Results by segment

Exploration & Production

The Exploration & Production segment reported an adjusted operating profit of €4,108 million, down by €7,443 million or 64.4% y-o-y. This change was driven by lower oil and gas realizations in dollar terms (down by 47.8% and 33.8%, respectively), reflecting the lower price for the marker Brent (down by 47%) and lower gas prices in Europe and in the United States. The price effect was only partially offset by a favorable exchange rate environment, higher production volumes, opex efficiencies and lower exploration expenses.

Adjusted net profit amounted to €752 million, decreasing by €3,671 million or 83% from 2014, due to lower operating performance and an increased adjusted tax rate (81.5%) due to: (i) the recognition of a major part of the positive pre-tax results in PSAs contracts which, although more resilient in a low-price environment nonetheless, bear higher-than-average rates of tax; ii) a higher incidence of non-deductible expenses on the pre-tax profit that has been lowered by the scenario.

Excluding the impact of the higher incidence on pre-tax profit of certain non-deductible expenses, because this incidence is expected to prospectively come down due to the effect of lower amortization charges going forward as a result of the impairment losses recorded in 2015 driven by the price outlook, and also restating the Group operating profit in accordance with the successful-effort-method accounting of exploration expenses, net of impaired exploration projects, the E&P tax rate has been re-determined in 70% and 60% for 2015 and 2014, respectively. In 2015, taxes paid represent approximately 34% of cash flow by operating activities of the E&P segment before changes in working capital and income taxes paid, slightly lower than in 2014.

Gas & Power

The Gas & Power segment reported an adjusted operating loss of €126 million, down by €294 million from an adjusted operating profit of €168 million in 2014. The change reflected the one off economic benefits associated to certain contracts renegotiation recorded in the fourth quarter of 2014 as well as the negative outcome of a commercial arbitration in the fourth quarter of 2015. The Gas & Power segment reported an adjusted net loss of €168 million in the full year 2015, down by €254 million compared to the €86 million profit reported in the same period of a year ago due to the weaker operating performance and lower results of equity-accounted entities.

Refining & Marketing

The Refining & Marketing segment reported an adjusted operating profit of €387 million, up by €452 million from the adjusted net loss of €65 million reported in 2014. This strong performance was driven by an improved refining margin scenario and efficiency and optimization gains, which helped lower margin to around $5 per barrel, anticipating the EBIT break-even of the refining business to 2015 versus an original guidance for the year 2017 indicated in the 2015-2018 strategic plan.

Adjusted operating profit by segment





(€ million)




Exploration & Production




Gas & Power




Refining & Marketing




Corporate and other activities




Impact of unrealized intragroup profit elimination