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
July 2024
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 ¨
(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 ¨ 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
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. |
| |
|
| |
/s/ Paola Mariani |
| |
Name: Paola Mariani |
| |
Title: Head of Corporate |
| |
Secretary’s Staff Office |
Date: July 26, 2024
Eni’s
Board of Directors
Approval
of the first tranche of the provision in place of 2024 dividend: € 0.25 per share
San
Donato Milanese, 25 July 2024 – Eni’s Board of Directors, chaired by Giuseppe Zafarana, today resolved to distribute
to Shareholders the first of the four tranches of the provision in place of the 2024 dividend from Eni S.p.A. available reserves1
of € 0.25 (compared to a total annual provision, in place of the dividend, equal to € 1.00) per share outstanding at
the ex-dividend date as of 23 September 20242, payable on 25 September 20243, as resolved by the
Shareholders’ Meeting of 15 May 2024.
Holders
of ADRs, outstanding at the record date of 24 September 2024, will receive € 0.50 per ADR, payable on 7 October 20244,
with each ADR listed on the New York Stock Exchange representing two Eni shares.
Company
Contacts:
Press
Office: Tel. +39.0252031875 – +39.0659822030
Freephone
for shareholders (from Italy): 800940924
Freephone
for shareholders (from abroad): + 80011223456
Switchboard: +39-0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
Web
site: www.eni.com
| 1 | Coupon
No. 47. |
| 2 | Depending
on the recipient’s fiscal status the payment is subject to a withholding tax or is treated in part as taxable income. |
| 3 | Pursuant
to article 83-terdecies of the Italian Legislative Decree no. 58 of February 24, 1998, the right to receive the payment is determined
with reference to the entries on the books of the intermediary – as set out in art. 83-quater, paragraph 3 of the Italian Legislative
Decree no. 58 of February 24, 1998 – at the end of the accounting day of 24 September 2024 (record date). |
| 4 | On
ADR payment date, Citibank, N.A. will pay net of the amount of the withholding tax under Italian law applicable to all Depository Trust
Company Participants. |
Eni: results for the second
quarter and half year 2024
| · | Strong production growth and continued
upgrading of the E&P portfolio |
| · | Consistent performance and growth
of our transition businesses: Plenitude and Enilive |
| · | Divestment plan progressing ahead
of plan driving a sharper reduction of leverage |
| · | Strong cash generation and strict
capital discipline enabling competitive shareholder returns, with buyback acceleration |
San Donato Milanese, July 26, 2024 - Eni's
Board of Directors, chaired by Giuseppe Zafarana, yesterday approved the unaudited consolidated results for the second quarter and first
half 2024. Eni CEO Claudio Descalzi said:
“In the second quarter 2024, we have
delivered results ahead of expectations, demonstrating the significant progress Eni has made in multiple areas of our strategy and against
the Plan set out to investors in March. We have a clear objective to grow our business lines where we have a competitive advantage: oil
and gas production, bio-refining and renewables generating capacity, and have delivered impressive growth in each. This in turn has enabled
us to deliver an excellent financial performance of €1.5 bln of adjusted net profit. Alongside our operational advances we are also
making better than expected progress in our portfolio activities both in terms of timing and value. We are upgrading our Upstream portfolio,
having recently announced the divestment of our non-core assets in Alaska, the ongoing completion of the sale of onshore Nigeria, and
agreed a combination with Ithaca Energy for our UK assets. Notably, Enilive announced an exclusivity agreement with KKR for an investment
similar to the transaction concluded earlier in the year at Plenitude. These actions serve to both help fund growth and confirm the value
we are creating in our transition businesses. Even in the absence of significant portfolio activity net debt reduced over the quarter.
With the progress now being made on divestments, we expect leverage to be significantly below 0.2 by year end, better than our original
expectation. This will enable us to speed up the execution of our €1.6 bln share buyback program and confirm our delivery of both
business growth and shareholder returns.”
Key
operating and financial results
| Q1 |
|
|
Q2 |
|
IH |
| 2024 |
|
2024 |
2023 |
% Ch. |
|
2024 |
2023 |
% Ch. |
| 1,741 |
Hydrocarbon production |
kboe/d |
1,712 |
1,616 |
6 |
|
1,726 |
1,638 |
5 |
| 3.0 |
Installed capacity from renewables at period end |
GW |
3.1 |
2.5 |
24 |
|
3.1 |
2.5 |
24 |
| 4,116 |
Proforma
adjusted EBIT (a) |
€ million |
4,107 |
4,234 |
(3) |
|
8,223 |
10,101 |
(19) |
| 3,027 |
subsidiaries |
|
3,185 |
3,381 |
(6) |
|
6,212 |
8,022 |
(23) |
| 1,089 |
main
JV/Associates (b) |
|
922 |
853 |
8 |
|
2,011 |
2,079 |
(3) |
| |
Proforma
adjusted EBIT (by segment) (a) |
|
|
|
|
|
|
|
|
| 3,320 |
E&P |
|
3,532 |
2,800 |
26 |
|
6,852 |
6,631 |
3 |
| 325 |
Global Gas & LNG Portfolio (GGP) |
|
334 |
1,143 |
(71) |
|
659 |
2,563 |
(74) |
| 420 |
Enilive and Plenitude |
|
269 |
335 |
(20) |
|
689 |
605 |
14 |
| 44 |
Refining, Chemicals and Power |
|
(102) |
(9) |
.. |
|
(58) |
214 |
.. |
| 7 |
Corporate, other activities and consolidation adjustments |
|
74 |
(35) |
|
|
81 |
88 |
|
| 3,126 |
Adjusted
net profit before taxes (a) |
|
3,418 |
3,673 |
(7) |
|
6,544 |
8,654 |
(24) |
| 1,582 |
Adjusted
net profit (loss) (a)(c) |
|
1,519 |
1,935 |
(21) |
|
3,101 |
4,842 |
(36) |
| 1,211 |
Net
profit (loss) (c) |
|
661 |
294 |
125 |
|
1,872 |
2,682 |
(30) |
| 3,896 |
Cash
flow from operations before changes in working capital at replacement cost (a) |
|
3,907 |
4,232 |
(8) |
|
7,803 |
9,523 |
(18) |
| 1,904 |
Net cash from operations |
|
4,571 |
4,443 |
3 |
|
6,475 |
7,425 |
(13) |
| 1,990 |
Organic
capital expenditure (d) |
|
2,126 |
2,597 |
(18) |
|
4,116 |
4,811 |
(14) |
| 12,882 |
Net borrowings before lease liabilities ex IFRS 16 |
|
12,113 |
8,215 |
|
|
12,113 |
8,215 |
|
| 55,109 |
Shareholders' equity including non-controlling interest |
|
55,219 |
55,528 |
|
|
55,219 |
55,528 |
|
| 0.23 |
Leverage before lease liabilities ex IFRS 16 |
|
0.22 |
0.15 |
|
|
0.22 |
0.15 |
|
| |
|
|
|
|
|
|
|
|
|
| (a) Non-GAAP measures. For further information see the paragraph "Non-GAAP measures" on pages 17 and subsequent. |
| (b) The main JV/associates are listed in the "Reconciliation of Group proforma adjusted EBIT" on page 25. |
| (c) Attributable to Eni's shareholders. |
| (d) Net of expenditures relating to business combinations, purchase of minority interests and other non-organic items. |
|
|
|
|
|
|
|
|
Strategic
and financial highlights
Strong strategic progress achieving key milestones.
Eni delivered efficient growth and portfolio rationalization while remaining financially disciplined.
| · | Oil and gas production rose by
6% year-on-year driven by ongoing ramp-up at our flagship projects in Cote d’Ivoire and Congo Floating LNG, higher contribution
from Libya and by the full integration of Neptune. |
| · | Our industry leading exploration
continues to play a key role with a recent new discovery in the Sureste Basin offshore Mexico. We estimate close to 1 bln Boe of new resources
have been added in the first half of the year. |
| · | Agreement with Ithaca Energy creating
a transformational combination, combining two highly complementary UK upstream portfolios to establish a new satellite and a leading operator
in the UKCS able to deliver growth and value by leveraging financial and technical synergies. |
| · | Also, as part of our objective
for upgrading the E&P portfolio and divesting non-strategic assets, we agreed the sale of our Alaska properties and we are completing
on the divestment of our onshore Nigeria activities of NAOC. |
| · | We recently signed an exclusivity
agreement with KKR for the valorization of 20-25% of Enilive. We expect to close the transaction by year end. The sale has been agreed
valuing the company between €11.5 bln and €12.5 bln and similar to the deal concluded by Plenitude earlier in 2024 both helps
to fund growth and confirms the value being created. |
| · | Enilive and Plenitude are our
two competitively advantaged transition businesses delivering high growth and value. Enilive more than doubled bio throughputs year-on-year,
while Plenitude grew installed renewable capacity by 24%. |
Focus on building a stronger and strategically
more valuable business while remaining committed to delivering an attractive and competitive distribution policy.
| · | In addition to building a stronger
and more valuable business, Eni is committed to delivering an attractive and competitive distribution policy. The 2024 share buyback program
commenced in May with a target amount of €1.6 bln to be completed by April 2025. As of July 19, 2024, around 21 mln
shares have been purchased, for a cash outlay of €0.3 bln. With the better than expected progress we are making in our divestments,
we are aiming to accelerate the pace of the buyback above the original plan. |
Excellent results despite the mixed market environment
with good crude oil realizations, and stable gas prices, higher refining margins albeit down sequentially, and weaker margins of chemical
products.
| · | In Q2 ’24 delivered Group
proforma adjusted EBIT of €4.1 bln, and adjusted net profit of €1.5 bln. |
| · | In Q2 ’24 adjusted cash
flow before working capital of €3.9 bln signaled the strong underlying performance supported by our operational execution, growth,
valuable assets and financial discipline. |
| · | Q2 ’24 E&P proforma
adjusted EBIT was €3.5 bln, higher both y-o-y and sequentially (up by 26% and 6%, respectively), helped by production growth of 6%
y-o-y to 1.71 mln boe/d and a focus on efficiency boosting bottom line. |
| · | Q2 ’24 GGP proforma adjusted
EBIT was €0.33 bln continuing to successfully optimize gas and LNG portfolio. |
| · | Enilive generated €0.12 bln
driven by a positive marketing performance and higher biorefinery throughputs, partly offset by lower biofuels margins. In Q2 ’24
Plenitude earned a proforma adjusted EBIT of €0.15 bln, up by 12%, driven by the increased retail performance and the ramp-up in
renewable installed capacity and related production volumes. |
| · | Refining proforma adjusted EBIT
was €0.1 bln, higher than Q2 ‘23 thanks to supportive refining margins with in-line utilization. The Chemical business managed
by Versalis reported a loss of €0.22 bln in Q2 ’24 impacted by very challenging economic conditions. |
| · | Q2 ’24 included a post-tax,
net charge of around €0.5 bln as result of E&P’s asset writedowns, driven by the re-prioritization of investment capital
away from future phases of the development of marginal properties to focus on core projects in the portfolio consistent with the strategy,
mitigated by a gain due to agreement with an Italian operator for environmental cost sharing included in the special items. |
| · | €7.8 bln of operating cash
flow delivered in the first half, largely covering the organic capex funding needs of €4.1 bln. Organic free funds “FCF”
of €3.7 bln have been used to fuel shareholders cash returns of €2 bln and together with around €1 bln of disposals related
to the Plenitude and Saipem transactions has enabled the Company to reduce net borrowings to €12.1 bln after the peak related to
the cash-outs for the closing of Neptune acquisition (€2.3 bln). |
| · | Importantly, leverage is back
on a descending trajectory, down to 0.22 at the end of the first half. |
Outlook
2024
Full year guidance and increased capacity confirmed
for Enilive and Plenitude; upside to E&P and GGP performance expectations
| · | Leveraging on the positive operating
performance E&P: full-year hydrocarbon production is expected towards the top of the anticipated range of 1.69 - 1.71 mln boe/d at
the forecast Brent price of 86 $/bbl. |
| · | GGP: proforma adjusted EBIT for
the full year is raised to around €1 bln. |
- confirmed proforma adjusted EBITDA
of approximately €1 bln for each segment despite a lower market environment.
- confirmed installed renewable capacity
to reach 4 GW by 2024 year-end (+30% vs the previous year).
Financial targets raised and Capex plan on track
| · | Group financials based on Eni
scenario: the Group proforma adjusted EBIT guidance is raised to around €15 bln; adjusted CFFO before working capital is expected
to be over €14 bln for the full year. |
| · | Organic Capex: projected as planned
at about €9 bln for the full year. Including an expected upwardly revised contribution from the ongoing divestment plan, capex net
of proceeds from disposals are now streamlined to below €6 bln. |
Shareholder Returns: 6% increase in interim dividend
and increased pace in the 2024 buyback
| · | Next quarterly dividend: following
Shareholders' approval of a dividend of €1 per share for fiscal year 2024, a 6% increase over 2023, the first 2024 quarterly instalment
of €0.25 per share is due to be paid on September 25, 2024, with September 23, 2024 being the ex-dividend date, as resolved
by the Board of Directors yesterday. |
| · | Following Shareholders' approval
of the new buyback plan of up to €3.5 bln, management's 2024 plan for a share buyback of €1.6 bln is confirmed but will assume
a quicker pace in stock repurchases compared with the previous assumptions. |
| · | Moreover, in line with our distribution
policy, given the lower expected debt in the light of the progress of the M&A, we will be able in the third quarter, to evaluate a
further raise of the distribution share up to the maximum limit of 35% of the budgeted CFFO1 which corresponds to a potential
buyback value of additional €500 mln. |
Progress of divestment program ahead of plan
enabling debt reduction program
| · | Leverage for the year is expected
well below 20%, versus an original expectation between 20-25%. On a proforma basis, taking into account of identified but not yet completed
transactions, leverage could be around 15%. |
| · | The Group disposal plan is proceeding
faster than expected with excellent visibility of almost all the €8 bln net disposal proceeds over the four-year plan. |
The above-described outlook is a forward-looking
statement based on information to date and management’s judgement and is subject to the potential risks and uncertainties of the
scenario (see our disclaimer on page 17).
1
On an adjusted basis, before working capital changes.
| Business segments: operating and financial results |
Exploration & Production
Production and prices
| Q1 |
|
|
Q2 |
|
IH |
|
| 2024 |
|
2024 |
2023 |
% Ch. |
2024 |
2023 |
% Ch. |
| 83.24 |
Brent dated |
$/bbl |
84.94 |
78.39 |
8 |
84.09 |
79.83 |
5 |
| 1.086 |
Average EUR/USD exchange rate |
|
1.077 |
1.089 |
(1) |
1.081 |
1.081 |
|
| 1,741 |
Hydrocarbons production |
kboe/d |
1,712 |
1,616 |
6 |
1,726 |
1,638 |
5 |
| 797 |
Liquids |
kbbl/d |
777 |
757 |
3 |
787 |
769 |
2 |
| 4,937 |
Natural gas |
mmcf/d |
4,888 |
4,491 |
9 |
4,912 |
4,549 |
8 |
| 54.16 |
Average
realizations (a) |
$/boe |
57.03 |
53.15 |
7 |
55.64 |
55.08 |
1 |
| 74.53 |
Liquids |
$/bbl |
77.25 |
69.72 |
11 |
75.97 |
71.25 |
7 |
| 7.04 |
Natural gas |
$/kcf |
7.26 |
7.05 |
3 |
7.15 |
7.56 |
(5) |
| |
| (a) Prices
related to consolidated subsidiaries. |
| • | In Q2 ’24 hydrocarbon production
averaged 1.71 mln boe/d (1.73 mln boe/d in the IH ’24), up 6% compared to Q2 ’23 (up 5% vs. the IH ’23). Production
growth was supported by the Neptune acquisition (about 120 kboe/d), ramp-ups of the Baleine project in Côte d'Ivoire and the Coral
project Mozambique as well as higher Libyan production, which were partly offset by mature fields decline. |
| · | Liquids production was 777 kbbl/d
in Q2 ’24 (787 kbbl/d in the IH ’24, up 2% vs. the IH ’23) up 3% compared to Q2 ’23, mainly due to the Neptune
acquisition and growth in Côte d'Ivoire and Libya. These increases were partly offset by mature fields decline. |
| · | Natural gas production was 4,888
mmcf/d in Q2 ’24 (4,912 mmcf/d in the IH ’24, up 8% vs. the IH ’23), up 9% compared to Q2 ’23, mainly due to the
Neptune acquisition, the ramp-up of the Coral Floating LNG project and higher contribution from Libya, offset by mature fields decline. |
| · | Liquids price realizations trended
broadly in line with benchmarks. Natural gas price realizations reflected the price exposure of the production portfolio, where about
35% of volumes is indexed to the price of crude oil, higher than the share of production linked to European hub pricing (15%). The remainder
of E&P produced gas volumes is sold at fixed prices. |
Results
| |
|
|
|
|
|
| Q1 |
|
Q2 |
|
IH |
|
| 2024 |
(€ million) |
2024 |
2023 |
% Ch. |
2024 |
2023 |
% Ch. |
| 3,320 |
Proforma adjusted EBIT |
3,532 |
2,800 |
26 |
6,852 |
6,631 |
3 |
| 992 |
of which: main JV/Associates |
893 |
723 |
24 |
1,885 |
1,748 |
8 |
| 2,219 |
Operating profit (loss) of subsidiaries |
1,345 |
1,824 |
(26) |
3,564 |
4,544 |
(22) |
| 109 |
Exclusion of special items |
1,294 |
253 |
|
1,403 |
339 |
|
| 2,328 |
Adjusted operating profit (loss) of subsidiaries |
2,639 |
2,077 |
27 |
4,967 |
4,883 |
2 |
| 2,480 |
Adjusted profit (loss) before taxes |
2,884 |
2,342 |
23 |
5,364 |
5,418 |
(1) |
| 54.4 |
tax rate (%) |
55.7 |
56.3 |
|
55.1 |
52.7 |
|
| 1,130 |
Adjusted net profit (loss) |
1,278 |
1,024 |
25 |
2,408 |
2,564 |
(6) |
| 71 |
Exploration expenses: |
115 |
155 |
(26) |
186 |
228 |
(18) |
| 41 |
prospecting, geological and geophysical expenses |
40 |
62 |
|
81 |
119 |
|
| 30 |
write-off of unsuccessful wells |
75 |
93 |
|
105 |
109 |
|
| 1,565 |
Capital expenditure |
1,320 |
2,115 |
(38) |
2,885 |
3,899 |
(26) |
| · | In Q2 ’24, Exploration &
Production reported a proforma adjusted EBIT of €3,532 mln, up by 26% versus Q2 ’23 leveraging production growth, efficiency
gains and better realizations driven by higher crude oil prices in USD (the marker Brent was up by 8% in the quarter). In the IH ’24,
proforma adjusted EBIT was €6,852 mln, up 3% compared to the IH ’23, due to the same drivers as for the Q2. |
| · | In Q2 ’24, the segment reported
an adjusted net profit of €1,278 mln, an increase of about 25% compared to Q2 ’23 mainly due to an improved underlying performance
as well as higher contributions from JVs and associates. Adjusted net profit was €2,408 mln in the IH ’24, a decrease of 6%
y-o-y. |
| · | The tax rate was around 55%-56%
in both Q2 and IH ’24 and was almost in line with 2023 or slightly above (it was higher half-on-half due to increased taxable profits
in high-rates jurisdictions). The 2024 E&P tax rate is reflecting the current mix of geographies driven by the higher relative weight
of countries with above average rates and limited impact of the spread gas vs crude oil in the current market environment which might
dilute the segment tax rate in case of widening. |
For the disclosure on business segment special charges,
see “Special items” in the Group results section.
Strategic developments
| · | In May, for the fifth time, Eni
has been named the upstream industry’s most valuable explorer in Wood Mackenzie’s industry-leading annual Exploration Survey.
The survey recognized Eni’s efforts and discoveries to open new frontiers and find large volumes of advantaged resources. |
| · | In June, in line with Eni's strategy
focused on the rationalization of the upstream activities by rebalancing its portfolio and divesting non-strategic assets, Eni signed
a binding agreement with Hilcorp to divest 100% of the Nikaitchuq and Oooguruk assets owned by Eni in Alaska. The closing of this transaction
is subject to regulatory approvals and other customary terms and conditions. |
| · | In July, announced a new discovery
with the Yopaat-1 EXP exploration well in Block 9, approximately 63 kilometers off the coast in the mid-deep water of the Cuenca Salina
in the Sureste Basin, offshore Mexico. The preliminary estimates indicate a discovered potential of around 300-400 mln barrels equivalents
(Mboe) of oil and associated gas in place. This discovery opens new, exciting opportunities to develop a potential hub with 1.3 Bboe of
resources in place, including the discoveries in the adjacent Blocks 7/10. |
| · | Agreed with independent upstreamer
Ithaca Energy a transformational combination in the UKCS which will bring together two highly complementary asset portfolios to establish
a focused, leading operator able to deliver growth and value leveraging financial and technical synergies. The proposed combination builds
upon our track record of deploying Eni’ distinctive Satellite Model to adapt to the demands of the changing energy markets. |
Global
Gas & LNG Portfolio
Sales
| Q1 |
|
|
Q2 |
|
IH |
|
| 2024 |
|
2024 |
2023 |
% Ch. |
2024 |
2023 |
% Ch. |
| 29 |
Spot Gas price at Italian PSV |
€/MWh |
33 |
37 |
(11) |
31 |
47 |
(34) |
| 27 |
TTF |
|
32 |
35 |
(10) |
30 |
44 |
(34) |
| 2 |
Spread PSV vs. TTF |
|
2 |
2 |
(28) |
2 |
3 |
(37) |
| |
Natural gas sales |
bcm |
|
|
|
|
|
|
| 7.69 |
Italy |
|
4.95 |
5.73 |
(14) |
12.64 |
12.83 |
(1) |
| 6.79 |
Rest of Europe |
|
3.91 |
4.80 |
(19) |
10.70 |
12.02 |
(11) |
| 0.42 |
Importers in Italy |
|
0.37 |
0.62 |
(40) |
0.79 |
1.24 |
(36) |
| 6.37 |
European markets |
|
3.54 |
4.18 |
(15) |
9.91 |
10.78 |
(8) |
| 0.97 |
Rest of World |
|
0.52 |
0.62 |
(16) |
1.49 |
1.14 |
31 |
| 15.45 |
Worldwide
gas sales (a) |
|
9.38 |
11.15 |
(16) |
24.83 |
25.99 |
(4) |
| 2.70 |
LNG sales |
|
2.2 |
2.5 |
(12) |
4.9 |
5.2 |
(6) |
| |
|
|
|
|
|
|
|
|
| (a) Data include intercompany sales. |
| · | In Q2 ’24, natural gas sales
were 9.38 bcm, down 16% y-o-y, due to lower gas volumes marketed in Italy (down 14%) particularly in the Italian gas exchange and spot
markets and industrial segment, partly offset by higher volumes sold to the wholesalers’ segment. In the European markets gas volumes
decreased by 15% as result of lower sales in Turkey and Benelux, balanced by higher sales in Germany. In IH ’24, natural gas sales
amounted to 24.83 bcm, down 4% vs the IH ‘23, mainly due to lower gas volumes marketed in the European markets (down 8% or down
0.87 bcm vs. IH ’23) and to a lesser extent in Italy (down 1% or down 0.19 bcm vs. IH ’23). |
Results
| Q1 |
|
Q2 |
|
IH |
|
| 2024 |
(€ million) |
2024 |
2023 |
% Ch. |
2024 |
2023 |
% Ch. |
| 325 |
Proforma adjusted EBIT |
334 |
1,143 |
(71) |
659 |
2,563 |
(74) |
| 32 |
of which: main JV/Associates |
(9) |
56 |
.. |
23 |
104 |
(78) |
| (110) |
Operating profit (loss) of subsidiaries |
(572) |
539 |
.. |
(682) |
814 |
.. |
| 403 |
Exclusion of special items |
915 |
548 |
|
1,318 |
1,645 |
|
| 293 |
Adjusted operating profit (loss) of subsidiaries |
343 |
1,087 |
(68) |
636 |
2,459 |
(74) |
| 299 |
Adjusted profit (loss) before taxes |
360 |
1,104 |
.. |
659 |
2,488 |
(74) |
| 31.8 |
tax rate (%) |
48.6 |
26.8 |
|
41.0 |
27.4 |
|
| 204 |
Adjusted net profit (loss) |
185 |
808 |
(77) |
389 |
1,807 |
(78) |
| 1 |
Capital expenditure |
4 |
6 |
(33) |
5 |
6 |
(17) |
| · | In Q2 ’24, the Global Gas &
LNG Portfolio segment achieved a proforma adjusted Ebit of €334 mln, including the operating margin of the equity accounted entity
SeaCorridor. Compared to the same period of 2023, the result was down due to one-off effects linked to the outcomes of negotiations/settlements
in particular in Q2 ’23. In IH ’24, proforma adjusted Ebit amounted to €659 mln, down by 74% compared to IH ’23,
driven by less favorable price scenario and reduced volatility which affected trading and optimization opportunities and lower benefits
from one-off effects linked to the outcomes of negotiations/settlements. |
| · | The Q2 ’24 Ebit of subsidiaries
benefitted from a reclassification of certain tax items settled by the JV SeaCorridor on behalf of the shipper and comprised into the
transport tariff; these items, as accrued year-to-date, were previously reported as operating expenses by subsidiaries and have now been
included in income taxes. |
For the disclosure on business segment special charges,
see “Special items” in the Group results section.
Enilive and Plenitude
Production and sales
| Q1
|
|
|
Q2
|
|
IH
|
|
| 2024 |
|
2024 |
2023 |
%
Ch. |
2024 |
2023 |
%
Ch. |
| |
Enilive |
|
|
|
|
|
|
|
| 347 |
Bio
throughputs |
ktonnes |
328 |
140 |
134 |
676 |
276 |
145 |
| 94 |
Average
bio refineries utilization rate (a) |
% |
88 |
60 |
|
90 |
59 |
|
| 5.46 |
Total
Enilive sales |
mmtonnes |
6.36 |
5.79 |
10 |
11.81 |
10.89 |
8 |
| 1.78 |
Retail
sales |
|
1.90 |
1.89 |
0 |
3.68 |
3.64 |
1 |
| 1.26 |
of
which: Italy |
|
1.34
|
1.32
|
2 |
2.60
|
2.58
|
1
|
| 3.17 |
Wholesales
sales (b) |
|
3.79 |
3.22 |
18 |
6.96 |
6.00 |
16 |
| 2.47 |
of
which: Italy |
|
2.87
|
2.55
|
13
|
5.34
|
4.73
|
13
|
| 0.51 |
Other
sales |
|
0.67 |
0.68 |
(1) |
1.17 |
1.25 |
(6) |
| 21.4 |
Retail
market share in Italy |
% |
21.0 |
20.8 |
|
21.1 |
21.1 |
|
| |
Plenitude |
|
|
|
|
|
|
|
| 10.1 |
Retail
and business customers at period end |
mln
pod |
10.1 |
10.1 |
0 |
10.1 |
10.1 |
0 |
| 2.56 |
Retail
and business gas sales to end customers |
bcm |
0.73 |
0.88 |
(16) |
3.29 |
3.79 |
(13) |
| 4.64 |
Retail
and business power sales to end customers |
TWh |
4.14 |
4.19 |
(1) |
8.78 |
8.81 |
0 |
| 3.0 |
Installed
capacity from renewables at period end |
GW |
3.1 |
2.5 |
24 |
3.1 |
2.5 |
24 |
| 1.1 |
Energy
production from renewable sources |
TWh |
1.2 |
1.0 |
23 |
2.3 |
2.0 |
18 |
| 19.6 |
EV
charging points at period end |
thousand |
20.4 |
16.6 |
23 |
20.4 |
16.6 |
23 |
| |
|
|
|
|
|
|
|
|
| (a) Redetermined
based on the effective biorefinery capacity. |
| (b) Starting
from 2024, following the business reorganization, the wholesale volumes include sales through bunkering, sales to oil companies and
chemicals. The comparative periods have been appropriately restated. |
Enilive
| • | In
Q2 ’24, bio throughputs were 328 ktonnes, more than doubled compared to the
same period of 2023, benefitting from the Chalmette biorefinery contribution and higher volumes
processed at the Gela and Venice biorefineries driven by higher plant availability. In IH
‘24, bio throughputs increased by almost 150% compared to the same period of 2023,
following the same driver of the quarter. |
| • | In
Q2 ’24, retail sales were 1.90 mmtonnes, substantially unchanged y-o-y, due
to higher sales mainly in Italy of gasoline and HVO, following increasing consumptions, offset
by lower sales of gasoil. Sales in the rest of Europe were barely unchanged. In IH ‘24,
retail sales amounted to 3.68 mmtonnes, a slight increase vs. IH ‘23. |
| • | In
Q2 ’24, wholesale sales were 3.79 mmtonnes, increasing by 18% compared to the
same period of 2023, due to higher sales of jet fuel mainly in Italy. Positive performance
was also recorded in IH ‘24 at 6.96 mmtonnes: up 16% vs. IH ‘23. |
Plenitude
| • | As
of June 30, 2024, retail and business customers were 10.1 mln (gas and electricity),
in line compared to June 30, 2023. |
| • | Retail
and business gas sales to end customers amounted to 0.73 bcm in Q2 ’24, down by
16% compared to the same period in 2023, mainly impacted by lower consumptions. In IH ‘24,
gas sales amounted to 3.29 bcm, decreasing by 13% vs. the comparative period, due to the
same driver as for the quarter. |
| • | Retail
and business power sales to end customers were 4.14 TWh in Q2 ’24, substantially
in line compared to Q2 ’23. In IH ’24 power sales amounted to 8.78 TWh barely
unchanged vs IH ’23. |
| • | As
of June 30, 2024, the installed capacity from renewables was 3.1 GW, up by approximately
0.6 GW compared to June 30, 2023, mainly thanks to the acquisitions in the USA, as well
as to the organic development in Italy, Spain, Kazakhstan and in the UK. |
| • | Energy
production from renewable sources was 1.2 TWh in Q2 ’24, up by 23% year-on-year,
mainly thanks to the contribution from acquired assets in operation and the start-up of organic
project partially offset by adverse natural events in Texas (2.3 TWh in IH ’24, +18%
vs the comparative period). |
| • | EV
charging points as of June 30, 2024, amounted to 20.4 thousand, up by 23% compared
to 16.6 thousand as of June 30, 2023. |
Results
| |
|
|
|
|
|
| Q1
|
|
Q2
|
|
IH
|
|
| 2024 |
(€
million) |
2024 |
2023 |
%
Ch. |
2024 |
2023 |
%
Ch. |
| 596 |
Proforma
adjusted EBITDA |
463 |
501 |
(8) |
1,059 |
931 |
14 |
| 250 |
Enilive |
200 |
265 |
(25) |
450 |
462 |
(3) |
| 346 |
Plenitude |
263 |
236 |
11 |
609 |
469 |
30 |
| 420 |
Proforma
adjusted EBIT |
269 |
335 |
(20) |
689 |
605 |
14 |
| 178 |
Enilive |
120 |
202 |
(41) |
298 |
340 |
(12) |
| (3) |
of
which: main JV/Associates |
(11) |
|
|
(14) |
|
|
| 242 |
Plenitude |
149 |
133 |
12 |
391 |
265 |
48 |
| 591 |
Operating
profit (loss) of subsidiaries |
539 |
150 |
.. |
1,130 |
(48) |
.. |
| (164) |
Exclusion
of special items |
(255) |
185 |
|
(419) |
653 |
|
| 427 |
Adjusted
operating profit (loss) of subsidiaries |
284 |
335 |
(15) |
711 |
605 |
18 |
| 405 |
Adjusted
profit (loss) before taxes |
245 |
322 |
(24) |
650 |
581 |
12 |
| 28.9 |
tax
rate (%) |
41.6 |
32.6 |
|
33.7 |
31.0 |
|
| 288 |
Adjusted
net profit (loss) |
143 |
288 |
(50) |
431 |
401 |
7 |
| 205 |
Capital
expenditure |
397 |
191 |
108 |
602 |
367 |
64 |
| |
|
|
|
|
|
|
|
| • | In
Q2 ’24 the Enilive business reported a proforma adjusted Ebit of €120 mln,
down by 41% compared to the same period in 2023, reflecting deteriorated biofuel margins.
In biorefining, doubled throughput driven by capacity addition and higher utilization rates,
and maximization of pre-treatment of challenging feedstock have been more than offset by
margin pressure due to spot HVO price in EU and lower RIN prices in North America. Marketing
steady results benefitted from higher demand, especially in wholesale (jet fuel and gasoil)
and valorization of captive demand (in IH ’24 reported a proforma adjusted Ebit of
€298 mln, compared to €340 mln in IH ’23). |
Proforma adjusted Ebitda amounted to
€200 mln, down by 25% vs Q2 ’23 (€265 mln) and its guidance for the year is confirmed approximately €1 bln. Enilive
is well-positioned to capitalise on the expected demand increase in the second half of 2024, sustained by the implementation of new obligations
in the Netherlands and the impact of EU provisional anti-dumping duty recently published, as well as more stringent policy in California
(in IH ’24 reported a proforma adjusted Ebitda of €450 mln, compared to a profit of €462 mln in IH ’23).
| • | In
Q2 ’24 Plenitude reported a proforma adjusted Ebit of €149 mln, up by 12%
vs Q2 ’23, driven by higher retail commodity margins, supported by lower commodity
scenario volatility, and the improved performance in international retail markets, as well
as the ramp-up in renewable installed capacity and related production volumes (in IH ’24
reported a proforma adjusted Ebit of €391 mln, a 48% increase compared to a proforma
adjusted Ebit of €265 mln in IH ’23). |
Proforma adjusted Ebitda amounted to
€263 mln up by 11% vs Q2 ’23 (€236 mln). In IH ’24 reported a proforma adjusted Ebitda of €609 mln, compared
to a proforma adjusted Ebitda of €469 mln in IH ’23, up by 30%.
For the disclosure
on business segment special charges, see “Special items” in the Group results section.
Net debt in Plenitude,
consolidated into the results of Eni, stood at €1.9 bln (€2.4 bln as of December 31, 2023).
Strategic developments
| • | In
June, Enilive Iberia finalized the acquisition of 100% shares of Atenoil, a company operating
in the service station sector. The transaction, which has been approved by the relevant authorities,
comprises 21 service stations in the regions of Madrid, Andalusia and Castilla-La Mancha. |
| • | In
June, Plenitude signed a strategic partnership with MERKUR for the installation, construction
and management of innovative electric vehicle charging stations, including 62 technologically
advanced fast and ultra-fast charging points, at MERKUR shopping centres across Slovenia.
The first charging stations will be operational at 24 MERKUR centres by the end of 2024,
while the entire project will be completed by early 2026. |
| • | In
June, Plenitude inaugurated in Cuenca (Spain), the Villanueva II solar plant with an installed
capacity of 50 MW, connected to the national transmission grid. The facility counts more
than 76,000 photovoltaic modules and produces 100 GWh/year of electricity, equivalent to
the energy needs of more than 30,000 households. |
Refining, Chemicals and Power
Production and sales
| Q1
|
|
|
Q2
|
|
IH
|
|
| 2024 |
|
2024 |
2023 |
%
Ch. |
2024 |
2023 |
%
Ch. |
| |
Refining |
|
|
|
|
|
|
|
| 8.7 |
Standard
Eni Refining Margin (SERM) (a) |
$/bbl |
6.4 |
5.5 |
16 |
7.6 |
8.2 |
(7) |
| 4.08 |
Throughputs
in Italy on own account |
mmtonnes |
3.09 |
4.09 |
(24) |
7.17 |
8.33 |
(14) |
| 2.31 |
Throughputs
in the rest of World on own account |
|
2.72 |
2.60 |
5 |
5.03 |
5.07 |
(1) |
| 6.39 |
Total
throughputs on own account |
|
5.81 |
6.69 |
(13) |
12.20 |
13.40 |
(9) |
| 81 |
Average
refineries utilization rate |
% |
74 |
75 |
|
78 |
76 |
|
| |
Chemicals |
|
|
|
|
|
|
|
| 0.85 |
Sales
of chemical products |
mmtonnes |
0.76 |
0.82 |
(7) |
1.62 |
1.58 |
2 |
| 57 |
Average
plant utilization rate |
% |
44 |
55 |
|
51 |
54 |
|
| |
Power |
|
|
|
|
|
|
|
| 5.05 |
Thermoelectric
production |
TWh |
4.18 |
5.07 |
(18) |
9.23 |
10.34 |
(11) |
| |
|
|
|
|
|
|
|
|
| (a) From
January 1, 2024, the benchmark refining margin has been calculated based on a new methodology which considers a revised industrial
set-up in connection with the planned restructuring of the Livorno plant and implemented optimizations of utilities consumption,
as well as current trends in crude supplies building in a slate of both high-sulfur and low-sulfur crudes. |
Refining
| • | In
Q2 ’24, the Standard Eni Refining Margin reported an average of 6.4 $/barrel
vs. 5.5 $/barrel reported in the comparative period mainly due to more favorable products
crack spreads, mainly diesel and naphtha (7.6 $/barrel in the IH ‘24, representing
a decrease vs. 8.2 $/barrel reported in IH ’23, mainly affected by the trend recovered
in the Q1 ‘24). |
| • | In
Q2 ’24, throughputs on own accounts at Eni’s refineries in Italy were
3.09 mmtonnes, representing a decrease of 24% when compared to the same period of 2023, mainly
reflecting lower volumes processed at Livorno refinery following the new set-up of the plant
and the other refineries for planned maintenance. Throughputs outside Italy increased by
5% compared to Q2 ’23 following higher volumes processed in Germany. In IH ’24,
throughputs decreased mainly in Italy (down by 14%) following the above mentioned shut down
at the Livorno refinery. |
Chemicals
| • | Sales
of chemical products were 0.76 mmtonnes in Q2 ’24, down by 7% compared to same
period of the previous year. In IH ‘24, sales amounted to 1.62 mmtonnes. |
| • | In
Q2 ’24 the cracking margin decreased compared to the same period in 2023. Also
margins on polyethylene and styrenics decreased, due to weak commodity prices and competitive
dynamics. |
Power
| • | Thermoelectric
production amounted to 4.18 TWh in Q2 ’24, down by 18% year-on-year mainly due
to a negative power market scenario (9.23 TWh in IH ‘24, representing a reduction of
11% compared to the same period in 2023, due to the same drivers as of the quarter). |
Results
| Q1
|
|
Q2
|
|
IH
|
|
| 2024 |
(€
million) |
2024 |
2023 |
%
Ch. |
2024 |
2023 |
%
Ch. |
| 44 |
Proforma
adjusted EBIT |
(102) |
(9) |
.. |
(58) |
214 |
.. |
| 184 |
Refining |
98 |
29 |
.. |
282 |
307 |
(8) |
| 72 |
of
which: main JV/Associates |
53 |
74 |
(28) |
125 |
227 |
(45) |
| (168) |
Chemicals |
(222) |
(70) |
.. |
(390) |
(179) |
.. |
| 28 |
Power |
22 |
32 |
(31) |
50 |
86 |
(42) |
| 152 |
Operating
profit (loss) of subsidiaries |
(152) |
(458) |
67 |
0 |
(838) |
.. |
| (262) |
Exclusion
of inventory holding (gains) losses |
32 |
211 |
|
(230) |
549 |
|
| 82 |
Exclusion
of special items |
(35) |
164 |
|
47 |
276 |
|
| (28) |
Adjusted
operating profit (loss) of subsidiaries |
(155) |
(83) |
(87) |
(183) |
(13) |
.. |
| 21 |
Adjusted
profit (loss) before taxes |
(117) |
(24) |
.. |
(96) |
200 |
.. |
| 33 |
Adjusted
net profit (loss) |
(77) |
(23) |
.. |
(44) |
148 |
.. |
| 111 |
Capital
expenditure |
221 |
183 |
21 |
332 |
294 |
13 |
| • | In
Q2 ’24, the Refining business delivered a proforma adjusted Ebit of €98
mln, significantly higher than in Q2 ’23, due to improved refining margins. The result
included the ADNOC R> contribution. In IH ’24 the business reported a proforma
adjusted Ebit of €282 mln, slightly below the first half ’23 result as weaker
refining margins and lower throughputs. |
| • | The
Chemical business, managed by Versalis, reported a proforma adjusted loss of €222
mln in Q2 ’24, larger than the one incurred in Q2 ’23. Result was negatively
affected by lower demand across all business segments driven by a slowdown in the macro environment
and comparatively higher production costs in Europe, which reduced the competitiveness of
Versalis productions with respect to US and Asian players in an oversupplied market. In IH
’24, proforma adjusted Ebit was a loss of €390 mln (almost doubling the €179
mln loss in IH ’23) reflecting exceptionally adverse market conditions. |
| • | The
Power generation business from gas-fired plants reported a proforma adjusted Ebit
of €22 mln in Q2 ’24, down by 31% year on year, due to a decrease in the electricity
price scenario and a lower demand expressed by the Italian Transmission System Operator in
the ancillary services market. In IH ‘24, proforma adjusted Ebit was €50 mln,
down by €36 mln compared to IH ‘23. |
For the disclosure on business segment special
charges, see “Special items” in the Group results section.
Strategic developments
| • | In
June, Versalis and Crocco (SpA SB), a pioneering flexible packaging company, launched a collaboration
to produce food packaging film made from raw materials partly derived from the recycling
of post-consumer plastics, targeting mass production for the large-scale retail market. |
| • | In
July, Versalis and Forever Plast launched REFENCE™, a portfolio of innovative recycled
polymers for food contact packaging. The new products, developed thanks to the NEWER™
technology, will enhance the Versalis Revive® portfolio from mechanical recycling. |
| |
|
|
|
|
|
| Q1
|
|
Q2
|
|
IH
|
|
| 2024 |
(€
million) |
2024 |
2023 |
%
Ch. |
2024 |
2023 |
%
Ch. |
| 22,936
|
Sales
from operations |
21,715
|
19,591
|
11 |
44,651
|
46,776
|
(5) |
| 2,670
|
Operating
profit (loss) |
1,581
|
1,762
|
(10) |
4,251
|
4,275
|
(1) |
| (56) |
Exclusion
of inventory holding (gains) losses |
50
|
252
|
|
(6) |
609
|
|
| 413
|
Exclusion
of special items (a) |
1,554
|
1,367
|
|
1,967
|
3,138
|
|
| 3,027
|
Adjusted
operating profit (loss) |
3,185
|
3,381
|
(6) |
6,212
|
8,022
|
(23) |
| 1,089
|
main
JV/Associates adjusted EBIT |
922
|
853
|
8 |
2,011
|
2,079
|
(3) |
| 4,116
|
Proforma
adjusted EBIT |
4,107
|
4,234
|
(3) |
8,223
|
10,101
|
(19) |
| 3,320
|
E&P |
3,532
|
2,800
|
26 |
6,852
|
6,631
|
3 |
| 325
|
Global
Gas & LNG Portfolio (GGP) |
334
|
1,143
|
(71) |
659
|
2,563
|
(74) |
| 420
|
Enilive
and Plenitude |
269
|
335
|
(20) |
689
|
605
|
14 |
| 44
|
Refining,
Chemicals and Power |
(102) |
(9) |
.. |
(58) |
214
|
.. |
| 7
|
Corporate,
other activities and consolidation adjustments |
74
|
(35) |
|
81
|
88
|
|
| 3,126
|
Adjusted
profit (loss) before taxes |
3,418
|
3,673
|
(7) |
6,544
|
8,654
|
(24) |
| 1,598
|
Adjusted
net profit (loss) |
1,539
|
1,955
|
(21) |
3,137
|
4,881
|
(36) |
| 1,237
|
Net
profit (loss) |
695
|
314
|
.. |
1,932
|
2,721
|
(29) |
| 1,211
|
Net
profit (loss) attributable to Eni's shareholders |
661
|
294
|
.. |
1,872
|
2,682
|
(30) |
| (41) |
Exclusion
of inventory holding (gains) losses |
37
|
181
|
|
(4) |
436
|
|
| 412
|
Exclusion
of special items (a) |
821
|
1,460
|
|
1,233
|
1,724
|
|
| 1,582
|
Adjusted
net profit (loss) attributable to Eni's shareholders |
1,519
|
1,935
|
(21) |
3,101
|
4,842
|
(36) |
| |
|
|
|
|
|
|
|
| (a) For
further information see table "Breakdown of special items". |
|
|
|
| • | In
Q2 ’24, the Group reported proforma adjusted Ebit of €4,107 mln, almost
in line with the corresponding year-ago quarter notwithstanding the significant result of
GGP in 2023 due to the then particularly favorable market conditions and contractual one-offs,
and another leg down in the adverse European chemicals cycle. The normalization in the GGP
result (down by about €800 mln) and the margins downturn at Versalis (with losses increased
by about €150 mln) were offset by a better E&P performance (up by 26% or about €700
mln) due to noticeable production growth (up by 6%) and better crude oil realizations and
by an improved result at the refining business (up by €70 mln). In IH ‘24, the
Group reported a proforma adjusted Ebit of €8,223 mln, down 19% compared to IH ’23,
due to the same trends as in the second quarter ‘24. |
| • | In
Q2 ’24 adjusted net profit before taxes was €3,418 mln, €255 mln lower
than the Q2 ’23, or 7%, reflecting also higher net finance expense due to lower interest
income on cash deposits. |
| • | In
Q2 ’24 adjusted net profit attributable to Eni’s shareholders of €1,519
mln was 21% lower than the Q2 ’23. Compared to a smaller 7% q-o-q reduction in the
pre-tax profit level, the contraction in adjusted net profit was affected by an increased
Group tax rate of 55% (up from 47% in the year-ago quarter) due to the prevailing effect
of the Upstream foreign taxation and a reduced fiscal contribution of other sectors generally
operating in OECD jurisdiction with lower tax rate. |
| • | Q2
’24 special items of €821 mln comprise non-cash charges for E&P asset
write-downs of €950 mln after tax driven by re-prioritization of investment capital
away from future phases of the development of marginal properties and instead a focus on
the core projects in the portfolio consistent with strategy, partly mitigated by an agreement
to share environmental expenses with an Italian operator. |
Net borrowings and cash flow from operations
| Q1 |
|
Q2 |
|
|
IH |
|
| 2024 |
(€ million) |
2024 |
2023 |
Change |
|
2024 |
2023 |
Change |
| 1,237 |
Net profit (loss) |
695 |
314 |
381 |
|
1,932 |
2,721 |
(789) |
| |
Adjustments to reconcile net profit (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
| 1,908 |
- depreciation, depletion and amortization and other non monetary items |
2,991 |
1,990 |
1,001 |
|
4,899 |
3,161 |
1,738 |
| (19) |
- net gains on disposal of assets |
(165) |
(10) |
(155) |
|
(184) |
(418) |
234 |
| 1,709 |
- dividends, interests and taxes |
1,456 |
1,769 |
(313) |
|
3,165 |
3,071 |
94 |
| (1,865) |
Changes in working capital related to operations |
827 |
1,587 |
(760) |
|
(1,038) |
1,294 |
(2,332) |
| 558 |
Dividends received by equity investments |
546 |
780 |
(234) |
|
1,104 |
1,340 |
(236) |
| (1,336) |
Taxes paid |
(1,483) |
(1,849) |
366 |
|
(2,819) |
(3,389) |
570 |
| (288) |
Interests (paid) received |
(296) |
(138) |
(158) |
|
(584) |
(355) |
(229) |
| 1,904 |
Net cash provided by operating activities |
4,571 |
4,443 |
128 |
|
6,475 |
7,425 |
(950) |
| (1,931) |
Capital expenditure |
(2,021) |
(2,557) |
536 |
|
(3,952) |
(4,676) |
724 |
| (1,761) |
Investments and acquisitions |
(547) |
(1,165) |
618 |
|
(2,308) |
(1,810) |
(498) |
| 228 |
Disposal of consolidated subsidiaries, businesses, tangible and intangible assets and investments |
399 |
44 |
355 |
|
627 |
489 |
138 |
| 81 |
Other cash flow related to investing activities |
(33) |
511 |
(544) |
|
48 |
299 |
(251) |
| (1,479) |
Free cash flow |
2,369 |
1,276 |
1,093 |
|
890 |
1,727 |
(837) |
| (131) |
Net cash inflow (outflow) related to financial activities |
11 |
(86) |
97 |
|
(120) |
666 |
(786) |
| 1,116 |
Changes in short and long-term financial debt |
328 |
1,567 |
(1,239) |
|
1,444 |
1,428 |
16 |
| (309) |
Repayment of lease liabilities |
(362) |
(228) |
(134) |
|
(671) |
(475) |
(196) |
| (578) |
Dividends paid, share repurchases, changes in non-controlling interests and reserves |
(908) |
(1,227) |
319 |
|
(1,486) |
(2,008) |
522 |
| (39) |
Interest payment of perpetual hybrid bond |
(48) |
(48) |
|
|
(87) |
(87) |
|
| 16 |
Effect of changes in consolidation and exchange differences of cash and cash equivalent |
29 |
17 |
12 |
|
45 |
(15) |
60 |
| (1,404) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT |
1,419 |
1,271 |
148 |
|
15 |
1,236 |
(1,221) |
| 3,896 |
Adjusted net cash before changes in working capital at replacement cost |
3,907 |
4,232 |
(325) |
|
7,803 |
9,523 |
(1,720) |
| Q1 |
|
Q2 |
|
|
IH |
|
| 2024 |
(€ million) |
2024 |
2023 |
Change |
|
2024 |
2023 |
Change |
| (1,479) |
Free cash flow |
2,369 |
1,276 |
1,093 |
|
890 |
1,727 |
(837) |
| (309) |
Repayment of lease liabilities |
(362) |
(228) |
(134) |
|
(671) |
(475) |
(196) |
| (787) |
Net borrowings of acquired companies |
309 |
|
309 |
|
(478) |
|
(478) |
| |
Net borrowings of divested companies |
|
|
|
|
|
(147) |
147 |
| (130) |
Exchange
differences on net borrowings and other changes (a) |
(591) |
(192) |
(399) |
|
(721) |
(199) |
(522) |
| (578) |
Dividends paid and changes in non-controlling interest and reserves |
(908) |
(1,227) |
319 |
|
(1,486) |
(2,008) |
522 |
| (39) |
Interest payment of perpetual hybrid bond |
(48) |
(48) |
|
|
(87) |
(87) |
|
| (3,322) |
CHANGE IN NET BORROWINGS BEFORE LEASE LIABILITIES |
769 |
(419) |
1,188 |
|
(2,553) |
(1,189) |
(1,364) |
| 309 |
Repayment of lease liabilities |
362 |
228 |
134 |
|
671 |
475 |
196 |
| (387) |
Inception of new leases and other changes |
(289) |
(116) |
(173) |
|
(676) |
(250) |
(426) |
| (3,400) |
CHANGE IN NET BORROWINGS AFTER LEASE LIABILITIES |
842 |
(307) |
1,149 |
|
(2,558) |
(964) |
(1,594) |
| |
|
|
|
|
|
|
|
|
| (a) Includes payables due to suppliers recognized as financing payables because of the deferral of payment terms and incurred in connection with expenditures to purchase plant and equipment (€1,056 million and €189 million in the IH '24 and '23; €784 million and €85 million in Q2 '24 and '23, respectively, and €272 million in the first quarter 2024). |
Net
cash provided by operating activities in the IH ’24 was €6,475 mln and included €1,104 mln of dividends distributed
from Eni’s investments, mainly Azule Energy, Vår Energi and ADNOC R>.
Cash movements of the working capital showed an
improvement in the Q2 ‘24 due to the collection of part of the gas volumes accrued in the Q1 ’24, resulting in an overall
cash drawdown of €1 bln in the cumulative period mainly related to a slowdown in the collection of cash calls and trade receivables
at E&P.
Cash flow from operating activities before changes
in working capital at replacement cost was €7,803 mln in the IH ’24 and was net of the following items: inventory holding
gains or losses relating to oil and products, the reversing timing difference between gas inventories accounted at weighted average cost
and management’s own measure of performance leveraging inventories to optimize margin, the fair value of commodity derivatives lacking
the formal criteria to be designated as hedges or prorated on an accrual basis.
A reconciliation of cash flow from operations
before changes in working capital at replacement cost to net cash provided by operating activities is provided below:
| Q1 |
|
Q2 |
|
IH |
|
| 2024 |
(€ million) |
2024 |
2023 |
Change |
2024 |
2023 |
Change |
| 1,904 |
Net cash provided by operating activities |
4,571 |
4,443 |
128 |
6,475 |
7,425 |
(950) |
| 1,865 |
Changes in working capital related to operations |
(827) |
(1,587) |
760 |
1,038 |
(1,294) |
2,332 |
| 210 |
Exclusion of commodity derivatives |
377 |
137 |
240 |
587 |
1,384 |
(797) |
| (56) |
Exclusion of inventory holding (gains) losses |
50 |
252 |
(202) |
(6) |
609 |
(615) |
| 3,923 |
Net cash before changes in working capital at replacement cost |
4,171 |
3,245 |
926 |
8,094 |
8,124 |
(30) |
| (27) |
Extraordinary (gains) charges |
(264) |
987 |
(1,251) |
(291) |
1,399 |
(1,690) |
| 3,896 |
Adjusted net cash before changes in working capital at replacement cost |
3,907 |
4,232 |
(325) |
7,803 |
9,523 |
(1,720) |
Organic capex was €4.1 bln in the IH
’24 (down 14% y-o-y). Net of organic capex, the free cash flow ante working capital was €3.7 bln.
Cash outflows for acquisitions net of divestments
were about €1.6 bln and mainly related to the acquisition of Neptune Energy (€2.3 bln including acquired net debt) and Plenitude’s
renewable assets, a service stations network in Spain, partly offset by the sale of 10% of Saipem, the divestment of Eni’s production
licenses in Congo to Perenco, as well as the Plenitude capital contribution of €0.6 bln following the finalization of the agreement
with the EIP fund who acquired a minority interest (7.6%).
Net financial borrowings before IFRS 16 increased
by around €2.6 bln due to the adjusted operating cash flow (€7.8 bln), capex requirements of €4.1 bln, working capital
needs (around €1.0 bln), dividend payments to Eni’s shareholders and share repurchases of €2 bln (€0.57 bln of share
repurchases and €1.47 bln of dividends relating to the third and fourth instalments of the 2023 dividend), the net cash outflow related
to acquisitions and divestments (€1.6 bln), as well as the payment of lease liabilities and hybrid bond interest (€0.8 bln)
and other changes (€0.6 bln).
Summarized Group Balance Sheet
| (€ million) |
Jan. 1, 2024 |
Jun. 30, 2024 |
Change |
| |
|
|
|
| Fixed assets |
|
|
|
| Property, plant and equipment |
56,299 |
58,069 |
1,770 |
| Right of use |
4,834 |
4,875 |
41 |
| Intangible assets |
6,379 |
6,475 |
96 |
| Inventories - Compulsory stock |
1,576 |
1,587 |
11 |
| Equity-accounted investments and other investments |
13,886 |
14,547 |
661 |
| Receivables financing and securities held for operating purposes |
996 |
1,054 |
58 |
| Net payables related to capital expenditure |
(2,031) |
(2,260) |
(229) |
| |
81,939 |
84,347 |
2,408 |
| Net working capital |
|
|
|
| Inventories |
6,186 |
6,679 |
493 |
| Trade receivables |
13,184 |
11,747 |
(1,437) |
| Trade payables |
(14,231) |
(12,663) |
1,568 |
| Net tax assets (liabilities) |
(2,112) |
(3,562) |
(1,450) |
| Provisions |
(15,533) |
(15,509) |
24 |
| Other current assets and liabilities |
(892) |
192 |
1,084 |
| |
(13,398) |
(13,116) |
282 |
| Provisions for employee benefits |
(748) |
(754) |
(6) |
| |
|
|
|
| Assets held for sale including related liabilities |
747 |
2,196 |
1,449 |
| CAPITAL EMPLOYED, NET |
68,540 |
72,673 |
4,133 |
| |
|
|
|
| Eni's shareholders equity |
53,184 |
54,358 |
1,174 |
| Non-controlling interest |
460 |
861 |
401 |
| Shareholders' equity |
53,644 |
55,219 |
1,575 |
| |
|
|
|
| Net borrowings before lease liabilities ex IFRS 16 |
9,560 |
12,113 |
2,553 |
| Lease liabilities |
5,336 |
5,341 |
5 |
| - of which Eni working interest |
4,856 |
4,846 |
(10) |
| - of which Joint operators' working interest |
480 |
495 |
15 |
| |
|
|
|
| Net borrowings after lease liabilities ex IFRS 16 |
14,896 |
17,454 |
2,558 |
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
68,540 |
72,673 |
4,133 |
| Leverage before lease liabilities ex IFRS 16 |
|
0.22 |
|
| Leverage after lease liabilities ex IFRS 16 |
|
0.32 |
|
| Gearing |
|
0.24 |
|
As of June 30, 2024, fixed assets (€84.3
bln) increased by €2.4 bln from January 1, 2024, due to capital expenditures and the acquisition of the Neptune Energy Group,
as well as positive exchange rate translation differences (the period-end exchange rate of EUR vs. USD was 1.071, down 3.1% compared to
1.105 as of December 31, 2023), thus increasing the book values of dollar-denominated assets and DD&A, impairment charges and
write-offs.
Shareholders’ equity (€55.2 bln)
increased by €1.6 bln compared to January 1, 2024, due to the net profit for the period (€1.9 bln) and positive foreign
currency translation differences (about €1.7 bln) reflecting the appreciation of the USD vs. EUR, partly offset by shareholders remuneration
of €2 bln (dividend distribution and share buyback).
Net
borrowings 2 before lease liabilities as of June 30, 2024, amounted to €12.1 bln, up by approximately
€2.6 bln from January 1, 2024.
Leverage 3 –
the ratio of the borrowings to total equity calculated before the impact of IFRS 16 – was 0.22 on June 30,
2024.
2 Details on net borrowings are furnished
on page 27.
3 Non-GAAP financial measures and other
alternative performance indicators disclosed throughout this press release are accompanied by explanatory notes and tables in line with
guidance provided by ESMA guidelines on alternative performance measures (ESMA/2015/1415), published on October 5, 2015. For further
information, see the section “Non-GAAP measures” of this press release. See pages 18 and subsequent.
Special items
The breakdown of pre-tax special items recorded
in operating profit by segment (net charges of €1,967 mln and €1,554 mln in IH and Q2 ’24, respectively) is as follows:
| • | E&P: net charges of
€1,403 mln in IH ’24 (net charges of €1,294 mln in Q2 ‘24) mainly related to writedowns of oil&gas properties
driven by alignment of a disposal group in Alaska to its fair value and a reserves revision at an oil asset in Congo; such assets review
was part of a re-prioritization of investment capital away from future phases of the development of marginal properties and instead a
focus on the core projects in the portfolio consistent with strategy. |
| • | GGP: net charges of €1,318
mln in IH ’24 (net charges of €915 mln in Q2) relating to the accounting effect of certain fair-valued commodity derivatives
lacking the formal criteria to be classified as hedges or to be elected under the own use exemption (charges of €1,028 mln and €643
mln in IH ’24 and Q2 ’24, respectively); and the difference between the value of gas inventories accounted for under the weighted-average
cost method provided by IFRS and management’s own measure of inventories, which moves forward at the time of inventory drawdown,
the margins captured on volumes in inventories above normal levels leveraging the seasonal spread in gas prices net of the effects of
the associated commodity derivatives (charges of €58 mln and €85 mln in IH ’24 and Q2 ’24, respectively). |
| • | Enilive and Plenitude:
net gains of €431 mln (net gains of €249 mln in Q2 ‘24) mainly related to the fair values of commodity derivatives lacking
the formal criteria to be classified as hedges under IFRS relating exposure to the gas commodity. |
| • | Refining, Chemical and Power:
net charges of €47 mln (net gains of €35 mln in Q2 ‘24) mainly related to the writedown of capital expenditures made for
compliance and stay-in-business at certain CGU with expected negative cash flows in both the Refining and the Chemicals businesses (€168
mln and €123 mln in the two accounting periods, respectively), and other charges, which were offset by a gain of €184 mln due
to an agreement covering certain environmental matters as described below. |
| • | Corporate and other activities:
a net gain of €370 mln in both accounting periods mainly related to the signing of a comprehensive agreement with an Italian operator
enabling a 50-50 sharing of the environmental costs spent in several Italian sites which were jointly managed in late eighties’
– early nineties’ by the two partners, after that cleaning up and environmental activities have been fully carried out by
or provisioned Eni at 100%. |
The other special items in Q2 ’24 related
to a gain of €0.2 bln in connection to the sale of a 10% stake in the equity interests of Eni’s interest in Saipem.
Other information, basis of
presentation and disclaimer
This press release on Eni’s results for
the second quarter and the first half of 2024 has been prepared on a voluntary basis according to article 82-ter, Regulations on issuers
(CONSOB Regulation No. 11971 of May 14, 1999, and subsequent amendments and inclusions). The disclosure of results and business
trends on a quarterly basis is consistent with Eni’s policy to provide the market and investors with regular information about the
Company’s financial and industrial performances and business prospects considering the reporting policy followed by oil&gas
peers who are communicating results on quarterly basis.
Results and cash flow are presented for the first
and second quarter of 2024, the first half of 2024 and for the second quarter and first half of 2023. Information on the Company’s
financial position relates to end of the periods as of June 30, 2024 and December 31, 2023.
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.
These criteria are unchanged from the 2023 Annual
Report on Form 20-F filed with the US SEC on April 5, 2024, which investors are urged to read.
The interim consolidated financial report as at
June 30, 2024 prepared in accordance with Italian listing standards, subject to a limited review by the external auditors is due
to be published in the first week of August.
From January 1, 2024, the benchmark refining
margin “SERM” has been calculated based on a new methodology which considers a revised industrial set-up in connection with
the planned restructuring of the Livorno plant and implemented optimizations of utilities consumption, as well as current trends in crude
supplies building in a slate of both high-sulfur and low sulfur crudes. The restated values of the SERM indicator of the comparative 2023
quarters and 2024 full-year guidance are provided in the table below.
| 2023 |
|
First quarter |
Second quarter |
Third quarter |
Fourth quarter |
Full year expected 2024* |
| |
($/bbl) |
past
methodology |
updated
methodology |
past
methodology |
updated
methodology |
past
methodology |
updated
methodology |
past
methodology |
updated
methodology |
past
methodology |
updated
methodology |
| Standard Eni Refining Margin (SERM) |
|
11.2 |
11.0 |
6.6 |
5.5 |
14.7 |
11.7 |
8.1 |
4.3 |
8.1 |
6.6 |
| |
|
|
|
|
|
|
|
|
|
|
|
| (*)
As guided by the Company at the Capital Market Update of last March. |
Basis of presentation
From January 1, 2024, the Eni segment information
tracked by the management is articulated as follows:
| · | |
Exploration & Production “E&P”; |
| · | |
Global Gas & LNG Portfolio “GGP”; |
| · | |
Enilive and Plenitude; |
| · | |
Refining , chemical activities managed by Versalis and Power (production of electricity from gas-fired plants); |
| · | |
Corporate, financial companies, business support companies, CCS activities and agribusiness. |
The aggregation of Enilive (biorefining and retail
sale of sustainable mobility products) and Plenitude (retail sale of energy commodities and value added services, production of electricity
from renewable sources and management of the network of EV charging stations) in a single reporting segment is motivated by the fact that
the two businesses exhibit similar economic characteristics, have a prevalent retail activity as customer-facing segments with a wide
range of opportunities for cross-selling, as well as by the common strategic goal to decarbonize customers' CO2 emissions and
the attractiveness of dedicated capital.
The Power business, given its less significant
relevance in proportion to the Group's main economic and financial figures, has been aggregated with the operating segments with which
it shares industrial similarities.
The re-segmentation of the adjusted operating
profit for the comparative periods of 2023 is disclosed below:
| 2023 |
|
First quarter |
Second quarter |
Third quarter |
Fourth quarter |
| |
(€ million) |
As published |
As
restated |
As published |
As restated |
As published |
As restated |
As published |
As restated |
| Adjusted operating profit (loss) |
|
4,641 |
4,641 |
3,381 |
3,381 |
3,014 |
3,014 |
2,769 |
2,769 |
| of which: E&P |
|
2,806 |
2,806 |
2,077 |
2,077 |
2,620 |
2,620 |
2,431 |
2,431 |
| GGP |
|
1,372 |
1,372 |
1,087 |
1,087 |
111 |
111 |
677 |
677 |
| Enilive, Refining and Chemicals |
|
154 |
|
87 |
|
401 |
|
(87) |
|
| - Enilive |
|
138 |
|
202 |
|
271 |
|
117 |
|
| - Refining |
|
125 |
|
(45) |
|
328 |
|
33 |
|
| - Chemicals |
|
(109) |
|
(70) |
|
(198) |
|
(237) |
|
| Plenitude & Power |
|
186 |
|
165 |
|
219 |
|
111 |
|
| - Plenitude |
|
132 |
|
133 |
|
180 |
|
70 |
|
| - Power |
|
54 |
|
32 |
|
39 |
|
41 |
|
| Enilive and Plenitude |
|
|
270 |
|
335 |
|
451 |
|
187 |
| - Enilive |
|
|
138 |
|
202 |
|
271 |
|
117 |
| - Plenitude |
|
|
132 |
|
133 |
|
180 |
|
70 |
| Refining, Chemicals and Power |
|
|
70 |
|
(83) |
|
169 |
|
(163) |
| - Refining |
|
|
125 |
|
(45) |
|
328 |
|
33 |
| - Chemicals |
|
|
(109) |
|
(70) |
|
(198) |
|
(237) |
| - Power |
|
|
54 |
|
32 |
|
39 |
|
41 |
| Corporate and other activities |
|
(151) |
(151) |
(107) |
(107) |
(165) |
(165) |
(228) |
(228) |
| Impact of unrealized intragroup profit elimination |
274 |
274 |
72 |
72 |
(172) |
(172) |
(135) |
(135) |
For purpose of IFRS statutory financial reporting,
Enilive and Plenitude are presented as two separate reportable segment.
*
* *
Non-GAAP financial measures and other alternative
performance indicators disclosed throughout this press release are accompanied by explanatory notes and tables in line with guidance provided
by ESMA guidelines on alternative performance measures (ESMA/2015/1415), published on October 5, 2015. For further information, see
the section “Alternative performance measures (Non-GAAP measures)” of this press release.
The manager responsible for the preparation
of the Company’s financial reports, Francesco Esposito, declares 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 Company’s evidence and accounting books
and records.
* * *
Disclaimer
This press release contains certain forward-looking
statements particularly those regarding capital expenditure, development and management of oil and gas resources, dividends, share repurchases,
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 impact of the pandemic disease, the timing of bringing new fields on stream; management’s
ability in carrying out industrial plans and in succeeding in commercial transactions; future levels of industry product supply; demand
and pricing; operational issues; 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 Eni’s operations, such as
prices and margins of hydrocarbons and refined products, Eni’s results from operations and changes in net borrowings for the quarter
of the year cannot be extrapolated on an annual basis.
Company Contacts
Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +80011223456
Switchboard: +39-0659821
ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com
website: www.eni.com
Eni
Società per Azioni, Rome, Piazzale Enrico
Mattei, 1
Share capital: €4,005,358,876 fully paid.
Tax identification number 00484960588
Tel.: +39 0659821 - Fax: +39 0659822141
This press release for the second quarter and first half of 2024 results
(not subject to audit) is also available on Eni’s website eni.com.
| Alternative performance
indicators (Non-GAAP measures) |
Management evaluates underlying business performance
on the basis of Non-GAAP financial measures, which are not provided by IFRS (“Alternative performance measures”), such as
adjusted operating profit, adjusted net profit, which are arrived at by excluding from reported results certain gains and losses, defined
special items, which include, among others, asset impairments, including impairments of deferred tax assets, gains on disposals, risk
provisions, restructuring charges, the accounting effect of fair-valued derivatives used to hedge exposure to the commodity, exchange
rate and interest rate risks, which lack the formal criteria to be accounted as hedges, and analogously evaluation effects of assets and
liabilities utilized in a relation of natural hedge of the above mentioned market risks. Furthermore, in determining the business segments’
adjusted results, finance charges on finance debt and interest income are excluded (see below). In determining adjusted results, inventory
holding gains or losses are excluded from base business performance, which 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 as required by IFRS, except in those business segments where inventories are utilized as a
lever to optimize margins. Finally, the same special charges/gains are excluded from the Eni’s share of results at JVs and other
equity accounted entities, including any profit/loss on inventory holding.
Management is disclosing Non-GAAP measures of performance
to facilitate a comparison of base business performance across periods, and to allow financial analysts to evaluate Eni’s trading
performance on the basis of their forecasting models.
Non-GAAP financial measures should be read together
with information determined by applying IFRS and do not stand in for them. Other companies may adopt different methodologies to determine
Non-GAAP measures.
Follows the description of the main alternative
performance measures adopted by Eni. The measures reported below refer to the performance of the reporting periods disclosed in this press
release:
Adjusted operating and net
profit
Adjusted operating profit and adjusted net profit
are determined by excluding inventory holding gains or losses, special items and, in determining the business segments’ adjusted
results, finance charges on finance debt and interest income. The adjusted operating profit of each business segment reports gains and
losses on derivative financial instruments entered into to manage exposure to movements in foreign currency exchange rates, which impact
industrial margins and translation of commercial payables and receivables. Accordingly, also currency translation effects recorded through
profit and loss are reported within business segments’ adjusted operating profit. 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.
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. 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 segment).
Inventory holding gain or
loss
This 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 as required by IFRS.
Special items
These 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;
(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. Exchange rate differences and derivatives relating to industrial activities
and commercial payables and receivables, particularly exchange rate derivatives to manage commodity pricing formulas which are quoted
in a currency other than the functional currency are reclassified in operating profit with a corresponding adjustment to net finance charges,
notwithstanding the handling of foreign currency exchange risks is made centrally by netting off naturally-occurring opposite positions
and then dealing with any residual risk exposure in the derivative market. Finally, special items include the accounting effects of fair-valued
commodity derivatives relating to commercial exposures, in addition to those which lack the criteria to be designed as hedges, also those
which are not eligible for the own use exemption, including the ineffective portion of cash flow hedges, as well as the accounting effects
of settled commodity and exchange rates derivatives whenever it is deemed that the underlying transaction is expected to occur in future
reporting periods.
Correspondently, special charges/gains also include
the evaluation effects relating to assets/liabilities utilized in a natural hedge relation to offset a market risk, as in the case of
accrued currency differences at finance debt denominated in a currency other than the reporting currency, where the cash outflows for
the reimbursement are matched by highly probable cash inflows in the same currency. The deferral of both the unrealized portion of fair-valued
commodity and other derivatives and evaluation effects are reversed to future reporting periods when the underlying transaction occurs.
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 management’s
discussion and financial tables.
Leverage
Leverage is a Non-GAAP measure of the Company’s
financial condition, calculated as the ratio between net borrowings and shareholders’ equity, including non-controlling interest.
Leverage is the reference ratio to assess the solidity and efficiency of the Group balance sheet in terms of incidence of funding sources
including third-party funding and equity as well as to carry out benchmark analysis with industry standards.
Gearing
Gearing is calculated as the ratio between net borrowings
and capital employed net and measures how much of capital employed net is financed recurring to third-party funding.
Cash flow from operations
before changes in working capital at replacement cost
This is defined as net cash provided from operating
activities before changes in working capital at replacement cost. It also excludes certain non-recurring charges such as extraordinary
credit allowances and, considering the high market volatility, changes in the fair value of commodity derivatives lacking the formal criteria
to be designed as hedges, including derivatives which were not eligible for the own use exemption, the ineffective portion of cash flow
hedges, as well as the effects of certain settled commodity derivatives whenever it is deemed that the underlying transaction is expected
to occur in future reporting periods.
Free cash flow
Free cash flow represents 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. Free cash flow is the cash in excess of capital
expenditure needs. Starting from free cash flow it is possible to determine either: (i) changes in cash and cash equivalents for
the period by adding/deducting cash flows relating to financing debts/receivables (issuance/repayment of debt and receivables related
to financing activities), shareholders’ equity (dividends paid, net repurchase of own shares, capital issuance) and the effect of
changes in consolidation and of exchange rate differences; (ii) changes in net borrowings for the period by adding/deducting cash
flows relating to shareholders’ equity and the effect of changes in consolidation and of exchange rate differences.
Net borrowings
Net borrowings is calculated as total finance debt
less cash, cash equivalents, financial assets measured at fair value through profit or loss and financing receivables held for non-operating
purposes. Financial activities are qualified as “not related to operations” when these are not strictly related to the business
operations.
Proforma adjusted EBIT
Is the measure adding the operating margin of the
equity accounted entities to the adjusted EBIT, introduced by the management to reflect the increasing contribution from the JV/associates
also in connection with the Eni satellite model.
Reconciliation tables of Non-GAAP
results to the most comparable measures of financial performance determined in accordance to GAAPs
| (€
million) |
|
|
|
|
|
|
|
|
| Second
Quarter 2024 |
Exploration &
Production |
Global
Gas & LNG
Portfolio |
Enilive
and
Plenitude |
Refining,
Chemicals and
Power |
Corporate
and
other activities |
Impact
of
unrealized
intragroup profit
elimination |
|
GROUP |
| |
|
| |
|
| Reported
operating profit (loss) |
1,345 |
(572) |
539 |
(152) |
399 |
22 |
|
1,581 |
| Exclusion
of inventory holding (gains) losses |
|
|
(6) |
32 |
|
24 |
|
50 |
| Exclusion
of special items: |
|
|
|
|
|
|
|
|
| environmental
charges (expense recovered from third-parties) |
5 |
|
(3) |
(134) |
(385) |
|
|
(517) |
| impairment
losses (impairment reversals), net |
1,297 |
|
7 |
123 |
8 |
|
|
1,435 |
| net
gains on disposal of assets |
|
|
1 |
2 |
(1) |
|
|
2 |
| risk
provisions |
9 |
|
|
|
4 |
|
|
13 |
| provision
for redundancy incentives |
5 |
|
2 |
5 |
4 |
|
|
16 |
| commodity
derivatives |
|
643 |
(257) |
(9) |
|
|
|
377 |
| exchange
rate differences and derivatives |
8 |
69 |
(1) |
(5) |
2 |
|
|
73 |
| other |
(30) |
203 |
2 |
(17) |
(3) |
|
|
155 |
| Special
items of operating profit (loss) |
1,294 |
915 |
(249) |
(35) |
(371) |
|
|
1,554 |
| Adjusted
operating profit (loss) of subsidiaries (a) |
2,639 |
343 |
284 |
(155) |
28 |
46 |
|
3,185 |
| main
JV/Associates adjusted EBIT (b) |
893 |
(9) |
(15) |
53 |
|
|
|
922 |
| Proforma
adjusted EBIT (c)=(a)+(b) |
3,532 |
334 |
269 |
(102) |
28 |
46 |
|
4,107 |
| Finance
expenses and dividends of subsidiaries (d) |
(59) |
(2) |
(16) |
1 |
(28) |
|
|
(104) |
| Finance
expenses and dividends of main JV/associates (e) |
(90) |
6 |
(9) |
(26) |
|
|
|
(119) |
| Income
taxes of main JV/associates (f) |
(499) |
22 |
1 |
10 |
|
|
|
(466) |
| Adjusted
net profit (loss) of main JV/associates (g)=(b)+(e)+(f) |
304 |
19 |
(23) |
37 |
|
|
|
337 |
| Adjusted
profit (loss) before taxes (h)=(a)+(d)+(g) |
2,884 |
360 |
245 |
(117) |
|
46 |
|
3,418 |
| Income
taxes (i) |
(1,606) |
(175) |
(102) |
40 |
(26) |
(10) |
|
(1,879) |
| Tax
rate (%) |
|
|
|
|
|
|
|
55.0 |
| Adjusted
net profit (loss) (j)=(h)+(i) |
1,278 |
185 |
143 |
(77) |
(26) |
36 |
|
1,539 |
| of
which: |
|
|
|
|
|
|
|
|
| -
Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
20 |
| -
Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
1,519 |
| Reported
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
661 |
| Exclusion
of inventory holding (gains) losses |
|
|
|
|
|
|
|
37 |
| Exclusion
of special items |
|
|
|
|
|
|
|
821 |
| Adjusted
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
1,519 |
| (€
million) |
|
|
|
|
|
|
|
|
| Second
Quarter 2023 |
Exploration &
Production |
Global
Gas & LNG
Portfolio |
Enilive
and
Plenitude |
Refining,
Chemicals and
Power |
Corporate
and
other activities |
Impact
of
unrealized
intragroup profit
elimination |
|
GROUP |
| |
|
| |
|
| Reported
operating profit (loss) |
1,824 |
539 |
150 |
(458) |
(303) |
10 |
|
1,762 |
| Exclusion
of inventory holding (gains) losses |
|
|
(21) |
211 |
|
62 |
|
252 |
| Exclusion
of special items: |
|
|
|
|
|
|
|
|
| environmental
charges |
19 |
|
5 |
57 |
174 |
|
|
255 |
| impairment
losses (impairment reversals), net |
208 |
|
5 |
112 |
5 |
|
|
330 |
| net
gains on disposal of assets |
(6) |
|
|
(3) |
|
|
|
(9) |
| risk
provisions |
(7) |
|
|
15 |
8 |
|
|
16 |
| provision
for redundancy incentives |
2 |
1 |
2 |
2 |
5 |
|
|
12 |
| commodity
derivatives |
|
(35) |
195 |
(23) |
|
|
|
137 |
| exchange
rate differences and derivatives |
11 |
10 |
(1) |
8 |
1 |
|
|
29 |
| other |
26 |
572 |
|
(4) |
3 |
|
|
597 |
| Special
items of operating profit (loss) |
253 |
548 |
206 |
164 |
196 |
|
|
1,367 |
| Adjusted
operating profit (loss) of subsidiaries (a) |
2,077 |
1,087 |
335 |
(83) |
(107) |
72 |
|
3,381 |
| main
JV/Associates adjusted EBIT (b) |
723 |
56 |
|
74 |
|
|
|
853 |
| Proforma
adjusted EBIT (c)=(a)+(b) |
2,800 |
1,143 |
335 |
(9) |
(107) |
72 |
|
4,234 |
| Finance
expenses and dividends of subsidiaries (d) |
(9) |
(3) |
(13) |
(14) |
(36) |
|
|
(75) |
| Finance
expenses and dividends of main JV/associates (e) |
(19) |
6 |
|
|
|
|
|
(13) |
| Income
taxes of main JV/associates (f) |
(430) |
(42) |
|
(1) |
|
|
|
(473) |
| Adjusted
net profit (loss) of main JV/associates (g)=(b)+(e)+(f) |
274 |
20 |
|
73 |
|
|
|
367 |
| Adjusted
profit (loss) before taxes (h)=(a)+(d)+(g) |
2,342 |
1,104 |
322 |
(24) |
(143) |
72 |
|
3,673 |
| Income
taxes (i) |
(1,318) |
(296) |
(105) |
1 |
20 |
(20) |
|
(1,718) |
| Tax
rate (%) |
|
|
|
|
|
|
|
46.8 |
| Adjusted
net profit (loss) (j)=(h)+(i) |
1,024 |
808 |
217 |
(23) |
(123) |
52 |
|
1,955 |
| of
which: |
|
|
|
|
|
|
|
|
| -
Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
20 |
| -
Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
1,935 |
| Reported
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
294 |
| Exclusion
of inventory holding (gains) losses |
|
|
|
|
|
|
|
181 |
| Exclusion
of special items |
|
|
|
|
|
|
|
1,460 |
| Adjusted
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
1,935 |
| (€
million) |
|
|
|
|
|
|
|
|
| First
Half 2024 |
Exploration &
Production |
Global
Gas & LNG
Portfolio |
Enilive
and
Plenitude |
Refining,
Chemicals and
Power |
Corporate
and
other activities |
Impact
of
unrealized
intragroup profit
elimination |
|
GROUP |
| |
|
| |
|
| Reported
operating profit (loss) |
3,564 |
(682) |
1,130 |
0 |
259 |
(20) |
|
4,251 |
| Exclusion
of inventory holding (gains) losses |
|
|
12 |
(230) |
|
212 |
|
(6) |
| Exclusion
of special items: |
|
|
|
|
|
|
|
|
| environmental
charges (expense recovered from third-parties) |
2 |
|
4 |
(111) |
(385) |
|
|
(490) |
| impairment
losses (impairment reversals), net |
1,315 |
|
7 |
168 |
13 |
|
|
1,503 |
| net
gains on disposal of assets |
(1) |
|
1 |
2 |
(1) |
|
|
1 |
| risk
provisions |
9 |
|
|
|
4 |
|
|
13 |
| provision
for redundancy incentives |
9 |
|
2 |
7 |
17 |
|
|
35 |
| commodity
derivatives |
|
1,028 |
(440) |
(1) |
|
|
|
587 |
| exchange
rate differences and derivatives |
(14) |
107 |
(1) |
10 |
2 |
|
|
104 |
| other |
83 |
183 |
(4) |
(28) |
(20) |
|
|
214 |
| Special
items of operating profit (loss) |
1,403 |
1,318 |
(431) |
47 |
(370) |
|
|
1,967 |
| Adjusted
operating profit (loss) of subsidiaries (a) |
4,967 |
636 |
711 |
(183) |
(111) |
192 |
|
6,212 |
| main
JV/Associates adjusted EBIT (b) |
1,885 |
23 |
(22) |
125 |
|
|
|
2,011 |
| Proforma
adjusted EBIT (c)=(a)+(b) |
6,852 |
659 |
689 |
(58) |
(111) |
192 |
|
8,223 |
| Finance
expenses and dividends of subsidiaries (d) |
(157) |
(4) |
(24) |
(17) |
(114) |
|
|
(316) |
| Finance
expenses and dividends of main JV/associates (e) |
(207) |
10 |
(16) |
(30) |
|
|
|
(243) |
| Income
taxes of main JV/associates (f) |
(1,124) |
(6) |
1 |
9 |
|
|
|
(1,120) |
| Adjusted
net profit (loss) of main JV/associates (g)=(b)+(e)+(f) |
554 |
27 |
(37) |
104 |
|
|
|
648 |
| Adjusted
profit (loss) before taxes (h)=(a)+(d)+(g) |
5,364 |
659 |
650 |
(96) |
(225) |
192 |
|
6,544 |
| Income
taxes (i) |
(2,956) |
(270) |
(219) |
52 |
39 |
(53) |
|
(3,407) |
| Tax
rate (%) |
|
|
|
|
|
|
|
52.1 |
| Adjusted
net profit (loss) (j)=(h)+(i) |
2,408 |
389 |
431 |
(44) |
(186) |
139 |
|
3,137 |
| of
which: |
|
|
|
|
|
|
|
|
| -
Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
36 |
| -
Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
3,101 |
| Reported
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
1,872 |
| Exclusion
of inventory holding (gains) losses |
|
|
|
|
|
|
|
(4) |
| Exclusion
of special items |
|
|
|
|
|
|
|
1,233 |
| Adjusted
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
3,101 |
| |
|
|
|
|
|
|
|
|
| (€
million) |
|
|
|
|
|
|
|
|
| First
Half 2023 |
Exploration &
Production |
Global
Gas & LNG
Portfolio |
Enilive
and
Plenitude |
Refining,
Chemicals and
Power |
Corporate
and
other activities |
Impact
of
unrealized
intragroup profit
elimination |
|
GROUP |
| Reported
operating profit (loss) |
4,544 |
814 |
(48) |
(838) |
(461) |
264 |
|
4,275 |
| Exclusion
of inventory holding (gains) losses |
|
|
(22) |
549 |
|
82 |
|
609 |
| Exclusion
of special items: |
|
|
|
|
|
|
|
|
| environmental
charges |
36 |
|
5 |
74 |
174 |
|
|
289 |
| impairment
losses (impairment reversals), net |
209 |
|
7 |
164 |
9 |
|
|
389 |
| impairment
of exploration projects |
|
|
|
|
|
|
|
|
| net
gains on disposal of assets |
3 |
|
|
(3) |
|
|
|
|
| risk
provisions |
(7) |
|
|
15 |
8 |
|
|
16 |
| provision
for redundancy incentives |
8 |
1 |
3 |
5 |
13 |
|
|
30 |
| commodity
derivatives |
|
687 |
669 |
28 |
|
|
|
1,384 |
| exchange
rate differences and derivatives |
13 |
(8) |
(1) |
24 |
2 |
|
|
30 |
| other |
77 |
965 |
(8) |
(31) |
(3) |
|
|
1,000 |
| Special
items of operating profit (loss) |
339 |
1,645 |
675 |
276 |
203 |
|
|
3,138 |
| Adjusted
operating profit (loss) of subsidiaries (a) |
4,883 |
2,459 |
605 |
(13) |
(258) |
346 |
|
8,022 |
| main
JV/Associates adjusted EBIT (b) |
1,748 |
104 |
|
227 |
|
|
|
2,079 |
| Proforma
adjusted EBIT (c)=(a)+(b) |
6,631 |
2,563 |
605 |
214 |
(258) |
346 |
|
10,101 |
| Finance
expenses and dividends of subsidiaries (d) |
(51) |
(1) |
(24) |
(11) |
(121) |
|
|
(208) |
| Finance
expenses and dividends of main JV/associates (e) |
(46) |
7 |
|
|
|
|
|
(39) |
| Income
taxes of main JV/associates (f) |
(1,116) |
(81) |
|
(3) |
|
|
|
(1,200) |
| Adjusted
net profit (loss) of main JV/associates (g)=(b)+(e)+(f) |
586 |
30 |
|
224 |
|
|
|
840 |
| Adjusted
profit (loss) before taxes (h)=(a)+(d)+(g) |
5,418 |
2,488 |
581 |
200 |
(379) |
346 |
|
8,654 |
| Income
taxes (i) |
(2,854) |
(681) |
(180) |
(52) |
90 |
(96) |
|
(3,773) |
| Tax
rate (%) |
|
|
|
|
|
|
|
43.6 |
| Adjusted
net profit (loss) (j)=(h)+(i) |
2,564 |
1,807 |
401 |
148 |
(289) |
250 |
|
4,881 |
| of
which: |
|
|
|
|
|
|
|
|
| -
Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
39 |
| -
Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
4,842 |
| Reported
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
2,682 |
| Exclusion
of inventory holding (gains) losses |
|
|
|
|
|
|
|
436 |
| Exclusion
of special items |
|
|
|
|
|
|
|
1,724 |
| Adjusted
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
4,842 |
| (€
million) |
|
|
|
|
|
|
|
|
| First
Quarter 2024 |
Exploration &
Production |
Global
Gas & LNG
Portfolio |
Enilive
and
Plenitude |
Refining,
Chemicals and
Power |
Corporate
and
other activities |
Impact
of
unrealized
intragroup profit
elimination |
|
GROUP |
| Reported
operating profit (loss) |
2,219 |
(110) |
591 |
152 |
(140) |
(42) |
|
2,670 |
| Exclusion
of inventory holding (gains) losses |
|
|
18 |
(262) |
|
188 |
|
(56) |
| Exclusion
of special items: |
|
|
|
|
|
|
|
|
| environmental
charges |
(3) |
|
7 |
23 |
|
|
|
27 |
| impairment
losses (impairment reversals), net |
18 |
|
|
45 |
5 |
|
|
68 |
| net
gains on disposal of assets |
(1) |
|
|
|
|
|
|
(1) |
| risk
provisions |
|
|
|
|
|
|
|
|
| provision
for redundancy incentives |
4 |
|
|
2 |
13 |
|
|
19 |
| commodity
derivatives |
|
385 |
(183) |
8 |
|
|
|
210 |
| exchange
rate differences and derivatives |
(22) |
38 |
|
15 |
|
|
|
31 |
| other |
113 |
(20) |
(6) |
(11) |
(17) |
|
|
59 |
| Special
items of operating profit (loss) |
109 |
403 |
(182) |
82 |
1 |
|
|
413 |
| Adjusted
operating profit (loss) of subsidiaries (a) |
2,328 |
293 |
427 |
(28) |
(139) |
146 |
|
3,027 |
| main
JV/Associates adjusted EBIT (b) |
992 |
32 |
(7) |
72 |
|
|
|
1,089 |
| Proforma
adjusted EBIT (c)=(a)+(b) |
3,320 |
325 |
420 |
44 |
(139) |
146 |
|
4,116 |
| Finance
expenses and dividends of subsidiaries (d) |
(98) |
(2) |
(8) |
(18) |
(86) |
|
|
(212) |
| Finance
expenses and dividends of main JV/associates (e) |
(117) |
4 |
(7) |
(4) |
|
|
|
(124) |
| Income
taxes of main JV/associates (f) |
(625) |
(28) |
|
(1) |
|
|
|
(654) |
| Adjusted
net profit (loss) of main JV/associates (g)=(b)+(e)+(f) |
250 |
8 |
(14) |
67 |
|
|
|
311 |
| Adjusted
profit (loss) before taxes (h)=(a)+(d)+(g) |
2,480 |
299 |
405 |
21 |
(225) |
146 |
|
3,126 |
| Income
taxes (i) |
(1,350) |
(95) |
(117) |
12 |
65 |
(43) |
|
(1,528) |
| Tax
rate (%) |
|
|
|
|
|
|
|
48.9 |
| Adjusted
net profit (loss) (j)=(h)+(i) |
1,130 |
204 |
288 |
33 |
(160) |
103 |
|
1,598 |
| of
which: |
|
|
|
|
|
|
|
|
| -
Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
|
16 |
| -
Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
1,582 |
| Reported
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
1,211 |
| Exclusion
of inventory holding (gains) losses |
|
|
|
|
|
|
|
(41) |
| Exclusion
of special items |
|
|
|
|
|
|
|
412 |
| Adjusted
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
|
1,582 |
Breakdown of special items
| Q1
|
|
Q2
|
IH
|
| 2024 |
(€
million) |
2024 |
2023 |
2024 |
2023 |
| 27 |
Environmental
charges (expense recovered from third-parties) |
(517) |
255 |
(490) |
289 |
| 68 |
Impairment
losses (impairment reversals), net |
1,435 |
330 |
1,503 |
389 |
| (1) |
Net
gains on disposal of assets |
2 |
(9) |
1 |
|
| |
Risk
provisions |
13 |
16 |
13 |
16 |
| 19 |
Provisions
for redundancy incentives |
16 |
12 |
35 |
30 |
| 210 |
Commodity
derivatives |
377 |
137 |
587 |
1,384 |
| 31 |
Exchange
rate differences and derivatives |
73 |
29 |
104 |
30 |
| 59 |
Other |
155 |
597 |
214 |
1,000 |
| 413 |
Special
items of operating profit (loss) |
1,554 |
1,367 |
1,967 |
3,138 |
| (30) |
Net
finance (income) expense |
(87) |
(25) |
(117) |
(24) |
| |
of
which: |
|
|
|
|
| (31) |
-
exchange rate differences and derivatives reclassified to operating profit (loss) |
(73) |
(29) |
(104) |
(30) |
| 74 |
Net
income (expense) from investments |
(171) |
22 |
(97) |
(707) |
| |
of
which: |
|
|
|
|
| |
-
gain on the SeaCorridor deal |
|
|
|
(824) |
| |
-
gain on the sale of a 10% stake in Saipem |
(166) |
|
(166) |
|
| (55) |
Income
taxes |
(489) |
96 |
(544) |
(683) |
| 402 |
Total
special items of net profit (loss) |
807 |
1,460 |
1,209 |
1,724 |
| |
attributable
to: |
|
|
|
|
| 412 |
-
Eni's shareholders |
821 |
1,460 |
1,233 |
1,724 |
| (10) |
-
Non-controlling interest |
(14) |
|
(24) |
|
Reconciliation of Group proforma adjusted EBIT
| Q1
|
|
Q2
|
|
IH
|
|
| 2024 |
(€
million) |
2024 |
2023 |
%
Ch. |
2024 |
2023 |
%
Ch. |
| 2,328 |
E&P
adjusted Ebit of consolidated subsidiaries |
2,639 |
2,077 |
27 |
4,967 |
4,883 |
2 |
| 992 |
main
JV/Associates adjusted Ebit |
893 |
723 |
24 |
1,885 |
1,748 |
8 |
| 3,320 |
E&P
proforma adjusted Ebit |
3,532 |
2,800 |
26 |
6,852 |
6,631 |
3 |
| 293 |
GGP
adjusted Ebit of consolidated subsidiaries |
343 |
1,087 |
(68) |
636 |
2,459 |
(74) |
| 32 |
main
JV/Associates adjusted Ebit |
(9) |
56 |
.. |
23 |
104 |
(78) |
| 325 |
GGP
proforma adjusted Ebit |
334 |
1,143 |
(71) |
659 |
2,563 |
(74) |
| 427 |
Enilive
and Plenitude adjusted Ebit of consolidated subsidiaries |
284 |
335 |
(15) |
711 |
605 |
18 |
| (7) |
main
JV/Associates adjusted Ebit |
(15) |
|
|
(22) |
|
|
| 420 |
Enilive
and Plenitude proforma adjusted Ebit |
269 |
335 |
(20) |
689 |
605 |
14 |
| (28) |
Refining,
Chemicals and Power adjusted Ebit of consolidated subsidiaries |
(155) |
(83) |
(87) |
(183) |
(13) |
.. |
| 72 |
main
JV/Associates adjusted Ebit |
53 |
74 |
(28) |
125 |
227 |
(45) |
| 44 |
Refining,
Chemicals and Power proforma adjusted Ebit |
(102) |
(9) |
.. |
(58) |
214 |
.. |
| (139) |
Other
segments adjusted Ebit |
28 |
(107) |
.. |
(111) |
(258) |
57 |
| 146 |
Impact
of unrealized intragroup profit elimination |
46 |
72 |
|
192 |
346 |
|
| 4,116 |
Group
proforma adjusted Ebit(a) |
4,107 |
4,234 |
(3) |
8,223 |
10,101 |
(19) |
(a) Main JV/Associates are Vår Energi, Azule Energy, Mozambique Rovuma Venture, Neptune Algeria, SeaCorridor, Adnoc R> and St. Bernard Renewables Llc.
Profit and loss reconciliation GAAP vs Non-GAAP
| Second
Quarter |
2024 |
IH
|
Reported
results |
Profit
on
stock |
Special
items |
Finance
expense
reclassified |
Adjusted
results |
(€
million) |
Reported
results |
Profit
on
stock |
Special
items |
Finance
expense
reclassified |
Adjusted
results |
| |
|
|
|
|
|
|
|
|
|
|
| 1,581 |
50 |
1,481 |
73 |
3,185 |
Operating
profit |
4,251 |
(6) |
1,863 |
104 |
6,212 |
| (102) |
|
(14) |
(73) |
(189) |
Finance
income (expense) |
(318) |
|
(13) |
(104) |
(435) |
| 593 |
|
(171) |
|
422 |
Income
(expense) from investments |
864 |
|
(97) |
|
767 |
| (1,377) |
(13) |
(489) |
|
(1,879) |
Income
taxes |
(2,865) |
2 |
(544) |
|
(3,407) |
| 695 |
37 |
807 |
|
1,539 |
Net
profit |
1,932 |
(4) |
1,209 |
|
3,137 |
| 34 |
|
(14) |
|
20 |
-
Non-controlling interest |
60 |
|
(24) |
|
36 |
| 661 |
37 |
821 |
|
1,519 |
Net
profit attributable to Eni's shareholders |
1,872 |
|
1,233 |
|
3,101 |
| Second
Quarter |
2023 |
IH
|
Reported
results |
Profit
on
stock |
Special
items |
Finance
expense
reclassified |
Adjusted
results |
(€
million) |
Reported
results |
Profit
on
stock |
Special
items |
Finance
expense
reclassified |
Adjusted
results |
| |
|
|
|
|
|
|
|
|
|
|
| 1,762 |
252 |
1,338 |
29 |
3,381 |
Operating
profit |
4,275 |
609 |
3,108 |
30 |
8,022 |
| (119) |
|
4 |
(29) |
(144) |
Finance
income (expense) |
(243) |
|
6 |
(30) |
(267) |
| 414 |
|
22 |
|
436 |
Income
(expense) from investments |
1,606 |
|
(707) |
|
899 |
| (1,743) |
(71) |
96 |
|
(1,718) |
Income
taxes |
(2,917) |
(173) |
(683) |
|
(3,773) |
| 314 |
181 |
1,460 |
|
1,955 |
Net
profit |
2,721 |
436 |
1,724 |
|
4,881 |
| 20 |
|
|
|
20 |
-
Non-controlling interest |
39 |
|
|
|
39 |
| 294 |
181 |
1,460 |
|
1,935 |
Net
profit attributable to Eni's shareholders |
2,682 |
436 |
1,724 |
|
4,842 |
| 2024 |
Q1 |
| (€
million) |
Reported
results |
Profit
on
stock |
Special
items |
Finance
expense
reclassified |
Adjusted
results |
| |
|
|
|
|
|
| Operating
profit |
2,670 |
(56) |
382 |
31 |
3,027 |
| Finance
income (expense) |
(216) |
|
1 |
(31) |
(246) |
| Income
(expense) from investments |
271 |
|
74 |
|
345 |
| Income
taxes |
(1,488) |
15 |
(55) |
|
(1,528) |
| Net
profit |
1,237 |
(41) |
402 |
|
1,598 |
| -
Non-controlling interest |
26 |
|
(10) |
|
16 |
| Net
profit attributable to Eni's shareholders |
1,211 |
(41) |
412 |
|
1,582 |
| Analysis of Profit and Loss account items |
Sales from operations
| Q1
|
|
Q2
|
|
IH
|
|
| 2024 |
(€
million) |
2024 |
2023 |
%
Ch. |
2024 |
2023 |
%
Ch. |
| 5,608 |
Exploration &
Production |
6,299 |
5,564 |
13 |
11,907 |
11,565 |
3 |
| 4,400 |
Global
Gas & LNG Portfolio |
2,603 |
3,744 |
(30) |
7,003 |
11,688 |
(40) |
| 8,522 |
Enilive
and Plenitude |
7,434 |
7,208 |
3 |
15,956 |
16,302 |
(2) |
| 12,598 |
Refining,
Chemicals and Power |
14,057 |
12,421 |
13 |
26,655 |
24,760 |
8 |
| 478 |
Corporate
and other activities |
509 |
495 |
3 |
987 |
936 |
5 |
| (8,670) |
Consolidation
adjustments |
(9,187) |
(9,841) |
|
(17,857) |
(18,475) |
|
| 22,936 |
|
21,715 |
19,591 |
11 |
44,651 |
46,776 |
(5) |
Operating expenses
| Q1
|
|
Q2
|
|
IH
|
|
| 2024 |
(€
million) |
2024 |
2023 |
%
Ch. |
2024 |
2023 |
%
Ch. |
| 17,361 |
Purchases,
services and other |
17,087 |
15,131 |
13 |
34,448 |
37,107 |
(7) |
| 51 |
Impairment
losses (impairment reversals) of trade and other receivables, net |
25 |
(48) |
.. |
76 |
60 |
27 |
| 839 |
Payroll
and related costs |
822 |
746 |
10 |
1,661 |
1,540 |
8 |
| 19 |
of
which: provision for redundancy incentives and other |
16 |
12 |
|
35 |
30 |
|
| 18,251 |
|
17,934 |
15,829 |
13 |
36,185 |
38,707 |
(7) |
DD&A, impairments, reversals and write-off
| Q1
|
|
Q2
|
|
IH
|
|
| 2024 |
(€
million) |
2024 |
2023 |
var
% |
2024 |
2023 |
%
Ch. |
| 1,616 |
Exploration &
Production |
1,569 |
1,544 |
2 |
3,185 |
3,096 |
3 |
| 60 |
Global
Gas & LNG Portfolio |
58 |
63 |
(8) |
118 |
113 |
4 |
| 164 |
Enilive
and Plenitude |
176 |
165 |
7 |
340 |
320 |
6 |
| 66 |
-
Enilive |
72 |
63 |
14 |
138 |
122 |
13 |
| 98 |
-
Plenitude |
104 |
102 |
2 |
202 |
198 |
2 |
| 90 |
Refining,
Chemicals and Power |
96 |
77 |
25 |
186 |
147 |
27 |
| 36 |
Corporate
and other activities |
37 |
33 |
12 |
73 |
66 |
11 |
| (8) |
Impact
of unrealized intragroup profit elimination |
(8) |
(9) |
|
(16) |
(17) |
|
| 1,958 |
Total
depreciation, depletion and amortization |
1,928 |
1,873 |
3 |
3,886 |
3,725 |
4 |
| 68 |
Impairment
losses (impairment reversals) of tangible and intangible and right of use assets, net |
1,435 |
330 |
.. |
1,503 |
389 |
.. |
| 2,026 |
Depreciation,
depletion, amortization, impairments and reversals |
3,363 |
2,203 |
53 |
5,389 |
4,114 |
31 |
| 33 |
Write-off
of tangible and intangible assets |
70 |
103 |
(32) |
103 |
135 |
(24) |
| 2,059 |
|
3,433 |
2,306 |
49 |
5,492 |
4,249 |
29 |
Income (expense) from investments
| (€
million) |
|
|
|
|
|
|
| First
Half 2024 |
Exploration &
Production |
Global
Gas &
LNG Portfolio |
Enilive
and
Plenitude |
Refining,
Chemicals and
Power |
Corporate
and
other activities |
Group |
| Share
of profit (loss) from equity-accounted investments |
527 |
26 |
(36) |
87 |
7 |
611 |
| Dividends
|
71 |
1 |
1 |
11 |
1 |
85 |
| Net
gains (losses) on disposals |
|
|
|
|
185 |
185 |
| Other
income (expense), net |
|
(12) |
|
|
(5) |
(17) |
| |
598 |
15 |
(35) |
98 |
188 |
864 |
| Leverage and net borrowings |
Leverage is a measure used by management to assess
the Company’s level of indebtedness. It is calculated as a ratio of net borrowings to shareholders’ equity, including non-controlling
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.
| |
|
|
|
| (€ million) |
Jan. 1, 2024 |
Jun. 30, 2024 |
Change |
| Total debt |
28,729 |
31,738 |
3,009 |
| - Short-term debt |
7,013 |
8,354 |
1,341 |
| - Long-term debt |
21,716 |
23,384 |
1,668 |
| Cash and cash equivalents |
(10,193) |
(10,180) |
13 |
| Financial assets measured at fair value through profit or loss |
(6,782) |
(7,254) |
(472) |
| Financing receivables held for non-operating purposes |
(2,194) |
(2,191) |
3 |
| Net borrowings before lease liabilities ex IFRS 16 |
9,560 |
12,113 |
2,553 |
| Lease Liabilities |
5,336 |
5,341 |
5 |
| - of which Eni working interest |
4,856 |
4,846 |
(10) |
| - of which Joint operators' working interest |
480 |
495 |
15 |
| Net borrowings after lease liabilities ex IFRS 16 |
14,896 |
17,454 |
2,558 |
| Shareholders' equity including non-controlling interest |
53,644 |
55,219 |
1,575 |
| Leverage before lease liability ex IFRS 16 |
|
0.22 |
|
| Leverage after lease liability ex IFRS 16 |
|
0.32 |
|
| Consolidated financial statements |
BALANCE SHEET
| (€
million) |
|
|
| |
Jun. 30,
2024 |
Dec. 31,
2023 |
| ASSETS |
|
|
| Current
assets |
|
|
| Cash
and cash equivalents |
10,180
|
10,193
|
| Financial
assets measured at fair value through profit or loss |
7,254
|
6,782
|
| Other
financial assets |
623
|
896
|
| Trade
and other receivables |
15,959
|
16,551
|
| Inventories
|
6,679
|
6,186
|
| Income
tax assets |
527
|
460
|
| Other
assets |
4,668
|
5,637
|
| |
45,890
|
46,705
|
| Non-current
assets |
|
|
| Property,
plant and equipment |
58,069
|
56,299
|
| Right
of use assets |
4,875
|
4,834
|
| Intangible
assets |
6,475
|
6,379
|
| Inventory
- compulsory stock |
1,587
|
1,576
|
| Equity-accounted
investments |
13,225
|
12,630
|
| Other
investments |
1,322
|
1,256
|
| Other
financial assets |
2,622
|
2,301
|
| Deferred
tax assets |
4,343
|
4,482
|
| Income
tax assets |
142
|
142
|
| Other
assets |
3,984
|
3,393
|
| |
96,644
|
93,292
|
| Assets
held for sale |
5,091
|
2,609
|
| TOTAL
ASSETS |
147,625
|
142,606
|
| LIABILITIES
AND SHAREHOLDERS' EQUITY |
|
|
| Current
liabilities |
|
|
| Short-term
debt |
4,733
|
4,092
|
| Current
portion of long-term debt |
3,621
|
2,921
|
| Current
portion of long-term lease liabilities |
1,132
|
1,128
|
| Trade
and other payables |
19,691
|
20,654
|
| Income
taxes payable |
1,242
|
1,685
|
| Other
liabilities |
5,489
|
5,579
|
| |
35,908
|
36,059
|
| Non-current
liabilities |
|
|
| Long-term
debt |
23,392
|
21,716
|
| Long-term
lease liabilities |
4,209
|
4,208
|
| Provisions
for contingencies |
15,509
|
15,533
|
| Provisions
for employee benefits |
754
|
748
|
| Deferred
tax liabilities |
5,300
|
4,702
|
| Income
taxes payable |
42
|
38
|
| Other
liabilities |
4,397
|
4,096
|
| |
53,603
|
51,041
|
| Liabilities directly associated
with assets held for sale |
2,895
|
1,862
|
| TOTAL
LIABILITIES |
92,406
|
88,962
|
| Share
capital |
4,005
|
4,005
|
| Retained
earnings |
35,462
|
32,988
|
| Cumulative
currency translation differences |
6,939
|
5,238
|
| Other
reserves and equity instruments |
7,585
|
8,515
|
| Treasury
shares |
(1,505) |
(2,333) |
| Net
profit (loss) |
1,872
|
4,771
|
| Total
Eni shareholders' equity |
54,358
|
53,184
|
| Non-controlling
interest |
861
|
460
|
| TOTAL
SHAREHOLDERS' EQUITY |
55,219
|
53,644
|
| TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY |
147,625
|
142,606
|
GROUP PROFIT AND LOSS ACCOUNT
| Q1
|
|
Q2
|
IH
|
| 2024 |
(€
million) |
2024 |
2023 |
2024 |
2023 |
| 22,936
|
Sales
from operations |
21,715
|
19,591
|
44,651
|
46,776
|
| 233
|
Other
income and revenues |
1,342
|
221
|
1,575
|
414
|
| 23,169
|
Total
revenues |
23,057
|
19,812
|
46,226
|
47,190
|
| (17,361) |
Purchases,
services and other |
(17,087) |
(15,131) |
(34,448) |
(37,107) |
| (51) |
Impairment
reversals (impairment losses) of trade and other receivables, net |
(25) |
48
|
(76) |
(60) |
| (839) |
Payroll
and related costs |
(822) |
(746) |
(1,661) |
(1,540) |
| (189) |
Other
operating (expense) income |
(109) |
85
|
(298) |
41
|
| (1,958) |
Depreciation,
Depletion and Amortization |
(1,928) |
(1,873) |
(3,886) |
(3,725) |
| (68) |
Impairment
reversals (impairment losses) of tangible, intangible and right of use assets, net |
(1,435) |
(330) |
(1,503) |
(389) |
| (33) |
Write-off
of tangible and intangible assets |
(70) |
(103) |
(103) |
(135) |
| 2,670
|
OPERATING
PROFIT (LOSS) |
1,581
|
1,762
|
4,251
|
4,275
|
| 1,439
|
Finance
income |
1,391
|
1,189
|
2,830
|
3,196
|
| (1,825) |
Finance
expense |
(1,610) |
(1,371) |
(3,435) |
(3,552) |
| 127
|
Net
finance income (expense) from financial assets measured at fair value through profit or loss |
75
|
59
|
202
|
125
|
| 43
|
Derivative
financial instruments |
42
|
4
|
85
|
(12) |
| (216) |
FINANCE
INCOME (EXPENSE) |
(102) |
(119) |
(318) |
(243) |
| 261
|
Share
of profit (loss) of equity-accounted investments |
350
|
333
|
611
|
691
|
| 10
|
Other
gain (loss) from investments |
243
|
81
|
253
|
915
|
| 271
|
INCOME
(EXPENSE) FROM INVESTMENTS |
593
|
414
|
864
|
1,606
|
| 2,725
|
PROFIT
(LOSS) BEFORE INCOME TAXES |
2,072
|
2,057
|
4,797
|
5,638
|
| (1,488) |
Income
taxes |
(1,377) |
(1,743) |
(2,865) |
(2,917) |
| 1,237
|
Net
profit (loss) |
695
|
314
|
1,932
|
2,721
|
| |
attributable
to: |
|
|
|
|
| 1,211
|
-
Eni's shareholders |
661
|
294
|
1,872
|
2,682
|
| 26
|
-
Non-controlling interest |
34
|
20
|
60
|
39
|
| |
|
|
|
|
|
| |
Earnings
per share (€ per share) |
|
|
|
|
| 0.37
|
-
basic |
0.20
|
0.08
|
0.57
|
0.79
|
| 0.37
|
-
diluted |
0.19
|
0.08
|
0.56
|
0.78
|
| |
Weighted
average number of shares outstanding (million) |
|
|
|
|
| 3,201.3
|
-
basic |
3,191.4
|
3,338.0
|
3,196.3
|
3,341.7
|
| 3,264.6
|
-
diluted |
3,254.4
|
3,344.3
|
3,259.3
|
3,348.0
|
| |
|
|
|
|
|
COMPREHENSIVE INCOME (LOSS)
| |
Q2
|
IH
|
| (€
million) |
2024 |
2023 |
2024 |
2023 |
| Net
profit (loss) |
695 |
314 |
1,932 |
2,721 |
| Items
that are not reclassified to profit or loss in later periods |
2 |
15 |
(3) |
15 |
| Remeasurements
of defined benefit plans |
8 |
|
8 |
|
| Share
of other comprehensive income on equity accounted entities |
1 |
|
1 |
|
| Change
in the fair value of interests with effects on other comprehensive income |
(6) |
15 |
(11) |
15 |
| Taxation |
(1) |
|
(1) |
|
| Items
that may be reclassified to profit in later periods |
408 |
134 |
1,609 |
(431) |
| Currency
translation differences |
596 |
17 |
1,701 |
(994) |
| Change
in the fair value of cash flow hedging derivatives |
(170) |
135 |
(64) |
706 |
| Share
of other comprehensive income on equity-accounted entities |
(65) |
23 |
(46) |
64 |
| Taxation
|
47 |
(41) |
18 |
(207) |
| Total
other items of comprehensive income (loss) |
410 |
149 |
1,606 |
(416) |
| Total
comprehensive income (loss) |
1,105 |
463 |
3,538 |
2,305 |
| attributable
to: |
|
|
|
|
| -
Eni's shareholders |
1,071 |
443 |
3,476 |
2,266 |
| -
Non-controlling interest |
34 |
20 |
62 |
39 |
| |
|
|
|
|
CHANGES IN SHAREHOLDERS’ EQUITY
| (€ million) |
|
|
|
| Shareholders' equity at January 1, 2023 |
|
|
55,230 |
| Total comprehensive income (loss) |
|
2,305 |
|
| Dividends paid to Eni's shareholders |
|
(1,472) |
|
| Dividends distributed by consolidated subsidiaries |
|
(31) |
|
| Coupon of perpetual subordinated bonds |
|
(87) |
|
| Net purchase of treasury shares |
|
(437) |
|
| Tax on hybrid bond coupon |
|
25 |
|
| Other changes |
|
(5) |
|
| Total changes |
|
|
298 |
| Shareholders' equity at June 30, 2023 |
|
|
55,528 |
| attributable to: |
|
|
|
| - Eni's shareholders |
|
|
55,107 |
| - Non-controlling interest |
|
|
421 |
| |
|
|
|
| |
|
|
|
| Shareholders' equity at January 1, 2024 |
|
|
53,644 |
| Total comprehensive income (loss) |
|
3,538 |
|
| Dividends paid to Eni's shareholders |
|
(1,502) |
|
| Dividends distributed by consolidated subsidiaries |
|
(50) |
|
| Coupon of perpetual subordinated bonds |
|
(87) |
|
| Put option on Plenitude |
|
(387) |
|
| Net purchase of treasury shares |
|
(547) |
|
| Plenitude operation- disposal to EIP |
|
588 |
|
| Taxes on hybrid bond coupon |
|
25 |
|
| Other changes |
|
(3) |
|
| Total changes |
|
|
1,575 |
| Shareholders' equity at June 30, 2024 |
|
|
55,219 |
| attributable to: |
|
|
|
| - Eni's shareholders |
|
|
54,358 |
| - Non-controlling interest |
|
|
861 |
| |
|
|
|
GROUP CASH FLOW STATEMENT
| Q1 |
|
Q2 |
IH
|
| 2024 |
(€ million) |
2024 |
2023 |
2024 |
2023 |
| 1,237 |
Net profit (loss) |
695 |
314 |
1,932 |
2,721 |
| |
Adjustments to reconcile net profit (loss) to net cash provided by operating activities: |
|
|
|
|
| 1,958 |
Depreciation, depletion and amortization |
1,928 |
1,873 |
3,886 |
3,725 |
| 68 |
Impairment losses (impairment reversals) of tangible, intangible and right of use, net |
1,435 |
330 |
1,503 |
389 |
| 33 |
Write-off of tangible and intangible assets |
70 |
103 |
103 |
135 |
| (261) |
Share of (profit) loss of equity-accounted investments |
(350) |
(333) |
(611) |
(691) |
| (19) |
Gains on disposal of assets, net |
(165) |
(10) |
(184) |
(418) |
| (9) |
Dividend income |
(76) |
(83) |
(85) |
(92) |
| (119) |
Interest income |
(119) |
(132) |
(238) |
(236) |
| 349 |
Interest expense |
274 |
241 |
623 |
482 |
| 1,488 |
Income taxes |
1,377 |
1,743 |
2,865 |
2,917 |
| 77 |
Other changes |
(28) |
19 |
49 |
(420) |
| (1,865) |
Cash flow from changes in working capital |
827 |
1,587 |
(1,038) |
1,294 |
| 16 |
- inventories |
(466) |
466 |
(450) |
2,063 |
| 233 |
- trade receivables |
1,872 |
2,431 |
2,105 |
6,043 |
| (1,739) |
- trade payables |
(203) |
(2,143) |
(1,942) |
(8,444) |
| (117) |
- provisions for contingencies |
(184) |
8 |
(301) |
(140) |
| (258) |
- other assets and liabilities |
(192) |
825 |
(450) |
1,772 |
| 33 |
Net change in the provisions for employee benefits |
(64) |
(2) |
(31) |
23 |
| 558 |
Dividends received |
546 |
780 |
1,104 |
1,340 |
| 100 |
Interest received |
70 |
89 |
170 |
153 |
| (388) |
Interest paid |
(366) |
(227) |
(754) |
(508) |
| (1,336) |
Income taxes paid, net of tax receivables received |
(1,483) |
(1,849) |
(2,819) |
(3,389) |
| 1,904 |
Net cash provided by operating activities |
4,571 |
4,443 |
6,475 |
7,425 |
| (3,636) |
Cash flow from investing activities |
(2,790) |
(3,263) |
(6,426) |
(6,278) |
| (1,820) |
- tangible assets |
(1,901) |
(2,487) |
(3,721) |
(4,551) |
| |
- prepaid right of use |
(3) |
|
(3) |
|
| (111) |
- intangible assets |
(120) |
(70) |
(231) |
(125) |
| (1,469) |
- consolidated subsidiaries and businesses net of cash and cash equivalent acquired |
(373) |
(104) |
(1,842) |
(628) |
| (292) |
- investments |
(174) |
(1,061) |
(466) |
(1,182) |
| (29) |
- securities and financing receivables held for operating purposes |
(20) |
(77) |
(49) |
(148) |
| 85 |
- change in payables in relation to investing activities |
(199) |
536 |
(114) |
356 |
| 253 |
Cash flow from disposals |
588 |
96 |
841 |
580 |
| 210 |
- tangible assets |
3 |
12 |
213 |
42 |
| |
- intangible assets |
2 |
32 |
2 |
32 |
| |
- consolidated subsidiaries and businesses net of cash and cash equivalent disposed of |
|
|
|
380 |
| 18 |
- investments |
394 |
|
412 |
35 |
| 22 |
- securities and financing receivables held for operating purposes |
(2) |
18 |
20 |
24 |
| 3 |
- change in receivables in relation to disposals |
191 |
34 |
194 |
67 |
| (131) |
Net change in receivables and securities not held for operating purposes |
11 |
(86) |
(120) |
666 |
| (3,514) |
Net cash used in investing activities |
(2,191) |
(3,253) |
(5,705) |
(5,032) |
GROUP CASH FLOW STATEMENT (continued)
| Q1 |
|
|
Q2 |
IH |
| 2024 |
(€ million) |
|
2024 |
2023 |
2024 |
2023 |
| 1,230 |
Increase in long-term debt |
|
2,070 |
2,048 |
3,300 |
4,050 |
| (1,335) |
Payment of long-term debt |
|
(1,253) |
(357) |
(2,588) |
(509) |
| (309) |
Payment of lease liabilities |
|
(362) |
(228) |
(671) |
(475) |
| 1,221 |
Increase (decrease) in short-term financial debt |
|
(489) |
(124) |
732 |
(2,113) |
| (767) |
Dividends paid to Eni's shareholders |
|
(728) |
(744) |
(1,495) |
(1,509) |
| (15) |
Dividends paid to non-controlling interests |
|
(14) |
(20) |
(29) |
(20) |
| 588 |
Net capital issuance from non-controlling interest |
|
2 |
|
590 |
(16) |
| |
Disposal (acquisition) of additional interests in consolidated subsidiaries |
|
|
(57) |
|
(57) |
| (398) |
Net purchase of treasury shares |
|
(168) |
(406) |
(566) |
(406) |
| 14 |
Other contributions |
|
|
|
14 |
|
| (39) |
Interest payment of perpetual hybrid bond |
|
(48) |
(48) |
(87) |
(87) |
| 190 |
Net cash used in financing activities |
|
(990) |
64 |
(800) |
(1,142) |
| 16 |
Effect of exchange rate changes on cash and cash equivalents and other changes |
|
29 |
17 |
45 |
(15) |
| (1,404) |
Net increase (decrease) in cash and cash equivalents |
|
1,419 |
1,271 |
15 |
1,236 |
| 10,205 |
Cash and cash equivalents - beginning of the period |
|
8,801 |
10,146 |
10,205 |
10,181 |
| 8,801 |
Cash and cash equivalents - end of the period |
|
10,220 |
11,417 |
10,220 |
11,417 |
Capital expenditure
| Q1 |
|
Q2 |
|
IH |
|
| 2024 |
(€ million) |
2024 |
2023 |
var % |
2024 |
2023 |
% Ch. |
| 1,565 |
Exploration & Production |
1,320 |
2,115 |
(38) |
2,885 |
3,899 |
(26) |
| 178 |
of which: - exploration |
102 |
155 |
(34) |
280 |
366 |
(23) |
| 1,381 |
- oil & gas development |
1,208 |
1,949 |
(38) |
2,589 |
3,511 |
(26) |
| 1 |
Global Gas & LNG Portfolio |
4 |
6 |
(33) |
5 |
6 |
(17) |
| 205 |
Enilive and Plenitude |
397 |
191 |
.. |
602 |
367 |
64 |
| 33 |
- Enilive |
88 |
62 |
42 |
121 |
108 |
12 |
| 172 |
- Plenitude |
309 |
129 |
.. |
481 |
259 |
86 |
| 111 |
Refining, Chemicals and Power |
221 |
183 |
21 |
332 |
294 |
13 |
| 57 |
- Refining |
130 |
111 |
17 |
187 |
177 |
6 |
| 40 |
- Chemicals |
65 |
43 |
51 |
105 |
69 |
52 |
| 14 |
- Power |
26 |
29 |
(10) |
40 |
48 |
(17) |
| 56 |
Corporate and other activities |
81 |
65 |
25 |
137 |
114 |
20 |
| (7) |
Impact of unrealized intragroup profit elimination |
(2) |
(3) |
|
(9) |
(4) |
|
| 1,931 |
Capital
expenditure (a) |
2,021 |
2,557 |
(21) |
3,952 |
4,676 |
(15) |
| |
|
|
|
|
|
|
|
| (a) Expenditures to purchase plant and equipment from suppliers whose payment terms matched classification as financing payables, have been recognized among other changes of the reclassified cash flow statements and are not reported in the table above (€784 million and €104 million in the second quarter 2024 and 2023, respectively, €1,056 million and €189 million in the first half 2024 and the first half 2023, respectively and €272 million in the first quarter 2024). |
In IH ’24, capital expenditure amounted to €3,952 mln (€4,676
mln in the IH ’23) decreasing by 15% y-o-y, in particular:
| · | in the Exploration &
Production, capital expenditure was mainly related to oil and gas development activities (€2,589 mln) in particular in Congo, Côte
d'Ivoire, Egypt, Italy, Iraq, Algeria, Libya, Kazakhstan and United Arab Emirates; |
| · | in the Enilive and Plenitude segment,
Plenitude’s capital expenditure (€481 mln) mainly related to development activities in the renewable business, acquisition
of new customers, as well as development of electric vehicles network infrastructure, while Enilive capital expenditure (€121 mln)
were related to biorefineries and biomethane activities, as well as HSE initiatives and marketing activity for regulation compliance and
stay-in-business initiatives in the retail network in Italy and in the rest of Europe; |
| · | in the Refining, Chemicals and
Power segment mainly related to traditional refining in Italy (€187 mln) relating to the new Livorno biorefinery, maintenance and
stay-in-business and in the chemical business (€105 mln) to circular economy and asset integrity; |
| · | the Corporate’s capital
expenditure were mainly addressed to the CCUS and agro-biofeedstock projects (€85 mln). |
Sustainability performance
| |
|
IH |
| |
|
2024 |
2023 |
| TRIR (Total Recordable Injury Rate) |
(total recordable injuries/worked hours) x 1,000,000 |
0.41 |
0.38 |
| Direct GHG emissions (Scope 1) |
(mmtonnes
CO2 eq.) |
19.1 |
19.6 |
| Direct methane emissions (Scope 1) |
(ktonnes
CH4) |
22.1 |
26.0 |
| Volumes of hydrocarbon sent to routine flaring |
(billion Sm³) |
0.4 |
0.5 |
| Total volume of oil spills (>1 barrel) |
(kbbl) |
2.2 |
10.4 |
| Re-injected production water |
(%) |
63 |
61.0 |
| KPIs refer to 100% of the operated assets and also include the contribution of cooperated assets. |
|
|
|
| · | TRIR (Total Recordable Injury
Rate) of the workforce: affected by higher injuries relating to contractors. |
| · | Direct GHG emissions (Scope
1): in reduction compared to the first half of 2023, driven by a decrease in GGP, Power and Refining businesses, partly offset by
E&P increase due to the acquisition of Neptune Energy and the start-up in Côte d'Ivoire. |
| · | Direct methane emissions (Scope
1): reducing from the first half of 2023. |
| · | Volumes of hydrocarbon sent
to routine flaring: reducing compared to the first half of 2023. |
| · | Total volume of oil spills
(>1 barrel): remarkable decline reflecting less operational spills as well as less events from sabotages. |
| · | Re-injected production water:
increasing compared to first half of 2023, as a result of both the divestment of some offshore assets in Congo and the increase in reinjected
water in Egypt (Melehia). |
Strategic developments
| · | In May, during the "Summit
on Clean Cooking in Africa" by the International Energy Agency (IEA), Eni reaffirmed its commitment to promoting improved cooking
systems, through the distribution of improved cookstoves to 10 mln people in sub-Saharan Africa by 2027, reaching 20 mln people with advanced
cooking solutions by 2030. Eni has also endorsed the “Clean Cooking Declaration: Making 2024 the pivotal year for Clean Cooking”
to accelerate universal access to more modern cooking systems, essential to ensure access to affordable, reliable, and sustainable energy
for all. |
| · | In May, the IFC (International
Finance Corporation) and the Italian Climate Fund announced a $210 mln investment in Eni’s Kenya subsidiary to expand the production
of agri-feedstock for the manufacturing of advanced biofuels, supporting the decarbonization of the transport industry and the livelihoods
of up to 200,000 small-scale Kenyan oilseed farmers. |
| · | In June, in partnership with Biocarbon
Partners (BCP), was launched the Great Limpopo project, the largest initiative ever developed in Mozambique to protect forests
and counteract deforestation causes in line with the REDD+ framework, defined and promoted by the United Nations. The program aims to
preserve forests within an area up to 4 mln hectares across 4 provinces in Mozambique, involving over 320,000 people. |
| · | In June, Eni presented its projects
of agricultural redevelopment and environmental biomonitoring linked to Agrivanda, Eni's initiative managed by FEEM (Fondazione Eni Enrico
Mattei), founded in 2018 in Viggiano, in the areas near to the Val d'Agri Oil Centre. |
Exploration & Production
| PRODUCTION OF OIL AND NATURAL GAS BY REGION |
|
|
|
|
|
| |
|
|
|
|
|
| Q1
|
|
|
Q2
|
IH
|
| 2024 |
|
|
2024 |
2023 |
2024 |
2023 |
| 66 |
Italy |
(kboe/d)
|
64 |
69 |
65 |
72 |
| 269 |
Rest
of Europe |
|
248 |
172 |
258 |
176 |
| 310 |
North
Africa |
|
318 |
271 |
314 |
283 |
| 293 |
Egypt |
|
295 |
323 |
294 |
327 |
| 304 |
Sub-Saharan
Africa |
|
300 |
284 |
302 |
288 |
| 165 |
Kazakhstan |
|
156 |
162 |
160 |
164 |
| 205 |
Rest
of Asia |
|
197 |
185 |
201 |
179 |
| 126 |
Americas |
|
131 |
143 |
129 |
142 |
| 3 |
Australia
and Oceania |
|
3 |
7 |
3 |
7 |
| 1,741 |
Production
of oil and natural gas (a)(b) |
|
1,712 |
1,616 |
1,726 |
1,638 |
| 394 |
-
of which Joint Ventures and associates |
|
391 |
320 |
392 |
322 |
| 142 |
Production
sold (a) |
(mmboe)
|
146 |
135 |
288 |
266 |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| PRODUCTION
OF LIQUIDS BY REGION |
|
|
|
|
|
| |
|
|
|
|
|
| Q1
|
|
|
Q2
|
IH
|
| 2024 |
|
|
2024 |
2023 |
2024 |
2023 |
| 28 |
Italy |
(kbbl/d) |
26 |
29 |
27 |
30 |
| 143 |
Rest
of Europe |
|
135 |
100 |
139 |
101 |
| 120 |
North
Africa |
|
121 |
118 |
120 |
125 |
| 63 |
Egypt |
|
62 |
71 |
62 |
70 |
| 179 |
Sub-Saharan
Africa |
|
168 |
163 |
174 |
168 |
| 114 |
Kazakhstan |
|
112 |
113 |
113 |
115 |
| 89 |
Rest
of Asia |
|
87 |
86 |
89 |
85 |
| 61 |
Americas |
|
66 |
77 |
63 |
75 |
| - |
Australia
and Oceania |
|
- |
- |
- |
- |
| 797 |
Production
of liquids |
|
777 |
757 |
787 |
769 |
| 215 |
-
of which Joint Ventures and associates |
|
209 |
174 |
212 |
175 |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| PRODUCTION
OF NATURAL GAS BY REGION |
|
|
|
|
|
| |
|
|
|
|
|
| Q1
|
|
|
Q2
|
IH
|
| 2024 |
|
|
2024 |
2023 |
2024 |
2023 |
| 203 |
Italy |
(mmcf/d) |
197 |
211 |
200 |
218 |
| 657 |
Rest
of Europe |
|
592 |
374 |
624 |
390 |
| 994 |
North
Africa |
|
1,033 |
801 |
1,014 |
828 |
| 1,206 |
Egypt |
|
1,219 |
1,318 |
1,212 |
1,348 |
| 651 |
Sub-Saharan
Africa |
|
688 |
633 |
669 |
632 |
| 265 |
Kazakhstan |
|
229 |
253 |
247 |
252 |
| 603 |
Rest
of Asia |
|
572 |
518 |
588 |
495 |
| 341 |
Americas |
|
343 |
347 |
342 |
351 |
| 17 |
Australia
and Oceania |
|
15 |
36 |
16 |
35 |
| 4,937 |
Production
of natural gas |
|
4,888 |
4,491 |
4,912 |
4,549 |
| 935 |
-
of which Joint Ventures and associates |
|
953 |
762 |
944 |
770 |
| |
|
|
|
|
|
|
| (a) Includes
Eni’s share of production of equity-accounted entities. |
|
|
|
|
| (b) Includes
volumes of hydrocarbons consumed in operation (125 and 130 kboe/d in the second quarter of 2024 and 2023, respectively, 125 and 128
kboe/d in the first half of 2024 and 2023, respectively, and 125 kboe/d in the first quarter of 2024). |
ENI (NYSE:E)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
ENI (NYSE:E)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024
