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 October 2023
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.
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Eni S.p.A. |
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/s/ Paola Mariani |
|
Name: |
Paola Mariani |
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Title: |
Head of Corporate |
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Secretary’s Staff Office |
Date: October 27, 2023
Eni’s Board of Directors
Approval of the second tranche of the provision
in place of 2023 dividend: € 0.23 per share
San
Donato Milanese, 26 October 2023 – Eni’s Board of Directors, chaired by Giuseppe Zafarana, today resolved to distribute
to Shareholders the second of the four tranches of the provision in place of the 2023 dividend from Eni S.p.A. available reserves1
of € 0.23 (compared to a total annual provision, in place of the dividend, equal to € 0.94) per share outstanding at the ex-dividend
date as of 20 November 20232,
payable on 22 November 20233,
as resolved by the Shareholders’ Meeting of 10 May 2023.
Holders of ADRs,
outstanding at the record date of 21 November 2023, will receive € 0.46 per ADR, payable on 7 December 20234,
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. 44.
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 November 21, 2023 (record date).
4On
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.
San Donato Milanese
October 27, 2023 |
Registered Head
Office,
Piazzale Enrico Mattei, 1
00144 Roma
Tel. +39 06598.21
www.eni.com |
Eni results for the third quarter and nine
months of 2023
Key
operating and financial results | |
Q2 |
|
|
Q3 |
|
Nine
months |
2023 |
|
2023 |
2022 |
%
Ch. |
|
2023 |
2022 |
%
Ch. |
78.39 |
Brent
dated |
$/bbl |
86.76 |
100.85 |
(14) |
|
82.14 |
105.35 |
(22) |
1.089 |
Average
EUR/USD exchange rate |
|
1.088 |
1.007 |
8 |
|
1.083 |
1.064 |
2 |
395 |
Spot
Gas price at Italian PSV |
€/kcm |
358 |
2,082 |
(83) |
|
452 |
1,389 |
(67) |
6.6
|
Standard
Eni Refining Margin (SERM) |
$/bbl |
14.7 |
4.1 |
258 |
|
10.8 |
6.8 |
59 |
1,616 |
Hydrocarbon
production |
kboe/d |
1,635 |
1,578 |
4 |
|
1,637 |
1,608 |
2 |
|
Adjusted
operating profit (loss) (a) |
€
million |
|
|
|
|
|
|
|
2,066 |
E&P |
|
2,605 |
4,272 |
(39) |
|
7,460 |
13,520 |
(45) |
1,087 |
Global
Gas & LNG Portfolio (GGP) |
|
111 |
1,083 |
(90) |
|
2,570 |
2,000 |
29 |
87 |
Enilive,
Refining and Chemicals |
|
401 |
537 |
(25) |
|
642 |
1,550 |
(59) |
165 |
Plenitude &
Power |
|
219 |
172 |
27 |
|
570 |
497 |
15 |
(24) |
Corporate,
other activities and consolidation adjustments |
|
(322) |
(292) |
|
|
(206) |
(763) |
|
3,381 |
|
|
3,014 |
5,772 |
(48) |
|
11,036 |
16,804 |
(34) |
292
|
Investment
results and interest expense |
|
251
|
379
|
(34) |
|
883
|
802
|
10
|
3,673
|
Adjusted
profit (loss) before taxes |
|
3,265
|
6,151
|
(47) |
|
11,919
|
17,606
|
(32) |
1,935 |
Adjusted
net profit (loss) (a)(b) |
|
1,818 |
3,730 |
(51) |
|
6,660 |
10,808 |
(38) |
0.57 |
per
share - diluted (€) |
|
0.54 |
1.06 |
|
|
1.97 |
3.04 |
|
294 |
Net
profit (loss) (a)(b) |
|
1,916 |
5,862 |
(67) |
|
4,598 |
13,260 |
(65) |
0.08 |
per
share - diluted (€) |
|
0.57 |
1.67 |
|
|
1.35 |
3.74 |
|
4,232 |
Cash
flow from operations before changes in working capital at replacement cost (a) |
|
3,369 |
5,469 |
(38) |
|
12,892 |
16,266 |
(21) |
4,443 |
Net
cash from operations |
|
3,519 |
5,586 |
(37) |
|
10,944 |
12,867 |
(15) |
2,597 |
Net
capital expenditure (c) |
|
1,916 |
2,029 |
(6) |
|
6,727 |
5,468 |
23 |
8,215 |
Net
borrowings before lease liabilities ex IFRS 16 |
|
8,679 |
6,444 |
35 |
|
8,679 |
6,444 |
35 |
55,528 |
Shareholders'
equity including non-controlling interest |
|
57,284 |
57,845 |
(1) |
|
57,284 |
57,845 |
(1) |
0.15 |
Leverage
before lease liabilities ex IFRS 16 |
|
0.15 |
0.11 |
|
|
0.15 |
0.11 |
|
(a) Non-GAAP
measure. For further information see the paragraph "Non-GAAP measures". |
(b) Attributable
to Eni's shareholders. |
(c) Net
of expenditures relating to business combinations, purchase of minority interests and other non-organic items. |
Eni's Board of Directors, chaired by Giuseppe
Zafarana, yesterday approved the unaudited consolidated results for the third quarter and the nine months of 2023. Eni CEO Claudio Descalzi
said:
“In Q3 ’23, we continued to advance
our strategy of transformation, while delivering another excellent set of operating and financial results. On E&P we are accelerating
our plan to boost equity gas and LNG production, a key driver to secure reliable supply and at the same time pursue our decarbonization
goals. The outstanding Geng North-1 exploration discovery, currently the industry’s largest this year, together with the soon to
be completed Neptune acquisition and recent purchase of Chevron’s interests in Indonesia, will enable us to target exploitation
of material resources offshore the Kutei basin. The start-up, in less than two years from discovery, of the giant Baleine oilfield off
the Cote d’Ivoire reaffirms the validity of our value accretive fast-track development approach, ensuring traditional energy supplies
whilst, as Africa’s first net-zero scope 1 and 2 project, decarbonizing our operations. GGP substantially enhanced the contracted
LNG portfolio with three new long-term agreements in Congo, Qatar and Indonesia totalling 6.5 bcm/year at plateau. The businesses of the
energy transition are growing quickly. Enilive (Eni Sustainable Mobility) has closed the Chalmette biorefinery JV deal in the USA and
is targeting other international biofuels projects leveraging our distinctive technologies and expertise. Plenitude is on track to achieve
the planned 3 GW of renewable installed capacity by year-end while also delivering its financial targets, while the completion of the
Novamont acquisition will strengthen Versalis’ green chemicals transformation. And finally, our leading portfolio of CCS solutions
was further enhanced by the award of the Hewett storage license in the UK and by important progress on both the technical and regulatory
sides. In a volatile trading environment, proforma adjusted Ebit including our JV and associates reached €4 bln driven by sequential
growth in E&P, Refining and our Retail business. Operating cash flow was €3.4 bln resulting in an organic FCF of about €1.5
bln after funding €1.9 bln of capex. Both cash and operating results stand out at the top of our historical quarterly performances.
To date, the cumulative organic FCF of about €6.2 bln, has been well above the 2023 expected pay-out to shareholders including share
repurchases, contributing to our financial flexibility and strengthening the balance sheet with leverage stable at 0.15. Looking forward,
we believe that the evident underlying improvement of the business and our strategic progress will support highly attractive returns to
our shareholders. In line with this, we are raising our full-year guidance of Ebit and cash flow, while accelerating our buyback plan
for this year.”
Financial highlights of the third
quarter 2023 | |
· | Q3 ’23 adjusted profit before
tax of €3.3 bln, in a weaker scenario (Brent price down by 14% and the benchmark gas price down more than 80%), still marked another
strong set of results driven by continuing underlying improvements (in the nine months adjusted profit before tax was €11.9 bln).
Proforma adjusted EBIT1 for Q3 ’23 including the operating margin of equity accounted entities was €4 bln (€14.1
bln in the nine months). This performance was driven by a recovery in E&P earnings vs. Q2 ’23 thanks to higher production volumes
and better realizations and solid contribution from Refining, Enilive (the Sustainable Mobility business) and Plenitude. |
· | E&P earned €2.6 bln of
adjusted EBIT in Q3 ’23, down 39% from Q3 ’22 impacted by weaker realized prices, but almost 30% higher than the previous
quarter. Including the contribution of JV/associates, proforma adjusted EBIT was €3.4 bln. Nine months ’23 E&P adjusted
EBIT was €7.5 bln (versus €13.5 bln in the nine months ’22). Production in the quarter was up 4% year-over-year at 1.64
mln boe/d. |
· | GGP Q3 ’23 adjusted EBIT
was €0.11 bln reflecting limited benefits from asset optimization in a market characterized by relatively lower volatility and narrower
gas spreads compared with the Q3 ’22. |
· | Enilive, Eni Sustainable Mobility,
delivered €0.27 bln of adjusted EBIT, slightly below Q3 ’22 but up by 9% in the nine months ’23 at €0.61 bln. |
· | Refining reported an adjusted
EBIT of €0.33 bln in Q3 ’23 compared to €0.4 bln of Q3 ‘22 (€0.41 bln in the nine months ’23), impacted
by negative trends in crude differentials not captured by the SERM. However, the quarter showed a significant sequential improvement due
to the recovery in the products’ crack spreads. |
· | Plenitude & Power delivered
solid results with €0.22 bln of adjusted EBIT (up 27% year-on-year; €0.57 bln, up 15% in the nine months ’23). Continued
steady performance in the retail business and the material ramp-up in renewable capacity plus optimization of gas-fired power plants,
were partly offset by lower market margins for both renewables and gas-fired plants. Plenitude generated €0.75 bln of proforma adjusted
EBITDA in the nine months ’23, higher than the initial planning assumption of €0.7 bln for the year and increased the EBITDA
guidance to approximately €0.9 bln. |
· | Versalis was negatively impacted
by reduced demand across all business segments and comparatively higher production costs in Europe that exacerbated competitive pressures
from imported product streams and overcapacity.
This resulted in an adjusted operating loss of €0.2 bln in Q3 ’23 (a loss of €0.38 bln in the nine months ’23). |
· | Q3 ’23 adjusted net profit
attributable to Eni shareholders was €1.82 bln impacted by weaker hydrocarbon prices, but significantly offset by underlying business
outperformance. In the nine months ’23 adjusted net profit attributable to Eni shareholders was €6.66 bln. |
· | In Q3 ’23, Group adjusted
operating cash flow before working capital at replacement cost was €3.4 bln, exceeding outflows related to organic capex of €1.9
bln, resulting in an organic FCF of €1.5 bln. In the nine months ’23, adjusted cash flow was €12.9 bln, exceeding outflows
related to capex of €6.7 bln, resulting in an organic free cash flow of around €6.2 bln. |
· | Portfolio activities in the nine
months comprised net investment of €1.5 bln mainly relating to the St. Bernard bio-refinery in Chalmette, in the USA, upstream gas
assets in Algeria and bolt-on renewables acquisitions, partly offset by the divestment of natural gas transport rights from Algeria and
other minor assets. In the nine months dividend payments amounted to €2.3 bln and share repurchases were €1 bln. |
· | Net borrowings ex-IFRS 16 as of
September 30, 2023, were €8.7 bln, an increase of around €1.7 bln from December 31, 2022. Group leverage stood at
0.15, versus 0.13 as of December 31, 2022. |
· | Eni’s Board of Directors
approved the distribution of the second out of four instalments of the dividend for the fiscal year 2023 of €0.23 per share for a
total annual dividend of €0.94 as resolved by the |
1 For a reconciliation of Group proforma
adjusted EBIT and segment breakdown see page 25.
| Shareholders’
Meeting in May. The ex-dividend date of the second instalment is November 20, 2023,
payable on November 22, 2023. |
· | The first tranche of 2023 share
buy-back program, launched on May 12, 2023, was completed with the purchasing of 62 mln treasury shares (equal to 1.84% of share
capital) for a total cost of €825 mln. As part of the authorization of the Shareholders' Meeting of May 10, 2023, in September Eni
launched the second tranche of the share buy-back program up to a maximum of €1.375 bln, a maximum number of 275 million shares (approximately
8% of the share capital) to be executed by April 2024. Through October 20, 2023, 26.5 mln shares have been purchased for a cash
outlay of €400 mln. |
· | In September, Eni placed a €1
bln sustainability-linked senior unsecured convertible bond with a 7-year maturity, the first in its sector with this format. The bonds
are convertible in a 1:1 ratio into Eni shares listed on Euronext Milan (Borsa Italiana) and will pay an annual coupon of 2.95 per cent. |
Main business developments
| |
Exploration &
Production
· | The acquisition of Neptune has
been cleared by the relevant EU antitrust authorities and is on track to be completed by the first quarter 2024. |
· | During the nine months ’23,
new exploration resources added to the portfolio reached about 580 mln boe, driven mainly by the discoveries made off Egypt, Congo, Mexico
and Indonesia. |
· | In August, the startup of Baleine
oilfield, off the Côte d’Ivoire, demonstrated a rapid time-to-market, less than two years after the discovery and less than
a year and a half after the Final Investment Decision. This is thanks to our distinctive phased development and fast-track approach. Baleine
stands out as the first emissions-free - Scope 1 and 2 - production project in Africa. The gas production will be delivered to the national
grid, enabling the country to meet its domestic electricity requirements, facilitating energy access, and strengthening its role as a
regional energy hub for neighboring countries. |
· | In September, Eni signed an agreement
with the local partner Oando PLC (Nigeria’s leading indigenous energy solutions provider) to divest Eni’ subsidiary Nigerian
Agip Oil Company Ltd (NAOC Ltd), with onshore oil & gas exploration and production activities, as well as the ancillary power
generation business. The agreement does not include Eni’s interest in the SPDC JV. |
· | In
October, Eni announced the important gas discovery at Geng North-1, an exploration well drilled in the North Ganal PSC, off
Indonesia, with a preliminary estimated discovered volume of 5 trillion cubic feet (tcf) of gas and 400 mmbbl condensate in place.
This discovery, together with the pending completion of the
acquisition of Neptune that owns shares in the assets in the area and with the recent purchase of Chevron interests in the Rapak and Ganal
PSC blocks, opens up exciting potential in the Indonesia gas sector. Massive natural gas resources will be developed in synergy with the
Eni’s existing operating fields (i.e. Jangkrik), new developments (i.e. Geng North) and leveraging on the Bontang LNG export terminal,
offering the prospect of transforming the Kutei basin into a new world class gas hub. |
Global Gas & LNG Portfolio (GGP)
· | In September, Eni signed with
the Marine XII JV in Congo a purchase contract for LNG volumes from the Congo LNG project of up to approximately 4.5 bcm/year starting
from December 2023. The project and the relative offtakes will have two phases: in the first phase the Tango FLNG facility will have
a liquefaction capacity of 0.9 bcm/year, then a second FLNG with a capacity of 3.6 bcm/year will begin production in 2025. |
· | In October, Eni signed a 0.8 bcm/year
LNG sales and purchase agreement with Merakes LNG Sellers, starting from January 2024 for 3 years. This agreement, in addition to
the contract with Jangkrik LNG Sellers for 1.4 bcm/year, in place since 2017, expands the overall LNG available from Bontang facility. |
· | In October, Eni signed a long-term
contract with QatarEnergy LNG NFE (5), the JV between Eni and QatarEnergy for the development of the North Field East (NFE) project in
Qatar, for the delivery of up to 1.5 bcm/year of LNG. LNG will be delivered at the receiving terminal “FSRU Italia”, currently
located in Piombino, Italy, with expected deliveries starting from 2026 with a duration of 27 years. This |
| agreement expands the import
portfolio from Qatar given that Eni is already importing in Europe 2.9 bcm/year since 2007. |
· | These new LNG contracts contribute
to the build-up of the overall LNG contracted portfolio by leveraging on Eni’s integrated approach in the countries where we operate
and are in line with the company’s energy transition strategy, which aims to progressively increase the share of gas in overall
upstream production to 60% by 2030, while also increasing the contribution of equity LNG. |
Enilive, Refining and Chemicals
| · | In June, operations started at
the Chalmette biorefinery in Louisiana (USA), through a 50-50 joint venture partnership in St. Bernard Renewables LLC (SBR) between Eni
Sustainable Mobility Spa and PBF Energy Inc. (PBF). The biorefinery is targeted to have processing capacity of about 1.1 mln tonnes/year
of raw materials. |
| · | In September Versalis signed
an agreement with Technip Energies, aimed at integrating Versalis' Hoop® and Technip Energies' Pure.rOilTM and
Pure.rGasTM purification technologies by developing a technological platform for the advanced chemical recycling of plastic
waste. |
| · | In September, Enilive and LG Chem,
South Korea's leading chemical producer, announced the beginning of an evaluation of the development and operation of a new biorefinery
at LG Chem's Daesan chemical complex, located Southwest of Seoul. The biorefinery is envisaged as having a capacity of around 400 ktonnes
of organic raw materials per year and would use Eni's Ecofining™ technology. |
| · | In October, Versalis completed
the purchase of the remaining 64% participating interest in Novamont from its other shareholder Mater-Bi. |
Plenitude & Power
| · | In July, Vårgrønn,
a joint venture between Plenitude and HitecVision, and the Irish renewable-focused integrated utility Energia Group, signed a partnership
to co-develop offshore wind projects in Ireland with a potential to deliver total capacity up to 1.8 GW by 2030. |
| · | In September, Plenitude inaugurated
its first photovoltaic plant in the Republic of Kazakhstan, with a 50 MW installed capacity. The photovoltaic plant will produce up to
around 90 GWh of electricity annually. |
| · | In October, Dogger Bank, the world’s
largest offshore windfarm in which Vårgrønn holds a 20% stake, produced power for the first time, transmitted to the UK’s
national grid. |
Decarbonization and
Sustainability
| · | Eni UK has been awarded a Carbon
Dioxide Appraisal and Storage Licence (CS Licence) for the depleted Hewett gas field, in the Southern North Sea sector of the UK. Subsequently,
in October, Eni and the UK Government reached an agreement in principle on the key terms and conditions
for the economic, regulatory and governance model for the transportation and storage of CO2 at the HyNet North West industrial
CCS cluster. Hynet North West is expected to be operational around the middle of this decade with storage capacity of 4.5 mmtonnes/y
of CO2. |
| · | ESG/Climate Ratings: Sustainalytics
has maintained Eni in the “medium risk” band once again in 2023. Eni has been also confirmed first among its peers in terms
of number of aligned metrics in the Climate Action 100+ Net Zero Benchmark evaluation issued in October. Moreover, Eni has been recognized
for the fourth consecutive year by Carbon Tracker's "Absolute Impact 2023" research as the only company among the 25 largest
ones in the Oil & Gas sector to have established climate objectives that meet the prerequisites to be aligned with Paris Agreement. |
| · | In October, Eni signed a Letter
of Intent with the pharmaceutical company Dompé to launch joint research and development activities focusing on the health of people
and communities in the areas where Eni operates, as well as other relevant global health issues. |
The Company is issuing the following 2023 updated
operational and financial guidance:
· | E&P: 2023 guidance for hydrocarbon
production is narrowed to between 1.64-1.66 mln boe/d (vs. previous guidance 1.63-1.67 mln boe/d). |
· | E&P: following the recent
exploration success (Egypt and Indonesia), the target initially set of resources additions of 700 mln boe will be exceeded. |
· | GGP: the previously raised guidance
of FY adjusted EBIT in the €2.7 bln - €3 bln range is confirmed. |
· | Plenitude: proforma adjusted EBITDA
guidance is raised to around €0.9 bln, higher than the initial planning assumptions for the year (€0.7 bln). |
· | Enilive,
Refining and Chemicals: Enilive proforma adjusted EBITDA is seen at around €1 bln, higher than the prior guidance of more than €0.9
bln. Downstream proforma adjusted EBIT2 is now expected at about €1 bln, higher than the mid-year guidance of €0.8
bln. |
· | Financials: Group adjusted EBIT
guidance is raised to around €14 bln, higher than the mid-year guidance of €12 bln, reflecting improved market conditions3
and incorporating an improved underlying performance of around €2.6 bln, €0.6 bln higher than the mid-year estimate. Consistently,
we are now revising upwardly the projections of cash flow from operations before working capital to reach around €16.5 bln (vs. previous
guidance €15.5-€16 bln). As of September 30, 2023, we have delivered about 80% of the Group revised yearly guidance of
adjusted EBIT and cash flow. Those projections are exposed to the volatility of hydrocarbons prices; management is currently estimating
an impact of about €130 mln on cash flow for each one-dollar change in Brent crude oil prices (yearly basis). |
· | Capex: estimated at about €9
bln for the FY, representing a saving of about 6% from original plans due to continuing optimization and efficiency measures. |
· | Balance Sheet: leverage is expected
to remain within the stated range of 10% - 20%. |
· | Shareholder Remuneration: as
authorized by the Shareholders Annual General Meeting (AGM) on May 10, 2023, a dividend of €0.94 per share will be paid
for fiscal year 2023 in four instalments: the first payment was made in September 2023 and the following are due in
November 2023 (€0.23 per share4), March 2024 and May 2024. The planned €2.2 bln share buyback
also commenced in May after authorization at the AGM of a total of up to €3.5 bln and is expected
to be completed within April 2024, with an accelerated pace in the final months of 2023 compared to initial plans. |
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 18).
2 The proforma adjusted
Ebit includes the proportional consolidation of Eni’s main JVs and associates. A reconciliation to adjusted Ebit of consolidated
subsidiaries and a breakdown by segment are disclosed in the notes below.
3 Updated 2023 Scenario
is: Brent 84 $/bbl (previously $80/bbl); SERM 10.4 $/bbl (previously 8 $/bbl); PSV 474 €/kmc (from 484 €/kmc); average EUR/USD
exchange rate of 1.08 (unchanged).
4 Payment date: November
22, 2023 (Ex-dividend date/record date: November 20/November 21, 2023, respectively).
Business
segments operating results |
|
Exploration & Production
Production and prices
Q2 |
|
|
Q3 |
|
Nine
months |
|
2023 |
|
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
|
Production |
|
|
|
|
|
|
|
757 |
Liquids |
kbbl/d |
758 |
707 |
7 |
765 |
742 |
3 |
4,491 |
Natural
gas |
mmcf/d |
4,590 |
4,583 |
|
4,563 |
4,556 |
|
1,616 |
Hydrocarbons (a)
|
kboe/d |
1,635 |
1,578 |
4 |
1,637 |
1,608 |
2 |
|
Average
realizations (b) |
|
|
|
|
|
|
|
69.72 |
Liquids |
$/bbl |
79.13 |
91.51 |
(14) |
73.91 |
97.28 |
(24) |
7.05 |
Natural
gas |
$/kcf |
6.79 |
9.08 |
(25) |
7.30 |
8.57 |
(15) |
53.31 |
Hydrocarbons |
$/boe |
57.20 |
68.51 |
(17) |
55.79 |
71.40 |
(22) |
(a) Effective
January 1, 2023, the conversion rate of natural gas from cubic feet to boe has been updated to 1 barrel of oil equivalent = 5,232
cubic feet of gas (it was 1 barrel of oil = 5,263 cubic feet of gas).The effect on production has been 5 kboe/d in the third quarter
and nine months 2023. Data of the previous 2023 quarters have been restated accordingly.
(b) Prices
related to consolidated subsidiaries.
| · | In Q3 ’23, hydrocarbon
production averaged 1.64 mln boe/d (1.64 mln boe/d in the nine months ’23), up 4% compared to Q3 ’22 (up 2% vs. nine months
’22). Production was supported by the ramp-ups in Mozambique and Mexico, start-up of the Baleine project in Côte d'Ivoire,
higher activity in Algeria, which also benefited from the business acquisitions, in Kazakhstan due to unplanned events occurred in the
same period ’22, as well as in Indonesia. These increases were offset by lower production due to mature fields decline. In the sequential
comparison production increased by 1%. |
| · | Liquid production was 758
kbbl/d in Q3 ’23 (765 kbbl/d in the nine months ’23), up 7% compared to Q3 ’22 (up 3% vs. nine months ’22). Production
growth in Kazakhstan, Mexico and Côte d'Ivoire was offset by mature fields decline. |
| · | Natural gas production was
4,590 mmcf/d in Q3 ’23 (4,563 in the nine months ’23), barely unchanged compared to the same periods of 2022. Production increases
were reported in Algeria, Mozambique in relation to the ramp-up of the Coral Floating LNG project, Indonesia and Kazakhstan, offset
by mature fields decline. |
Results
Q2 |
|
Q3 |
|
Nine
months |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
1,812 |
Operating
profit (loss) |
2,528 |
4,539 |
(44) |
7,042 |
13,662 |
(48) |
254 |
Exclusion
of special items |
77 |
(267) |
|
418 |
(142) |
|
2,066 |
Adjusted
operating profit (loss) |
2,605 |
4,272 |
(39) |
7,460 |
13,520 |
(45) |
(12) |
of
which: - CCUS and agro-biofeedstock |
(14) |
(5) |
|
(44) |
(21) |
|
(85) |
Net
finance (expense) income |
(93) |
(76) |
|
(222) |
(191) |
|
351 |
Net
income (expense) from investments |
243 |
511 |
|
908 |
1,395 |
|
100 |
of
which: - Vår Energi |
85 |
325 |
|
365 |
780 |
|
178 |
- Azule |
105 |
174 |
|
398 |
174 |
|
2,332 |
Adjusted
profit (loss) before taxes |
2,755 |
4,707 |
(41) |
8,146 |
14,724 |
(45) |
(1,326) |
Income
taxes |
(1,242) |
(1,935) |
|
(4,105) |
(5,804) |
|
56.9 |
tax
rate (%) |
45.1 |
41.1 |
|
50.4 |
39.4 |
|
1,006 |
Adjusted
net profit (loss) |
1,513 |
2,772 |
(45) |
4,041 |
8,920 |
(55) |
|
Results
also include: |
|
|
|
|
|
|
155 |
Exploration
expenses: |
128 |
84 |
52 |
356 |
244 |
46 |
62 |
-
prospecting, geological and geophysical expenses |
46 |
60 |
|
165 |
165 |
|
93 |
-
write-off of unsuccessful wells |
82 |
24 |
|
191 |
79 |
|
2,159 |
Capital
expenditure |
1,501 |
1,770 |
(15) |
5,479 |
4,321 |
27 |
| · | In Q3 ’23, Exploration &
Production reported an adjusted operating profit of €2,605 mln, a decrease of 39% compared to Q3 ’22 due to lower crude
oil prices in USD (the marker Brent was down by 14% in the quarter) and lower benchmark gas prices in all geographies, which negatively
affected realized prices of equity production, particularly in Europe. The negative trend in prices was partly offset by the appreciation
of the USD/EUR exchange rate (up by 8%) and by positive volumes/mix effects and cost discipline actions. In the nine months ’23,
adjusted operating profit was €7,460 mln, down 45% compared to the nine months ’22, due to the same drivers as for the Q3 as
well as the missing contribution of the former Angolan subsidiaries that were contributed to the Azule joint-venture in Q3 ’22,
whose results are now recognized below the EBIT line. |
Adjusted operating profit of the segment
includes the results of CCUS and agro-biofeedstock: a loss of €14 mln in Q3 ’23 (a loss of €44 mln in the nine months
’23).
Including the contribution of JV/associates,
Q3 ’23 proforma adjusted EBIT was €3.4 bln, down 38% year on year (€10 bln in the nine months ’23, down 40%) also
impacted by a higher unsuccessful exploration well charge.
| · | In Q3 ’23, the segment reported
an adjusted net profit of €1,513 mln, a decrease of about 45% compared to Q3 ’22 due to weaker operating performance and lower
performance of investments, particularly Vår Energi (€365 mln in the nine months ’23, a decrease of €415 mln compared
to the same period of 2022). |
The pronounced decline in Azule results
versus Q2 ’23 results from a relative underlift in the quarter.
In the nine months ’23 tax rate
increased by 11 percentage points (about 4 percentage points in Q3 ’23) when compared to the comparative period due to: (i) the
impact of lower oil and gas prices; (ii) the impact of the UK energy profit levy which is recognized as a recurring item (effective
from the Q3 ’22); and (iii) the impact of certain non-deductible tax expenses (i.e. exploration write-offs).
For the disclosure on business segment special charges,
see “Special items” in the Group results section.
Global Gas & LNG Portfolio
Sales
Q2 |
|
|
Q3 |
|
Nine
months |
|
2023 |
|
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
395 |
Spot Gas price at Italian PSV |
€/kcm |
358 |
2,082 |
(83) |
452 |
1,389 |
(67) |
371 |
TTF |
|
349 |
2,077 |
(83) |
430 |
1,373 |
(69) |
24 |
Spread PSV vs. TTF |
|
9 |
5 |
96 |
23 |
17 |
33 |
|
Natural gas sales |
bcm |
|
|
|
|
|
|
5.73 |
Italy |
|
4.99 |
7.07 |
(29) |
17.82 |
23.35 |
(24) |
4.80 |
Rest of Europe |
|
5.32 |
5.79 |
(8) |
17.34 |
19.70 |
(12) |
0.62 |
of
which: Importers in Italy |
|
0.45 |
0.53 |
(15) |
1.69 |
1.63 |
4 |
4.18 |
European markets |
|
4.87 |
5.26 |
(7) |
15.65 |
18.07 |
(13) |
0.62 |
Rest of World |
|
0.60 |
0.47 |
28 |
1.74 |
1.92 |
(9) |
11.15 |
Worldwide
gas sales (*) |
|
10.91 |
13.33 |
(18) |
36.90 |
44.97 |
(18) |
2.5 |
of
which: LNG sales |
|
2.0 |
1.8 |
11 |
7.2 |
7.0 |
3 |
(*)
Data include intercompany sales.
| · | In
Q3 ’23, natural gas sales were 10.91 bcm, down 18% compared to the same period
in 2022, mainly due to the lower gas volumes marketed in Italy (down 29%) to hub and to the
industrial segment. In the European markets gas volumes decreased by 7% as result of lower
sales in the Iberian Peninsula and Benelux. In the nine months ’23, natural gas sales
amounted to 36.90 bcm, down 18% vs the same period of 2022, due to lower gas volumes marketed
in Italy (down 24% vs. the comparative period) in all segments and in the European markets
(down 13% compared to the nine months ’22). |
Results
Q2 |
|
Q3 |
|
Nine
months |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
539 |
Operating
profit (loss) |
324 |
2,062 |
(84) |
1,138 |
2 |
.. |
548 |
Exclusion
of special items |
(213) |
(979) |
|
1,432 |
1,998 |
|
1,087 |
Adjusted
operating profit (loss) |
111 |
1,083 |
(90) |
2,570 |
2,000 |
29 |
(3) |
Net
finance (expense) income |
(5) |
(19) |
|
(6) |
(39) |
|
20 |
Net
income (expense) from investments |
11 |
1 |
|
41 |
3 |
|
20 |
of
which: SeaCorridor |
11 |
|
|
41 |
|
|
1,104 |
Adjusted
profit (loss) before taxes |
117 |
1,065 |
.. |
2,605 |
1,964 |
.. |
(296) |
Income
taxes |
(42) |
(421) |
|
(723) |
(722) |
|
808 |
Adjusted
net profit (loss) |
75 |
644 |
(88) |
1,882 |
1,242 |
52 |
6 |
Capital
expenditure |
4 |
5 |
(20) |
10 |
14 |
(29) |
| · | In Q3 ’23, the Global
Gas & LNG Portfolio segment achieved an adjusted operating profit of €111 mln, a 90% decrease vs the same period of
2022. The Q3 ’23 result reflected limited benefits from asset optimization in a market environment characterized by lower volatility
and narrower gas spreads when compared with the same period of 2022. Additionally, some maintenance on infrastructure reduced available
flexibility and arbitrage opportunities. In the nine months ’23, adjusted operating profit was €2,570 mln, an improvement of
€570 mln from the same period of 2022. |
In Q3 ’23 proforma adjusted EBIT
including the operating margin of the equity accounted entities was €0.15 bln vs. €1.08 bln in Q3 ’22 (€2.72 bln
in the nine months ’23 vs. €2 bln in the comparative period).
For the disclosure on business segment special charges,
see “Special items” in the Group results section.
Enilive, Refining and Chemicals
Production and sales
Q2 |
|
|
Q3 |
|
Nine
months |
|
2023 |
|
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
6.6 |
Standard Eni Refining Margin (SERM) |
$/bbl |
14.7 |
4.1 |
.. |
10.8 |
6.8 |
59 |
4.09 |
Throughputs in Italy on own account |
mmtonnes |
4.25 |
4.26 |
(0) |
12.58 |
12.39 |
2 |
2.61 |
Throughputs in the rest of World on own account |
|
2.82 |
2.79 |
1 |
7.89 |
8.14 |
(3) |
6.70 |
Total throughputs on own account |
|
7.07 |
7.05 |
0 |
20.47 |
20.53 |
(0) |
75 |
Average refineries utilization rate |
% |
78 |
84 |
|
77 |
81 |
|
140 |
Bio throughputs |
ktonnes |
325 |
179 |
82 |
602 |
414 |
45 |
60 |
Average
bio refineries utilization rate (a) |
% |
88 |
77 |
|
72 |
59 |
|
|
Marketing |
|
|
|
|
|
|
|
1.88 |
Retail sales in Europe |
mmtonnes |
2.01 |
2.04 |
(2) |
5.65 |
5.60 |
1 |
1.32 |
Retail sales in Italy |
|
1.42 |
1.46 |
(3) |
4.00 |
4.01 |
(0) |
0.56 |
Retail sales in the rest of Europe |
|
0.59 |
0.58 |
2 |
1.65 |
1.59 |
4 |
20.9 |
Retail market share in Italy |
% |
21.6 |
21.7 |
|
21.3 |
21.7 |
|
2.13 |
Wholesale sales in Europe |
mmtonnes |
2.36 |
2.36 |
0 |
6.33 |
6.48 |
(2) |
1.65 |
Wholesale sales in Italy |
|
1.79 |
1.71 |
5 |
4.87 |
4.64 |
5 |
0.48 |
Wholesale sales
in the rest of Europe |
|
0.57 |
0.65 |
(12) |
1.46 |
1.84 |
(21) |
|
Chemicals |
|
|
|
|
|
|
|
0.82 |
Sales of chemical products |
mmtonnes |
0.76 |
0.77 |
(2) |
2.34 |
2.98 |
(21) |
55 |
Average plant
utilization rate |
% |
50 |
52 |
|
53 |
64 |
|
(a) Redetermined
based on the effective biorefinery capacity.
| · | In Q3 ’23, the Standard
Eni Refining Margin reported an average of 14.7 $/barrel vs. 4.1 $/barrel reported in the comparative period (10.8 $/barrel in the
nine months ’23, representing an increase vs. 6.8 $/barrel reported in the nine months of ’22). Refining margins increased
materially driven mainly by lower prices of natural gas. However, it is noted that under the current circumstances of narrowing differentials
between heavy/sour crudes vs. lighter/sweet grades due to tight supplies of the former, the SERM does not entirely capture the effective
refining margin. |
| · | In Q3 ’23, throughputs
on own accounts at Eni’s refineries in Italy were 4.25 mmtonnes, in line with Q3 ’22 reflecting lower volumes processed
at the Livorno refinery, impacted by planned turnaround activity, but entirely balanced by higher throughputs at Sannazzaro and Milazzo
refineries following the optimization initiatives. In the nine months ’23, throughputs amounted to 12.58 mmtonnes a slight increase
vs the same period of 2022. Throughputs outside Italy were in line compared to Q3 ’22 (in the nine months ’23 throughputs
decreased by 3% vs. comparative period). |
| · | In Q3 ’23, bio throughputs
were 325 ktonnes, representing an 82% increase compared to the same period of 2022 benefitting from the Chalmette contribution and higher
volumes processed at the Venice biorefinery. In the nine months ’23, bio throughputs increased by 45% compared to the same period
of 2022, thanks to the above-mentioned Chalmette contribution, as well as higher volumes processed at the Gela biorefinery. |
| · | In Q3 ’23, retail sales
in Italy were 1.42 mmtonnes, decreasing year-on-year (down 3%) due to lower volumes of gasoil, on the back of lower consumptions.
In the nine months ’23, retail sales amounted to 4 mmtonnes, substantially in line with the nine months ’22. |
| · | In Q3 ’23, wholesale
sales in Italy were 1.79 mmtonnes, increasing (up 5%) compared to the same period of 2022, mainly due to higher sales of jet fuel.
An increasing performance was also recorded in the nine months ’23 at 4.87 mmtonnes: up 5% vs. the nine months ’22. |
| · | Sales of chemical products
were 0.76 mmtonnes in Q3 ’23, down 2% compared to the same period of 2022, impacted by lower product availability following the
shutdown at Marghera and Priolo sites and opportunistic shutdowns of polymer plants due to reduced demand across all business segments.
In the nine months ’23, sales amounted to 2.34 mmtonnes, down 21% vs. the comparative period. |
| · | In Q3 ’23 cracking margin
decreased compared to the same period in 2022. Also margins on polyethylene and styrenics decreased compared to Q3 ’22, due
to weak commodity prices. |
Results
Q2 |
|
Q3 |
|
Nine
months |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
(305) |
Operating
profit (loss) |
681 |
(591) |
.. |
106 |
1,688 |
(94) |
190 |
Exclusion
of inventory holding (gains) losses |
(363) |
242 |
|
164 |
(1,146) |
|
202 |
Exclusion
of special items |
83 |
886 |
|
372 |
1,008 |
|
87 |
Adjusted
operating profit (loss) |
401 |
537 |
(25) |
642 |
1,550 |
(59) |
202 |
-
Enilive |
271 |
315 |
(14) |
611 |
561 |
9 |
(45) |
-
Refining |
328 |
399 |
(18) |
408 |
1,156 |
(65) |
(70) |
-
Chemicals |
(198) |
(177) |
(12) |
(377) |
(167) |
.. |
(14) |
Net
finance (expense) income |
(17) |
(13) |
|
(35) |
(42) |
|
70 |
Net
income (expense) from investments |
126 |
175 |
|
348 |
393 |
|
73 |
of
which: ADNOC R> |
103 |
144 |
|
327 |
340 |
|
143 |
Adjusted
profit (loss) before taxes |
510 |
699 |
(27) |
955 |
1,901 |
(50) |
(51) |
Income
taxes |
(183) |
(192) |
|
(308) |
(516) |
|
92 |
Adjusted
net profit (loss) |
327 |
507 |
(36) |
647 |
1,385 |
(53) |
216 |
Capital
expenditure |
199 |
186 |
7 |
553 |
417 |
33 |
| · | In Q3 ’23, Enilive
delivered an adjusted operating profit of €271 mln, slightly below the adjusted operating profit of the Q3 ’22, but up 9% in
the nine months ’23 at €611 mln. |
| · | The Refining business reported
an adjusted operating profit of €328 mln compared to a profit of €399 mln in Q3 ’22 (in the nine months ’23 reported
an adjusted operating profit of €408 mln, compared to a profit of €1,156 mln in the nine months ’22). The deterioration
reflected a lower discount of heavy vs.light crude qualities, partly offset by a recovery in the SERM also helped by better crack spreads
of products. |
| · | The Chemicals business,
managed by Versalis, reported an adjusted operating loss of €198 mln in Q3 ’23, down €21 mln compared to Q3 ’22.
Results were negatively affected by lower demand across all business segments and market uncertainties, holding back purchasing decisions
by resellers, as well as continued competitive pressure of product streams exported by other geographies. In the nine months ’23,
the adjusted operating result was a loss of €377 mln (loss of €167 mln in the nine months ’22) reflecting exceptionally
adverse market conditions. |
In Q3 ’23 Enilive, Refining and Chemicals
proforma adjusted EBIT including the operating margin of the equity accounted entities was €0.52 bln vs. €0.68 bln in Q3 ’22
(€0.99 bln in the nine months ’23 vs. €1.9 bln in the comparative period).
For the disclosure
on business segment special charges, see “Special items” in the Group results section.
Plenitude & Power
Production and sales
Q2 |
|
|
Q3 |
|
Nine
months |
|
2023 |
|
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
|
Plenitude |
|
|
|
|
|
|
|
10.1 |
Retail
and business customers at period end |
mln
pod |
10.1 |
9.9 |
2 |
10.1 |
9.9 |
2 |
0.87 |
Retail
and business gas sales |
bcm |
0.53 |
0.61 |
(14) |
4.32 |
4.98 |
(13) |
4.20 |
Retail
and business power sales to end customers |
TWh |
4.57 |
4.76 |
(4) |
13.38 |
14.34 |
(7) |
2.47 |
Installed
capacity from renewables at period end |
GW |
2.52 |
1.83 |
38 |
2.52 |
1.83 |
38 |
58 |
of
which: - photovoltaic (including installed storage capacity) |
% |
59 |
59 |
|
59 |
59 |
|
42 |
-
wind |
|
41 |
41 |
|
41 |
41 |
|
980 |
Energy
production from renewable sources |
GWh |
1,027 |
681 |
51 |
2,997 |
1,901 |
58 |
16.6 |
EV
charging points at period end |
thousand |
17.5 |
9.5 |
84 |
17.5 |
9.5 |
84 |
|
Power |
|
|
|
|
|
|
|
4.90 |
Power
sales in the open market |
TWh |
4.85 |
5.96 |
(19) |
14.91 |
17.30 |
(14) |
5.07 |
Thermoelectric
production |
|
5.18 |
5.36 |
(3) |
15.52 |
16.42 |
(5) |
| · | As of September 30, 2023,
retail and business customers were 10.1 mln (gas and electricity), up by 2% compared to September 30, 2022, mainly thanks
to the customer base increase in Italy. |
| · | Retail and business gas sales
amounted to 0.53 bcm in Q3 ’23, down by 14% compared to the same period in 2022, mainly due to reduced market demand. In the
nine months ’23, gas sales amounted to 4.32 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 4.57 TWh in the Q3 ’23, a 4% decrease compared to Q3 ’22 mainly due to lower consumptions. |
| · | As of September 30, 2023,
the installed capacity from renewables was 2.5 GW, up by approximately 0.7 GW compared to September 30, 2022, mainly thanks
to the acquisitions in Italy (PLT Group), in Spain (Bonete), in the USA (Kellam) and to the organic development in the USA (Brazoria),
Spain (Cerillares) and Kazakhstan (Shaulder). |
| · | Energy production from renewable
sources (1,027 GWh in Q3 ’23) up by 346 GWh year on year, mainly thanks to the contribution from acquired assets in operation
and the start-up of organic projects. |
| · | EV charging points as of
September 30, 2023, amounted to 17.5 thousand, almost doubling compared to the same period of 2022, in line with the enhancing plan
of our network. |
| · | Power sales in the open market
were 4.85 TWh in Q3 ’23, down 19% year-on-year mainly due to lower volumes marketed particularly to the power exchange and in
the open market (14.91 TWh in the nine months ’23, representing a reduction of 14% compared to the same period in 2022, due to the
same drivers as of the third quarter). |
Results
Q2 |
|
Q3 |
|
Nine
months |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
(3) |
Operating
profit (loss) |
25 |
1,512 |
.. |
(286) |
4,125 |
.. |
168 |
Exclusion
of special items |
194 |
(1,340) |
|
856 |
(3,628) |
|
165 |
Adjusted
operating profit (loss) |
219 |
172 |
27 |
570 |
497 |
15 |
133 |
-
Plenitude |
180 |
16 |
.. |
445 |
267 |
67 |
32 |
-
Power |
39 |
156 |
(75) |
125 |
230 |
(46) |
(4) |
Net
finance (expense) income |
(16) |
(2) |
|
(20) |
(9) |
|
(6) |
Net
income (expense) from investments |
(8) |
4 |
|
(19) |
2 |
|
155 |
Adjusted
profit (loss) before taxes |
195 |
174 |
12 |
531 |
490 |
8 |
(53) |
Income
taxes |
(73) |
(46) |
|
(180) |
(148) |
|
102 |
Adjusted
net profit (loss) |
122 |
128 |
(5) |
351 |
342 |
3 |
158 |
Capital
expenditure |
148 |
118 |
25 |
455 |
440 |
3 |
| · | In Q3 ’23 Plenitude reported
an adjusted operating profit of €180 mln, increasing by €164 mln compared to Q3 ’22. The positive performance was achieved
thanks to good results on retail business and to the ramp-up in renewable installed capacity and production volumes, confirming the value
of the integrated business model, which allowed to well capture scenario dynamics. In the nine months ’23, adjusted operating profit
was €445 mln, representing an increase of €178 mln from the same period in 2022 due to the same drivers as for the third quarter. |
| · | The Power generation business
from gas-fired plants reported an adjusted operating profit of €39 mln in Q3 ’23, down €117 mln or 75% compared to the
same period in 2022, due to lower power sales in the open market. In the nine months ’23, adjusted operating result was €125
mln, down €105 mln compared to the nine months ’22 due to the same drivers as for the third quarter. |
For the disclosure on business segment special charges,
see “Special items” in the Group results section.
Q2 |
|
Q3 |
|
Nine
months |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
19,591
|
Sales
from operations |
22,319
|
37,302
|
(40) |
69,095
|
100,987
|
(32) |
1,762
|
Operating
profit (loss) |
3,126
|
6,611
|
(53) |
7,401
|
17,933
|
(59) |
252
|
Exclusion
of inventory holding (gains) losses |
(250) |
65
|
|
359
|
(1,286) |
|
1,367
|
Exclusion
of special items (a) |
138
|
(904) |
|
3,276
|
157
|
|
3,381
|
Adjusted
operating profit (loss) |
3,014
|
5,772
|
(48) |
11,036
|
16,804
|
(34) |
|
Breakdown
by segment: |
|
|
|
|
|
|
2,066
|
Exploration &
Production |
2,605
|
4,272
|
(39) |
7,460
|
13,520
|
(45) |
1,087
|
GGP |
111
|
1,083
|
(90) |
2,570
|
2,000
|
29 |
87
|
Enilive,
Refining and Chemicals |
401
|
537
|
(25) |
642
|
1,550
|
(59) |
165
|
Plenitude &
Power |
219
|
172
|
27 |
570
|
497
|
15 |
(96) |
Corporate
and other activities |
(150) |
(185) |
19 |
(380) |
(479) |
21 |
72
|
Impact
of unrealized intragroup profit elimination and other consolidation adjustments |
(172) |
(107) |
|
174
|
(284) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3,381
|
Adjusted
operating profit (loss) |
3,014
|
5,772
|
(48) |
11,036
|
16,804
|
(34) |
(144) |
Net
finance (expense) income |
(122) |
(308) |
60 |
(389) |
(927) |
58 |
436
|
Net
income (expense) from investments |
373
|
687
|
(46) |
1,272
|
1,729
|
(26) |
3,673
|
Adjusted
profit before taxes |
3,265
|
6,151
|
(47) |
11,919
|
17,606
|
(32) |
(1,718) |
Income
taxes |
(1,428) |
(2,400) |
41 |
(5,201) |
(6,767) |
23 |
1,955
|
Adjusted
net profit (loss) |
1,837
|
3,751
|
(51) |
6,718
|
10,839
|
(38) |
20
|
of
which attributable to: - non-controlling interest |
19
|
21
|
.. |
58
|
31
|
.. |
1,935
|
-
Eni’s shareholders |
1,818
|
3,730
|
(51) |
6,660
|
10,808
|
(38) |
294
|
Net
profit (loss) attributable to Eni's shareholders |
1,916
|
5,862
|
(67) |
4,598
|
13,260
|
(65) |
181
|
Exclusion
of inventory holding (gains) losses |
(177) |
52
|
|
259
|
(910) |
|
1,460
|
Exclusion
of special items (a) |
79
|
(2,184) |
|
1,803
|
(1,542) |
|
1,935
|
Adjusted
net profit (loss) attributable to Eni's shareholders |
1,818
|
3,730
|
(51) |
6,660
|
10,808
|
(38) |
|
|
|
|
|
|
|
|
(a) For
further information see table "Breakdown of special items". |
|
|
|
| · | In Q3 ’23, the Group reported
an adjusted operating profit of €3,014 mln, down 48% compared to Q3 ’22, mainly as a result of lower E&P
segment (down 39% to €2,605 mln) and GGP segment (down 90% to €111 mln) results, due to declining crude oil and natural gas
prices in all geographies, leading to lower trading opportunities. The Enilive and Refining businesses (down 16% to €599 mln) were
affected by lower heavy-light crude differentials with Enilive also posting a small decline. The trend in the results of the Plenitude &
Power segment was positive, up 27%. The Chemical business continued on a downtrend (a loss of €0.2 bln in the Q3 ’23) due to
reduced demands and weak industry fundamentals. In the nine months ’23, the Group reported an adjusted operating profit of €11,036
mln, down 34% compared to the nine months ’22, due to lower E&P segment, also reflecting the reclassification of Angolan subsidiaries
to equity accounted entities as the Azule joint-venture became operational in Q3 ’22, and Enilive and Refining businesses partly
offset by strong performance in the GGP segment and positive results of the Plenitude & Power segment. |
| · | In Q3 ’23 adjusted net
profit attributable to Eni shareholders was €1,818 mln, €1,912 mln lower than the Q3 ’22, or 51%, due to lower operating
profit and lower results at JV and associates. In the nine months ’23, the Group reported an adjusted net result of €6,660
mln, down 38% compared to the nine months ’22. |
| · | Group’s tax rate:
the adjusted tax rate increased by 5 percentage points to 44% in both reporting periods compared to the same periods ’22, as a result
of the impact of the UK energy profit levy (effective from the third quarter ’22), adverse scenario effects and the impact of E&P
non-deductible expenses particularly the write-off of exploration expenses. This was partly offset by a higher proportion of the taxable
profit earned by Italian subsidiaries. It is worth mentioning that the Q3 tax rate decreased by 3 percentage points compared to Q2 ’23
due to a normalization of deductibles and rates in key E&P jurisdictions. |
Net borrowings and cash flow from operations
Q2 |
|
Q3 |
|
|
Nine
months |
|
2023 |
(€
million) |
2023 |
2022 |
Change |
|
2023 |
2022 |
Change |
314 |
Net
profit (loss) |
1,935 |
5,883 |
(3,948) |
|
4,656 |
13,291 |
(8,635) |
|
Adjustments
to reconcile net profit (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
|
1,990 |
-
depreciation, depletion and amortization and other non monetary items |
1,357 |
(996) |
2,353 |
|
4,518 |
1,769 |
2,749 |
(10) |
-
net gains on disposal of assets |
(11) |
(15) |
4 |
|
(429) |
(459) |
30 |
1,769 |
-
dividends, interests and taxes |
1,552 |
3,564 |
(2,012) |
|
4,623 |
8,749 |
(4,126) |
1,587 |
Changes
in working capital related to operations |
(140) |
(836) |
696 |
|
1,154 |
(4,676) |
5,830 |
780 |
Dividends
received by equity investments |
342 |
429 |
(87) |
|
1,682 |
734 |
948 |
(1,849) |
Taxes
paid |
(1,378) |
(2,218) |
840 |
|
(4,767) |
(5,882) |
1,115 |
(138) |
Interests
(paid) received |
(138) |
(225) |
87 |
|
(493) |
(659) |
166 |
4,443 |
Net
cash provided by operating activities |
3,519 |
5,586 |
(2,067) |
|
10,944 |
12,867 |
(1,923) |
(2,557) |
Capital
expenditure |
(1,873) |
(2,099) |
226 |
|
(6,549) |
(5,292) |
(1,257) |
(1,165) |
Investments
and acquisitions |
(60) |
(978) |
918 |
|
(1,870) |
(2,245) |
375 |
44 |
Disposal
of consolidated subsidiaries, businesses, tangible and intangible assets and investments |
51 |
27 |
24 |
|
540 |
931 |
(391) |
511 |
Other
cash flow related to investing activities |
(278) |
921 |
(1,199) |
|
21 |
1,177 |
(1,156) |
1,276 |
Free
cash flow |
1,359 |
3,457 |
(2,098) |
|
3,086 |
7,438 |
(4,352) |
(86) |
Net
cash inflow (outflow) related to financial activities |
355 |
(294) |
649 |
|
1,021 |
1,376 |
(355) |
1,567 |
Changes
in short and long-term financial debt |
(2,076) |
(1,278) |
(798) |
|
(648) |
(1,984) |
1,336 |
(228) |
Repayment
of lease liabilities |
(195) |
(211) |
16 |
|
(670) |
(767) |
97 |
(1,227) |
Dividends
paid, share repurchases, changes in non-controlling interests and reserves |
(1,327) |
(1,184) |
(143) |
|
(3,335) |
(2,897) |
(438) |
(48) |
Interest
payment of perpetual hybrid bond |
|
|
|
|
(87) |
(87) |
|
17 |
Effect
of changes in consolidation and exchange differences of cash and cash equivalent |
40 |
73 |
(33) |
|
25 |
152 |
(127) |
1,271 |
NET
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT |
(1,844) |
563 |
(2,407) |
|
(608) |
3,231 |
(3,839) |
4,232 |
Adjusted
net cash before changes in working capital at replacement cost |
3,369 |
5,469 |
(2,100) |
|
12,892 |
16,266 |
(3,374) |
Q2 |
|
Q3 |
|
|
Nine
months |
|
2023 |
(€
million) |
2023 |
2022 |
Change |
|
2023 |
2022 |
Change |
1,276 |
Free
cash flow |
1,359 |
3,457 |
(2,098) |
|
3,086 |
7,438 |
(4,352) |
(228) |
Repayment
of lease liabilities |
(195) |
(211) |
16 |
|
(670) |
(767) |
97 |
|
Net
borrowings of acquired companies |
|
(44) |
44 |
|
|
(132) |
132 |
|
Net
borrowings of divested companies |
(8) |
(220) |
212 |
|
(155) |
(220) |
65 |
(192) |
Exchange
differences on net borrowings and other changes (a) |
(293) |
(370) |
77 |
|
(492) |
(792) |
300 |
(1,227) |
Dividends
paid and changes in non-controlling interest and reserves |
(1,327) |
(1,184) |
(143) |
|
(3,335) |
(2,897) |
(438) |
(48) |
Interest
payment of perpetual hybrid bond |
|
|
|
|
(87) |
(87) |
|
(419) |
CHANGE
IN NET BORROWINGS BEFORE LEASE LIABILITIES |
(464) |
1,428 |
(1,892) |
|
(1,653) |
2,543 |
(4,196) |
228 |
Repayment
of lease liabilities |
195 |
211 |
(16) |
|
670 |
767 |
(97) |
(116) |
Inception
of new leases and other changes |
(368) |
(395) |
27 |
|
(618) |
(519) |
(99) |
(307) |
CHANGE
IN NET BORROWINGS AFTER LEASE LIABILITIES |
(637) |
1,244 |
(1,881) |
|
(1,601) |
2,791 |
(4,392) |
(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 (€672 million and €39 million in the nine months 2023 and 2022, respectively, €483 million
and €21 million in the third quarter 2023 and 2022, respectively and €104 million in the second quarter 2023).
Net cash provided by operating
activities in the nine months ’23 reached €10,944 mln and included €1,682 mln of dividends distributed from
investments, mainly Azule Energy and Vår Energi and was impacted by lower amount of trade receivables due in subsequent
reporting periods divested to financing institutions, down by approximately €0.9 bln compared to the amount divested at the end
of 2022.
Cash flow from operating activities before changes
in working capital at replacement cost was €12,892 mln in the nine months ’23 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, and the fair value of commodity
derivatives lacking the formal criteria to be designated as hedges or prorated on an accrual basis. It also excluded €0.4 bln cash-out
relating to an Italian extraordinary tax contribution enacted by the Italian Budget Law for 2023, calculated on the pre-tax income 2022
and accrued in the financial statements 2022.
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:
Q2 |
|
Q3 |
|
Nine
months |
|
2023 |
(€
million) |
2023 |
2022 |
Change |
2023 |
2022 |
Change |
4,443 |
Net
cash provided by operating activities |
3,519 |
5,586 |
(2,067) |
10,944 |
12,867 |
(1,923) |
(1,587) |
Changes
in working capital related to operations |
140 |
836 |
(696) |
(1,154) |
4,676 |
(5,830) |
137 |
Exclusion
of commodity derivatives |
(152) |
(1,955) |
1,803 |
1,232 |
(1,465) |
2,697 |
252 |
Exclusion
of inventory holding (gains) losses |
(250) |
65 |
(315) |
359 |
(1,286) |
1,645 |
3,245 |
Net
cash before changes in working capital at replacement cost |
3,257 |
4,532 |
(1,275) |
11,381 |
14,792 |
(3,411) |
987 |
Provisions
for extraordinary credit losses and other items |
112 |
937 |
(825) |
1,511 |
1,474 |
37 |
4,232 |
Adjusted
net cash before changes in working capital at replacement cost |
3,369 |
5,469 |
(2,100) |
12,892 |
16,266 |
(3,374) |
Organic
capex was €6.7 bln in the nine months ’23 (up 23% year on year) due to the ramp-up of natural gas and LNG projects to boost
energy security, as well as the Baleine project in Côte d’Ivoire, and comprised
capital contributions to investees that are executing capital projects of interest to Eni. Net of organic capex, the free cash flow ante
working capital was €6.2 bln (€1.5 bln in the quarter).
Cash outflows for acquisitions net of divestments
were about €1.5 bln and mainly related to the acquisition of bp’s activities in Algeria, the St. Bernard biorefinery, Plenitude’s
renewable assets and the final price installment of the acquisition of PLT group made late in 2022, partly offset by the divestment of
a 49.9% stake in the equity interests of Eni’s subsidiaries managing the TTPC/Transmed pipelines following the deal with Snam and
other non-strategic assets.
Net financial borrowings before IFRS 16 increased
by around €1.7 bln due to the adjusted operating cash flow (€12.9 bln), capex requirements of €6.7 bln, working capital
needs (€1.5 bln), dividend payments to Eni’s shareholders and share repurchases of €3.3 bln, the cash outflow related
to acquisitions and divestments (€1.5 bln), other investing activities and other changes (€0.7 bln) as well as the payment of
lease liabilities and hybrid bond interest (€0.8 bln).
Summarized Group Balance Sheet
(€
million) |
Sept.
30, 2023 |
Dec. 31,
2022 |
Change |
|
|
|
|
Fixed
assets |
|
|
|
Property, plant
and equipment |
58,249 |
56,332 |
1,917 |
Right
of use |
4,366 |
4,446 |
(80) |
Intangible
assets |
5,431 |
5,525 |
(94) |
Inventories
- Compulsory stock |
1,630 |
1,786 |
(156) |
Equity-accounted
investments and other investments |
14,740 |
13,294 |
1,446 |
Receivables
and securities held for operating purposes |
2,183 |
1,978 |
205 |
Net
payables related to capital expenditure |
(2,347) |
(2,320) |
(27) |
|
84,252 |
81,041 |
3,211 |
Net
working capital |
|
|
|
Inventories |
6,883 |
7,709 |
(826) |
Trade
receivables |
11,394 |
16,556 |
(5,162) |
Trade
payables |
(11,517) |
(19,527) |
8,010 |
Net
tax assets (liabilities) |
(3,544) |
(2,991) |
(553) |
Provisions |
(15,196) |
(15,267) |
71 |
Other
current assets and liabilities |
(1,344) |
316 |
(1,660) |
|
(13,324) |
(13,204) |
(120) |
Provisions
for employee benefits |
(714) |
(786) |
72 |
Assets
held for sale including related liabilities |
648 |
156 |
492 |
CAPITAL
EMPLOYED, NET |
70,862 |
67,207 |
3,655 |
|
|
|
|
Eni's
shareholders equity |
56,847 |
54,759 |
2,088 |
Non-controlling
interest |
437 |
471 |
(34) |
Shareholders'
equity |
57,284 |
55,230 |
2,054 |
Net
borrowings before lease liabilities ex IFRS 16 |
8,679 |
7,026 |
1,653 |
Lease
liabilities |
4,899 |
4,951 |
(52) |
-
of which Eni working interest |
4,440 |
4,457 |
(17) |
-
of which Joint operators' working interest |
459 |
494 |
(35) |
Net
borrowings after lease liabilities ex IFRS 16 |
13,578 |
11,977 |
1,601 |
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY |
70,862 |
67,207 |
3,655 |
Leverage
before lease liabilities ex IFRS 16 |
0.15 |
0.13 |
0.02 |
Leverage
after lease liabilities ex IFRS 16 |
0.24 |
0.22 |
0.02 |
Gearing |
0.19 |
0.18 |
0.01 |
As of September 30, 2023, fixed assets
(€84.2 bln) increased by €3.2 bln from December 31, 2022, due to capital expenditure and acquisitions and the increased
book value of equity-accounted investments reflecting the net effect of Eni’s share of investees results and of the derecognition
of Eni’s natural gas transport assets, which were contributed to the newly established “SeaCorridor” entity, jointly
controlled by Eni and Snam (50.1% and 49.9%, respectively), the acquisition of a 50% stake in the St. Bernard Bio-refinery, offset by
dividends distributed by investees. DD&A, impairment charges and write-offs recorded in the period partly offset those increases.
Net working capital (-€13.3 bln) almost
unchanged from December 31, 2022. Increased balance between trade receivables and trade payables (approximately up by €2.8 bln),
was partly offset by the lower value of oil and product inventories due to the weighted-average cost method of accounting in an environment
of declining prices (down by €0.8 bln) and increased net tax liabilities (up by €0.6 bln) as well as a decrease in other current
assets and liabilities (down €1.7 billion) due to fair value changes of derivative instruments.
Shareholders’ equity (€57.3 bln)
increased by €2 bln compared to December 31, 2022, due to the net profit for the period (€4.7 bln), the positive change
in the cash flow hedge reserve of €0.4 bln and positive foreign currency translation differences (about €0.3 bln) reflecting
the appreciation of the USD vs. the Euro as well as the positive effect of the issuance of the convertible bonds (€0.08 bln), partly
offset by dividend paid to shareholders (€2.3 bln) and share repurchase (€1 bln).
Net borrowings5 before lease
liabilities as of September 30, 2023, amounted to €8.7 bln, up by approximately €1.7 bln from December 31, 2022. Leverage6
– the ratio of the borrowings to total equity calculated before the impact of IFRS 16 – was 0.15 on September 30, 2023
(compared to 0.13 as of December 31, 2022).
Special items
The breakdown of special items recorded in operating
profit by segment (net charges of €3,276 mln and €138 mln in the nine months and Q3 ’23, respectively) is as follows:
| • | E&P: net charges of
€418 mln in the nine months ’23 (net charges of €77 mln in Q3) mainly related to impairment losses of €182 mln recorded
at certain Italian properties driven by lower natural gas prices and alignment to fair value of held-for-sale assets, credits impairment
losses (€69 mln in the nine months ’23) and environmental charges (€90 mln and €54 mln in the nine months and Q3
’23, respectively). |
| • | GGP: net charges of €1,432
mln in the nine months ’23 (net gains of €213 mln in Q3) mainly including 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; 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 €1,030 mln and
€84 mln in the nine months and Q3 ’23, respectively). |
| • | Enilive, Refining and Chemicals:
net charges of €372 mln in the nine months ’23 (net charges of €83 mln in Q3) mainly related to the write-down of capital
expenditures made for compliance and stay-in-business at certain CGU with expected negative cash flows (€227 mln and €56 mln
in the nine months and Q3 ’23, respectively), environmental provisions (€140 mln and €61 mln in the nine months and Q3
’23), and the accounting effect of certain fair-valued commodity derivatives lacking the formal criteria to be classified as hedges
(charge of €5 mln and gains of €32 mln in the nine months and Q3 ’23). |
| • | Plenitude & Power:
net charges of €856 mln in the nine months ’23 (net charges €194 mln in Q3) mainly related to the fair values of commodity
derivatives lacking the formal criteria to be classified as hedges under IFRS, and, to a lower extent, some derivatives part of a general
annual hedging program prorated over the 2023 quarters. |
The other special items in the nine months ’23
related to a gain of €0.8 bln (including the fair value evaluation of stake retained in the company) in connection to the sale of
a 49.9% stake in the equity interests of Eni’s subsidiaries managing the TTPC/Transmed pipelines and the relevant transportation
rights of natural gas volumes imported from Algeria following the agreement with Snam SpA.
5 Details on net borrowings
are furnished on page 28.
6 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 19 and subsequent.
Other information, basis of
presentation and disclaimer
This press release on Eni’s results for
the third quarter and the nine months of 2023 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 second
and third quarter of 2023, the nine months of 2023 and for the third quarter and the nine months of 2022. Information on the Company’s
financial position relates to end of the periods as of September 30, 2023 and December 31, 2022.
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 2022 Annual
Report on Form 20-F filed with the US SEC on April 5, 2023, which investors are urged to read.
Effective January 1, 2023, Eni has updated
the conversion rate of gas produced to 5,232 cubic feet of gas equals 1 barrel of oil equivalent (it was 5,263 cubic feet of gas per barrel
in previous reporting periods). This update reflected changes in volumes and Eni’s gas properties that took place in the last years
and was assessed by collecting data on the heating value of gas in Eni’s gas fields currently on stream. The effect of this update
on production expressed in boe was 5 kboe/d for the third quarter and nine months. For the sake of comparability also production of the
first and the second quarter of 2023 was restated resulting in an effect equal to that of the third quarter. Other per-boe indicators
were only marginally affected by the update (e.g. realized prices, costs per boe) and also negligible was the impact on depletion charges.
Other oil companies may use different conversion rates.
Basis of presentation
Following the establishment of Enilive (Eni Sustainable
Mobility business) effective January 1, 2023, that operates Eni’s biorefineries and the retail marketing of fuels and of smart
mobility solutions, the management has resolved to break-down the adjusted EBIT of the former reporting segment Refining & Marketing
“R&M” into two operating sub-segments:
The re-segmentation of the adjusted EBIT of R&M
for the comparative periods of 2022 is disclosed below:
2022 |
First
quarter |
Second
quarter |
Third
quarter |
Fourth
quarter |
Adjusted
operating profit (loss) |
As
published |
As
restated |
As
published |
As
restated |
As
published |
As
restated |
As
published |
As
restated |
R&M
and Chemicals |
(91) |
|
1,104 |
|
537 |
|
379 |
|
-
Refining & Marketing |
24 |
|
979 |
|
714 |
|
466 |
|
-
Chemicals |
(115) |
|
125 |
|
(177) |
|
(87) |
|
Enilive,
Refining and Chemicals |
|
(91) |
|
1,104 |
|
537 |
|
379 |
-
Enilive |
|
24 |
|
222 |
|
315 |
|
111 |
-
Refining |
|
0 |
|
757 |
|
399 |
|
355 |
-
Chemicals |
|
(115) |
|
125 |
|
(177) |
|
(87) |
No change has been made to the Group statutory
segment information as per IFRS 8 “Segment Reporting”, which will continue to feature the Enilive, Refining and Chemicals
segment (formerly R&M and Chemicals).
* * *
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 third quarter and nine
months of 2023 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.
Reconciliation tables of Non-GAAP results to
the most comparable measures of financial performance determined in accordance to GAAPs
(€ million) |
|
|
|
|
|
|
|
Third
Quarter 2023 |
|
|
|
|
|
|
|
|
Exploration &
Production |
Global
Gas & LNG
Portfolio |
Enilive,Refining and
Chemicals |
Plenitude &
Power |
Corporate
and other
activities |
Impact
of unrealized
intragroup profit
elimination |
GROUP |
Reported
operating profit (loss) |
2,528 |
324 |
681 |
25 |
(147) |
(285) |
3,126 |
Exclusion
of inventory holding (gains) losses |
|
|
(363) |
|
|
113 |
(250) |
Exclusion
of special items: |
|
|
|
|
|
|
|
environmental charges |
54 |
|
61 |
|
|
|
115 |
impairment losses (impairment
reversals), net |
(27) |
|
56 |
|
7 |
|
36 |
net gains on disposal of assets |
|
|
(4) |
|
|
|
(4) |
risk provisions |
14 |
|
1 |
|
2 |
|
17 |
provision for redundancy
incentives |
4 |
|
2 |
1 |
3 |
|
10 |
commodity derivatives |
|
(313) |
(32) |
193 |
|
|
(152) |
exchange rate differences and derivatives |
3 |
8 |
(6) |
|
|
|
5 |
other |
29 |
92 |
5 |
|
(15) |
|
111 |
Special
items of operating profit (loss) |
77 |
(213) |
83 |
194 |
(3) |
|
138 |
Adjusted
operating profit (loss) |
2,605 |
111 |
401 |
219 |
(150) |
(172) |
3,014 |
Net finance (expense) income
(a) |
(93) |
(5) |
(17) |
(16) |
9 |
|
(122) |
Net income (expense) from
investments (a) |
243 |
11 |
126 |
(8) |
1 |
|
373 |
Adjusted
profit (loss) before taxes |
2,755 |
117 |
510 |
195 |
(140) |
(172) |
3,265 |
Income taxes (a) |
(1,242) |
(42) |
(183) |
(73) |
63 |
49 |
(1,428) |
Tax
rate (%) |
|
|
|
|
|
|
43.7 |
Adjusted
net profit (loss) |
1,513 |
75 |
327 |
122 |
(77) |
(123) |
1,837 |
of
which: |
|
|
|
|
|
|
|
- Adjusted net profit (loss)
of non-controlling interest |
|
|
|
|
|
|
19 |
- Adjusted
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
1,818 |
Reported net profit (loss) attributable
to Eni's shareholders |
|
|
|
|
|
|
1,916 |
Exclusion of inventory
holding (gains) losses |
|
|
|
|
|
|
(177) |
Exclusion of special items |
|
|
|
|
|
|
79 |
Adjusted
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
1,818 |
(a) Excluding
special items. |
(€ million) |
|
|
|
|
|
|
|
Third
Quarter 2022 |
|
|
|
|
|
|
|
|
Exploration &
Production |
Global
Gas & LNG
Portfolio |
Enilive,Refining and
Chemicals |
Plenitude &
Power |
Corporate
and other
activities |
Impact
of unrealized
intragroup profit
elimination |
GROUP |
Reported
operating profit (loss) |
4,539 |
2,062 |
(591) |
1,512 |
(981) |
70 |
6,611 |
Exclusion
of inventory holding (gains) losses |
|
|
242 |
|
|
(177) |
65 |
Exclusion
of special items: |
|
|
|
|
|
|
|
environmental
charges |
13 |
|
685 |
|
786 |
|
1,484 |
impairment
losses (impairment reversals), net |
14 |
|
70 |
|
6 |
|
90 |
net
gains on disposal of assets |
|
|
|
1 |
(1) |
|
|
risk
provisions |
|
|
|
|
(1) |
|
(1) |
provision
for redundancy incentives |
3 |
|
5 |
|
6 |
|
14 |
commodity
derivatives |
|
(680) |
66 |
(1,341) |
|
|
(1,955) |
exchange
rate differences and derivatives |
(5) |
231 |
(34) |
|
|
|
192 |
other |
(292) |
(530) |
94 |
|
|
|
(728) |
Special
items of operating profit (loss) |
(267) |
(979) |
886 |
(1,340) |
796 |
|
(904) |
Adjusted
operating profit (loss) |
4,272 |
1,083 |
537 |
172 |
(185) |
(107) |
5,772 |
Net
finance (expense) income (a) |
(76) |
(19) |
(13) |
(2) |
(198) |
|
(308) |
Net
income (expense) from investments (a) |
511 |
1 |
175 |
4 |
(4) |
|
687 |
Adjusted
profit (loss) before taxes |
4,707 |
1,065 |
699 |
174 |
(387) |
(107) |
6,151 |
Income
taxes (a) |
(1,935) |
(421) |
(192) |
(46) |
163 |
31 |
(2,400) |
Tax
rate (%) |
|
|
|
|
|
|
39.0 |
Adjusted
net profit (loss) |
2,772 |
644 |
507 |
128 |
(224) |
(76) |
3,751 |
of
which: |
|
|
|
|
|
|
|
-
Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
21 |
-
Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
3,730 |
Reported
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
5,862 |
Exclusion
of inventory holding (gains) losses |
|
|
|
|
|
|
52 |
Exclusion
of special items |
|
|
|
|
|
|
(2,184) |
Adjusted
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
3,730 |
(a) Excluding
special items. |
(€ million) |
|
|
|
|
|
|
|
Nine months 2023 |
|
|
|
|
|
|
|
|
Exploration &
Production |
Global
Gas & LNG
Portfolio |
Enilive,Refining and
Chemicals |
Plenitude &
Power |
Corporate
and other
activities |
Impact
of unrealized
intragroup profit
elimination |
GROUP |
Reported
operating profit (loss) |
7,042 |
1,138 |
106 |
(286) |
(578) |
(21) |
7,401 |
Exclusion
of inventory holding (gains) losses |
|
|
164 |
|
|
195 |
359 |
Exclusion
of special items: |
|
|
|
|
|
|
|
environmental charges |
90 |
|
140 |
|
174 |
|
404 |
impairment losses (impairment
reversals), net |
182 |
|
227 |
|
16 |
|
425 |
net gains on disposal of assets |
3 |
|
(7) |
|
|
|
(4) |
risk provisions |
7 |
|
16 |
|
10 |
|
33 |
provision for redundancy
incentives |
12 |
1 |
9 |
2 |
16 |
|
40 |
commodity derivatives |
|
374 |
5 |
853 |
|
|
1,232 |
exchange rate differences and derivatives |
18 |
|
17 |
|
|
|
35 |
other |
106 |
1,057 |
(35) |
1 |
(18) |
|
1,111 |
Special
items of operating profit (loss) |
418 |
1,432 |
372 |
856 |
198 |
|
3,276 |
Adjusted
operating profit (loss) |
7,460 |
2,570 |
642 |
570 |
(380) |
174 |
11,036 |
Net finance (expense) income
⁽ᵃ⁾ |
(222) |
(6) |
(35) |
(20) |
(106) |
|
(389) |
Net income (expense) from
investments ⁽ᵃ⁾ |
908 |
41 |
348 |
(19) |
(6) |
|
1,272 |
Adjusted
profit (loss) before taxes |
8,146 |
2,605 |
955 |
531 |
(492) |
174 |
11,919 |
Income taxes ⁽ᵃ⁾ |
(4,105) |
(723) |
(308) |
(180) |
162 |
(47) |
(5,201) |
Tax
rate (%) |
|
|
|
|
|
|
43.6 |
Adjusted
net profit (loss) |
4,041 |
1,882 |
647 |
351 |
(330) |
127 |
6,718 |
of
which: |
|
|
|
|
|
|
|
- Adjusted net profit (loss)
of non-controlling interest |
|
|
|
|
|
|
58 |
- Adjusted
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
6,660 |
Reported net profit (loss) attributable
to Eni's shareholders |
|
|
|
|
|
|
4,598 |
Exclusion of inventory
holding (gains) losses |
|
|
|
|
|
|
259 |
Exclusion of special items |
|
|
|
|
|
|
1,803 |
Adjusted
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
6,660 |
(a) Excluding
special items. |
(€ million) |
|
|
|
|
|
|
|
Nine months 2022 |
|
|
|
|
|
|
|
|
Exploration &
Production |
Global
Gas & LNG
Portfolio |
Enilive,
Refining and
Chemicals |
Plenitude &
Power |
Corporate
and other
activities |
Impact
of unrealized
intragroup profit
elimination |
GROUP |
Reported
operating profit (loss) |
13,662 |
2 |
1,688 |
4,125 |
(1,400) |
(144) |
17,933 |
Exclusion
of inventory holding (gains) losses |
|
|
(1,146) |
|
|
(140) |
(1,286) |
Exclusion
of special items: |
|
|
|
|
|
|
|
environmental
charges |
15 |
|
809 |
|
884 |
|
1,708 |
impairment
losses (impairment reversals), net |
57 |
3 |
173 |
3 |
29 |
|
265 |
net
gains on disposal of assets |
(2) |
|
(7) |
1 |
(1) |
|
(9) |
risk
provisions |
7 |
|
|
|
4 |
|
11 |
provision
for redundancy incentives |
20 |
3 |
15 |
69 |
13 |
|
120 |
commodity
derivatives |
|
2,194 |
39 |
(3,698) |
|
|
(1,465) |
exchange
rate differences and derivatives |
(19) |
379 |
(75) |
(3) |
|
|
282 |
other |
(220) |
(581) |
54 |
|
(8) |
|
(755) |
Special
items of operating profit (loss) |
(142) |
1,998 |
1,008 |
(3,628) |
921 |
|
157 |
Adjusted
operating profit (loss) |
13,520 |
2,000 |
1,550 |
497 |
(479) |
(284) |
16,804 |
Net
finance (expense) income ⁽ᵃ⁾ |
(191) |
(39) |
(42) |
(9) |
(646) |
|
(927) |
Net
income (expense) from investments ⁽ᵃ⁾ |
1,395 |
3 |
393 |
2 |
(64) |
|
1,729 |
Adjusted
profit (loss) before taxes |
14,724 |
1,964 |
1,901 |
490 |
(1,189) |
(284) |
17,606 |
Income
taxes ⁽ᵃ⁾ |
(5,804) |
(722) |
(516) |
(148) |
341 |
82 |
(6,767) |
Tax
rate (%) |
|
|
|
|
|
|
38.4 |
Adjusted
net profit (loss) |
8,920 |
1,242 |
1,385 |
342 |
(848) |
(202) |
10,839 |
of
which: |
|
|
|
|
|
|
|
-
Adjusted net profit (loss) of non-controlling interest |
|
|
|
|
|
|
31 |
-
Adjusted net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
10,808 |
Reported
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
13,260 |
Exclusion
of inventory holding (gains) losses |
|
|
|
|
|
|
(910) |
Exclusion
of special items |
|
|
|
|
|
|
(1,542) |
Adjusted
net profit (loss) attributable to Eni's shareholders |
|
|
|
|
|
|
10,808 |
(a) Excluding
special items. |
(€ million) |
|
|
|
|
|
|
|
Second Quarter 2023 |
|
|
|
|
|
|
|
|
Exploration &
Production |
Global
Gas & LNG
Portfolio |
Enilive,
Refining and
Chemicals |
Plenitude &
Power |
Corporate
and other
activities |
Impact
of unrealized
intragroup profit
elimination |
GROUP |
Reported
operating profit (loss) |
1,812 |
539 |
(305) |
(3) |
(291) |
10 |
1,762 |
Exclusion
of inventory holding (gains) losses |
|
|
190 |
|
|
62 |
252 |
Exclusion
of special items: |
|
|
|
|
|
|
|
environmental
charges |
19 |
|
62 |
|
174 |
|
255 |
impairment
losses (impairment reversals), net |
208 |
|
117 |
|
5 |
|
330 |
net
gains on disposal of assets |
(6) |
|
(3) |
|
|
|
(9) |
risk
provisions |
(7) |
|
15 |
|
8 |
|
16 |
provision
for redundancy incentives |
2 |
1 |
3 |
1 |
5 |
|
12 |
commodity
derivatives |
|
(35) |
6 |
166 |
|
|
137 |
exchange
rate differences and derivatives |
12 |
10 |
7 |
|
|
|
29 |
other |
26 |
572 |
(5) |
1 |
3 |
|
597 |
Special
items of operating profit (loss) |
254 |
548 |
202 |
168 |
195 |
|
1,367 |
Adjusted
operating profit (loss) |
2,066 |
1,087 |
87 |
165 |
(96) |
72 |
3,381 |
Net
finance (expense) income ⁽ᵃ⁾ |
(85) |
(3) |
(14) |
(4) |
(38) |
|
(144) |
Net
income (expense) from investments ⁽ᵃ⁾ |
351 |
20 |
70 |
(6) |
1 |
|
436 |
Adjusted
profit (loss) before taxes |
2,332 |
1,104 |
143 |
155 |
(133) |
72 |
3,673 |
Income
taxes ⁽ᵃ⁾ |
(1,326) |
(296) |
(51) |
(53) |
28 |
(20) |
(1,718) |
Tax
rate (%) |
|
|
|
|
|
|
46.8 |
Adjusted
net profit (loss) |
1,006 |
808 |
92 |
102 |
(105) |
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 |
(a) Excluding
special items. |
Breakdown of special items
Q2 |
|
Q3 |
Nine
months |
2023 |
(€
million) |
2023 |
2022 |
2023 |
2022 |
255 |
Environmental
charges |
115 |
1,484 |
404 |
1,708 |
330 |
Impairment
losses (impairment reversals), net |
36 |
90 |
425 |
265 |
(9) |
Net
gains on disposal of assets |
(4) |
|
(4) |
(9) |
16 |
Risk
provisions |
17 |
(1) |
33 |
11 |
12 |
Provisions
for redundancy incentives |
10 |
14 |
40 |
120 |
137 |
Commodity
derivatives |
(152) |
(1,955) |
1,232 |
(1,465) |
29 |
Exchange
rate differences and derivatives |
5 |
192 |
35 |
282 |
597 |
Other |
111 |
(728) |
1,111 |
(755) |
1,367 |
Special
items of operating profit (loss) |
138 |
(904) |
3,276 |
157 |
(25) |
Net
finance (income) expense |
(2) |
(147) |
(26) |
(238) |
|
of
which: |
|
|
|
|
(29) |
-
exchange rate differences and derivatives reclassified to operating profit (loss) |
(5) |
(192) |
(35) |
(282) |
22 |
Net
income (expense) from investments |
(59) |
(2,166) |
(766) |
(2,633) |
|
of
which: |
|
|
|
|
|
-
gain on the SeaCorridor deal |
|
|
(824) |
|
|
-
gain on the divestment of Vår Energi |
|
(12) |
|
(444) |
|
-
net gains on the divestment of Angolan assets |
|
(2,445) |
|
(2,445) |
96 |
Income
taxes |
2 |
1,033 |
(681) |
1,172 |
1,460 |
Total
special items of net profit (loss) |
79 |
(2,184) |
1,803 |
(1,542) |
Reconciliation of Group proforma adjusted EBIT
Q2 |
|
Q3 |
|
Nine
months |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
2,066 |
E&P
adjusted Ebit |
2,605 |
4,272 |
(39) |
7,460 |
13,520 |
(45) |
724 |
Main
Associates adjusted Ebit |
777 |
1,185 |
(34) |
2,525 |
3,211 |
(21) |
2,790 |
E&P
proforma adjusted Ebit |
3,382 |
5,457 |
(38) |
9,985 |
16,731 |
(40) |
1,087 |
GGP
adjusted Ebit |
111 |
1,083 |
(90) |
2,570 |
2,000 |
29 |
56 |
Main
Associates adjusted Ebit |
42 |
|
|
146 |
|
|
1,143 |
GGP
proforma adjusted Ebit |
153 |
1,083 |
(86) |
2,716 |
2,000 |
36 |
87 |
Enilive,
Refining and Chemicals adjusted Ebit |
401 |
537 |
(25) |
642 |
1,550 |
(59) |
74 |
Main
Associates adjusted Ebit |
120 |
143 |
(16) |
347 |
333 |
4 |
161 |
Enilive,
Refining and Chemicals proforma adjusted Ebit |
521 |
680 |
(23) |
989 |
1,883 |
(47) |
69 |
Other
segments adjusted Ebit |
69 |
(13) |
.. |
190 |
18 |
.. |
72 |
Impact
of unrealized intragroup profit elimination |
(172) |
(107) |
|
174 |
(284) |
|
4,235 |
Group
proforma adjusted Ebit |
3,953 |
7,100 |
(44) |
14,054 |
20,348 |
(31) |
Profit and loss reconciliation GAAP vs Non-GAAP
Third
Quarter |
2023 |
Nine
months |
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 |
|
|
|
|
|
|
|
|
|
|
|
3,126 |
(250) |
133 |
5 |
3,014 |
Operating
profit |
7,401 |
359 |
3,241 |
35 |
11,036 |
(120) |
|
3 |
(5) |
(122) |
Finance
income (expense) |
(363) |
|
9 |
(35) |
(389) |
432 |
|
(59) |
|
373 |
Income
(expense) from investments |
2,038 |
|
(766) |
|
1,272 |
109 |
|
(24) |
|
85 |
.
Vår Energi |
280 |
|
85 |
|
365 |
105 |
|
|
|
105 |
.
Azule |
398 |
|
|
|
398 |
135 |
|
(32) |
|
103 |
.
Adnoc R&T |
361 |
|
(34) |
|
327 |
(1,503) |
73 |
2 |
|
(1,428) |
Income
taxes |
(4,420) |
(100) |
(681) |
|
(5,201) |
1,935 |
(177) |
79 |
|
1,837 |
Net
profit |
4,656 |
259 |
1,803 |
|
6,718 |
19 |
|
|
|
19 |
-
Non-controlling interest |
58 |
|
|
|
58 |
1,916 |
|
|
|
1,818 |
Net
profit attributable to Eni's shareholders |
4,598 |
|
|
|
6,660 |
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter |
2022 |
Nine
months |
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 |
|
|
|
|
|
|
|
|
|
|
|
6,611 |
65 |
(1,096) |
192 |
5,772 |
Operating
profit |
17,933 |
(1,286) |
(125) |
282 |
16,804 |
(161) |
|
45 |
(192) |
(308) |
Finance
income (expense) |
(689) |
|
44 |
(282) |
(927) |
2,853 |
|
(2,166) |
|
687 |
Income
(expense) from investments |
4,362 |
|
(2,633) |
|
1,729 |
102 |
|
223 |
|
325 |
.
Vår Energi |
396 |
|
384 |
|
780 |
174 |
|
|
|
174 |
.
Azule |
174 |
|
|
|
174 |
85 |
|
59 |
|
144 |
.
Adnoc R&T |
424 |
|
(84) |
|
340 |
(3,420) |
(13) |
1,033 |
|
(2,400) |
Income
taxes |
(8,315) |
376 |
1,172 |
|
(6,767) |
5,883 |
52 |
(2,184) |
|
3,751 |
Net
profit |
13,291 |
(910) |
(1,542) |
|
10,839 |
21 |
|
|
|
21 |
-
Non-controlling interest |
31 |
|
|
|
31 |
5,862 |
|
|
|
3,730 |
Net
profit attributable to Eni's shareholders |
13,260 |
|
|
|
10,808 |
|
|
|
|
|
|
|
|
|
|
|
|
Q2
2023 |
(€
million) |
Reported
results |
Profit
on
stock |
Special
items |
Finance
expense
reclassified |
Adjusted
results |
|
|
|
|
|
|
Operating
profit |
1,762 |
252 |
1,338 |
29 |
3,381 |
Finance
income (expense) |
(119) |
|
4 |
(29) |
(144) |
Income
(expense) from investments |
414 |
|
22 |
|
436 |
.
Vår Energi |
51 |
|
49 |
|
100 |
.
Azule |
178 |
|
|
|
178 |
.
Adnoc R&T |
105 |
|
(32) |
|
73 |
Income
taxes |
(1,743) |
(71) |
96 |
|
(1,718) |
Net
profit |
314 |
181 |
1,460 |
|
1,955 |
-
Non-controlling interest |
20 |
|
|
|
20 |
Net
profit attributable to Eni's shareholders |
294 |
|
|
|
1,935 |
|
|
|
|
|
|
Analysis of Profit and Loss account
items |
|
Sales from operations
Q2 |
|
Q3 |
|
Nine
months |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
5,558 |
Exploration &
Production |
6,002 |
7,676 |
(22) |
17,561 |
23,872 |
(26) |
3,744 |
Global
Gas & LNG Portfolio |
3,001 |
14,905 |
(80) |
14,689 |
37,742 |
(61) |
11,163 |
Enilive,
Refining and Chemicals |
14,387 |
14,757 |
(3) |
39,007 |
44,442 |
(12) |
2,680 |
Plenitude &
Power |
2,669 |
6,085 |
(56) |
10,393 |
16,052 |
(35) |
495 |
Corporate
and other activities |
454 |
428 |
6 |
1,389 |
1,288 |
8 |
(4,049) |
Consolidation
adjustments |
(4,194) |
(6,549) |
|
(13,944) |
(22,409) |
|
19,591 |
|
22,319 |
37,302 |
(40) |
69,095 |
100,987 |
(32) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
Q2 |
|
Q3 |
|
Nine
months |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
15,131 |
Purchases,
services and other |
16,944 |
27,395 |
(38) |
54,051 |
74,277 |
(27) |
(48) |
Impairment
losses (impairment reversals) of trade and other receivables, net |
50 |
(281) |
.. |
110 |
(116) |
.. |
746 |
Payroll
and related costs |
663 |
650 |
2 |
2,203 |
2,198 |
- |
12 |
of
which: provision for redundancy incentives and other |
10 |
14 |
|
40 |
120 |
|
15,829 |
|
17,657 |
27,764 |
(36) |
56,364 |
76,359 |
(26) |
|
|
|
|
|
|
|
|
DD&A, impairments, reversals and write-off
Q2 |
|
Q3 |
|
Nine
months |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
1,545 |
Exploration &
Production |
1,443 |
1,423 |
1 |
4,540 |
4,234 |
7 |
63 |
Global
Gas & LNG Portfolio |
58 |
55 |
5 |
171 |
159 |
8 |
125 |
Enilive,
Refining and Chemicals |
128 |
127 |
1 |
367 |
377 |
(3) |
117 |
Plenitude &
Power |
116 |
89 |
30 |
344 |
262 |
31 |
32 |
Corporate
and other activities |
32 |
34 |
(6) |
97 |
102 |
(5) |
(9) |
Impact
of unrealized intragroup profit elimination |
(8) |
(9) |
|
(25) |
(25) |
|
1,873 |
Total
depreciation, depletion and amortization |
1,769 |
1,719 |
3 |
5,494 |
5,109 |
8 |
330 |
Impairment
losses (impairment reversals) of tangible and intangible and right of use assets, net |
36 |
90 |
|
425 |
265 |
|
2,203 |
Depreciation,
depletion, amortization, impairments and reversals |
1,805 |
1,809 |
- |
5,919 |
5,374 |
10 |
103 |
Write-off
of tangible and intangible assets |
85 |
52 |
|
220 |
99 |
|
2,306 |
|
1,890 |
1,861 |
2 |
6,139 |
5,473 |
12 |
Income (expense) from investments
(€
million) |
|
|
|
|
|
|
Nine
months 2023 |
Exploration &
Production |
Global
Gas &
LNG Portfolio |
Enilive,
Refining
and Chemicals |
Plenitude &
Power |
Corporate
and
other activities |
Group |
Share
of profit (loss) from equity-accounted investments |
694 |
41 |
334 |
(19) |
(2) |
1,048 |
Dividends
|
117 |
|
44 |
|
|
161 |
Net
gains (losses) on disposals |
8 |
415 |
2 |
|
|
425 |
Other
income (expense), net |
(1) |
409 |
|
|
(4) |
404 |
|
818 |
865 |
380 |
(19) |
(6) |
2,038 |
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) |
Sept. 30, 2023
|
Dec. 31, 2022
|
Change
|
Total
debt |
27,142 |
26,917 |
225 |
- Short-term
debt |
5,047 |
7,543 |
(2,496) |
- Long-term
debt |
22,095 |
19,374 |
2,721 |
Cash
and cash equivalents |
(9,559) |
(10,155) |
596 |
Financial
assets measured at fair value through profit or loss |
(7,894) |
(8,251) |
357 |
Financing
receivables held for non-operating purposes |
(1,010) |
(1,485) |
475 |
Net
borrowings before lease liabilities ex IFRS 16 |
8,679 |
7,026 |
1,653 |
Lease
Liabilities |
4,899 |
4,951 |
(52) |
-
of which Eni working interest |
4,440 |
4,457 |
(17) |
-
of which Joint operators' working interest |
459 |
494 |
(35) |
Net
borrowings after lease liabilities ex IFRS 16 |
13,578 |
11,977 |
1,601 |
Shareholders'
equity including non-controlling interest |
57,284 |
55,230 |
2,054 |
Leverage
before lease liability ex IFRS 16 |
0.15 |
0.13 |
0.02 |
Leverage
after lease liability ex IFRS 16 |
0.24 |
0.22 |
0.02 |
Consolidated financial statements |
|
BALANCE SHEET
(€
million) |
|
|
|
Sept.
30, 2023 |
Dec. 31,
2022 |
ASSETS |
|
|
Current
assets |
|
|
Cash
and cash equivalents |
9,559
|
10,155
|
Financial
assets measured at fair value through profit or loss |
7,894
|
8,251
|
Other
financial assets |
1,051
|
1,504
|
Trade
and other receivables |
14,710
|
20,840
|
Inventories
|
6,883
|
7,709
|
Income
tax assets |
664
|
317
|
Other
assets |
4,616
|
12,821
|
|
45,377
|
61,597
|
Non-current
assets |
|
|
Property,
plant and equipment |
58,249
|
56,332
|
Right
of use assets |
4,366
|
4,446
|
Intangible
assets |
5,431
|
5,525
|
Inventory
- compulsory stock |
1,630
|
1,786
|
Equity-accounted
investments |
13,444
|
12,092
|
Other
investments |
1,296
|
1,202
|
Other
financial assets |
2,150
|
1,967
|
Deferred
tax assets |
3,433
|
4,569
|
Income
tax assets |
110
|
114
|
Other
assets |
2,818
|
2,236
|
|
92,927
|
90,269
|
Assets
held for sale |
2,690
|
264
|
TOTAL
ASSETS |
140,994
|
152,130
|
LIABILITIES
AND SHAREHOLDERS' EQUITY |
|
|
Current
liabilities |
|
|
Short-term
debt |
1,933
|
4,446
|
Current
portion of long-term debt |
3,114
|
3,097
|
Current
portion of long-term lease liabilities |
885
|
884
|
Trade
and other payables |
17,776
|
25,709
|
Income
taxes payable |
1,805
|
2,108
|
Other
liabilities |
6,010
|
12,473
|
|
31,523
|
48,717
|
Non-current
liabilities |
|
|
Long-term
debt |
22,095
|
19,374
|
Long-term
lease liabilities |
4,014
|
4,067
|
Provisions
for contingencies |
15,196
|
15,267
|
Provisions
for employee benefits |
714
|
786
|
Deferred
tax liabilities |
4,347
|
5,094
|
Income
taxes payable |
64
|
253
|
Other
liabilities |
3,715
|
3,234
|
|
50,145
|
48,075
|
Liabilities
directly associated with assets held for sale |
2,042
|
108
|
TOTAL
LIABILITIES |
83,710
|
96,900
|
Share
capital |
4,005
|
4,005
|
Retained
earnings |
34,063
|
23,455
|
Cumulative
currency translation differences |
7,914
|
7,564
|
Other
reserves and equity instruments |
7,842
|
8,785
|
Treasury
shares |
(1,575) |
(2,937) |
Net
profit (loss) |
4,598
|
13,887
|
Total
Eni shareholders' equity |
56,847
|
54,759
|
Non-controlling
interest |
437
|
471
|
TOTAL
SHAREHOLDERS' EQUITY |
57,284
|
55,230
|
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY |
140,994
|
152,130
|
GROUP PROFIT AND LOSS ACCOUNT
Q2 |
|
Q3 |
Nine
months |
2023 |
(€
million) |
2023 |
2022 |
2023 |
2022 |
19,591
|
Sales
from operations |
22,319
|
37,302
|
69,095
|
100,987
|
221
|
Other
income and revenues |
331
|
267
|
745
|
885
|
19,812
|
Total
revenues |
22,650
|
37,569
|
69,840
|
101,872
|
(15,131) |
Purchases,
services and other |
(16,944) |
(27,395) |
(54,051) |
(74,277) |
48
|
Impairment
reversals (impairment losses) of trade and other receivables, net |
(50) |
281
|
(110) |
116
|
(746) |
Payroll
and related costs |
(663) |
(650) |
(2,203) |
(2,198) |
85
|
Other
operating (expense) income |
23
|
(1,333) |
64
|
(2,107) |
(1,873) |
Depreciation,
Depletion and Amortization |
(1,769) |
(1,719) |
(5,494) |
(5,109) |
(330) |
Impairment
reversals (impairment losses) of tangible, intangible and right of use assets, net |
(36) |
(90) |
(425) |
(265) |
(103) |
Write-off
of tangible and intangible assets |
(85) |
(52) |
(220) |
(99) |
1,762
|
OPERATING
PROFIT (LOSS) |
3,126
|
6,611
|
7,401
|
17,933
|
1,189
|
Finance
income |
1,874
|
2,618
|
5,070
|
6,074
|
(1,371) |
Finance
expense |
(2,126) |
(2,926) |
(5,678) |
(6,731) |
59
|
Net
finance income (expense) from financial assets measured at fair value through profit or loss |
128
|
(21) |
253
|
(112) |
4
|
Derivative
financial instruments |
4
|
168
|
(8) |
80
|
(119) |
FINANCE
INCOME (EXPENSE) |
(120) |
(161) |
(363) |
(689) |
333
|
Share
of profit (loss) of equity-accounted investments |
357
|
326
|
1,048
|
1,176
|
81
|
Other
gain (loss) from investments |
75
|
2,527
|
990
|
3,186
|
414
|
INCOME
(EXPENSE) FROM INVESTMENTS |
432
|
2,853
|
2,038
|
4,362
|
2,057
|
PROFIT
(LOSS) BEFORE INCOME TAXES |
3,438
|
9,303
|
9,076
|
21,606
|
(1,743) |
Income
taxes |
(1,503) |
(3,420) |
(4,420) |
(8,315) |
314
|
Net
profit (loss) |
1,935
|
5,883
|
4,656
|
13,291
|
|
attributable
to: |
|
|
|
|
294
|
-
Eni's shareholders |
1,916
|
5,862
|
4,598
|
13,260
|
20
|
-
Non-controlling interest |
19
|
21
|
58
|
31
|
|
|
|
|
|
|
|
Earnings
per share (€ per share) |
|
|
|
|
0.08
|
-
basic |
0.57
|
1.67
|
1.36
|
3.74
|
0.08
|
-
diluted |
0.57
|
1.67
|
1.35
|
3.74
|
|
Weighted
average number of shares outstanding (million) |
|
|
|
|
3,338.0
|
-
basic |
3,290.2
|
3,487.8
|
3,324.3
|
3,521.3
|
3,344.3
|
-
diluted |
3,300.0
|
3,493.6
|
3,334.2
|
3,527.1
|
|
|
|
|
|
|
COMPREHENSIVE INCOME (LOSS)
|
Q3 |
Nine
months |
(€
million) |
2023 |
2022 |
2023 |
2022 |
Net
profit (loss) |
1,935 |
5,883 |
4,656 |
13,291 |
Items
that are not reclassified to profit or loss in later periods |
14 |
(4) |
29 |
94 |
Remeasurements
of defined benefit plans |
|
(1) |
|
70 |
Share
of other comprehensive income on equity accounted entities |
|
|
|
1 |
Change
in the fair value of interests with effects on other comprehensive income |
14 |
(3) |
29 |
38 |
Taxation |
|
|
|
(15) |
Items
that may be reclassified to profit in later periods |
1,097 |
1,530 |
666 |
3,141 |
Currency
translation differences |
1,344 |
2,608 |
350 |
6,130 |
Change
in the fair value of cash flow hedging derivatives |
(300) |
(1,516) |
406 |
(4,251) |
Share
of other comprehensive income on equity-accounted entities |
(36) |
(3) |
28 |
33 |
Taxation
|
89 |
441 |
(118) |
1,229 |
|
|
|
|
|
Total
other items of comprehensive income (loss) |
1,111 |
1,526 |
695 |
3,235 |
Total
comprehensive income (loss) |
3,046 |
7,409 |
5,351 |
16,526 |
attributable
to: |
|
|
|
|
-
Eni's shareholders |
3,027 |
7,384 |
5,293 |
16,490 |
-
Non-controlling interest |
19 |
25 |
58 |
36 |
|
|
|
|
|
CHANGES IN SHAREHOLDERS’ EQUITY
(€
million) |
|
|
|
Shareholders'
equity at January 1, 2022 |
|
|
44,519
|
Total
comprehensive income (loss) |
|
16,526
|
|
Dividends
paid to Eni's shareholders |
|
(2,282) |
|
Dividends
distributed by consolidated subsidiaries |
|
(14) |
|
Coupon
of perpetual subordinated bonds |
|
(87) |
|
EniPower
operation |
|
347
|
|
Net
purchase of treasury shares |
|
(1,231) |
|
Other
changes |
|
67
|
|
Total
changes |
|
|
13,326
|
Shareholders'
equity at September 30, 2022 |
|
|
57,845
|
attributable
to: |
|
|
|
-
Eni's shareholders |
|
|
57,361
|
- Non-controlling
interest |
|
|
484
|
|
|
|
|
|
|
|
|
Shareholders'
equity at January 1, 2023 |
|
|
55,230
|
Total
comprehensive income (loss) |
|
5,351
|
|
Dividends
paid to Eni's shareholders |
|
(2,259) |
|
Dividends
distributed by consolidated subsidiaries |
|
(32) |
|
Coupon
of perpetual subordinated bonds |
|
(87) |
|
Net
purchase of treasury shares |
|
(1,038) |
|
Issue
of convertible bond |
|
79
|
|
Taxes
on hybrid bond coupon |
|
25
|
|
Other
changes |
|
15
|
|
Total
changes |
|
|
2,054
|
Shareholders'
equity at September 30, 2023 |
|
|
57,284
|
attributable
to: |
|
|
|
-
Eni's shareholders |
|
|
437
|
- Non-controlling
interest |
|
|
56,847
|
GROUP CASH FLOW STATEMENT
Q2 |
|
Q3 |
|
Nine
months |
2023 |
(€
million) |
2023 |
2022 |
|
2023 |
2022 |
314
|
Net
profit (loss) |
1,935
|
5,883
|
|
4,656
|
13,291
|
|
Adjustments
to reconcile net profit (loss) to net cash provided by operating activities: |
|
|
|
|
|
1,873
|
Depreciation,
depletion and amortization |
1,769
|
1,719
|
|
5,494
|
5,109
|
330
|
Impairment
losses (impairment reversals) of tangible, intangible and right of use, net |
36
|
90
|
|
425
|
265
|
103
|
Write-off
of tangible and intangible assets |
85
|
52
|
|
220
|
99
|
(333) |
Share
of (profit) loss of equity-accounted investments |
(357) |
(326) |
|
(1,048) |
(1,176) |
(10) |
Gains
on disposal of assets, net |
(11) |
(15) |
|
(429) |
(459) |
(83) |
Dividend
income |
(69) |
(66) |
|
(161) |
(217) |
(132) |
Interest
income |
(135) |
(60) |
|
(371) |
(109) |
241
|
Interest
expense |
253
|
270
|
|
735
|
760
|
1,743
|
Income
taxes |
1,503
|
3,420
|
|
4,420
|
8,315
|
19
|
Other
changes |
(107) |
(2,479) |
|
(527) |
(2,531) |
1,587
|
Cash
flow from changes in working capital |
(140) |
(836) |
|
1,154
|
(4,676) |
466
|
-
inventories |
(1,025) |
(1,658) |
|
1,038
|
(4,731) |
2,431
|
-
trade receivables |
(615) |
(1,170) |
|
5,428
|
(1,317) |
(2,143) |
-
trade payables |
764
|
1,393
|
|
(7,680) |
748
|
8
|
-
provisions for contingencies |
(16) |
1,211
|
|
(156) |
1,319
|
825
|
-
other assets and liabilities |
752
|
(612) |
|
2,524
|
(695) |
(2) |
Net
change in the provisions for employee benefits |
(69) |
(52) |
|
(46) |
3
|
780
|
Dividends
received |
342
|
429
|
|
1,682
|
734
|
89
|
Interest
received |
101
|
16
|
|
254
|
29
|
(227) |
Interest
paid |
(239) |
(241) |
|
(747) |
(688) |
(1,849) |
Income
taxes paid, net of tax receivables received |
(1,378) |
(2,218) |
|
(4,767) |
(5,882) |
4,443
|
Net
cash provided by operating activities |
3,519
|
5,586
|
|
10,944
|
12,867
|
(3,263) |
Cash
flow from investing activities |
(2,438) |
(3,160) |
|
(8,716) |
(7,469) |
(2,487) |
-
tangible assets |
(1,806) |
(2,031) |
|
(6,357) |
(5,103) |
(70) |
-
intangible assets |
(67) |
(68) |
|
(192) |
(189) |
(104) |
-
consolidated subsidiaries and businesses net of cash and cash equivalent acquired |
|
(723) |
|
(628) |
(893) |
(1,061) |
-
investments |
(60) |
(255) |
|
(1,242) |
(1,352) |
(77) |
-
securities and financing receivables held for operating purposes |
(54) |
(85) |
|
(202) |
(231) |
536
|
-
change in payables in relation to investing activities |
(451) |
2
|
|
(95) |
299
|
96
|
Cash
flow from disposals |
278
|
1,031
|
|
858
|
2,040
|
12
|
-
tangible assets |
25
|
23
|
|
67
|
30
|
32
|
-
intangible assets |
|
|
|
32
|
12
|
|
-
consolidated subsidiaries and businesses net of cash and cash equivalent disposed of |
15
|
(36) |
|
395
|
(32) |
|
-
investments |
11
|
40
|
|
46
|
921
|
18
|
-
securities and financing receivables held for operating purposes |
7
|
52
|
|
31
|
132
|
34
|
-
change in receivables in relation to disposals |
220
|
952
|
|
287
|
977
|
(86) |
Net
change in receivables and securities not held for operating purposes |
355
|
(294) |
|
1,021
|
1,376
|
(3,253) |
Net
cash used in investing activities |
(1,805) |
(2,423) |
|
(6,837) |
(4,053) |
|
|
|
|
|
|
|
GROUP CASH FLOW STATEMENT (continued)
Q2 |
|
Q3 |
|
Nine
months |
2023 |
(€
million) |
2023 |
2022 |
|
2023 |
2022 |
2,048 |
Increase in long-term debt
|
921 |
2 |
|
4,971 |
131 |
(357) |
Payment of long-term debt |
(2,374) |
(94) |
|
(2,883) |
(3,788) |
(228) |
Payment of lease liabilities |
(195) |
(211) |
|
(670) |
(767) |
(124) |
Increase (decrease) in short-term
financial debt |
(623) |
(1,186) |
|
(2,736) |
1,673 |
(744) |
Dividends paid to Eni's shareholders |
(790) |
(751) |
|
(2,299) |
(2,271) |
(20) |
Dividends paid to non-controlling
interests |
(9) |
|
|
(29) |
(13) |
|
Net capital issuance from
non-controlling interest |
|
1 |
|
(16) |
21 |
(57) |
Disposal (acquisition) of
additional interests in consolidated subsidiaries |
|
547 |
|
(57) |
542 |
(406) |
Net purchase of treasury
shares |
(607) |
(981) |
|
(1,013) |
(1,176) |
|
Issue of convertible bond |
79 |
|
|
79 |
|
(48) |
Interest payment of perpetual
hybrid bond |
|
|
|
(87) |
(87) |
64 |
Net cash
used in financing activities |
(3,598) |
(2,673) |
|
(4,740) |
(5,735) |
17 |
Effect of exchange rate changes
on cash and cash equivalents and other changes |
40 |
73 |
|
25 |
152 |
1,271 |
Net increase
(decrease) in cash and cash equivalents |
(1,844) |
563 |
|
(608) |
3,231 |
10,146 |
Cash
and cash equivalents - beginning of the period |
11,417 |
10,933 |
|
10,181 |
8,265 |
11,417 |
Cash and cash equivalents - end of
the period |
9,573 |
11,496 |
|
9,573 |
11,496 |
|
|
|
|
|
|
|
Capital expenditure
Q2 |
|
Q3 |
|
Nine
months |
|
2023 |
(€
million) |
2023 |
2022 |
%
Ch. |
2023 |
2022 |
%
Ch. |
2,159 |
Exploration &
Production |
1,501 |
1,770 |
(15) |
5,479 |
4,321 |
27 |
|
of
which: - acquisition of proved and unproved properties |
|
118 |
.. |
|
271 |
.. |
155 |
-
exploration |
203 |
138 |
47 |
569 |
423 |
35 |
1,949 |
-
oil & gas development |
1,213 |
1,490 |
(19) |
4,724 |
3,534 |
34 |
44 |
-
CCUS and agro-biofeedstock projects |
76 |
15 |
.. |
155 |
68 |
.. |
6 |
Global
Gas & LNG Portfolio |
4 |
5 |
(20) |
10 |
14 |
(29) |
216 |
Enilive,
Refining and Chemicals |
199 |
186 |
7 |
553 |
417 |
33 |
173 |
-
Enilive and Refining |
158 |
135 |
17 |
443 |
306 |
45 |
43 |
-
Chemicals |
41 |
51 |
(20) |
110 |
111 |
(1) |
158 |
Plenitude &
Power |
148 |
118 |
25 |
455 |
440 |
3 |
129 |
-
Plenitude |
124 |
96 |
29 |
383 |
354 |
|
29 |
-
Power |
24 |
22 |
9 |
72 |
86 |
(16) |
21 |
Corporate
and other activities |
28 |
23 |
22 |
63 |
104 |
(39) |
(3) |
Impact
of unrealized intragroup profit elimination |
(7) |
(3) |
|
(11) |
(4) |
|
2,557 |
Capital
expenditure (a) |
1,873 |
2,099 |
(11) |
6,549 |
5,292 |
24 |
(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 (€672 million and
€39 million in the nine months 2023 and 2022, respectively, €483 million and €21 million in the third quarter 2023 and
2022, respectively and €104 million in the second quarter 2023).
In the nine months
’23, capital expenditure amounted to €6,549 mln (€5,292 mln in the nine months ’22) increasing by 24% y-o-y, and
mainly related to:
- oil and gas development activities (€4,724
mln) mainly in Côte d'Ivoire, Congo, Egypt, Italy, the United Arab Emirates, Algeria and the United States;
- bio and traditional refining in Italy
and outside Italy and biomethane activities (€379 mln) relating to development activities, maintain plants’ integrity and
stay-in-business, as well as HSE initiatives; marketing activity (€64 mln) for regulation compliance and stay-in-business initiatives
in the retail network in Italy and in the rest of Europe;
- Plenitude (€383 mln) mainly relating
to development activities in the renewable business, acquisition of new customers as well as development of electric vehicles network
infrastructure.
Exploration & Production
PRODUCTION OF OIL AND NATURAL GAS BY REGION |
|
|
|
|
|
Q2 |
|
|
Q3 |
Nine
months |
2023 |
|
|
2023 |
2022 |
2023 |
2022 |
69 |
Italy |
(kboe/d)
|
68 |
81 |
70 |
83 |
172 |
Rest of Europe |
|
172 |
181 |
175 |
192 |
271 |
North Africa |
|
286 |
268 |
284 |
260 |
323 |
Egypt |
|
313 |
343 |
323 |
351 |
284 |
Sub-Saharan Africa |
|
308 |
316 |
295 |
294 |
162 |
Kazakhstan |
|
147 |
81 |
158 |
117 |
185 |
Rest of Asia |
|
187 |
171 |
182 |
175 |
143 |
Americas |
|
144 |
127 |
142 |
125 |
7 |
Australia and Oceania |
|
10 |
10 |
8 |
11 |
1,616 |
Production of oil and natural gas
(a)(b) |
|
1,635 |
1,578 |
1,637 |
1,608 |
320 |
- of which Joint Ventures and associates |
|
330 |
277 |
325 |
242 |
135 |
Production
sold (a) |
(mmboe)
|
135 |
128 |
401 |
398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRODUCTION OF LIQUIDS BY REGION |
|
|
|
|
|
Q2 |
|
|
Q3 |
Nine
months |
2023 |
|
|
2023 |
2022 |
2023 |
2022 |
29 |
Italy |
(kbbl/d) |
28 |
35 |
29 |
36 |
100 |
Rest of Europe |
|
105 |
106 |
103 |
110 |
118 |
North Africa |
|
117 |
124 |
122 |
121 |
71 |
Egypt |
|
67 |
74 |
69 |
78 |
163 |
Sub-Saharan Africa |
|
172 |
173 |
169 |
178 |
113 |
Kazakhstan |
|
105 |
53 |
112 |
80 |
86 |
Rest of Asia |
|
87 |
80 |
86 |
78 |
77 |
Americas |
|
77 |
62 |
75 |
61 |
|
Australia and Oceania |
|
|
|
|
|
757 |
Production of liquids |
|
758 |
707 |
765 |
742 |
174 |
- of which Joint Ventures and associates |
|
183 |
146 |
178 |
117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRODUCTION OF NATURAL GAS BY REGION |
|
|
|
|
|
Q2 |
|
|
Q3 |
Nine
months |
2023 |
|
|
2023 |
2022 |
2023 |
2022 |
211 |
Italy |
(mmcf/d) |
210 |
243 |
215 |
244 |
374 |
Rest of Europe |
|
353 |
396 |
378 |
427 |
801 |
North Africa |
|
882 |
757 |
846 |
730 |
1,318 |
Egypt |
|
1,291 |
1,418 |
1,329 |
1,441 |
633 |
Sub-Saharan Africa |
|
711 |
752 |
659 |
609 |
253 |
Kazakhstan |
|
222 |
148 |
242 |
196 |
518 |
Rest of Asia |
|
521 |
476 |
504 |
513 |
347 |
Americas |
|
351 |
340 |
351 |
337 |
36 |
Australia and Oceania |
|
49 |
53 |
39 |
59 |
4,491 |
Production of natural gas |
|
4,590 |
4,583 |
4,563 |
4,556 |
762 |
- of which Joint Ventures and associates |
|
771 |
686 |
770 |
658 |
|
|
|
|
|
|
|
(a) Includes Eni’s share of production
of equity-accounted entities.
(b) Includes
volumes of hydrocarbons consumed in operation (119 and 121 kboe/d in the third quarter of 2023 and 2022, respectively, 125 and 118 kboe/d
in the nine months of 2023 and 2022, respectively, and 130 kboe/d in the second quarter of 2023).
Eni Spa Roma (PK) (USOTC:EIPAF)
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