Performance of the year

Exploration successes
3.4 bln boe

of discovered resources
in 2014-2016

Proved reserves
7.5 bln boe

at year end with a replacement ratio of 193%

Cost optimization
-19%

Capex net of exchange rate effects

-€0.8bln

G&A

Disposal plan
€2.6 bln

about 40% of 2016-2019 plan

Fields development

Planned start-ups, 2016 ramp-ups and production optimization approximately

850 kboe/d

in 2020

Safety
TRIR

down by

21%
Decarbonization

Start-up of Project Italia with

220 MWp

of capacity installed by 2022

GHG emissions

GHG down by

9%

per unit of production

down by

43%

vs 2014 at 2025 target

  • Financial highlights
  • Summary financial data
  • Financial highlights(*)(**)

     

     

     

     

     

     

     

    2014

    2015

    2016

    (*)

     

    Pertaining to continuing operations. Following the divestment of Saipem in January 2016, the results of the segment have been classified as discontinued operations based on the guidelines of IFRS 5. The comparative reporting periods have been restated consistently.

     

     

    (**)

     

    Effective January 1, 2016, management modified on voluntary basis the criterion to recognize exploration expenses adopting the accounting of the successful-effort-method (SEM). Accordingly, the comparative amounts disclosed for the FY 2016 have been restated. The retrospective application of the SEM has required adjustment of the opening balance of the retained earnings and other comparative amounts as of January 1, 2014. Specifically, the opening balance of the carrying amount of property, plant and equipment was increased by €3,524 million, intangible assets by €860 million and the retained earnings by €3,001 million. Other adjustments related to deferred tax liabilities and other minor line items. Concerning the FY 2015, the adoption of SEM determined a reduction of operating profit of €815 million. More information is disclosed in the notes of the consolidated financial statement of the 2016 Annual Report on Form 20-F.

     

     

    (a)

     

    Attributable to Eni’s shareholders.

     

     

    (b)

     

    Non-GAAP measures. Results of comparative periods are calculated on a standalone basis, i.e. by excluding the results of Saipem earned from both third parties and the Group’s continuing operations, therefore determining its deconsolidation.

     

     

    (c)

     

    The amount of dividends for the year 2016 is based on the Board’s proposal.

     

     

    (d)

     

    Number of outstanding shares by reference price at year end.

     

     

    Net sales from operations

    (€ million)

    98,218

    72,286

    55,762

    Operating profit (loss)

     

    8,965

    (3,076)

    2,157

    Adjusted operating profit (loss)(b)

     

    11,223

    4,486

    2,315

    Adjusted net profit (loss)(a)(b)

     

    3,723

    803

    (340)

    Net profit (loss)(a)

     

    1,720

    (7,952)

    (1,051)

    Net profit (loss) - discontinued operations(a)

     

    (417)

    (826)

    (413)

    Group net profit (loss)(a)
    (continuing + discontinued operations)

     

    1,303

    (8,778)

    (1,464)

    Comprehensive income(a)

     

    6,817

    (3,416)

    819

    Net cash flow from operating activities(b)

     

    13,544

    12,155

    7,673

    Capital expenditure

     

    11,178

    10,741

    9,180

    of which: exploration

     

    1,030

    566

    417

    development of hydrocarbon reserves

     

    9,021

    9,341

    7,770

    Dividends to Eni’s shareholders pertaining to the year(c)

     

    4,037

    2,880

    2,881

    Cash dividends to Eni’s shareholders

     

    4,006

    3,457

    2,881

    Total assets at year end

     

    150,366

    139,001

    124,545

    Shareholders’ equity including non-controlling interests at year end

     

    65,641

    57,409

    53,086

    Net borrowings at year end

     

    13,685

    16,871

    14,776

    Net capital employed at year end

     

    79,326

    74,280

    67,862

    of which: Exploration & Production

     

    51,061

    53,968

    57,910

    Gas & Power

     

    9,031

    5,803

    4,100

    Refining & Marketing and Chemicals

     

    9,711

    6,986

    6,981

    Share price at year end

    (€)

    14.5

    13.8

    15.5

    Weighted average number of shares outstanding

    (million)

    3,610.4

    3,601.1

    3,601.1

    Market capitalization(d)

    (€ billion)

    52

    50

    56

  • Summary financial data

     

     

     

     

     

     

     

    2014

    2015

    2016

    (a)

    Fully diluted. Ratio of net profit/cash flow and average number of shares outstanding in the period. Dollar amounts are converted on the basis of the average EUR/USD exchange rate quoted by Reuters (WMR) for the period presented.

    (b)

    One American Depositary Receipt (ADR) is equal to two Eni ordinary shares.

    (c)

    Ratio of dividend for the period and the average price of Eni shares as recorded in December.

    Net profit (loss) - continuing operations

     

     

     

     

    - per share(a)

    (€)

    0.48

    (2.21)

    (0.29)

    - per ADR(a)(b)

    ($)

    1.27

    (4.90)

    (0.65)

    Adjusted net profit (loss) - continuing operations

     

     

     

     

    - per share(a)

    (€)

    1.16

    0.37

    (0.09)

    - per ADR(a)(b)

    ($)

    3.08

    0.82

    (0.20)

    Cash flow - continuing operations

     

     

     

     

    - per share(a)

    (€)

    4.01

    3.58

    2.13

    - per ADR(a)(b)

    ($)

    10.66

    7.95

    4.72

    Adjusted Return on average capital employed (ROACE)

    (%)

    5.8

    1.8

    0.2

    Leverage

     

    21

    29

    28

    Coverage

     

    7.7

    (2.4)

    2.4

    Current ratio

     

    1.5

    1.4

    1.4

    Debt coverage

     

    105.7

    76.3

    51.9

    Dividends pertaining to the year

    (€ per share)

    1.12

    0.80

    0.80

    Total Share Return (TSR)

    (%)

    (11.9)

    1.1

    19.2

    Pay-out

     

    310

    (33)

    (197)

    Dividend yield(c)

    (%)

    7.6

    5.7

    5.4

Operating and sustainability data(a)

 

 

 

 

 

 

 

2014

2015

2016

(a)

Pertaining to continuing operations.

(b)

Incidental events which do not transform in damages or injuries.

(c)

Net of general and administrative costs.

Employees at year end

(number)

34,846

34,196

33,536

of which: women

 

8,076

7,960

7,700

outside Italy

 

13,639

13,316

12,626

Local employees outside Italy

(%)

86

85

85

Female managers (senior managers and managers)

(%)

23

24

24

Pay gap (women vs men)

(%)

97

97

97

TRIR (Total Recordable Injury Rate)

(recordable injuries/worked hours) x 1,000,000

0.71

0.45

0.35

of which: employees

 

0.56

0.41

0.36

contractors

 

0.79

0.47

0.35

Fatality index (employees and contractors)

(Fatal injuries per one hundred millions of worked hours)

1.03

1.46

0.72

Near miss(b)

(number)

1,729

1,489

1,644

Training expenditures

(€ million)

39.1

29.1

26.6

Training hours

(thousand hours)

1,213

1,099

939

of which: e-learning

 

120

183

197

Total volume of oil spills (> 1 barrel)

(barrels)

15,562

16,481

5,648

of which: due to sabotage and terrorism

 

14,401

14,847

4,489

operational

 

1,161

1,634

1,159

Direct GHG emissions

(mmtonnes CO2eq)

42.02

41.56

40.10

of which: CO2 equivalent from combustion and process

 

30.92

31.49

30.60

CO2 equivalent from flaring

 

5.73

5.51

5.40

CO2 equivalent from non-combusted methane and fugitive emissions

 

3.48

2.77

2.42

CO2 equivalent from venting

 

1.89

1.80

1.67

Total water withdrawals

(mmcm)

1,874

1,805

1,851

of which: sea water

 

1,704

1,634

1,710

fresh water

 

160

157

130

salt/salty water from subsoil or surface

 

10

13

12

R&D expenditure(c)

(€ million)

174

176

161

of which: new energy

 

 

 

51

First patent filing applications

(number)

64

33

40

of which: filed on renewable sources

 

29

16

12

Number of suppliers used

(number)

13,145

11,380

10,041

Total procurement

(€ million)

24,068

20,350

13,249

of which: local procurement

 

15,183

13,412

10,390

Interventions on the territory based on agreements, conventions and PSAs (Community investment)

 

65

75

67

  • Exploration & Production
  • Gas & Power
  • Refining & Marketing and Chemicals
  • Exploration & Production

     

     

     

     

     

     

     

    2014

    2015

    2016

    (a)

    Includes Eni's share in joint ventures and equity-accounted entities.

    (b)

    Related to consolidated subsidiaries.

    (c)

    Three-year average.

    (d)

    Hydrocarbon production from fields fully operated by Eni (Eni's interest 100%) amounting to 122 mln toe, 125 mln toe and 117 mln toe in 2016, 2015 and 2014, respectively.

    Employees at year end

    (number)

    12,777

    12,821

    12,494

    TRIR (Total Recordable Injury Rate)

    (recordable injuries/worked hours) x 1,000,000

    0.56

    0.34

    0.34

    of which: employees

     

    0.20

    0.22

    0.34

    contractors

     

    0.68

    0.39

    0.34

    Net proved reserves of hydrocarbons

    (mmboe)

    6,602

    6,890

    7,490

    Average reserve life index

    (years)

    11.3

    10.7

    11.6

    Hydrocarbon production(a)

    (kboe/d)

    1,598

    1,760

    1,759

    Organic reserve replacement ratio

     

    112

    148

    193

    Profit per boe(b)(c)

    ($/boe)

    14.5

    7.4

    2.7

    Opex per boe(b)

     

    8.4

    7.2

    6.2

    Cash flow per boe

     

    30.1

    20.9

    12.9

    Finding & Development cost per boe(c)

     

    21.5

    19.3

    13.2

    Direct GHG emissions

    (mmtonnes CO2eq)

    23.4

    22.8

    20.4

    CO2 emissions/100% operated hydrocarbon gross production(d)

    (tonnes CO2eq/toe)

    0.201

    0.182

    0.166

    % produced water re-injected

    (%)

    56

    56

    58

    Volumes of hydrocarbon sent to flaring

    (mmcm)

    1,767

    1,989

    1,950

    of which: sent to flaring process

     

    1,678

    1,564

    1,530

    Oil spills due to operations (> 1 barrel)

    (barrels)

    936

    1,177

    1,025

    Interventions on the territory based on agreements, conventions and PSAs (Community investment)

     

    63

    72

    63

  • Gas & Power

     

     

     

     

     

     

     

    2014

    2015

    2016

    (a)

    Pertaining to continuing operations.

    (b)

    The average evaluation reflects results of customers interviews based on clarity, courtesy and waiting time.

    Employees at year end

    (number)

    4,561

    4,484

    4,261

    TRIR (Total Recordable Injury Rate)

    (recordable injuries/worked hours) x 1,000,000

    0.82

    0.89

    0.28

    of which: employees

     

    0.87

    0.91

    0.27

    contractors

     

    0.70

    0.81

    0.31

    Worldwide gas sales

    (bcm)

    89.17

    90.88

    88.93

    - in Italy

     

    34.04

    38.44

    38.43

    - outside Italy

     

    55.13

    52.44

    50.50

    Customers in Italy

    (million)

    7.9

    7.9

    7.8

    Direct GHG emissions

    (mmtonnes CO2eq)

    10.12

    10.57

    11.22

    GHG emissions/kWheq (EniPower)

    (gCO2eq/kWheq)

    409

    409

    398

    Installed capacity power plants

    (GW)

    5.3

    4.9

    4.7

    Electricity produced

    (TWh)

    19.55

    20.69

    21.78

    Electricity sold

     

    33.58

    34.88

    37.05

    Customer satisfaction rate(b)

    (scale from 0 to 100)

    81.4

    85.6

    86.2

  • Refining & Marketing and Chemicals

     

     

     

     

     

     

     

    2014

    2015

    2016

    (a)

    2014 data includes Livorno, Sannazzaro, Taranto and Gela; 2015 data refers to Livorno, Sannazzaro and Taranto.

    Employees at year end

    (number)

    11,884

    10,995

    10,858

    TRIR (Total Recordable Injury Rate)

    (recordable injuries/worked hours) x 1,000,000

    1.51

    1.07

    0.38

    of which: employees

     

    1.60

    0.97

    0.44

    contractors

     

    1.40

    1.17

    0.32

    Oil spills due to operations (> 1 barrel)

    (barrels)

    225

    427

    134

    Direct GHG emissions

    (mmtonnes CO2eq)

    8.45

    8.19

    8.50

    SOx emissions (sulphur oxide)

    (ktonnes SO2eq)

    6.84

    6.17

    4.35

    Refinery throughputs on own account

    (mmtonnes)

    25.03

    26.41

    24.52

    Retail market share in Italy

    (%)

    25.5

    24.5

    24.3

    Retail sales of petroleum products in Europe

    (mmtonnes)

    9.21

    8.89

    8.59

    Service stations in Europe at year end

    (number)

    6,220

    5,846

    5,622

    Average throughput of service stations in Europe

    (kliters)

    1,725

    1,754

    1,742

    Balanced capacity of refineries

    (kbbl/d)

    617

    548

    548

    Capacity of biorefineries

    (ktonnes/year)

    360

    360

    360

    Production of biofuels

    (ktonnes)

    105

    179

    191

    GHG emissions/refining throughputs (traditional refineries)(a)

    (tonnes CO2eq/kt)

    287

    237

    272

    Production of petrochemical products

    (ktonnes)

    5,283

    5,700

    5,646

    Sales of petrochemical products

     

    3,463

    3,801

    3,759

    Average plant utilization rate

    (%)

    71

    73

    72