Letter to shareholders

Since the beginning of the oil downturn in 2014, Eni’s strategy has been refocused on three pillars: a successful exploration with low unit costs and a fast time to market; the deployment of the dual exploration model through the disposal of these successes anticipating the conversion in cash of resources as to reconcile organic growth and a robust balance sheet; a continuous focus on the cost base to adapt the business model to a low commodity price scenario both in upstream and in downstream businesses.

The outstanding industrial and financial results delivered in 2016 and strengthened growth and value prospects have proven the effectiveness of this strategy, launched in 2014, anticipating the extraordinary declining trend in Brent prices.

First of all, in delivering our strategy, we strengthened the E&P segment, the main driver for growth and value generation.

In the last three years, hydrocarbon production increased by 15% (up by 240 kboe/d) exclusively organically, notwithstanding capex reduction. In 2017, Eni will continue to grow, reaching an all-time high output of about 1.84 million barrels of oil equivalent per day, adopting an even stricter capital discipline.

All in all, we believe that the Company has accomplished a solid competitive position leveraging on competences and exploration successes, a reduction in the full-cycle cost of the barrel produced consistently with a weakened trading environment, mid-downstream sustainability and, in the long-term, the ability to adapt to decarbonization.

Emma Marcegaglia, CHAIRMAN (photo)

Emma Marcegaglia



Claudio Descalzi

Chief Executive Officer and General Manager

At the end of our mandate, we are returning to you a company with a renewed strategy, more efficient and capable of structurally creating value in the emerging energy scenario.

In light of these results, the Board of Directors will propose to the Annual Shareholders’ Meeting the distribution of final dividend of €0.80 per share, of which €0.40 already paid as interim dividend in September 2016.

2016 – Growth has a new energy