39 Income (expense) from investments

Share of profit (loss) of equity-accounted investments

More information is provided in Note 18 – Equity-accounted investments.

Share of profit (loss) of equity accounted investments by industry segment is disclosed in Note 42 – Information by industry segment and geographic information.

Other gain (loss) from investments

Net gains on disposals for 2013 amounted to €3,598 million and related: (i) for €3,359 million to the sale of a 28.57% interest in the share capital of Eni East Africa SpA to China National Petroleum Corporation (CNPC). Eni East Africa is the operator of the discovery Area 4 in Mozambique. Through its equity investment in Eni East Africa, CNPC indirectly acquired a 20% interest in Area 4, while Eni retained the 50% interest through the remaining controlling stake in Eni East Africa SpA; (ii) for €98 million to the sale of a 8.19% of the share capital of Galp Energia SGPS SA, of whic €67 million related to the reversal of the reserve for fair value evaluation. (iii) for €75 million to the sale of a 11.69% of the share capital of Snam SpA, of which €8 million related to the reversal of the reserve for fair value evaluation; (iv) for €63 million to the sale of a 49% (entire stake own) of the share capital of Super Octanos CA. Net gains on disposals for 2012 amounted to €349 million and related for €311 million to Galp Energia SGPS SA as Eni divested 5% of the share capital of the investee to Amorim Energia BV and a further 4% through an accelerated book-building procedure to institutional investors. Net gains on disposals for 2011 amounted to €1,121 million and pertained to the divestment of the 100% interest in Eni Gas Transport International SA (€647 million), the 89% interest (entire stake own) in Trans Austria Gasleitung GmbH (€338 million), the 100% interest in Gas Brasiliano Distribuidora SA (€50 million) and the 46% interest (entire stake own) in Transitgas AG (€34 million).

In 2013, dividend income for €400 million primarily related to the Nigeria LNG Ltd (€224 million), Snam SpA (€72 million) and Galp Energia SGPS SA (€43 million). In 2012, dividend income for €431 million primarily related to the Nigeria LNG Ltd (€331 million). In 2011, dividend income for €659 million related to the Nigeria LNG Ltd (€483 million), Trans Austria Gasleitung GmbH (€82 million) and Saudi European Petrochemical Company “IBN ZAHR” (€67 million).

In 2013, other net income of €1,865 million included: (i) the revaluation of the 60% stake in Artic Russia BV (entire stake owned). At the balance sheet date, Eni’s interest in Artic Russia was classified as an asset held for sale and measured at fair value due to the loss of joint control over the investee following the satisfaction, before year end, of all conditions precedent to the Sale Purchase Agreement signed with Gazprom in November 2013. The re-measurement at fair value recorded to profit amounted to €1,682 million. The consideration for the disposal was cashed in on January 15, 2014; (ii) the remeasurement at market fair value at the balance sheet date of 288.7 million shares of Snam SpA and of €66.3 million of Galp Energia SGPS SA underlying two convertible bonds issued on January 18, 2013 and on November 30, 2012, respectively, for which was applied the fair value option (income for €158 million and €10 million, respectively); (iii) the revaluation of Ceska Refinerska AS (€21 million). In 2012, other net income of €1,823 million included: (i) an extraordinary income of €835 million recognized in connection with a capital increase made by Galp’s subsidiary Petrogal whereby a new shareholder subscribed its share by contributing a cash amount fairly in excess of the net book value of the interest acquired; (ii) a revaluation gain of €865 million of the interest in Galp Energia SGPS SA (28.34%) measured at fair value at the price current at the date when Eni ceased to retain a significant influence over the investee and a gain on the re-measurement at market fair value at the balance sheet date of €65 million of part of residual interest in Galp Energia SGPS SA (8%) which was underlying a convertible bond based on the fair value option provided by IAS 39; (iii) the remeasurement at market fair value at the balance sheet date of 288.7 million shares of Snam SpA underlying a convertible bond issued on January 18, 2013 for which was applied the fair value option (income for €6 million). In 2011, other net expense of €157 million included the full write-down of the book value of the Ceska Rafinerska AS due to management’s expectations of incurring future losses driven by a negative outlook in the refining segment (€157 million).