of 2010 was euro 644 million, down by euro 208 million from the fourth quarter of 2009, or 24.4%. The decline was caused by a lowered operating performance partly offset by a lowered adjusted tax rate (from 30.4% to 26.4%).

In 2010 , the Gas & Power division reported adjusted operating profit of euro 3,119 million, a decrease of euro 782 million from 2009, down 20%, due to a lower performance delivered by the Marketing business (down 57.4%).This was partly offset by a better performance of the Italian regulated businesses (up 13.8%). The results for Marketing activity did not take into account certain gains recorded in previous reporting periods on the settlement of non-hedging commodity derivatives amounting to euro 116 million, which could be associated with the sale of gas and electricity occurred in 2010. On the contrary, 2009 results reflected gains amounting to euro 133 million recorded on the settlement of certain non-hedging derivatives and concerning future sales. Those gains were reflected in calculating the EBITDA pro-forma adjusted which represented those derivatives as being hedges with associated gains recognized in each of the reporting periods where the associated sales occurred (see page 5). The EBITDA pro-forma adjusted for the full year 2010 showed a smaller decline compared to the previous year (down 30.2%). The EBITDA pro-forma adjusted also includes Enis share of results of entities which are equity-accounted for statutory reporting purposes as disclosed on page 25.

Operating review

Marketing In the fourth quarter of 2010 , the Marketing business reported sharply lower adjusted operating profit of euro 180 million, down euro 369 million or 67.2% from the fourth quarter of 2009. Considering the impact associated with the above mentioned non-hedging commodity derivatives, Marketing results were negatively impacted by: i) increasing competitive pressures in Italy, due to a prevailing oversupply in the marketplace and sluggish demand growth, resulting in price reductions to customers during the marketing campaign for the new thermal year beginning on October 1, 2010; ii) outside Italy, the persistence of unprofitable differentials between oil-linked gas purchase costs provided in Enis long-term gas supply contracts and spot prices recorded at European hubs which have become a prevailing reference for selling prices; iii) an unfavorable scenario for energy parameters. These negatives were partly offset by the benefit associated with the renegotiation of a number of long-term

22 -

Table of Contents

supply contracts and supply optimization measures, as well as increased domestic sales. In 2010 , adjusted operating profit was euro 733 million, a decrease of euro 988 million from 2009 (down 57.4%) due to the same factors described for the quarter, as well as strong gas sales reduction mainly recorded in Italy in the first nine months of 2010.

NATURAL GAS SALES BY MARKET

(bcm)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 % Ch. 4 Q. 10 vs 4 Q. 09 Full Year 2009 Full Year 2010 % Ch.

10.01	6.60	10.55	5.4		ITALY	40.04	34.29	(14.4	)
1.47	0.50	1.76	19.7		Wholesalers	5.92	4.84	(18.2	)
0.41	0.14		..		Gas release	1.30	0.68	(47.7	)
1.35	1.21	1.69	25.2		Italian
exchange for gas and spot markets	2.37	4.65	96.2
1.62	1.43	1.89	16.7		Industries	7.58	6.41	(15.4	)
0.39	0.06	0.37	(5.1	)	Medium-sized
enterprises and services	1.08	1.09	0.9
1.29	1.32	1.14	(11.6	)	Power generation	9.68	4.04	(58.3	)
1.98	0.38	2.14	8.1		Residential	6.30	6.39	1.4
1.50	1.56	1.56	4.0		Own consumption	5.81	6.19	6.5
18.38	12.00	18.21	(0.9	)	INTERNATIONAL
SALES	63.68	62.77	(1.4	)
15.97	9.88	16.16	1.2		Rest of Europe	55.45	54.52	(1.7	)
2.64	1.37	1.72	(34.8	)	Importers
in Italy	10.48	8.44	(19.5	)
13.33	8.51	14.44	8.3		European markets	44.97	46.08	2.5
1.64	1.92	1.86	13.4		Iberian
Peninsula	6.81	7.11	4.4
1.59	0.99	1.61	1.3		Germany-Austria	5.36	5.67	5.8
4.75	2.05	4.15	(12.6	)	Belgium	14.86	14.06	(5.4	)
0.82	0.17	0.84	2.4		Hungary	2.58	2.36	(8.5	)
1.31	0.89	2.04	55.7		Northern
Europe	4.31	5.22	21.1
1.30	1.03	1.47	13.1		Turkey	4.79	3.95	(17.5	)
1.53	1.08	2.00	30.7		France	4.91	6.09	24.0
0.39	0.38	0.47	20.5		Other	1.35	1.62	20.0
0.59	0.93	0.53	(10.2	)	Extra
European markets	2.06	2.60	26.2
1.82	1.19	1.52	(16.5	)	E&P sales in Europe and in the Gulf of
Mexico	6.17	5.65	(8.4	)
28.39	18.60	28.76	1.3		WORLDWIDE
GAS SALES	103.72	97.06	(6.4	)

Sales of natural gas for the fourth quarter of 2010 were 28.76 bcm, an increase of 0.37 bcm from the fourth quarter of 2009, up 1.3%. This was the result of higher volumes sold on the Italian market and on European markets. Sales included Enis own consumption, Enis share of sales made by equity-accounted entities and upstream sales in Europe and in the Gulf of Mexico. Sales volumes on the Italian market amounted to 10.55 bcm, up 0.54 bcm or 5.4%, due to higher spot volumes exchanged on the PVS and the power exchange due to seasonal effects (up 0.34 bcm) and higher sales to wholesalers (up 0.29 bcm) due to recapture of clients, while a good performance was recorded in the industrial segment (up 0.27 bcm) as clients lifted higher volumes. These increases more than offset the reduction of gas sales to the power generation business (down 0.15 bcm). Sales to importers in Italy declined by 0.92 bcm (down 34.8%) due to oversupply on the Italian market. Sales in Europe increased by 1.11 bcm, up 8.3%, reflecting organic growth achieved in key markets, in particular in Northern Europe (including UK, up 0.73 bcm), France (up 0.47 bcm), the Iberian Peninsula (up 0.22 bcm) and Turkey (up 0.17 bcm). Also higher spot sales were reported at continental hubs. Lower sales were recorded in Belgium due to strong competitive pressure.

In 2010 , sales of natural gas were 97.06 bcm, down 6.66 bcm or 6.4%, mainly due to unfavorable trends on the Italian market. Sales included Enis own consumption, Enis share of sales made by equity-accounted entities and upstream sales in Europe and in the Gulf of Mexico.

23 -

Table of Contents

Sales volumes on the Italian market declined by 5.75 bcm, or 14.4%, to 34.29 bcm. The decline was driven by lower sales recorded in the power generation business (down 5.64 bcm), as clients opted to directly purchase gas on the marketplace. Lower sales to industrial customers (down 1.17 bcm) and wholesalers (down 1.08 bcm) were caused by increased competitive pressure fuelled by oversupply and weak demand. Sales on the Italian exchange for gas and spot market increased by 2.28 bcm, while sales volumes to the residential sector (6.39 bcm, up 0.09 bcm) were nearly unchanged. Sales to importers in Italy declined by 2.04 bcm (down 19.5%) due to oversupply on the Italian market. Despite strong competitive pressures, sales on target markets in Europe showed a positive trend, increasing by approximately 1 bcm, or 2.5%, to 46.08 bcm. The main drivers behind the increase were organic growth achieved in France (up 1.18 bcm due to organic growth), Northern Europe (including UK, up 0.91 bcm), Germany/Austria (up 0.31 bcm) and the Iberian Peninsula (up 0.30 bcm). Declines were recorded in Turkey (down 0.84 bcm), Belgium (down 0.80 bcm) and Hungary (down 0.22 bcm).

Electricity sales for the fourth quarter of 2010 increased by 8.6% (by 16.4% for the full year) to 10.23 TWh in the quarter (39.54 TWh on yearly basis), driven by a slight recovery in electricity demand and growth in the client base, and mainly related to higher sales on open-markets (up 0.26 TWh and up 2.74 TWh in the fourth quarter and the full year, respectively) benefiting from higher trading and higher volumes traded on the Italian power exchange (up 0.28 TWh and up 2.43 TWh in the fourth quarter and for the full year, respectively).

Regulated Businesses in Italy In the fourth quarter of 2010 , these businesses reported an adjusted operating profit of euro 529 million, up euro 42 million from the same period a year-ago, or 8.6%, due to synergies achieved by integrating the businesses following the reorganization in 2009. The Transport business increased its operating performance by euro 29 million, or 8.9%, mainly due to: (i) an increase in volumes transported; (ii) lower operating costs related to in-kind remuneration of gas used in transport activity; (iii) lower amortization charges, related to the revision of the useful lives of gas pipelines (from 40 to 50 years); and (iv) the recognition in tariffs of new investments. Also the Distribution Business reported improved results (up euro 19 million) driven by a positive impact associated with a new tariff regime set by the Authority for Electricity and Gas intended to cover amortization charges. The Storage business reported an adjusted operating profit of euro 52 million, slightly lower than in the fourth quarter of 2009 (euro 58 million).

In 2010 , these businesses reported an adjusted operating profit of euro 2,043 million, up euro 247 million, or 13.8% mainly due to the improved results achieved by the Transport (up euro 173 million) and Distribution (up euro 71 million) activities due to the same factors described above. Adjusted operating profit of the Storage business was euro 230 million (euro 227 million for 2010).

Volumes of gas transported in Italy (23 bcm in the fourth quarter of 2010 and 83.32 bcm in the full year) increased by 1.44 bcm from the fourth quarter of 2009 and by 6.42 bcm for the full year reflecting a recovery in domestic gas demand.

In 2010, 8 bcm of gas were input to Companys storage deposits (up 0.19 bcm from 2009) while 7.59 bcm were supplied (down 1.12 bcm compared to 2009). Storage capacity amounted to 14.2 bcm, of which 5 bcm were destined to strategic storage.

International Transport This business reported an adjusted operating profit of euro 68 million for the fourth quarter of 2010 (euro 343 million for the full year) representing a decrease of euro 23 million from the fourth quarter of 2009, or 25.3% (down euro 41 million, or 10.7%, from 2009), mainly due to the impact of the accident at the Swiss line of the import pipeline from Northern Europe.

24 -

Table of Contents

Other performance indicators

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

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 % Ch. 4 Q. 10 vs 4 Q. 09 Full Year 2009 Full Year 2010 % Ch.

1,159		675	921		)	Proforma adjusted EBITDA	4,403	3,853	(12.5	)
623		128	387	(37.9	)	Marketing	2,392	1,670	(30.2	)
(143	)	47	(13	)		of which: +/(-) adjustment on commodity
derivatives	(133	)	116
363		368	389	7.2		Regulated
businesses in Italy	1,345		1,486	10.5
173		179	145	(16.2	)	International transport	666	697	4.7

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 (55.56% as of December 30, 2010, 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 closing of the restructuring deal 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 view 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.

25 -

Table of Contents

Refining & Marketing

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 % Ch. 4 Q. 10 vs 4 Q. 09 Full Year 2009 Full Year 2010 % Ch.

RESULTS (euro million)

| 9,066 — (423 | ) | 10,724 — (65 | 12,048 — (146 | ) | 32.9 — 65.5 | | Net
sales from operations — Operating profit (a) | | 31,769 — (102 | ) | 43,027 — 149 | | 35.4 — .. | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (152 | ) | 45 | (167 | ) | | | Exclusion
of inventory holding (gains) losses | | (792 | ) | (659 | ) | | |
| 379 | | 34 | 274 | | | | Exclusion of special items: | | 537 | | 339 | | | |
| 31 | | 2 | 133 | | | | -
environmental charges | | 72 | | 169 | | | |
| 325 | | 14 | 29 | | | | - asset impairments | | 389 | | 76 | | | |
| (1 | ) | | (6 | ) | | | - gains
on disposal of assets | | (2 | ) | (16 | ) | | |
| 2 | | | 2 | | | | - risk provisions | | 17 | | 2 | | | |
| 11 | | 2 | 105 | | | | -
provision for redundancy incentives | | 22 | | 113 | | | |
| 11 | | 15 | 7 | | | | - re-measurement gains/losses on commodity
derivatives | | 39 | | (10 | ) | | |
| | | 1 | 4 | | | | - other | | | | 5 | | | |
| (196 | ) | 14 | (39 | ) | 80.1 | | Adjusted operating profit | | (357 | ) | (171 | ) | 52.1 | |
| | | | | | | | Net
finance income (expense) (b) | | | | | | | |
| 14 | | 33 | (7 | ) | | | Net income from investments (b) | | 75 | | 92 | | | |
| 64 | | 1 | (2 | ) | | | Income
taxes (b) | | 85 | | 30 | | | |
| .. | | .. | .. | | | | Tax rate | (%) | .. | | .. | | | |
| (118 | ) | 48 | (48 | ) | 59.3 | | Adjusted
net profit | | (197 | ) | (49 | ) | 75.1 | |
| 254 | | 63 | 381 | | 50.0 | | Capital expenditures | | 635 | | 711 | | 12.0 | |
| | | | | | | | Global
indicator refining margin | | | | | | | |
| 1.24 | | 2.09 | 2.74 | | 121.0 | | Brent | ($/bbl) | 3.13 | | 2.66 | | (15.0 | ) |
| 0.84 | | 1.62 | 2.02 | | 140.5 | | Brent | (euro/bbl) | 2.25 | | 2.00 | | (11.1 | ) |
| 1.80 | | 2.44 | 3.78 | | 110.0 | | Brent/Ural | ($/bbl) | 3.56 | | 3.47 | | (2.5 | ) |
| | | | | | | | REFINING
THROUGHPUTS AND SALES | (mmtonnes) | | | | | | |
| 5.97 | | 6.64 | 6.66 | | 11.6 | | Refining throughputs of wholly-owned
refineries | | 24.02 | | 25.70 | | 7.0 | |
| 7.30 | | 7.60 | 7.66 | | 4.9 | | Refining
throughputs on own account Italy | | 29.40 | | 29.56 | | 0.5 | |
| 1.31 | | 1.35 | 1.32 | | 0.8 | | Refining throughputs on own account Rest of
Europe | | 5.15 | | 5.24 | | 1.7 | |
| 8.61 | | 8.95 | 8.98 | | 4.3 | | REFINING
THROUGHPUTS ON OWN ACCOUNT | | 34.55 | | 34.80 | | 0.7 | |
| 2.26 | | 2.28 | 2.17 | | (4.0 | ) | Retail sales Italy | | 9.03 | | 8.63 | | (4.4 | ) |
| 0.74 | | 0.91 | 0.75 | | 1.4 | | Retail
sales Rest of Europe | | 2.99 | | 3.10 | | 3.7 | |
| 3.00 | | 3.19 | 2.92 | | (2.7 | ) | Total retail sales in Europe | | 12.02 | | 11.73 | | (2.4 | ) |
| 2.47 | | 2.50 | 2.58 | | 4.5 | | Wholesale
Italy | | 9.56 | | 9.45 | | (1.2 | ) |
| 0.96 | | 1.06 | 0.99 | | 3.1 | | Wholesale Rest of Europe | | 3.66 | | 3.88 | | 6.0 | |
| 3.43 | | 3.56 | 3.57 | | 4.1 | | Total
wholesale in Europe | | 13.22 | | 13.33 | | 0.8 | |
| 0.10 | | 0.11 | 0.11 | | 10.0 | | Wholesale other | | 0.41 | | 0.42 | | 2.4 | |
| 5.59 | | 5.15 | 5.55 | | (0.7 | ) | Other
sales | | 19.94 | | 21.32 | | 6.9 | |
| 12.12 | | 12.01 | 12.15 | | 0.2 | | SALES | | 45.59 | | 46.80 | | 2.7 | |
| | | | | | | | Refined
product sales by region | | | | | | | |
| 6.90 | | 7.01 | 7.01 | | 1.6 | | Italy | | 26.68 | | 27.01 | | 1.2 | |
| 1.70 | | 1.97 | 1.74 | | 2.4 | | Rest of
Europe | | 6.65 | | 6.98 | | 5.0 | |
| 3.52 | | 3.03 | 3.40 | | (3.4 | ) | Rest of World | | 12.26 | | 12.81 | | 4.5 | |

| (a) | From January
1, 2010, management has reviewed the residual useful
lives of refineries and related facilities due to a
change in the expected pattern of consumption of the
expected future economic benefit embodied in those
assets. In doing so, the Company has aligned with
practices prevailing among integrated oil companies,
particularly the European companies. Managements
conclusions have been supported by an independent
technical review. The impact on quarterly operating
profit has been euro 19 million (euro 76 million for the
full year 2010). |
| --- | --- |
| (b) | Excluding
special items. |

Results

In the fourth quarter of 2010 , the Refining & Marketing division achieved a reduction of approximately 80% in its adjusted operating loss from euro 196 million in the year-earlier period to euro 39 million. The improvement reflected a less severe trading environment for the refining business, with Enis complex refineries helped by widening price differentials between light and heavy crudes and gasoline vs. gasoil spreads. The Refining business also benefited from efficiency enhancement measures, optimization and integration of refinery cycles.

26 -

Table of Contents

The Marketing activity was affected by rapidly rising supply costs that were only partially transferred to prices at the pump, and lower retail sales in Italy. These negatives were partly offset by higher sales on European networks.

Special charges excluded from adjusted operating loss amounted to euro 274 million and euro 339 million in the fourth quarter 2010 and the full year 2010 respectively, and mainly related to environmental provisions referred to the environmental transaction filed with the Italian Ministry of the Environment (as disclosed on page 6), provisions for redundancy incentives as well as impairment of capital expenditures on assets impaired in previous reporting periods.

In the fourth quarter of 2010, adjusted net loss was reduced by euro 70 million to euro 48 million mainly due to a lower operating loss.

In 2010 , the Refining & Marketing division substantially halved its adjusted operating loss (from euro 357 million to euro 171 million) due to an improved refining scenario and the better results achieved by the Marketing activity in spite of lower retail sales in Italy. Adjusted net loss in 2010 amounted to euro 49 million, with a substantial improvement from 2009 (up 75.1%). The result was also supported by higher profits reported by equity-accounted entities (up euro 17 million).

Operating review

Enis refining throughputs for the fourth quarter of 2010 were 8.98 mmtonnes (34.80 mmtonnes in the full year), up 4.3% from the fourth quarter of 2009 (up 0.7% for the full year). Higher volumes were processed in Italy (up 4.9% and 0.5% in the fourth quarter and the full year, respectively) at the Livorno, Gela and Taranto plants as the trading environment improved from a year ago and optimization of refining cycles was implemented. In addition higher volumes were processed due to the coming on stream of a new hydro-cracking unit in Taranto and lower planned standstills affected the partially-owned Milazzo refinery. These effects were partly offset by the termination of a process contract on third-party refinery. Enis refining throughputs outside Italy were in line with the fourth quarter of 2009 (up 1.7% on yearly basis) supported by higher throughput in the Czech Republic as a consequence of increased margins and demand recovery. Retail sales in Italy of 2.17 mmtonnes in the fourth quarter of 2010 (8.63 mmtonnes for the full year) decreased by approximately 90 ktonnes, down 4% (approximately 400 ktonnes, down 4.4% for the full year), driven by lower demand which mainly impacted gasoline and, to a lesser extent, gasoil and rising competitive pressure. Enis retail market share for the fourth quarter was 30.4%, down 0.8 percentage point from the fourth quarter 2009 (31.2%). Enis a market share for 2010 averaged 30.4%, down 1.1 percentage points from 2009 (31.5%). Wholesale sales in Italy (2.58 mmtonnes) increased by approximately 110 ktonnes, up 4.5%, mainly due to a recovery in the consumption of jet fuel and gasoil despite a decline in demand from industrial customers affecting, in particular, fuel oil and bunkering. Sales in 2010 declined by approximately 110 ktonnes, down 1.2%, with fuel oil hit the most. Eni's wholesale market share for the full year averaged 29.2%, up 1.6 percentage points from 2009 (27.6%). Retail sales in the rest of Europe of approximately 750 ktonnes in the fourth quarter of 2010 (3.10 mmtonnes in the full year) increased by 1.4% from the fourth quarter of 2009 (up 3.7% in the full year). The increase was driven by volume additions in Austria, reflecting the purchase of service stations, and by enhanced performance in Eastern Europe. Wholesale sales in the rest of Europe increased to 990 ktonnes (3.88 mmtonnes for the full year) due to the purchase of service stations in Austria, higher product availability and a recovery of consumption in Germany, as well as bitumen sales in France.

27 -

Table of Contents

Summarized Group profit and loss account

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 % Ch. 4 Q. 10 vs 4 Q. 09 Full Year 2009 Full Year 2010 % Ch.

| 22,077 — 284 | | 22,704 — 211 | | 27,950 — 208 | | 26.6 — (26.8 | ) | Net sales from operations — Other
income and revenues | | 83,227 — 1,118 | | 98,360 — 956 | | 18.2 — (14.5 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (16,728 | ) | (16,799 | ) | (22,293 | ) | (33.3 | ) | Operating expenses | | (62,532 | ) | (73,757 | ) | (18.0 | ) |
| (250 | ) | | | 246 | | | | of
which non recurring items | | (250 | ) | 246 | | | |
| 94 | | 37 | | 61 | | 35.1 | | Other operating income (expense) | | 55 | | 131 | | .. | |
| (3,261 | ) | (2,069 | ) | (3,051 | ) | 6.4 | | Depreciation,
depletion, amortization and impairments | | (9,813 | ) | (9,579 | ) | 2.4 | |
| 2,466 | | 4,084 | | 2,875 | | 16.6 | | Operating profit | | 12,055 | | 16,111 | | 33.6 | |
| (157 | ) | 60 | | (186 | ) | (18.5 | ) | Finance
income (expense) | | (551 | ) | (727 | ) | (31.9 | ) |
| 17 | | 197 | | 287 | | .. | | Net income from investments | | 569 | | 1,156 | | .. | |
| 2,326 | | 4,341 | | 2,976 | | 27.9 | | Profit
before income taxes | | 12,073 | | 16,540 | | 37.0 | |
| (1,648 | ) | (2,160 | ) | (2,132 | ) | (29.4 | ) | Income taxes | | (6,756 | ) | (9,157 | ) | (35.5 | ) |
| 70.9 | | 49.8 | | 71.6 | | | | Tax
rate | (%) | 56.0 | | 55.4 | | | |
| 678 | | 2,181 | | 844 | | 24.5 | | Net profit | | 5,317 | | 7,383 | | 38.9 | |
| | | | | | | | | of which
attributable to: | | | | | | | |
| 391 | | 1,724 | | 548 | | 40.2 | | - Enis shareholders | | 4,367 | | 6,318 | | 44.7 | |
| 287 | | 457 | | 296 | | 3.1 | | -
Non-controlling interest | | 950 | | 1,065 | | 12.1 | |
| 391 | | 1,724 | | 548 | | 40.2 | | Net profit attributable to Enis
shareholders | | 4,367 | | 6,318 | | 44.7 | |
| (31 | ) | 16 | | (96 | ) | | | Exclusion
of inventory holding (gains) losses | | (191 | ) | (610 | ) | | |
| 1,034 | | (41 | ) | 1,271 | | | | Exclusion of special items | | 1,031 | | 1,161 | | | |
| | | | | | | | | of
which: | | | | | | | |
| 250 | | | | (246 | ) | | | - non recurring items | | 250 | | (246 | ) | | |
| 784 | | (41 | ) | 1,517 | | | | - other
special items | | 781 | | 1,407 | | | |
| 1,394 | | 1,699 | | 1,723 | | 23.6 | | Adjusted net profit attributable to
Enis shareholders (a) | | 5,207 | | 6,869 | | 31.9 | |

(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".

28 -

Table of Contents

Non-GAAP measures

Reconciliation of reported operating profit and reported net profit to results on an adjusted basis 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 U.S. 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 financial tables. Also, special items 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.

29 -

Table of Contents

| Full Year
2010 |
| --- |
| (euro
million) |

Reported operating profit	13,866		2,896		149		(86	)	1,302		)	(361	)	(271	)	16,111
Exclusion
of inventory holding (gains) losses			(117	)	(659	)	(105	)								(881	)
Exclusion of special items
of
which:
Non-recurring (income) charges			(270	)					24							(246	)
Other
special (income) charges:	18		610		339		78			1,179		96				2,320
environmental
charges	30		25		169					1,145						1,369
asset
impairments	127		436		76		52		3	8						702
gains on disposal
of assets	(241	)	4		(16	)			5							(248	)
risk
provisions			78		2					7		8				95
provision for
redundancy incentives	97		75		113		26		14	10		88				423
re-measurement
gains/losses on commodity derivatives			30		(10	)			(22	)						(2	)
other	5		(38	)	5					9						(19	)
Special
items of operating profit	18		340		339		78		24	1,179		96				2,074
Adjusted operating profit	13,884		3,119		(171	)	(113	)	1,326	(205	)	(265	)	(271	)	17,304
Net
finance (expense) income (a)	(205	)	19						33	(9	)	(530	)			(692	)
Net income from investments (a)	274		406		92		1		10	(2	)					781
Income
taxes (a)	(8,353	)	(986	)	30		27		(375	)		96		102		(9,459	)
Tax rate (%)	59.9		27.8		..				27.4							54.4
Adjusted
net profit	5,600		2,558		(49	)	(85	)	994	(216	)	(699	)	(169	)	7,934
of which:
- Adjusted
net profit of non-controlling interest																1,065
- Adjusted net profit attributable to
Enis shareholders																6,869
Reported
net profit attributableto Enis shareholders																6,318
Exclusion of inventory holding (gains) losses																(610	)
Exclusion
of special items:																1,161
- non-recurring (income) charges																(246	)
- other
special (income) charges																1,407
Adjusted net profit attributable to
Enis shareholders																6,869

(a) Excluding special items.

30 -

Table of Contents

| Full Year
2009 |
| --- |
| (euro
million) |

Reported operating profit	9,120		3,687		(102	)	(675	)	881		(436	)	(420	)		12,055
Exclusion
of inventory holding (gains) losses			326		(792	)	121									(345	)
Exclusion of special items
of
which:
Non-recurring (income) charges									250							250
Other
special (income) charges:	364		(112	)	537		128		(11	)	178		78			1,162
environmental
charges			19		72						207					298
asset
impairments	618		27		389		121		2		5					1,162
gains on disposal
of assets	(270	)	(6	)	(2	)			3		(2	)				(277	)
risk
provisions			115		17						(4	)				128
provision for
redundancy incentives	31		25		22		10				8		38			134
re-measurement
gains/losses on commodity derivatives	(15	)	(292	)	39		(3	)	(16	)						(287	)
other											(36	)	40			4
Special
items of operating profit	364		(112	)	537		128		239		178		78			1,412
Adjusted operating profit	9,484		3,901		(357	)	(426	)	1,120		(258	)	(342	)		13,122
Net
finance (expense) income (a)	(23	)	(15	)							12		(525	)		(551	)
Net income from investments (a)	243		332		75				49		1					700
Income
taxes (a)	(5,826	)	(1,302	)	85		86		(277	)			123		(3	(7,114	)
Tax rate (%)	60.0		30.9		..				23.7							53.6
Adjusted
net profit	3,878		2,916		(197	)	(340	)	892		(245	)	(744	)	(3	6,157
of which:
- Adjusted
net profit of non-controlling interest																950
- Adjusted net profit attributable to
Enis shareholders																5,207
Reported
net profit attributable to Enis shareholders																4,367
Exclusion of inventory holding (gains) losses																(191	)
Exclusion
of special items:																1,031
- non-recurring (income) charges																250
- other
special (income) charges																781
Adjusted net profit attributable to
Enis shareholders																5,207

(a) Excluding special items.

31 -

Table of Contents

| Fourth
Quarter 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.

32 -

Table of Contents

| Fourth
Quarter 2009 |
| --- |
| (euro
million) |

Reported operating profit	2,411		1,004		(423	)	(161	)	27		)	(99	)	(62	)	2,466
Exclusion
of inventory holding (gains) losses			(9	)	(152	)	26									(135	)
Exclusion of special items
of
which:
Non-recurring (income) charges									250							250
Other
special (income) charges:	393		132		379		31		7	165		14				1,121
environmental
charges			1		31					162						194
asset
impairments	403		27		325		24		2	(1	)					780
gains on disposal
of assets	8		(1	)	(1	)			7							13
risk
provisions			115		2											117
provision for
redundancy incentives	20		13		11		7			4		18				73
re-measurement
gains/losses on commodity derivatives	(38	)	(23	)	11				(2	)						(52	)
other												(4	)			(4	)
Special
items of operating profit	393		132		379		31		257	165		14				1,371
Adjusted operating profit	2,804		1,127		(196	)	(104	)	284	(66	)	(85	)	(62	)	3,702
Net
finance (expense) income (a)	(57	)	4							(16	)	(88	)			(157	)
Net income from investments (a)	24		94		14				20	(1	)					151
Income
taxes (a)	(1,752	)	(373	)	64		19		(75	)		78		24		(2,015	)
Tax rate (%)	63.2		30.4		..				24.7							54.5
Adjusted
net profit	1,019		852		(118	)	(85	)	229	(83	)	(95	)	(38	)	1,681
of which:
- Adjusted
net profit of non-controlling interest																287
- Adjusted net profit attributable to
Enis shareholders																1,394
Reported
net profit attributable to Enis shareholders																391
Exclusion of inventory holding (gains) losses																(31	)
Exclusion
of special items:																1,034
- non-recurring (income) charges																250
- other
special (income) charges																784
Adjusted net profit attributable to
Enis shareholders																1,394

(a) Excluding special items.

33 -

Table of Contents

| Third
Quarter 2010 |
| --- |
| (euro
million) |

Reported operating profit	3,369		438		(65	24		327		(58	)	(47	)	96		4,084
Exclusion
of inventory holding (gains) losses			(22	)	45	5										28
Exclusion of special items:
environmental
charges			7		2											9
asset impairments	1				14					1						16
gains
on disposal of assets	(57	)	1													(56	)
provision for
redundancy incentives	5		3		2	2		3		1		8				24
re-measurement
gains/losses on commodity derivatives	(23	)	19		15			(14	)							(3	)
other	1				1					2						4
Special
items of operating profit	(73	)	30		34	2		(11	)	4		8				(6	)
Adjusted operating profit	3,296		446		14	31		316		(54	)	(39	)	96		4,106
Net
finance (expense) income (a)	(50	)	7					(14	)			103				46
Net income from investments (a)	16		118		33			10				1				178
Income
taxes (a)	(1,933	)	(133	)	1	(13	)	(54	)			(5	)	(37	)	(2,174	)
Tax rate (%)	59.3		23.3		..			17.3								50.2
Adjusted
net profit	1,329		438		48	18		258		(54	)	60		59		2,156
of which:
- Adjusted
net profit of non-controlling interest																457
- Adjusted net profit attributable to
Enis shareholders																1,699
Reported
net profit attributable to Enis shareholders																1,724
Exclusion of inventory holding (gains) losses																16
Exclusion
of special items																(41	)
Adjusted net profit attributable to
Enis shareholders																1,699

(a) Excluding special items.

34 -

Table of Contents

Breakdown of special items

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010

250				(246	)	Non-recurring charges (income)	250		(246	)
						of
which:
250						- expected settlement of TSKJ proceeding	250
				(246	)	-
settlement/payments on antitrust and other Authorities
proceedings			(246	)
1,121		(6	)	2,242		Other special charges (income):	1,162		2,320
194		9		1,269		environmental
charges	298		1,369
780		16		597		asset impairments	1,162		702
13		(56	)	(16	)	gains on
disposal of assets	(277	)	(248	)
117				89		risk provisions	128		95
73		24		355		provisions
for redundancy incentives	134		423
(52	)	(3	)	(30	)	re-measurement gains/losses on commodity
derivatives	(287	)	(2	)
(4	)	4		(22	)	other	4		(19	)
1,371		(6	)	1,996		Special items of operating profit	1,412		2,074
		(14	)	2		Net
finance (income) expense			35
148		(16	)	(190	)	Net income from investments	179		(324	)
						of
which:
		(17	)	(169	)	- gains on disposal of interest			(326	)
				8		-
impairments			28
(485	)	(5	)	(537	)	Income taxes	(560	)	(624	)
						of
which:
						- tax impact pursuant to Law Decree No. 112
of June 25, 2008 for Italian subsidiaries	(27	)
72						-
deferred tax assets E&P	72
(192	)			29		- other special items	(192	)	29
(365	)	(5	)	(566	)	- taxes
on special items of operating profit	(413	)	(653	)
1,034		(41	)	1,271		Total special items of net profit	1,031		1,161

Adjusted operating profit

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 % Ch. 4 Q. 10 vs 4 Q. 09 Full Year 2009 Full Year 2010 % Ch.

| 2,804 — 1,127 | | 3,296 — 446 | | 4,028 — 777 | | 43.7 — (31.1 | ) | Exploration & Production — Gas &
Power | 9,484 — 3,901 | | 13,884 — 3,119 | | 46.4 — (20.0 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (196 | ) | 14 | | (39 | ) | 80.1 | | Refining & Marketing | (357 | ) | (171 | ) | 52.1 |
| (104 | ) | 31 | | (74 | ) | 28.8 | | Petrochemicals | (426 | ) | (113 | ) | 73.5 |
| 284 | | 316 | | 378 | | 33.1 | | Engineering & Construction | 1,120 | | 1,326 | | 18.4 |
| (66 | ) | (54 | ) | (43 | ) | 34.8 | | Other
activities | (258 | ) | (205 | ) | 20.5 |
| (85 | ) | (39 | ) | (86 | ) | (1.2 | ) | Corporate and financial companies | (342 | ) | (265 | ) | 22.5 |
| (62 | ) | 96 | | (202 | ) | | | Impact of
unrealized intragroup profit elimination | | | (271 | ) | |
| 3,702 | | 4,106 | | 4,739 | | 28.0 | | | 13,122 | | 17,304 | | 31.9 |

35 -

Table of Contents

Net sales from operations

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 % Ch. 4 Q. 10 vs 4 Q. 09 Full Year 2009 Full Year 2010 % Ch.

| 6,648 — 7,468 | | 6,648 — 5,812 | | 8,280 — 9,096 | 21.8 | Exploration & Production — Gas &
Power | 23,801 — 30,447 | | 29,497 — 29,576 | (2.9 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 9,066 | | 10,724 | | 12,048 | 32.9 | Refining & Marketing | 31,769 | | 43,027 | 35.4 |
| 1,136 | | 1,493 | | 1,474 | 29.8 | Petrochemicals | 4,203 | | 6,141 | 46.1 |
| 2,400 | | 2,786 | | 2,787 | 16.1 | Engineering & Construction | 9,664 | | 10,581 | 9.5 |
| 21 | | 25 | | 28 | 33.3 | Other
activities | 88 | | 105 | 19.3 |
| 359 | | 333 | | 419 | 16.7 | Corporate and financial companies | 1,280 | | 1,386 | 8.3 |
| (50 | ) | 15 | | 185 | | Impact of
unrealized intragroup profit elimination | (66 | ) | 93 | |
| (4,971 | ) | (5,132 | ) | (6,367 | ) | Consolidation adjustment | (17,959 | ) | (22,046 | ) |
| 22,077 | | 22,704 | | 27,950 | 26.6 | | 83,227 | | 98,360 | 18.2 |

Operating expenses

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 % Ch. 4 Q. 10 vs 4 Q. 09 Full Year 2009 Full Year 2010 % Ch.

15,636	15,708	20,798		Purchases, services and other	58,351	68,972
				of
which:
250		(246	)	- non-recurring (income) charges	250	(246	)
411	9	1,185		- other
special items	537	1,291
1,092	1,091	1,495	36.9	Payroll and related costs	4,181	4,785	14.4
				of
which:
73	24	355		- provision for redundancy incentives	134	423
16,728	16,799	22,293	33.3		62,532	73,757	18.0

Gains and losses on non-hedging commodity derivate instruments

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010

| 37 — (1 | ) | 23 | | 31 | | Exploration & Production: — -
settled transactions | 16 — 1 | | 30 — 30 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 38 | | 23 | | (31 | ) | - re-measurement gains/losses | 15 | | | |
| 78 | | 11 | | 100 | | Gas &
Power: | 81 | | 100 | |
| 55 | | 30 | | 40 | | - settled transactions | (211 | ) | 130 | |
| 23 | | (19 | ) | 60 | | -
re-measurement gains/losses | 292 | | (30 | ) |
| (21 | ) | (16 | ) | (39 | ) | Refining & Marketing: | (64 | ) | (15 | ) |
| (10 | ) | (1 | ) | (32 | ) | -
settled transactions | (25 | ) | (25 | ) |
| (11 | ) | (15 | ) | (7 | ) | - re-measurement gains/losses | (39 | ) | 10 | |
| 1 | | 1 | | | | Petrochemicals: | 13 | | 2 | |
| 1 | | 1 | | | | - settled transactions | 10 | | 2 | |
| | | | | | | -
re-measurement gains/losses | 3 | | | |
| (1 | ) | 18 | | | | Engineering & Construction: | 9 | | 14 | |
| (3 | ) | 4 | | (8 | ) | -
settled transactions | (7 | ) | (8 | ) |
| 2 | | 14 | | 8 | | - re-measurement gains/losses | 16 | | 22 | |
| 94 | | 37 | | 61 | | Total | 55 | | 131 | |
| 42 | | 34 | | 31 | | - settled transactions | (232 | ) | 129 | |
| 52 | | 3 | | 30 | | -
re-measurement gains/losses | 287 | | 2 | |

36 -

Table of Contents

Depreciation, depletion, amortization and impairments

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 % Ch. 4 Q. 10 vs 4 Q. 09 Full Year 2009 Full Year 2010 % Ch.

| 2,064 — 261 | | 1,577 — 235 | | 1,922 — 258 | (1.1 | ) — ) | Exploration & Production — Gas &
Power | 6,789 — 981 | | 6,928 — 963 | (1.8 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 109 | | 73 | | 93 | (14.7 | ) | Refining & Marketing | 408 | | 333 | (18.4 | ) |
| 19 | | 22 | | 22 | 15.8 | | Petrochemicals | 83 | | 83 | | |
| 111 | | 132 | | 145 | 30.6 | | Engineering & Construction | 433 | | 513 | 18.5 | |
| | | | | 1 | .. | | Other
activities | 2 | | 2 | | |
| 22 | | 19 | | 23 | 4.5 | | Corporate and financial companies | 83 | | 79 | (4.8 | ) |
| (5 | ) | (5 | ) | (6 | ) | | Impact of
unrealized intragroup profit elimination | (17 | ) | (20 | ) | |
| 2,581 | | 2,053 | | 2,458 | (4.8 | ) | Total depreciation, depletion and
amortization | 8,762 | | 8,881 | 1.4 | |
| 680 | | 16 | | 593 | (12.8 | ) | Impairments | 1,051 | | 698 | (33.6 | ) |
| 3,261 | | 2,069 | | 3,051 | (6.4 | ) | | 9,813 | | 9,579 | (2.4 | ) |

Net income from investments

(euro million)

Full Year 2010 Exploration & Production Gas & Power Refining & Marketing Engineering & Construction Other activities Group

| Share of gains (losses) fromequity-accounted
investments | 92 | | 388 | 68 | | (11 | ) | 537 |
| --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Dividends | 208 | | 12 | 44 | | | | 264 |
| Net gains on disposal | 169 | | 141 | 2 | 20 | | | 332 |
| Other
income (expense), net | (29 | ) | 42 | | 10 | | | 23 |
| | 440 | | 583 | 114 | 30 | (11 | ) | 1,156 |

Income taxes

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010 % Ch.

(146	)	382	(641	)	Profit before income taxes — Italy	2,403	1,582	(821	)
2,472		3,959	3,617		Outside Italy	9,670	14,958	5,288
2,326		4,341	2,976			12,073	16,540	4,467
					Income taxes
(3	)	142	(146	)	Italy	1,190	839	(351	)
1,651		2,018	2,278		Outside Italy	5,566	8,318	2,752
1,648		2,160	2,132			6,756	9,157	2,401
					Tax rate (%)
2.1		37.2	22.8		Italy	49.5	53.0	3.5
66.8		51.0	63.0		Outside Italy	57.6	55.6	(2.0	)
70.9		49.8	71.6			56.0	55.4	(0.6	)

37 -

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, 2009 Sep. 30, 2010 Dec. 31, 2010 Change vs. Dec. 31, 2009 Change vs. Sep. 30, 2010

| Total debt — Short-term
debt | 24,800 — 6,736 | | 26,891 — 7,197 | | 27,783 — 7,478 | | 2,983 — 742 | | 892 — 281 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Long-term debt | 18,064 | | 19,694 | | 20,305 | | 2,241 | | 611 | |
| Cash and
cash equivalents | (1,608 | ) | (1,512 | ) | (1,549 | ) | 59 | | (37 | ) |
| Securities held for non-operating purposes | (64 | ) | (62 | ) | (107 | ) | (43 | ) | (45 | ) |
| Financing
receivables for non-operating purposes | (73 | ) | (56 | ) | (8 | ) | 65 | | 48 | |
| Net borrowings | 23,055 | | 25,261 | | 26,119 | | 3,064 | | 858 | |
| Shareholders
equity including non-controlling interest | 50,051 | | 54,116 | | 55,728 | | 5,677 | | 1,612 | |
| Leverage | 0.46 | | 0.47 | | 0.47 | | 0.01 | | | |

Bonds maturing in 18-months period starting on December 31, 2010

| (euro
million) | |
| --- | --- |
| Issuing
entity | Amount at December 31, 2010 (a) |
| Eni Coordination Center SA | 192 |
| | 192 |

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

Bonds issued in 2010 (guaranteed by Eni SpA)

Issuing company Nominal amount (million) Currency Amounts at Dec. 31, 2010 (a) (euro million) Maturity Rate %

Eni SpA	1,000	euro	1,017	2020	fixed	4.00
Eni SpA	1,000	euro	997	2018	fixed	3.50
Eni SpA	337	US dollar	337	2020	fixed	4.15
Eni SpA	262	US dollar	263	2040	fixed	5.70
			2,614

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

38 -

Table of Contents

ROACE (Return On Average Capital Employed)

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 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

| (euro
million) — Calculated
on a 12-month period ending on December 31, 2009 | Exploration &
Production | Gas & Power | Refining & Marketing | Group |
| --- | --- | --- | --- | --- |

Adjusted net profit	3,878	2,916	(197	)	6,157
Exclusion
of after-tax finance expense/interest income	-	-	-		283
Adjusted net profit unlevered	3,878	2,916	(197	)	6,440
Adjusted
capital employed, net:
- at the beginning of period	30,362	22,547	7,379		66,886
- at the
end of period	32,455	25,024	7,560		72,915
Adjusted average capital employed, net	31,409	23,786	7,470		69,901
Adjusted
ROACE (%)	12.3	12.3	(2.6	)	9.2

39 -

Table of Contents

GROUP BALANCE SHEET

| (euro
million) — Dec. 31, 2009 | Sep. 30, 2010 | Dec. 31, 2010 |
| --- | --- | --- |

ASSETS
Current
assets
Cash and cash equivalents	1,608		1,512		1,549
Other
financial assets held for trading or available for sale	348		323		380
Trade and other receivables	20,348		21,399		23,555
Inventories	5,495		6,797		6,583
Current tax assets	753		163		467
Other
current tax assets	1,270		1,009		937
Other current assets	1,307		1,192		1,410
	31,129		32,395		34,881
Non-current assets
Property,
plant and equipment	59,765		64,583		67,133
Inventory - compulsory stock	1,736		1,909		2,024
Intangible
assets	11,469		11,466		11,171
Equity-accounted investments	5,828		5,547		5,668
Other
investments	416		432		422
Other financial assets	1,148		1,542		1,523
Deferred
tax assets	3,558		3,609		4,824
Other non-current receivables	1,938		3,075		3,294
	85,858		92,163		96,059
Assets held for sale	542		860		845
TOTAL
ASSETS	117,529		125,418		131,785
LIABILITIES AND SHAREHOLDERS EQUITY
Current
liabilities
Short-term debt	3,545		4,563		6,515
Current
portion of long-term debt	3,191		2,634		963
Trade and other payables	19,174		20,395		22,488
Income
taxes payable	1,291		1,619		1,512
Other taxes payable	1,431		1,932		1,656
Other
current liabilities	1,856		1,437		1,639
	30,488		32,580		34,773
Non-current
liabilities
Long-term debt	18,064		19,694		20,305
Provisions
for contingencies	10,319		10,306		11,651
Provisions for employee benefits	944		1,008		1,031
Deferred
tax liabilities	4,907		5,159		5,923
Other non-current liabilities	2,480		2,287		2,175
	36,714		38,454		41,085
Liabilities directly associated with assets
held for sale	276		268		199
TOTAL
LIABILITIES	67,478		71,302		76,057
SHAREHOLDERS EQUITY
Non-controlling
interest	3,978		4,246		4,522
Eni shareholders equity
Share
capital	4,005		4,005		4,005
Reserves	46,269		48,662		49,450
Treasury
shares	(6,757	)	(6,756	)	(6,756	)
Interim dividend	(1,811	)	(1,811	)	(1,811	)
Net profit	4,367		5,770		6,318
Total Eni shareholders equity	46,073		49,870		51,206
TOTAL
SHAREHOLDERS EQUITY	50,051		54,116		55,728
TOTAL LIABILITIES AND SHAREHOLDERS
EQUITY	117,529		125,418		131,785

40 -

Table of Contents

Group profit and loss account

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010

| 22,077 | | 22,704 | | 27,950 | | REVENUES — Net sales
from operations | 83,227 | | 98,360 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 284 | | 211 | | 208 | | Other income and revenues | 1,118 | | 956 | |
| 22,361 | | 22,915 | | 28,158 | | Total
revenues | 84,345 | | 99,316 | |
| | | | | | | OPERATING EXPENSES | | | | |
| 15,636 | | 15,708 | | 20,798 | | Purchases,
services and other | 58,351 | | 68,972 | |
| 250 | | | | (246 | ) | - of which non recurrent (income) expense | 250 | | (246 | ) |
| 1,092 | | 1,091 | | 1,495 | | Payroll
and related costs | 4,181 | | 4,785 | |
| 94 | | 37 | | 61 | | OTHER OPERATING (CHARGE) INCOME | 55 | | 131 | |
| 3,261 | | 2,069 | | 3,051 | | DEPRECIATION,
DEPLETION, AMORTIZATION AND IMPAIRMENTS | 9,813 | | 9,579 | |
| 2,466 | | 4,084 | | 2,875 | | OPERATING PROFIT | 12,055 | | 16,111 | |
| | | | | | | FINANCE
INCOME (EXPENSE) | | | | |
| 1,282 | | 1,318 | | 1,196 | | Finance income | 5,950 | | 6,174 | |
| (1,459 | ) | (1,429 | ) | (1,413 | ) | Finance
expense | (6,497 | ) | (6,772 | ) |
| 20 | | 171 | | 31 | | Derivative financial instruments | (4 | ) | (129 | ) |
| (157 | ) | 60 | | (186 | ) | | (551 | ) | (727 | ) |
| | | | | | | INCOME (EXPENSE) FROM INVESTMENTS | | | | |
| 14 | | 150 | | 95 | | Share of
profit (loss) of equity-accounted investments | 393 | | 537 | |
| 3 | | 47 | | 192 | | Other gain (loss) from investments | 176 | | 619 | |
| 17 | | 197 | | 287 | | | 569 | | 1,156 | |
| 2,326 | | 4,341 | | 2,976 | | PROFIT BEFORE INCOME TAXES | 12,073 | | 16,540 | |
| (1,648 | ) | (2,160 | ) | (2,132 | ) | Income
taxes | (6,756 | ) | (9,157 | ) |
| 678 | | 2,181 | | 844 | | Net profit | 5,317 | | 7,383 | |
| | | | | | | Attributable
to: | | | | |
| 391 | | 1,724 | | 548 | | - Enis shareholders | 4,367 | | 6,318 | |
| 287 | | 457 | | 296 | | -
Non-controlling interest | 950 | | 1,065 | |
| 678 | | 2,181 | | 844 | | | 5,317 | | 7,383 | |
| | | | | | | Earnings
per share attributable to Enis shareholders (euro per share) | | | | |
| 0.11 | | 0.48 | | 0.15 | | Basic | 1.21 | | 1.74 | |
| 0.11 | | 0.48 | | 0.15 | | Diluted | 1.21 | | 1.74 | |

41 -

Table of Contents

Comprehensive income

(euro million)

Full Year 2009 Full Year 2010

Net profit	5,317		7,383
Other
items of comprehensive income:
- foreign currency translation differences	(869	)	2.169
-
change in the fair value of cash flow hedging derivatives	(481	)	443
- change in the fair value of
available-for-sale securities	1		(9	)
- share
of "Other comprehensive income" on
equity-accounted entities	2		(10	)
- taxation	202		(175	)
	(1,145	)	2,418
Total comprehensive income	4,172		9,801
Attributable
to:
- Enis shareholders	3,245		8,699
-
Non-controlling interest	927		1,102
	4,172		9,801

Changes in shareholders' equity

(euro million)

| Shareholders equity at December 31,
2009 — Total
comprehensive income | 9,801 | |
| --- | --- | --- |
| Dividends paid to
Enis shareholders | (3,622 | ) |
| Dividends
paid by consolidated subsidiaries to non-controlling
interest | (514 | ) |
| Effect of
GreenStream BV deconsolidation | (37 | ) |
| Effect
of controlling interest acquisition in Altergaz | (19 | ) |
| Stock options
expired | (6 | ) |
| Cost
related to stock options | 7 | |
| Net sale of
treasury shares of consolidated subsidiaries | 37 | |
| Other
changes | 30 | |
| Total changes | | 5,677 |
| Shareholders
equity at December 31, 2010 | | 55,728 |
| Attributable to: | | |
| - Enis shareholders | | 51,206 |
| - Non-controlling interest | | 4,522 |

42 -

Table of Contents

GROUP CASH FLOW STATEMENT

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010

678		2,181		844		Net profit	5,317		7,383
						Adjustments
to reconcile net profit to net cash provided by operating
activities:
2,581		2,053		2,458		Depreciation, depletion and amortization	8,762		8,881
680		16		593		Impairments
of tangible and intangible assets, net	1,051		698
(14	)	(150	)	(95	)	Share of loss of equity-accounted investments	(393	)	(537	)
58		(135	)	(173	)	Gain on
disposal of assets, net	(226	)	(552	)
(9	)	(18	)	(4	)	Dividend income	(164	)	(264	)
(46	)	(41	)	9		Interest
income	(352	)	(96	)
171		142		155		Interest expense	603		571
1,648		2,160		2,132		Income
taxes	6,756		9,157
3		(277	)	11		Other changes	(319	)	(39	)
						Changes in
working capital:
144		(243	)	283		- inventories	52		(1,150	)
(1,064	)	331		(2,259	)	- trade
receivables	1,431		(1,842	)
(206	)	(971	)	2,796		- trade payables	(2,559	)	2,772
466		(381	)	915		-
provisions for contingencies	517		588
(989	)	(534	)	(1,776	)	- other assets and liabilities	(636	)	(2,094	)
(1,649	)	(1,798	)	(41	)	Cash
flow from changes in working capital	(1,195	)	(1,726	)
(8	)			12		Net change in the provisions for employee
benefits	16		21
171		171		240		Dividends
received	576		799
317		(1	)	53		Interest received	594		126
(315	)	(10	)	(182	)	Interest
paid	(583	)	(600	)
(2,785	)	(1,884	)	(2,866	)	Income taxes paid, net of tax receivables
received	(9,307	)	(9,128	)
1,481		2,409		3,146		Net
cash provided from operating activities	11,136		14,694
						Investing activities:
(3,456	)	(2,530	)	(3,363	)	- tangible
assets	(12,032	)	(12,308	)
(438	)	(321	)	(549	)	- intangible assets	(1,663	)	(1,562	)
(11	)	(102	)	(41	)	-
consolidated subsidiaries and businesses	(25	)	(143	)
(32	)	(84	)	(68	)	- investments	(230	)	(267	)
33				(37	)	-
securities	(2	)	(50	)
(204	)	60		(290	)	- financing receivables	(972	)	(866	)
171		11		290		- change
in payables and receivables in relation to investments
and capitalized depreciation	(97	)	261
(3,937	)	(2,966	)	(4,058	)	Cash flow from investments	(15,021	)	(14,935	)
						Disposals:
7		38		21		- tangible assets	111		272
2		31		21		-
intangible assets	265		57
				167		- consolidated subsidiaries and businesses			215
19		38		2		-
investments	3,219		569
11		12		(24	)	- securities	164		14
156		55		291		-
financing receivables	861		841
60		(22	)	56		- change in payables and receivables in relation
to disposals	147		2
255		152		534		Cash
flow from disposals	4,767		1,970
(3,682	)	(2,814	)	(3,524	)	Net cash used in investing activities (*)	(10,254	)	(12,965	)

43 -

Table of Contents

GROUP CASH FLOW STATEMENT (continued)

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010

| 4,874 — (662 | ) | 1,307 — 405 | | 1,278 — (2,585 | ) | Proceeds from long-term debt — Repayments
of long-term debt | 8,774 — (2,044 | ) | 2,953 — (3,327 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (2,045 | ) | 378 | | 1,855 | | Increase (decrease) in short-term debt | (2,889 | ) | 2,646 | |
| 2,167 | | 2,090 | | 548 | | | 3,841 | | 2,272 | |
| | | | | | | Net capital contributions by non-controlling
interest | 1,551 | | | |
| | | 4 | | 17 | | Net
acquisition of treasury shares different from Eni SpA | 9 | | 37 | |
| (3 | ) | | | | | Acquisition of additional interests in
consolidated subsidiaries | (2,068 | ) | | |
| | | (1,811 | ) | | | Dividends
paid to Enis shareholders | (4,166 | ) | (3,622 | ) |
| (86 | ) | (1 | ) | (160 | ) | Dividends paid by consolidated subsidiaries to
non-controlling interest | (350 | ) | (514 | ) |
| 2,078 | | 282 | | 405 | | Net
cash used in financing activities | (1,183 | ) | (1,827 | ) |
| (13 | ) | (40 | ) | 10 | | Effect of exchange rate changes on cash and cash
equivalents and other changes | (30 | ) | 39 | |
| (136 | ) | (163 | ) | 37 | | Net
cash flow for the period | (331 | ) | (59 | ) |
| 1,340 | | 1,675 | | 1,512 | | Cash and cash equivalents - beginning of the
period | 1,939 | | 1,608 | |
| 1,608 | | 1,512 | | 1,549 | | Cash
and cash equivalents - end of the period | 1,608 | | 1,549 | |

(*) 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)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010

| 28 | | | (37 | ) | Financing investments: — -
securities | (2 | ) | (50 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (36 | ) | | (11 | ) | - financing receivables | (36 | ) | (13 | ) |
| (8 | ) | | (48 | ) | | (38 | ) | (63 | ) |
| | | | | | Disposal of financing investments: | | | | |
| (4 | ) | 6 | (9 | ) | -
securities | 123 | | 5 | |
| 25 | | 6 | 13 | | - financing receivables | 311 | | 32 | |
| 21 | | 12 | 4 | | | 434 | | 37 | |
| 13 | | 12 | (44 | ) | Net cash flows from financing activities | 396 | | (26 | ) |

44 -

Table of Contents

SUPPLEMENTAL INFORMATION

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010

| 3 | | 72 | | 319 | | Effect of investment of companies included in
consolidation and businesses — Current
assets | 7 | | 428 | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 33 | | 2 | | 136 | | Non-current assets | 47 | | 297 | |
| 2 | | 11 | | (35 | ) | Net
borrowings | 4 | | 13 | |
| (25 | ) | (63 | ) | (291 | ) | Current and non-current liabilities | (29 | ) | (457 | ) |
| 13 | | 22 | | 129 | | Net
effect of investments | 29 | | 281 | |
| | | | | (7 | ) | Non-controlling interest | | | (7 | ) |
| | | (11 | ) | (65 | ) | Fair value
of investments held before the acquisition of control | | | (76 | ) |
| 13 | | 11 | | 57 | | Purchase price | 29 | | 198 | |
| | | | | | | less: | | | | |
| (2 | ) | (11 | ) | (16 | ) | Cash and cash equivalents | (4 | ) | (55 | ) |
| 11 | | | | 41 | | Cash
flow on investments | 25 | | 143 | |
| | | | | | | Effect
of disposal of consolidated subsidiaries and businesses | | | | |
| | | 80 | | 2 | | Current assets | | | 82 | |
| | | 696 | | 159 | | Non-current
assets | | | 855 | |
| | | (282 | ) | 15 | | Net borrowings | | | (267 | ) |
| | | (136 | ) | (166 | ) | Current
and non-current liabilities | | | (302 | ) |
| | | 358 | | 10 | | Net effect of disposals | | | 368 | |
| | | (149 | ) | | | Fair value
of non-controlling interest retained after disposals | | | (149 | ) |
| | | 140 | | 169 | | Gains on disposal | | | 309 | |
| | | (46 | ) | | | Non-controlling
interest | | | (46 | ) |
| | | 303 | | 179 | | Selling price | | | 482 | |
| | | | | | | less: | | | | |
| | | (255 | ) | (12 | ) | Cash and cash equivalents | | | (267 | ) |
| | | 48 | | 167 | | Cash
flow on disposals | | | 215 | |

45 -

Table of Contents

CAPITAL EXPENDITURE

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 % Ch. 4 Q. 10 vs 4 Q. 09 Full Year 2009 Full Year 2010 % Ch.

| 2,490 — 591 | 1,967 — 393 | | 2,573 — 615 | 4.1 | | Exploration & Production — Gas &
Power | 9,486 — 1,686 | 9,690 — 1,685 | (0.1 | ) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| 254 | 63 | | 381 | 50.0 | | Refining & Marketing | 635 | 711 | 12.0 | |
| 64 | 54 | | 126 | 96.9 | | Petrochemicals | 145 | 251 | 73.1 | |
| 409 | 374 | | 386 | (5.6 | ) | Engineering & Construction | 1,630 | 1,552 | (4.8 | ) |
| 25 | 2 | | 1 | (96.0 | ) | Other
activities | 44 | 22 | (50.0 | ) |
| 22 | 26 | | 33 | 50.0 | | Corporate and financial companies | 57 | 109 | 91.2 | |
| 39 | (28 | ) | (203 | ) | | Impact of
unrealized intragroup profit elimination | 12 | (150 | ) | |
| 3,894 | 2,851 | | 3,912 | 0.5 | | | 13,695 | 13,870 | 1.3 | |

In the fourth quarter of 2010, capital expenditure amounting to euro 3,912 million (euro 13,870 million in the full year) related mainly to:

| - | development activities
deployed mainly in Kazakhstan, Algeria, the Unites
States, Egypt, Congo and Norway and exploratory
activities of which 97% was spent outside Italy,
primarily in Nigeria, Angola, Norway and China; |
| --- | --- |
| - | upgrading of the fleet used
in the Engineering & Construction division (euro 386
million); |
| - | development and upgrading of
Enis natural gas transport network in Italy (euro
300 million) and distribution network (euro 135 million),
as well as development and increase of storage capacity
(euro 84 million), as well as the ongoing development of
power generation plants (euro 40 million); |
| - | projects aimed at improving
the conversion capacity and flexibility of refineries
(euro 251 million), as well as building and upgrading
service stations in Italy and outside Italy (euro 125
million). |

46 -

Table of Contents

Capital expenditures by division

EXPLORATION & PRODUCTION

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010

213	169	184	Italy	749	680
204	226	320	Rest of
Europe	792	977
468	437	546	North Africa	2,058	2,675
898	447	606	West
Africa	2,495	2,276
248	274	264	Kazakhstan	1,113	1,045
209	122	164	Rest of
Asia	663	538
187	238	446	America	1,129	1,316
63	54	43	Australia
and Oceania	487	183
2,490	1,967	2,573		9,486	9,690

GAS & POWER
(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010

73	50	88	Marketing and Power generation	175	248
510	340	519	Regulated
businesses in Italy	1,479	1,420
358	200	300	- Transport	919	842
70	70	135	-
Distribution	278	328
82	70	84	- Storage	282	250
8	3	8	International
transport	32	17
591	393	615		1,686	1,685

REFINING & MARKETING
(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010

174	(6	251	Refining, Supply and Logistic	436	446
75	64	125	Marketing	172	246
5	5	5	Other activities	27	19
254	63	381		635	711

47 -

Table of Contents

Exploration & Production

PRODUCTION OF OIL AND NATURAL GAS BY REGION

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010

| 1,886 | 1,705 | 1,954 | Production of oil and natural gas (a)
(b) (c) | (kboe/d) | 1,769 | 1,815 |
| --- | --- | --- | --- | --- | --- | --- |
| 173 | 182 | 182 | Italy | | 169 | 183 |
| 255 | 200 | 236 | Rest of Europe | | 247 | 222 |
| 565 | 549 | 688 | North
Africa | | 573 | 602 |
| 421 | 407 | 403 | West Africa | | 360 | 400 |
| 117 | 85 | 117 | Kazakhstan | | 115 | 108 |
| 130 | 125 | 155 | Rest of Asia | | 135 | 131 |
| 209 | 128 | 145 | America | | 153 | 143 |
| 16 | 29 | 28 | Australia and Oceania | | 17 | 26 |
| 1,886 | 1,679 | 1,924 | Production
of oil and natural gas net of updating the natural gas
conversion rate | | 1,769 | 1,789 |
| 166.8 | 151.7 | 173.6 | Production sold (a) | (mmboe) | 622.8 | 638.0 |
| 166.8 | 149.5 | 171.0 | Production
sold net of updating the natural gas conversion rate (a) | | 622.8 | 628.8 |

PRODUCTION OF LIQUIDS BY REGION

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010

1,073	948	1,049	Production of liquids (a)	1,007	997
61	61	63	Italy	56	61
138	111	129	Rest of Europe	133	121
281	282	329	North
Africa	292	301
349	322	302	West Africa	312	321
72	51	72	Kazakhstan	70	65
50	42	74	Rest of Asia	57	48
116	68	71	America	79	71
6	11	9	Australia and Oceania	8	9

PRODUCTION OF NATURAL GAS BY REGION

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010

4,668	4,203	5,021	Production of natural gas (a) (b)	4,374	4,540
645	672	658	Italy	653	673
673	498	592	Rest of Europe	655	559
1,629	1,482	1,990	North
Africa	1,614	1,673
411	470	564	West Africa	274	442
261	186	250	Kazakhstan	259	237
458	459	447	Rest of Asia	445	464
534	333	414	America	425	396
57	103	106	Australia and Oceania	49	96

| (a) | Includes
Enis share of production of equity-accounted
entities. |
| --- | --- |
| (b) | Includes
volumes of gas consumed in operations (342 and 318 mmcf/d
in the fourth quarter 2010 and 2009, respectively, 318
and 300 mmcf/d in 2010 and 2009, respectively, and 305
mmcf/d in the third quarter 2010). |
| (c) | From April 1,
2010, the natural gas conversion factor from cubic feet
to boe has been updated to 1 barrel of oil = 5,550 cubic
feet of gas (it was 1 barrel of oil = 5,742 cubic feet of
gas). For further information see page 8. |

48 -

Table of Contents

Petrochemicals

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010

| 503 | 702 | 648 | Sales of petrochemical products — Basic
petrochemicals | (euro million) — 1,832 | 2,833 |
| --- | --- | --- | --- | --- | --- |
| 584 | 759 | 771 | Polymers | 2,179 | 3,126 |
| 49 | 32 | 55 | Other
revenues | 192 | 182 |
| 1,136 | 1,493 | 1,474 | | 4,203 | 6,141 |
| | | | Production | (ktonnes) | |
| 1,080 | 1,188 | 1,136 | Basic petrochemicals | 4,350 | 4,860 |
| 575 | 588 | 560 | Polymers | 2,171 | 2,360 |
| 1,655 | 1,776 | 1,696 | | 6,521 | 7,220 |

Engineering & Construction

(euro million)

Fourth Quarter 2009 Third Quarter 2010 Fourth Quarter 2010 Full Year 2009 Full Year 2010

| 1,681 | 1,436 | 1,241 | Orders acquired — Offshore
construction | 5,089 | 4,600 |
| --- | --- | --- | --- | --- | --- |
| 891 | 913 | 2,050 | Onshore construction | 3,665 | 7,744 |
| 355 | 167 | 10 | Offshore
drilling | 585 | 326 |
| 41 | 48 | 11 | Onshore drilling | 578 | 265 |
| 2,968 | 2,564 | 3,312 | | 9,917 | 12,935 |

(euro million)

	Dec. 31, 2009	Dec. 31, 2010
Order backlog	18,730	20,505

49 -

Table of Contents

Eni SpA parent company preliminary accounts for 2010

PROFIT AND LOSS

(euro million)

Full Year 2009 Full Year 2010 % Ch.

| Net sale from operations — Other
income and revenues | 32,542 — 270 | | 35,251 — 273 | | 8.3 — 1.1 | |
| --- | --- | --- | --- | --- | --- | --- |
| Operating expenses | (30,293 | ) | (34,168 | ) | (12.8 | ) |
| - of
which non-recurring items | | | 270 | | | |
| Other operating income (expense) | (163 | ) | 4 | | .. | |
| Depreciation,
depletion, amortization and impairments | (1,053 | ) | (923 | ) | 12.3 | |
| Operating profit | 1,303 | | 437 | | (66.5 | ) |
| Finance
income (expense) | (345 | ) | (122 | ) | 64.6 | |
| Net income from investments | 4,753 | ) | 5,943 | | 25.0 | |
| - of
which non-recurring items | (250 | ) | (24 | ) | | |
| Profit before income taxes | 5,711 | | 6,258 | | 9.6 | |
| Income
taxes | (650 | ) | (79 | ) | 87.8 | |
| Net profit | 5,061 | | 6,179 | | 22.1 | |

BALANCE SHEET

(euro million)

Dec. 31, 2009 Dec. 31, 2010 Change

| Fixed assets — Property,
plant and equipment | 5,930 | | 6,161 | | 231 | |
| --- | --- | --- | --- | --- | --- | --- |
| Inventories - compulsory stock | 1,637 | | 1,957 | | 320 | |
| Intangible
assets | 988 | | 994 | | 6 | |
| Equity-accounted investments and other
investments | 29,374 | | 31,924 | | 2,550 | |
| Receivables
and securities held for operating purposes | 10,804 | | 12,284 | | 1,480 | |
| Net payables related to capital expenditures | (330 | ) | (143 | ) | 187 | |
| | 48,403 | | 53,177 | | 4,774 | |
| Net working capital | (836 | ) | 1,549 | | 2,385 | |
| Provisions
for employee post-retirement benefits | (306 | ) | (306 | ) | | |
| Net assets held for sale including related
liabilities | 911 | | 6 | | (905 | ) |
| CAPITAL
EMPLOYED, NET | 48,172 | | 54,426 | | 6,254 | |
| Shareholders equity | 32,144 | | 34,724 | | 2,580 | |
| Net
borrowings | 16,028 | | 19,702 | | 3,674 | |
| TOTAL LIABILITIES AND SHAREHOLDERS
EQUITY | 48,172 | | 54,426 | | 6,254 | |

50 -

Table of Contents

Enis activities in Libya

San Donato Milanese (Milan), February 22, 2011 - With reference to the current situation in Libya, certain oil and gas activities in the country have been temporarily suspended in precautionary way. Security measures on those facilities have been undertaken.

None of the plants for production and treatment of hydrocarbons in the country has suffered any damage.

The repatriation of the employees and their relatives, which started yesterday, will be completed in the next hours. 34 employees will remain in Libya, some in the operating plants and others in Tripoli.

Eni has also reinforced its security measures for the safeguarding of people and facilities and is continuously monitoring the situation.

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

Greenstream pipeline activity

San Donato Milanese (Milan), February 22, 2011 - Following the temporary suspension of some gas activities in Libya, supplies of natural gas from Libya through the Greenstream pipeline have been suspended.

However, Eni is still able to meet its customers demand for gas.

Currently Libya supplies around 10% of Italys gas needs.

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_2011-03-01_1dbee130-354b-4861-a9d5-80b2eef7d056.zip

AI assistant

Eni — Regulatory Filings 2011

4348_ffr_2011-03-01_1dbee130-354b-4861-a9d5-80b2eef7d056.zip

More from Eni

Eni Regulatory Filings 2011