35 Guarantees, commitments and risks

Guarantees

 

December 31, 2012

December 31, 2013

(€ million)

Unsecured guarantees

Other guarantees

Total

Unsecured guarantees

Other guarantees

Total

Consolidated subsidiaries

 

11,350

11,350

 

11,961

11,961

Unconsolidated subsidiaries

 

161

161

 

160

160

Joint ventures and associates

6,208

892

7,100

6,274

223

6,497

Others

2

289

291

2

174

176

 

6,210

12,692

18,902

6,276

12,518

18,794

Other guarantees issued on behalf of consolidated subsidiaries of €11,961 million (€11,350 million at December 31, 2012) primarily consisted of: (i) guarantees given to third parties relating to bid bonds and performance bonds for €7,858 million (€7,511 million at December 31, 2012), of which €4,920 million related to the Engineering & Construction segment (€5,491 million at December 31, 2012); (ii) VAT recoverable from tax Authorities for €1,408 million (€1,370 million at December 31, 2012); and (iii) insurance risk for €293 million reinsured by Eni (€298 million at December 31, 2012). At December 31, 2013, the underlying commitment covered by such guarantees was €11,781 million (€11,266 million at December 31, 2012).

Other guarantees issued on behalf of unconsolidated subsidiaries of €160 million (€161 million at December 31, 2012) consisted of letters of patronage and other guarantees issued to commissioning entities relating to bid bonds and performance bonds for €147 million (€154 million at December 31, 2012). At December 31, 2013, the underlying commitment covered by such guarantees was €29 million (€34 million at December 31, 2012).

Unsecured guarantees and other guarantees issued on behalf of joint ventures and associates of €6,497 million (€7,100 million at December 31, 2012) primarily consisted of: (i) an unsecured guarantee of €6,122 million (same amount as of December 31, 2012) given by Eni SpA to Treno Alta Velocità – TAV SpA (now RFI – Rete Ferroviaria Italiana SpA) for the proper and timely completion of a project relating to the Milan-Bologna fast-track railway by CEPAV Uno (Consorzio Eni per l’Alta Velocità); consortium members, excluding entities controlled by Eni, gave Eni liability of surety letters and bank guarantees amounting to 10% of their respective portion of the work; (ii) unsecured guarantees and other guarantees given to banks in relation to loans and lines of credit received for €253 million (€828 million at December 31, 2012); the contract released by Eni SpA on behalf of Blue Stream Pipeline Co BV (Eni 50%) to a consortium of international financial institutions (€657 million at December 31, 2012) extinguished in 2013; and (iii) unsecured guarantees and other guarantees given to commissioning entities relating to bid bonds and performance bonds for €62 million (€91 million at December 31, 2012). At December 31, 2013, the underlying commitment covered by such guarantees was €382 million (€456 million at December 31, 2012).

Unsecured and other guarantees given on behalf of third parties of €176 million (€291 million at December 31, 2012) primarily consisted of: (i) guarantees issued on behalf of Gulf LNG Energy and Gulf LNG Pipeline and on behalf of Angola LNG Supply Service Llc (Eni 13.6%) as security against payment commitments of fees in connection with the re-gasification activity (€147 million). The expected commitment has been valued at €147 million (€159 million at December 31, 2012); and (ii) guarantees issued by Eni SpA to banks and other financial institutions in relation to loans and lines of credit for €10 million on behalf of minor investments or companies sold (same amount as of December 31, 2012). At December 31, 2013 the underlying commitment covered by such guarantees was €162 million (€278 million at December 31, 2012).

Commitments and risks

Non-quantifiable commitments

Risk factors

Finance debt repayments including expected payments for interest charges and derivatives

Trade and other payables

Expected payments by period under contractual obligations and commercial commitments

Capital expenditure commitments

Other information about financial instruments

Disclosures about the offsetting of financial instruments

Disclosures on fair value of financial instruments

Legal proceedings

Assets under concession arrangements

Environmental regulations

Emission trading