Letter to shareholders
Among the achieved results, the Saipem transaction was finalized on February 26, 2016. In addition to the deconsolidation of Eni’s interest, the reimbursement of intercompany loans has freed important financial sources to be reinvested in the development of the considerable mineral resources recently discovered, while maintaining a strong capital structure.
Exploration has been once again a driver of value creation. Significant discoveries have been made in Indonesia, Congo, Gabon and, above all, in the deep Egyptian offshore with the super giant Zohr gas field. The asset with a potential of up to 30 trillion cubic feet of gas in place represents the largest ever discovery of the Mediterranean Sea. All the discoveries will be developed with competitive time-to-market; in particular Zohr is expected to come on stream by the end of 2017. In 2015, the total additions to the Company’s reserve backlog amounted to 1.4 billion of boe, at a unit cost of less than one dollar per barrel.
In the Refining & Marketing business (R&M), we started a number of initiatives to restructure the industrial setup: the green refinery project at the Venice plant is currently in an advanced phase, while it has started at the Gela site. Widespread actions progressed to upgrade plants and improve energy efficiency and yields at plants with traditional feedstock. These initiatives, along with an improved scenario and steady marketing performance, allowed the segment to achieve positive adjusted operating profit and free cash flow earlier than forecasted.
The Gas & Power (G&P) reported an adjusted operating profit almost at break-even while cash generation was excellent due to almost full recovery of take-or-pay volumes.
We are aware of reach and complexity of the future challenges which will require full engagement, Group identity and commitment of Eni’s women and men so as to enable the Company to continue progressing in value creation.
CEO and General manager
In light of the achieved results and Company’s outlook, we intend to propose to the Annual Shareholders’ Meeting a dividend of €0.8 per share, of which €0.4 per share paid as interim dividend in September 2015.