Analysis of profit and loss account items

Net sales from operations

2011

 

(€ million)

2012

2013

Change

% Ch.

29,121

 

Exploration & Production

35,881

31,268

(4,613)

(12.9)

33,093

 

Gas & Power

36,200

32,124

(4,076)

(11.3)

51,219

 

Refining & Marketing

62,656

57,329

(5,327)

(8.5)

6,491

 

Versalis

6,418

5,859

(559)

(8.7)

11,834

 

Engineering & Construction

12,771

11,611

(1,160)

(9.1)

85

 

Other activities

119

80

(39)

(32.8)

1,365

 

Corporate and financial companies

1,369

1,453

84

6.1

(54)

 

Impact of unrealized intragroup profit elimination

(75)

18

93

 

(25,464)

 

Consolidation adjustments

(28,119)

(25,020)

3,099

 

107,690

 

 

127,220

114,722

(12,498)

(9.8)

In 2013, Eni’s net sales from operations (€114,722 million) decreased by €12,498 million from 2012 (down by 9.8%) reflecting lower realizations on commodities in dollar terms, negative impact of the appreciation of the euro against the US dollar, lower production and sales, and a marked slowdown in the Engineering & Construction business activity.

Revenues generated by the Exploration & Production Division (€31,268 million) decreased by €4,613 million, or 12.9%, due to lower oil and gas realizations in dollar terms (down by 2.1%), the appreciation of the euro against the US dollar and the extraordinary disruptions in Libya and Nigeria.

Revenues generated by the Gas & Power Division (€32,124 million) decreased by €4,076 million, down by 11.3%, due to continued deterioration in selling prices to large customers in Italy reflecting a weak gas demand and increasing competitive pressure. In addition spot prices at Italian hubs which are the main benchmark for selling prices in short-term supplies to large Italian customers have aligned very rapidly to continental hubs, thus driving a large fall in average realizations. Finally, the segment recorded lower sales to European target markets (down by 7.2%).

Revenues generated by the Refining & Marketing Division (€57,329 million) decreased by €5,327 million, or 8.5%, mainly reflecting lower sales of refined products (down 4.84 mmtonnes; or 10%, from 2012) and the negative impact of the currency.

Revenues generated by Versalis (€5,859 million) decreased by €559 million, down by 8.7% from 2012 mainly due to a decline in volumes sold (down by 4.2%) against the backdrop of the continuing weak commodity demand, impacted by the economic downturn, declining average sales prices (down by 3.2%), mainly in olefin prices (down by 23%), as result of the fall in butadiene’s unit margins.

Revenues generated by the Engineering & Construction business (€11,611 million) decreased by €1.160 million, or 9.1% due to marketing and operating difficulties, mainly in the first half of 2013 and the decline of business activity in onshore and offshore construction segments.

Operating expenses

Depreciation, depletion, amortization and impairments

Operating profit

Adjusted operating profit

Finance income (expense)

Net income from investments

Income taxes

Non-controlling interest