Eni SpA (E) reported fourth-quarter 2023 diluted earnings per share of 5 cents, which declined from the year-ago quarter’s 21 cents.Total quarterly revenues of €25 billion declined from the €31.8 billion recorded a year ago.Quarterly earnings resulted from lower average realized commodity prices.Operational PerformanceThe company operates through four business segments — Exploration & Production, Global Gas & LNG Portfolio, Enilive Refining and Chemicals, and Plenitude & Power.Exploration & ProductionThe to ...

Financial Data and Key Metrics Changes - Eni reported EBIT of EUR 17.8 billion, including EUR 4 billion from associates, marking the second highest result in the company's history [5] - Net profit reached EUR 8.3 billion, converting to EUR 16.5 billion of cash flow from operations (CFFO), reflecting a significant improvement of around EUR 3.5 billion on EBIT and EUR 2 billion on cash flow compared to expectations [5] - Capital expenditures (CapEx) totaled EUR 9.2 billion, below the budget of EUR 9.5 billion, indicating efficient investment practices [5] - Share buybacks in Q4 amounted to EUR 790 million, totaling EUR 1.8 billion for the year, with a full payout equivalent to approximately 32% of 2023 adjusted CFFO [5] Business Line Data and Key Metrics Changes - Upstream production for the full year was 1.65 million barrels per day, a 3% increase year-on-year, with Q4 production rising to 1.71 million barrels per day [11] - EniLive reported a 10% improvement in EBIT year-on-year, despite weaker product markets, driven by enhanced biorefinery performance [7] - The chemicals segment faced challenging market conditions, prompting a strategic shift towards biochemicals and specialties [7][38] Market Data and Key Metrics Changes - Full year production in the upstream segment was 1.66 million barrels per day, with a 3% year-on-year increase, and a significant discovery of around 900 million barrels of new resources [11] - Renewable energy production grew by over 50%, with Plenitude achieving a target of 3 gigawatts of renewable capacity, up by more than one-third year-on-year [11][14] Company Strategy and Development Direction - Eni's strategy focuses on mitigating market volatility and advancing its transition strategy, with significant progress in biorefining and carbon capture initiatives [9][4] - The acquisition of Neptune and the establishment of a leading biorefining business are key components of Eni's growth strategy [10][4] - The company aims to enhance its portfolio through divestments and strategic acquisitions, maintaining a focus on high-quality assets [10][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a volatile market, emphasizing the importance of operational efficiency and strategic asset management [9][53] - The outlook for 2024 indicates continued volatility in the market, with opportunities for trading optimization and capturing value from new discoveries [53][57] Other Important Information - Eni's upstream net carbon scope 1 and 2 footprint fell by 10% in 2023, aligning with the company's aim for net zero in the upstream by 2030 [11] - The company is actively pursuing carbon capture and storage (CCS) projects, with agreements in place with the UK government [4][65] Q&A Session Summary Question: What can be done to improve the chemicals business? - Management acknowledged inefficiencies and outlined plans to enhance efficiency across the value chain, focusing on specialization and portfolio diversification [16][38] Question: What is the demand outlook for Sustainable Aviation Fuel (SAF)? - Management confirmed strong demand trends for SAF, with expectations of significant market growth and pricing anticipated to be 1.3 to 1.5 times higher than conventional jet fuel [23][46][47] Question: What are the expectations for LNG exports from Egypt? - Management noted that LNG exports from Egypt are typically low in summer due to high domestic demand, but recent geopolitical events have impacted export volumes [41][42] Question: What is the strategy regarding divestments and upstream focus? - Management indicated a balanced approach to portfolio management, with plans for more aggressive valorization of upstream assets while maintaining flexibility [43][45] Question: What is the outlook for Plenitude and its potential IPO? - Management confirmed ongoing plans for valorization and potential IPO of Plenitude, contingent on favorable market conditions [60][61] Question: What are the implications of lower power prices for Plenitude? - Management acknowledged the impact of lower power prices on strategy but emphasized the long-term transformation goals for the business [114]

Eni SPA (E) has completed the acquisition of the U.K.-based independent Neptune Energy in a deal valued at $4.9 billion.The acquisition encompasses Neptune Energy’s extensive portfolio, excluding its operations in Norway and Germany. Eni's Norwegian subsidiary, Vaar Energi, acquired Neptune Energy’s assets in Norway.Vaar Energi acquired Neptune Energy's business in Norway separately before the completion of the overall transaction. Activities in Germany were carved out and will continue to be owned and oper ...

Eni SpA (E) confirmed its decision to establish Italy’s third bio-refinery in Livorno, marking a significant step in the company’s commitment to decarbonization and meeting ambitious environmental targets.Eni is set to convert its existing 84,000-barrel-per-day conventional crude oil refinery in Livorno into Italy's third biorefinery. The Livorno refinery’s transformation aligns with the company’s broader goal of achieving carbon neutrality by 2050 and increasing its bio-refining capacity from 1.65 million ...

Eni S.p.A. (NYSE:E) Q3 2023 Earnings Conference Call October 27, 2023 8:00 AM ET Cristian Signoretto - Deputy Chief Operating Officer, Natural Resources Stefano Ballista - Chief Executive Officer, Eni Sustainable Mobility Conference Call Participants Oswald Clint - Bernstein Michele Della Vigna - Goldman Sachs Massimo Bonisoli - Equita Welcome to Eni's 2023 Third Quarter Results Conference Call hosted by Mr. Francesco Gattei, Chief Financial Officer. For the duration of the call, you will be in listen-only ...

Eni S.p.A. (NYSE:E) Q2 2023 Earnings Conference Call July 28, 2023 8:00 AM ET Claudio Descalzi – Chief Executive Officer Cristian Signoretto – Deputy Chief Operating Officer-Natural Resources Conference Call Participants Oswald Clint – Bernstein Alastair Syme – Citi Henri Patricot – UBS Martijn Rats – Morgan Stanley Bertrand Hodee – Kepler Cheuvreux Operator Company Participants Guido Brusco – Chief Operating Officer-Natural Resources Francesco Gattei – Chief Financial Officer Biraj Borkhataria – RBC Alessa ...

Baleine FPSO in Côte d'Ivoire 2 This document contains forward-looking statements regarding future events and the future results of Eni that are based on current expectations, estimates, forecasts, and projections about the industries in which Eni operates and the beliefs and assumptions of the management of Eni. In addition, Eni's management may make forwardlooking statements orally to analysts, investors, representatives of the media and others. In particular, among other statements, certain statements wi ...

Financial Data and Key Metrics Changes - Adjusted net profit increased by 17% quarter-over-quarter to €2.9 billion despite an 8% decline in oil prices and a significant drop in gas prices [10] - Cash flow from operations was notably strong at €5.3 billion, only 6% lower year-on-year and nearly 30% higher compared to the last quarter of 2022 [20] - Net debt remained flat at a historically low level, indicating financial resilience and flexibility [12] Business Line Data and Key Metrics Changes - The upstream segment showed resilient profitability, with production flat year-on-year but up 2.4% sequentially, aligning with guidance for 2023 [22][23] - GGP (Gas and Power) achieved record EBIT, benefiting from market volatility and strong performance despite lower gas prices [63] - Downstream performance was impacted by high levels of planned refinery maintenance, but sustainable mobility and trading contributed positively [54] Market Data and Key Metrics Changes - The European gas market is expected to be less critical this summer compared to the previous year, with higher storage capacity easing price pressures [45] - The company anticipates more volatility in the winter due to unpredictable weather conditions [46] - The Italian and European markets are seeing a shift towards biofuels, with mandatory quantities increasing annually [32] Company Strategy and Development Direction - The company is focusing on biofuel investments in Europe and the U.S., with plans to expand into the Far East [2] - A joint venture with PBF Energy aims to establish a biorefinery in Louisiana, contributing to a target of over 3 million tonnes of biorefinery capacity by 2025 [39] - M&A activity is a key part of the strategy, with recent acquisitions aimed at enhancing portfolio value and sustainability [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to changing market conditions, particularly in the gas sector following the loss of Russian supply [46][120] - The outlook for GGP remains strong, with expectations for continued profitability despite market volatility [76] - The company is on track to achieve a 50% replacement of Russian gas by 2022-2023 and aims for 80% by 2023-2024 [46] Other Important Information - The Livorno lubricant refinery is undergoing maintenance, with plans to transform it into a biorefinery [14] - The company confirmed a buyback plan of €2.2 billion and an increase in dividends to €0.94 per share [31] - The company is targeting a shift in production mix to 60% gas by 2030, with ongoing projects in various regions [65] Q&A Session Summary Question: Can you provide insights on cash flow guidance and underlying performance? - Management confirmed that cash flow from operations is improving, with a reduction in expected negative impacts from gas prices and foreign exchange rates [4][5] Question: What is the status of new gas opportunities in Cyprus and Australia? - Management indicated that recoverable volumes from Cyprus are still being assessed, with potential for new gas opportunities in the future [6][26] Question: How is the Livorno refinery project progressing? - The Livorno refinery is in maintenance, with plans for transformation into a biorefinery expected to be finalized by summer or early autumn [14] Question: What are the expectations for the European gas market this summer? - The company expects a less critical summer compared to last year, with higher storage levels easing price pressures [45] Question: Can you elaborate on the strategic partnership with ADNOC? - The partnership aims to explore opportunities for reducing emissions and developing carbon capture projects in the UAE and internationally [99]

Financial Performance - Eni's consolidated financial statements are prepared in accordance with International Financial Standards (IFRS) [22] - The company reported a significant increase in identified net gains, reflecting improved operational performance and market conditions [31] - Eni's leverage ratio, calculated as net borrowings to shareholders' equity, indicates a strong financial position [31] - Eni's total shareholder return (TSR) reflects a positive trend, indicating strong market performance and investor confidence [31] - The company forecasts a Brent crude oil price of $85/bbl for 2023, estimating cash flow from operations to vary by approximately €0.13 billion for each $1 change in Brent price [55] - The capital budget for 2023 is projected to be about €9.5 billion, reflecting a 15% increase compared to 2022 [56] - The Group recognized a cash expense of about €1.04 billion for a one-off windfall tax on profits in Italy [129] - A tax expense of about €1 billion was recognized due to the EU's windfall levy on hydrocarbons sector profits exceeding historical averages [130] - The Group's net income was affected by extraordinary tax charges totaling about €2.4 billion, reducing yearly cash flow by about €1.1 billion [132] Production and Reserves - The average reserve life index shows a healthy ratio of reserves to total production, ensuring long-term sustainability [32] - Eni is focusing on enhancing recovery techniques to increase production efficiency from existing wells [33] - The company plans to increase the share of natural gas production in its portfolio to 60% by 2030, which may increase the variability of results due to natural gas market volatility [55] - In 2022, approximately 71% of Eni's total oil and gas production derived from offshore fields, primarily in regions such as Egypt, Norway, and Libya [97] - As of December 31, 2022, approximately 37% of the Group's total estimated proved reserves (by volume) were undeveloped, requiring significant capital expenditures for recovery [121] - Eni's future production levels are highly dependent on the success of exploration projects and the ability to replace produced reserves [115] Market Dynamics - Global upstream capital expenditures increased by approximately 20% in 2022 compared to 2021, primarily due to cost inflation [44] - Brent crude oil prices spiked to nearly $140/bbl following the onset of Russia's military operations in Ukraine, before retreating as fears of supply disruptions eased [44] - The average price of Brent crude oil remained in the $100-120/bbl range during the first half of 2022, driven by post-pandemic recovery and increased demand [44] - The current level of global upstream investment is insufficient to maintain oil production at the necessary level of 100 million barrels/day to meet global demand [44] - Global demand for crude oil increased by approximately 2 million bbl/d in 2022, reaching about 99.6 million bbl/d, nearly in line with 2019 levels [51] Strategic Initiatives - The company is investing in new technologies for the development of second and third generation feedstocks, aiming to reduce competition with food supply [32] - Eni is expanding its LNG portfolio, with plans to increase liquefaction capacity to meet growing global demand [33] - Eni is actively pursuing strategic partnerships and acquisitions to enhance its market position and operational capabilities [32] - The company anticipates continued growth in the renewable energy sector, aligning with global sustainability goals [31] Environmental and Regulatory Risks - Eni's operations are exposed to environmental risks, including potential oil spills and other incidents that could have material adverse effects on its financial condition [98] - The company expects to incur significant operating expenses related to compliance with environmental, health, and safety regulations in the foreseeable future [170] - Eni may incur significant environmental expenses and liabilities in the future due to unknown contamination and ongoing litigation, which could adversely affect its financial condition and shareholder returns [202] - Eni's financial performance heavily relies on the legacy business of Exploration & Production, which may be adversely affected by declining demand for hydrocarbons due to regulatory changes [176] - Eni faces increasing legal risks from climate-based litigation, which could result in significant financial liabilities [184] Geopolitical and Market Influences - The geopolitical situation in Libya continues to pose risks and uncertainties to Eni's operations and financial results [144] - Venezuela's financial stress and international sanctions have negatively impacted the country's production levels and fiscal revenues, affecting Eni's operations [145] - Eni's operations in Nigeria have been negatively impacted by ongoing oil theft at onshore pipelines [148] - The company is exposed to risks from evolving sanctions against Russia and Venezuela, which could materially affect its business and financial conditions [150][151] Financial and Operational Risks - Eni's credit risk has increased due to a significant rise in energy commodity prices, impacting the financial condition of its counterparties, particularly in the retail gas and power business [218] - The company has experienced a significant level of counterparty defaults, exacerbated by weak economic growth and the COVID-19 recession, leading to increased credit loss provisions in 2022 [218] - Eni's operations are heavily reliant on the reliability and security of its IT systems, which are susceptible to cyber threats and could adversely impact business operations [208] - Non-compliance with data protection laws could expose Eni to regulatory investigations, fines, and damage to its reputation, potentially affecting shareholder returns [210]

Financial Performance and Dividends - The net profit for the period is allocated to the available reserve, amounting to €5,403,018,837.87[61] - A dividend distribution of €0.88 per share was made using available reserves, with the first three tranches paid in September 2022, November 2022, and March 2023[60] - For the financial year 2023, the proposed dividend is €0.94 per share, amounting to a total distribution of approximately €3.1 billion based on shares outstanding as of December 31, 2022[206] - The company intends to distribute between 25% and 30% of the annual Cash Flow From Operations (CFFO) through dividends and buybacks, with a potential increase to 35% in the event of CFFO upsides[176] - The company aims to use available reserves for the distribution of the first tranche of the dividend in September 2023, with approximately €189 million allocated from the reserve pursuant to Law 342/2000[207] - The total distribution amount for the 2023 Remuneration Policy is approximately €3.1 billion, which is fully covered by the company's available reserves of approximately €36 billion as of December 31, 2022[210] - The available reserves include a revaluation reserve of €7,439 million as of December 31, 2022, which will be utilized for the dividend payments[217] - The company has authorized the reduction of the revaluation reserve pursuant to Law 342/2000 by €2.3 billion to facilitate the dividend distribution[225] - The company plans to distribute a total dividend of €0.94 per share for 2023, to be paid in four tranches: €0.24 in September 2023, €0.23 in November 2023, €0.24 in March 2024, and €0.23 in May 2024[224] Share Buyback Programs - The company plans to initiate a new buyback program in 2023 amounting to €2.2 billion, with the potential to increase to a maximum of €3.5 billion based on performance[177] - The total number of shares purchased in the previous buyback program was 195,550,084, representing 5.48% of the company's capital, at a total cost of €2,399,992,593[174] - The maximum number of shares to be purchased under the new buyback program is 337,000,000 ordinary shares, equating to about 10% of the share capital after the cancellation of treasury shares[183] - A maximum of 275,000,000 treasury shares, representing approximately 8.15% of the company's share capital, will be purchased for further remuneration to shareholders[244] Treasury Shares and Cancellations - The company currently holds 30,547,750 treasury shares, which will represent approximately 0.90% of the share capital after the cancellation of previously purchased shares[175] - The company holds 226,097,834 treasury shares, which is about 6.33% of the share capital, prior to the proposed cancellation of shares[188] - A total of 195,550,084 treasury shares will be canceled, which represents 5.48% of the company's capital, without reducing the share capital[232] - The cancellation of treasury shares will not affect the economic result of the company and will merely be an accounting operation[234] - Following the cancellation, the share capital will remain at €4,005,358,876, with the number of shares decreasing from 3,571,487,977 to 3,375,937,893[235] - The cancellation process is expected to be completed by July 2024[250] - The proposed amendment to Article 5 of the By-laws will reflect the new number of shares after the cancellation[253] - The cancellation resolution does not grant shareholders the right of withdrawal[240] - The cancellation of treasury shares will not affect the company's economic performance or modify the value of shareholders' equity[247] - The Board of Directors has the authority to execute the cancellation resolution and make necessary amendments to the By-laws[254] - The Board of Directors will report on the execution of these resolutions as necessary[254] Corporate Governance and Board of Directors - The Board of Directors proposes to maintain the number of Directors at nine to ensure suitable composition for the company's size and complexity[65] - Directors are proposed to be appointed for a term of three financial years, expiring on the date of the Shareholders' Meeting for the financial statements for the year ended December 31, 2025[68] - At least two-fifths of the Director positions must be filled by the less-represented gender, rounded up, unless the Board consists of three members[74] - Shareholders representing at least 0.5% of the share capital are entitled to submit a slate for the Board of Directors[73] - The guidelines for the maximum number of positions in other companies compatible with effective performance of the director's tasks are published on the company's website[87] - The Corporate Governance Code recommends that at least half of the Board of Directors should be independent directors[82] - Candidates must meet integrity requirements and submit a curriculum vitae along with their nomination[84] - The slates for the Board of Directors must include adequate information on compliance with the guidelines expressed by the Board[89] - The Board of Directors will be elected based on a slate system, with seven-tenths of Directors drawn from the slate receiving the most votes[91] - The Shareholders' Meeting is responsible for appointing Directors based on the slates presented by eligible shareholders[92] - The outgoing Board of Directors has chosen not to submit its own slate of candidates[93] - The Chairman of the Board of Directors will be appointed from among the Directors with voting rights[97] - The Shareholders' Meeting will determine the remuneration for the Chairman and Directors, with a maximum coverage of $200,000,000 for D&O insurance[104][105] - The Board of Statutory Auditors will be appointed based on slates presented by shareholders, with a total of five standing members and two alternate members[110][111] - Candidates for Statutory Auditor must meet independence and integrity requirements as specified in the relevant laws[112] - At least two-fifths of the Statutory Auditor positions must be filled by the less-represented gender[122] - Shareholders must submit slates at least twenty-five days prior to the Shareholders' Meeting, with a threshold of 0.5% of share capital to submit a slate[120][119] - The independence requirements for candidates are in accordance with the Corporate Governance Code and must be attested by the candidates[124] Remuneration Policies - The Board of Directors has proposed a new 2023-2025 share-based Long-Term Incentive Plan to reward critical managers, conditional on performance results related to Total Shareholders Return and Organic Free Cash Flow[153][154] - The new Plan includes three annual awards, each with a Vesting Period of three years, aligning management interests with sustainable value creation for shareholders[155] - The first section of the Remuneration Report outlines the 2023-2026 Remuneration Policy for Directors and key management personnel, which is subject to a binding vote by shareholders[163][165] - The second section of the Remuneration Report details the remuneration paid in 2022 to Directors and other strategic managers, which is subject to a non-binding vote by shareholders[168][169] - The Board of Directors is delegated to verify the legal conditions for the distribution of reserves for the dividend payments[223] - The company plans to use the residual amount of approximately €189 million from the reserve for the September 2023 dividend tranche[209]