Annual Report 2020
Explore the 2020 HighlightsMission
We are an energy company.
We concretely support a just energy transition,
with the objective of preserving our planet
and promoting an efficient and sustainable access to energy for all.
Our work is based on passion and innovation,
on our unique strengths and skills,
on the equal dignity of each person,
recognizing diversity as a key value for human development,
on the responsibility, integrity and transparency of our actions.
We believe in the value of long-term partnerships with the Countries and communities where we operate, bringing long-lasting prosperity for all.
The mission represents more explicitly the Eni’s path to face the global challenges, contributing to achieve the SDGs determined by the UN in order to clearly address the actions to be implemented by all the involved players.
The Sustainable Development Goals
Global goals for a sustainable development
The 2030 Agenda for Sustainable Development, presented in September 2015, identifies the 17 Sustainable Development Goals (SDGs) which represent the common targets of sustainable development on the current complex social problems. These goals are an important reference for the international community and Eni in managing activities in those Countries in which it operates.
Activities
Eni activities: the value chain
Eni is a global energy company, engaged in the entire value chain: from the exploration, development and extraction of oil and natural gas, to the generation of electricity from cogeneration and renewable sources, traditional and biorefining and chemicals, and the development of circular economy processes. Eni extends its reach to end markets, selling gas, electricity and products to retail and business customers and local markets. Both CO2 capture and storage initiatives and forest conservation projects (REDD+ initiatives) will be implemented to absorb residual emissions.
Consolidated expertise, technologies and geographical distribution of assets are Eni levers to strengthen its presence along the value chain.
Along this path, Eni is committed to become a leading company in the production and sale of decarbonized energy products, increasingly customer-oriented.
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Decarbonization will be achieved through the implementation and strengthening of existing technologies and activities such as biorefineries with an increasing input of raw material from waste;
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Circular economy with increased use of biomethane, waste products and recycling of end products;
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Efficiency and digitalization in operations and customer services;
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Renewables through increased capacity and integration with the retail business;
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Blue and green hydrogen to power Eni biorefineries and other highly energy-intensive industrial activities;
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Natural or artificial carbon capture to absorb residual emissions through REDD+ forest conservation initiatives and CCS projects.
Gas will be an important support to intermittent sources in the energy transition.
Eni worldwide presence
Activities
Business Model
Eni business model is aimed at the creation of value for all stakeholders through a strong presence along the entire value chain of energy. Eni aims to contribute, directly or indirectly, to the achievement of the Sustainable Development Goals (SDGs) of the United Nations 2030 Agenda, supporting a just energy transition, which responds with concrete and economically sustainable solutions to the challenges of combating climate change and giving access to energy in an efficient and sustainable way, for all.
Eni organically combines its business plan with the principles of environmental and social sustainability, extending its range of action along three pillars:
- operational excellence
- carbon neutrality by 2050
- alliances for development
Operational excellence
Carbon neutrality by 2050
Second, Eni’s business model envisages a decarbonization path towards carbon neutrality based on an approach oriented to emissions generated throughout the life cycle of energy products and on a set of actions that will lead to the total decarbonization of processes and products by 2050. This path, achieved through existing technologies, will allow Eni to totally reduce its carbon footprint, both in terms of net emissions and in terms of net carbon intensity.
Alliances for development
The third guideline refers to alliances for the promotion of development through the enhancement of the resources of the Countries where it operates, promoting access to electricity and promoting Local Development Programmes (LDPs) with a broad portfolio of initiatives in favour of communities. This distinctive approach, referred to as Dual Flag, is based on collaborations with other internationally recognized players in order to identify the needs of communities in line with the National Development Plans and the United Nations 2030 Agenda. Eni is also committed to creating job opportunities and transferring its know-how and expertise to its local partners.
Eni’s business model is developed along these three pillars by leveraging internal expertise, the development and application of innovative technologies and the digitalization process.
A fundamental element of the business model is the Corporate Governance system, inspired by the principles of transparency and integrity, outlined further in the Governance section.
Responsible and sustainable approach
Eni adopts a responsible and sustainable approach in order to ensure value creation in the medium and long term for the company and for all stakeholders. This approach, the importance of which is even more evident after the outbreak of the pandemic, is confirmed in the company’s Mission, which clearly expresses the commitment of Eni to play a decisive role in the just transition process for a low carbon future that guarantees efficient and sustainable access to energy for all in order to contribute to the achievement of the Sustainable Development Goals (SDGs).
CARBON NEUTRALITY BY 2050
Combating climate change
Commitments
Eni has defined a medium-long term plan to take full advantage of the opportunities offered by the energy transition and progressively reduce the carbon footprint of its activities, committing to achieve total decarbonization of all its products and processes by 2050
Main results 2020
- -26% GHG emission intensity index upstream vs. 2014
- -39% volume of hydrocarbons sent for routine flaring vs. 2014
- -90% upstream methane fugitive emissions vs. 2014 (TARGET REACHED)
Sustainable development goals
Operational excellence model
People
Commitments
Eni is committed to supporting the just transition process by consolidating and developing skills, enhancing every psychophysical dimension of its people and recognising diversity as a resource
Main results 2020
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31,495 employees in service at 31 December (reported -1.7% vs. 2019)
-
+2.3 percentage point increase in women hired (34.6% in 2020 vs. 32.3% in 2019)
-
Approx. 1.04 million hours of training (-23.6% vs. 2019)
-
13,300 professional profiles mapped to date
Sustainable development goals
Health
Commitments
Eni considers the protection of the health of its people, families and communities in the Countries where it operates to be a fundamental requirement and promotes their physical, psychological and social well-being
Main results 2020
- 354,192 of health services provided
- 222,708 registrations to health promotion initiatives
Sustainable development goals
Safety
Commitments
Eni considers workplace safety an essential value to be shared among local employees, contractors and stakeholders and it is committed to reduce incidents down to zero and to preserve assets integrity
Main results 2020
- TRIR(a) 0.36
- Promotion of in-depth initiatives on the Human Factor to counter accident risks
- Relaunched and enhanced the “Safety starts @ home” campaign in view of the new ways of working
(a) Total Recordable Injury Rate.
Sustainable development goals
Respect for the environment
Commitments
Eni promotes the efficient management of natural resources and the safeguard of protected areas relevant to biodiversity, through actions aimed at improving energy efficiency and the transition to a circular economy and identifying potential impacts and mitigation actions and is committed not to carry out hydrocarbon exploration and development activities in UNESCO World Heritage Sites
Main results 2020
- Adherence to the 4 principles for solutions based on “Together with Nature”
- Extension of biodiversity risk mapping to the R&M pipeline network
- 91% reuse of fresh water
- -11% fresh water withdrawn vs. 2019
- -19% waste generated by production activities vs. 2019
- -7% barrels spilled from operational oil spills vs. 2019
Sustainable development goals
Human Rights
Commitments
Eni is committed to respecting Human Rights in its activities and to promoting their respect with partners and stakeholders
Main results 2020
- Ranked by the CHRB(b) as first among 199 companies evaluated
- Adherence to the Voluntary Principles on Security and Human Rights
- Issuance of the new Code of Ethics
- Issuance of the new Eni Supplier Code of Conduct
- Issuance of a new Policy on Indigenous Peoples in Alaska
- 97% security contracts with Human Rights clauses
- 100% new suppliers assessed according to social criteria
(b) Corporate Human Rights Benchmark.
Sustainable development goals
Transparency and integrity in business management
Commitments
Eni carries out its business activities with fairness, correctness, transparency, honesty, integrity and in compliance with the laws
Main results 2020
- Membership in EITI(c) since 2005
- 9 Countries where Eni supports the EITI Multi Stakeholder Groups at local level
- 31 internal audits conducted with anti-corruption checks
- Publication Country-by-Country Report(d)
- Publication of Eni position on contractual transparency
(c) Extractive Industries Transparency Initiative.
(d) Report for the assessment of tax risk by the Financial Authorities that collects data on turnover, profits and taxes aggregated with reference to the jurisdictions in which Eni conducts business.
Sustainable development goals
ALLIANCES FOR DEVELOPMENT
Cooperation model
Commitments
The cooperation model integrated into the business model is a distinctive feature of Eni, which aims to support Countries in achieving their development goals
Main results 2020
- €96.1 million invested in local development
- Cooperation agreements signed with World Bank, USAID and civil society organizations
Sustainable development goals
Technological Innovation
Commitments
For Eni, research, development and rapid implementation of new technologies are an important strategic lever to drive business transformation
Main results 2020
- €157 million invested in research and development
- 25 new applications for first patent filings, of which 7 concern renewable sources
Sustainable development goals
Eni at a glance
In a year like no other in the history of the energy industry, Eni has proven the robustness and flexibility of its business model by reacting swiftly and effectively to the extraordinary crisis context, while progressing the Company’s irreversible path for the energy transition. In the space of a few months after the outbreak of the pandemic we reduced capital spending and limited the impact of the sharp drop in crude oil prices on the cash flow, strengthening our liquidity and preserving the robustness of our balance sheet. The upstream business is strengthening its recovery, while our businesses in the production and sale of decarbonized products achieved excellent results in the year, driven by a 17% Ebit increase from Eni gas e luce, a 130% increase in biorefining processing and 1 GW of new solar and wind generation capacity already installed or sanctioned. We laid foundations for strong growth in renewables by entering two strategic markets, the US and the Dogger Bank wind project in the UK’s North Sea offshore wind market, which will be the largest in the world in the sector. Through leveraging the actions we put in place, our 2020 adjusted cash flow of €6.7 billion was able to finance our capex, with a surplus of €1.7 billion. Net borrowings (before IFRS 16) are at the same level as at the end of 2019, and leverage is at around 30%.
Further reading:
at replacement cost
The trading environment in 2020 saw the largest drop in oil demand in history (down by 9% y-o-y) driven by the lockdown measures implemented globally to contain the spread of the COVID-19 pandemic, Eni has promptly defined actions, leveraging on the energy, resources and flexibility of the operations.
Capital expenditure (€ million)
|
|
2020 |
2019 |
2018 |
||||||||
Sales from operations |
(€ million) |
43,987 |
69,881 |
75,822 |
||||||||
Operating profit (loss) |
|
(3,275) |
6,432 |
9,983 |
||||||||
Adjusted operating profit (loss)(a) |
|
1,898 |
8,597 |
11,240 |
||||||||
of which: Exploration & Production |
|
1,547 |
8,640 |
10,850 |
||||||||
Global Gas & LNG Portfolio |
|
326 |
193 |
278 |
||||||||
Refining & Marketing and Chemicals |
|
6 |
21 |
360 |
||||||||
Eni gas e luce, Power & Renewables |
|
465 |
370 |
262 |
||||||||
Adjusted net profit (loss)(a)(b) |
|
(758) |
2,876 |
4,583 |
||||||||
Net profit (loss)(b) |
|
(8,635) |
148 |
4,126 |
||||||||
Net cash flow from operating activities |
|
4,822 |
12,392 |
13,647 |
||||||||
Capital expenditure |
|
4,644 |
8,376 |
9,119 |
||||||||
of which: exploration |
|
283 |
586 |
463 |
||||||||
development of hydrocarbon reserves |
|
3,077 |
5,931 |
6,506 |
||||||||
Dividend to Eni’s shareholders pertaining to the year(c) |
|
1,290 |
3,078 |
2,989 |
||||||||
Cash dividend to Eni’s shareholders |
|
1,965 |
3,018 |
2,954 |
||||||||
Total assets at year end |
|
109,648 |
123,440 |
118,373 |
||||||||
Shareholders’ equity including non-controlling interests at year end |
|
37,493 |
47,900 |
51,073 |
||||||||
Net borrowings at year end before IFRS 16 |
|
11,568 |
11,477 |
8,289 |
||||||||
Net borrowings at year end after IFRS 16 |
|
16,586 |
17,125 |
n.a. |
||||||||
Net capital employed at year end |
|
54,079 |
65,025 |
59,362 |
||||||||
of which: Exploration & Production |
|
45,252 |
53,358 |
50,358 |
||||||||
Global Gas & LNG Portfolio |
|
796 |
1,327 |
1,742 |
||||||||
Refining & Marketing and Chemicals |
|
8,786 |
10,215 |
6,960 |
||||||||
Eni gas e luce, Power & Renewables |
|
2,284 |
1,787 |
1,869 |
||||||||
Share price at year end |
(€) |
8.6 |
13.9 |
13.8 |
||||||||
Weighted average number of shares outstanding |
(million) |
3,572.5 |
3,592.2 |
3,601.1 |
||||||||
Market capitalization(d) |
(€ billion) |
31 |
50 |
50 |
||||||||
|
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Performance
for the year
Exploration & Production
|
|
2020 |
2019 |
2018 |
||||||
Hydrocarbon production |
(kboe/d) |
1,733 |
1,871 |
1,851 |
||||||
Net proved reserves of hydrocarbons |
(mmboe) |
6,905 |
7,268 |
7,153 |
||||||
Reserve life index |
(years) |
10.9 |
10.6 |
10.6 |
||||||
Organic reserve replacement ratio |
(%) |
43 |
92 |
100 |
||||||
Profit per boe(a)(c) |
($/boe) |
3.8 |
7.7 |
6.7 |
||||||
Opex per boe(b) |
|
6.5 |
6.4 |
6.8 |
||||||
Finding & Development cost per boe(c) |
|
17.6 |
15.5 |
10.4 |
||||||
|
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Refining & Marketing and Chemicals
|
|
2020 |
2019 |
2018 |
Capacity of biorefineries |
(mmtonnes/year) |
1.1 |
1.1 |
0.4 |
Production of biofuels |
(ktonnes) |
622 |
256 |
219 |
Average biorefineries utilization rate |
(%) |
63 |
44 |
63 |
Retail market share in Italy |
|
23.3 |
23.6 |
24.0 |
Retail sales of petroleum products in Europe |
(mmtonnes) |
6.61 |
8.25 |
8.39 |
Service stations in Europe at year end |
(number) |
5,369 |
5,411 |
5,448 |
Average throughput of service stations in Europe |
(kliters) |
1,390 |
1,766 |
1,776 |
Average oil refineries utilization rate |
(%) |
69 |
88 |
91 |
Production of petrochemical products |
(ktonnes) |
8,073 |
8,068 |
9,483 |
Average petrochemical plant utilization rate |
(%) |
65 |
67 |
76 |
Eni gas e luce, Power & Renewables
|
|
2020 |
2019 |
2018 |
Retail gas sales |
(bcm) |
7.68 |
8.62 |
9.13 |
Retail power sales to end customers |
(TWh) |
12.49 |
10.92 |
8.39 |
Thermoelectric production |
|
20.95 |
21.66 |
21.62 |
Power sales in the open market |
|
25.33 |
28.28 |
28.54 |
Renewables installed capacity at period end |
(MW) |
307 |
174 |
40 |
Energy production from renewable sources |
(GWh) |
339.6 |
60.6 |
11.6 |
Consolidated disclosure of non-financial information
The Eni 2020 consolidated disclosure of Non-Financial Information (NFI) has been drafted in accordance with Legislative Decree 254/2016 and the Sustainability Reporting Standards published by the Global Reporting Initiative (GRI). The NFI is included in the Management Report in the Annual Report, to meet the information needs of Eni stakeholders in a clear and concise manner, further favouring the integrated disclosure of financial and non-financial information. Furthermore, the NFI may include references to other sections of the Management Report, the Corporate Governance and Shareholding Structure Report and the Report on remuneration policy and remuneration paid, when the issues required by Legislative Decree 254/2016 are already contained therein or for further details.
In continuity with previous editions, the document is structured according to the three levers of the integrated business model, Carbon Neutrality by 2050, Operational Excellence, and Alliances for development, whose objective is the creation of long-term value for all stakeholders. In addition, the main United Nations Sustainable Development Goals (SDGs), which constitute an important reference for Eni in the conduct of its activities, have been reported. Finally, the “Measuring Stakeholder Capitalism” core metrics defined by the World Economic Forum (WEF) were included for the first time.
CARBON NEUTRALITY BY 2050
SCOPES OF LEGISLATIVE DECREE 254/2016 |
COMPANY MANAGEMENT MODEL AND GOVERNANCE |
POLICIES APPLIED |
RISK MANAGEMENT MODEL |
PERFORMANCE INDICATORS |
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CLIMATE CHANGE |
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Eni, aware of the ongoing climate emergency, wants to be an active part of a virtuous path of the energy sector to contribute to carbon neutrality by 2050, in order to keep average global warming within the threshold of 1.5°C at the end of the century. Eni has long been committed to promoting comprehensive and effective climate change disclosure and in this respect confirms its commitment to implementing the recommendations of the Task Force on Climate Related Financial Disclosure (TCFD) of the Financial Stability Board.
OPERATING EXCELLENCE MODEL
SCOPES OF LEGISLATIVE DECREE 254/2016 |
COMPANY MANAGEMENT MODEL AND GOVERNANCE |
POLICIES APPLIED |
RISK MANAGEMENT MODEL |
PERFORMANCE INDICATORS |
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PEOPLE |
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RESPECT FOR THE ENVIRONMENT |
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HUMAN RIGHTS |
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SUPPLIERS |
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TRANSPARENCY AND ANTI-CORRUPTION |
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The Operating Excellence Model is based on a constant commitment to consolidating and developing skills in line with new business needs, enhancing its people in all areas (professional and non-professional), and ensuring health and safety, environmental protection, respect and promotion of human rights and attention to transparency and anti-corruption.
ALLIANCES FOR PROMOTION OF LOCAL DEVELOPMENT
SCOPES OF LEGISLATIVE DECREE 254/2016 |
COMPANY MANAGEMENT MODEL AND GOVERNANCE |
POLICIES APPLIED |
RISK MANAGEMENT MODEL |
PERFORMANCE INDICATORS |
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LOCAL COMMUNITIES |
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One lever of Eni’s business model is represented by the promotion of local development, through the enhancement of the resources of the Countries where Eni is present, allocating gas production to the local market and promoting access to electricity, together with a wide range of socio-economic development initiatives in line with the development objectives of the Countries themselves.
Exploration & Production
|
|
2020 |
2019 |
2018 |
||||||||||||
TRIR (Total Recordable Injury Rate) |
(total recordable injuries/ |
0.28 |
0.33 |
0.30 |
||||||||||||
of which: employees |
|
0.18 |
0.18 |
0.29 |
||||||||||||
contractors |
|
0.31 |
0.37 |
0.30 |
||||||||||||
Profit per boe(a)(b) |
($/boe) |
3.8 |
7.7 |
6.7 |
||||||||||||
Opex per boe(c) |
|
6.5 |
6.4 |
6.8 |
||||||||||||
Cash flow per boe |
|
9.8 |
18.6 |
22.5 |
||||||||||||
Finding & Development cost per boe(b)(c) |
|
17.6 |
15.5 |
10.4 |
||||||||||||
Average hydrocarbon realization |
|
28.92 |
43.54 |
47.48 |
||||||||||||
Hydrocarbons production(c) |
(kboe/d) |
1,733 |
1,871 |
1,851 |
||||||||||||
Net proved hydrocarbons reserves |
(mmboe) |
6,905 |
7,268 |
7,153 |
||||||||||||
Reserves life index |
(years) |
10.9 |
10.6 |
10.6 |
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Organic reserves replacement ratio |
(%) |
43 |
92 |
100 |
||||||||||||
Employees at year end |
(number) |
9,815 |
10,272 |
10,448 |
||||||||||||
of which outside Italy |
|
6,123 |
6,781 |
6,971 |
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Direct GHG emissions (Scope 1)(d) |
(mmtonnes CO2eq.) |
21.1 |
22.8 |
24.1 |
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GHG emissions (Scope 1)/operated hydrocarbons gross production(d)(e) |
(tonnes CO2eq./kboe) |
20.0 |
19.6 |
21.4 |
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Methane fugitive emissions(d) |
(ktonnes CH4) |
11.2 |
21.9 |
38.8 |
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Volumes of hydrocarbon sent to routine flaring(d) |
(billion Sm3) |
1.0 |
1.2 |
1.4 |
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Net Carbon Footprint upstream (GHG emissions Scope 1 + Scope 2)(f) |
(mmtonnes CO2eq.) |
11.4 |
14.8 |
14.8 |
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Oil spills due to operations (>1 barrel)(d) |
(barrels) |
882 |
988 |
1,595 |
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Re-injected production water(d) |
(%) |
53 |
58 |
60 |
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Performance of the year
- Total recordable injury rate (TRIR) was 0.28, down by 15%, confirming Eni’s commitment to reduce injuries in each of its operations.
- Direct GHG emissions (Scope 1) of the operated assets reported a decrease of 7% for an activity decline due to the sanitary emergency.
- Direct GHG emissions (Scope 1)/operated hydrocarbon gross production: increased by 2% vs. 2019 due to lower productions connected to the pandemic crisis and lower gas demand in Egypt, which productions are associated to a low emission intensity.
- Methane fugitive emissions of the operated assets were down by 49% from 2019 mainly due to the finalization of the monitoring and maintenance programs as well as production declines. The overall reduction with respect to 2014 is 90%, achieving in advance the 80% reduction target set by 2025.
- Net Carbon Footprint upstream (GHG emissions Scope 1 + Scope 2 accounted for on an equity basis) decreased by 23% compared to 2019 due to lower productions connected to the pandemic crisis, and first allowance of carbon credits to offset GHG emissions.
- Volumes of hydrocarbon sent to routine flaring of the operated assets decreased by 14% from 2019, thanks to the zero process flaring achieved in July in Angola, at the West Hub site, and the production shutdown due to force majeure at the Bu-Attifel and El-Feel fields in Libya.
- Oil spills due to operations: down by 10% compared to 2019 leveraging on to the technical measures adopted in the operating activities.
- Re-injected production water decreased from the full year of 2019 (down by 8.9%), due to the standstills occurred in Libya, as well as technical issues in Congo at the Loango and Zatchi fields and in Nigeria at the Ebocha field.
- In 2020, the E&P segment reported an adjusted operating profit of €1,547 million with a decrease of 82%, affected by a depressed scenario due to the COVID-19 pandemic which impacted both hydrocarbons realized prices and production. Particularly, lower sales volumes were driven by capex optimizations intended to preserve the Company’s cash flows, from the production cuts implemented by the OPEC+ agreement and falling gas demand.
- Oil and natural gas production was 1.73 million of boe/d, down by 7% from 2019. Net of price effects, the decline was due to COVID-19 impacts and related OPEC+ production cuts, as well as lower gas demand, mainly in Egypt. Production start-ups/ramp-ups of 109 kboe/d and portfolio contributions in Norway were partly offset by lower volumes in Libya, driven mainly by an expected contractual trigger, as well as mature field declines.
- Net proved reserves at December 31, 2020 amounted to 6.9 bboe based on a reference Brent price of 41 $/barrel. The all-sources replacement ratio was 43%; 96% three-year average all sources replacement ratio. The reserves life index was 10.9 years (10.6 years in 2019).
Gas & Power
|
|
2020 |
2019 |
2018 |
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TRIR (Total Recordable Injury Rate) |
(total recordable injuries/ |
1.15 |
0.56 |
0.51 |
||||
of which: employees |
|
0.99 |
0.96 |
0.40 |
||||
contractors |
|
1.37 |
0.00 |
0.69 |
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Natural gas sales(a) |
(bcm) |
64.99 |
72.85 |
76.60 |
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Italy |
|
37.30 |
37.98 |
39.17 |
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Rest of Europe |
|
23.00 |
26.72 |
29.17 |
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of which: Importers in Italy |
|
3.67 |
4.37 |
3.42 |
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European markets |
|
19.33 |
22.35 |
25.75 |
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Rest of world |
|
4.69 |
8.15 |
8.26 |
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LNG sales(b) |
|
9.5 |
10.1 |
10.3 |
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Employees at year end |
(number) |
700 |
711 |
734 |
||||
of which outside Italy |
|
410 |
418 |
416 |
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Direct GHG emissions (Scope 1) |
(mmtonnes CO2eq.) |
0.36 |
0.25 |
0.62 |
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Performance of the year
- In 2020, the total recordable injury rate (TRIR) of the workforce amounted to 1.15, due to two minor events.
- Direct GHG emissions (Scope 1) increased by 48% compared to 2019, due to a higher number of production restarts following the discontinued trend in gas demand and venting emissions for maintenance actions developed at Sergaz plants.
- Eni worldwide gas sales amounted to 64.99 bcm, down by 10.8% compared to 2019 (down by 7.86 bcm). Eni’s sales in Italy (37.30 bcm) decreased by 1.8% compared to 2019 (37.98 bcm).
- LNG sales amounted to 9.5 bcm representing a decrease of 5.9% compared to 2019.
Refining & Marketing and Chemicals
|
|
2020 |
2019 |
2018 |
TRIR (Total Recordable Injury Rate) |
(total recordable injuries/ |
0.80 |
0.27 |
0.56 |
of which: employees |
|
1.17 |
0.24 |
0.49 |
contractors |
|
0.48 |
0.29 |
0.62 |
Bio throughputs |
(ktonnes) |
710 |
311 |
253 |
Capacity of biorefineries |
(mmtonnes/year) |
1.1 |
1.1 |
0.4 |
Average biorefineries utilization rate |
(%) |
63 |
44 |
63 |
Conversion index of oil refineries |
|
54 |
54 |
54 |
Average oil refineries utilization rate |
|
69 |
88 |
91 |
Retail sales of petroleum products in Europe |
(mmtonnes) |
6.61 |
8.25 |
8.39 |
Service stations in Europe at year end |
(number) |
5,369 |
5,411 |
5,448 |
Average throughput per service station in Europe |
(kliters) |
1,390 |
1,766 |
1,776 |
Retail efficiency index |
(%) |
1.22 |
1.23 |
1.20 |
Production of petrochemical products |
(ktonnes) |
8,073 |
8,068 |
9,483 |
Sale of petrochemical products |
|
4,339 |
4,295 |
4,946 |
Average petrochemical plant utilization rate |
(%) |
65 |
67 |
76 |
Employees at year end |
(number) |
11,471 |
11,626 |
11,457 |
of which: outside Italy |
|
2,556 |
2,591 |
2,594 |
Direct GHG emissions (Scope 1) |
(mmtonnes CO2eq.) |
6.65 |
7.97 |
8.19 |
Direct GHG emissions (Scope 1)/refinery throughputs (raw and semi-finished materials) |
(tonnes CO2eq./ktonnes) |
248 |
248 |
253 |
Performance of the year
- Total recordable injury rate (TRIR) of the workforce amounted to 0.80 due to an increase in events recorded in the R&M business in Ecuador.
- Direct GHG emissions (Scope 1) reported a decrease of 16% compared to the previous year, mainly due to the decline in refining activities.
- Direct GHG emissions (Scope 1)/refining throughputs (raw and semi-finished materials) were substantially stable in 2020. The trend in GHG emissions was proportional to the reduction of processed materials.
- In 2020 Eni’s refining throughputs on own account amounted to 17 mmtonnes (excluding the ADNOC Refining), down by 25% from 2019, due to lower volumes processed in response to a sharply depressed refining scenario and storage saturation, as a consequence of demand backdrop affected by COVID-19 pandemic.
- Production of biofuels from vegetable oil of 0.71 mmtonnes were more than doubled from 2019, driven by the ramp-up of the Gela biorefinery.
- Retail sales in Italy were 4.56 mmtonnes, decreased by 22% from 2019. The market share in 2020 was 23.3% (23.6% in 2019).
- Retail sales in the Rest of Europe (2.05 mmtonnes) were down by 16% compared to 2019, due to the COVID-19 impact on consumptions.
- Sales of petrochemical products amounted to 4.34 mmtonnes, up by 1%, despite the drop in demand.
Reclamation activities
Reclamation activities are by Eni Rewind, the environmental Eni’s company through an integrated end to end model which ensures the supervision of reclamation process by planning projects from the early stages in accordance with local institutions and stakeholders, and the enhancement and reuse of resources in order to make them available for sustainable initiatives, in Italy and abroad. Eni Rewind applies the most advanced technologies, paying particular attention to on-site and in-site solutions to maximize efficacy and efficency of the actions.
In 2020, Eni Rewind expands the scope of its activities beyond the group, with the awarding by ArcelorMittal of the contract for design the reclamation works at former Ilva site in Taranto. The agreement also covers specialist assistance with the process for the authorities’ approval for securing the plant. Furthermore, through “Progetto Rinnovabili per l’Italia”, have been identified the reclaimed lands in the industrial areas where to install photovoltaic, biomass plants and concentrated solar power stations.
In 2020, a 31MW photovoltaic park was started in Porto Torres area. The produced energy is addressed in part to the local industrial activities, allowing to avoid emissions of approximately 26 ktonnes per year of CO2. During the year, another area was identified for the construction of a 34 MW photovoltaic park, in the design phase.
In addition, the activities related to the project “Ravenna Ponticelle” were carried on and provide, through an environmental intervention of permanent safety and subsequent redevelopment, the construction of: (i) a photovoltaic plant; (ii) a bio-remediation and land recovery plant with a biological laboratory; and (iii) a multipurpose platform created with another local player for the management of up to 60 ktonnes per year of special waste deriving from environmental and production activities in line with the European directives of the sector.
Water & Waste Management
The activity is developed by Eni Rewind and is focused on treatment of water at the Eni’s sites, through an integrated system of interception and conveying of groundwater to treatment plants for their purification. Currently, 42 water treatment plants are in operation and managed in Italy, with approximately 36 million cubic meters of treated water in 2020. During the year, the automation and digitization of groundwater treatment plants were finalized, through the completion of remote control for the main plants. Initiatives of recovery and reuse of treated water were carried on aimed at the production of demineralized water for industrial use and relating to the operational plans of reclamation of contaminated sites. In 2020, after treatment, approximately 6 million cubic meter of water were reused.
Activities for the application of Blue Water technology continue at the Val d’Agri Oil Center in Viggiano. The project is finalized to the treatment and recovery of production water extracted from the oil field for an industrial reuse. The project is under authorization. In addition, almost the overall waste are managed, from both environmental rehabilitation activities and the Group’s production activities in Italy, through the application of the best technologies to minimize environmental impacts. In 2020, about 1.7 million tons of waste were managed, with a share of recovered waste compared to the effective recoverable waste, amounting to approximately 78%. In the year, initiatives were also implemented outside Italy, including training and knowledge sharing programs, particularly in Iraq, Nigeria, Egypt, Tunisia, Kazakhstan, Turkmenistan and Angola to support the ongoing upstream activities in these countries. Furthermore, in January 2021 was signed a Memorandum of Understanding with the National Authority for oil and the gas of the Kingdom of Bahrain with the target of identifying and promoting joint initiatives for management, recovery and reuse of the country’s water, soil and waste resources.
Waste to Fuel
The target of recovery and reuse of resources is realized also through the development of the proprietary technology Waste to Fuel, which permits to transform FORSU (Organic fraction of municipal solid waste) in water and bio oil. Bio oil can be addressed to maritime transport, considering its low-sulphur content, or to help the production of advanced biofuels, while the recovered water can be used for industrial uses. The first application of this technology is ongoing at Gela plant, through a pilot plant started in 2018.
The construction of a plant with industrial scale is planned at Porto Marghera, in a reclaimed property’s area. The plan includes the realization of a system with a treatment capacity up to 150 ktons/year of FORSU. During the year, were started the procedures to obtain the authorizations of the project which includes collaboration with local industrial and productive players in a perspective of synergy with the local context.
Eni gas e luce, Power & Renewables
|
|
2020 |
2019 |
2018 |
Total recordable incident rate (TRIR) |
(total recordable injuries/ |
0.32 |
0.62 |
0.60 |
of which: employees |
|
0.00 |
0.30 |
0.31 |
contractors |
|
0.73 |
0.95 |
1.16 |
Eni Gas e Luce |
|
|
|
|
Retail gas sales |
(bcm) |
7.68 |
8.62 |
9.13 |
Retail power sales to end customers |
(TWh) |
12.49 |
10.92 |
8.39 |
Retail customers |
(milion of POD) |
9.57 |
9.42 |
9.19 |
Power & Renewables |
|
|
|
|
Power sales in the open market |
(TWh) |
25.33 |
28.28 |
28.54 |
Thermoelectric production |
|
20.95 |
21.66 |
21.62 |
Energy production from renewable sources |
(GWh) |
339.6 |
60.6 |
11.6 |
Renewable installed capacity at period end |
(MW) |
307 |
174 |
40 |
Employees at year end |
|
2,092 |
2,056 |
2,056 |
of which: outside Italy |
|
413 |
358 |
337 |
Direct GHG emissions (Scope 1) |
(mmtonnes CO2eq.) |
9.63 |
10.22 |
10.47 |
Direct GHG emissions (Scope 1)/equivalent produced electricity (Eni Power) |
(gCO2eq./kWh eq.) |
391 |
394 |
402 |
Performance of the year
- The total recordable injury rate (TRIR) of the workforce amounted to 0.32, 48% better than the previous year. Achieved the target of zero injuries for employees and a remarkable improvement in the contractors’ index.
- Direct GHG emissions (Scope 1) reported an improved performance (up by 6% compared to 2019), as a result of lower productions connected to the pandemic crisis and maintenance standstill at the Ferrara plant.
- Direct GHG emissions (Scope 1)/equivalent produced electricity slightly decreased from 2019 (down by 0.7%) following the reduced use of syngas at the Ferrera Erbognone plant, with an improved effect on the emission index.
- Retail gas sales amounted to 7.68 bcm, down by 10.9% compared to 2019. The decrease was mainly due to lower sales marketed to the small and medium enterprises and resellers segments.
- Retail power sales to end customers amounted to 12.49 TWh, recording an increase of 14.4% compared to 2019, leveraging on growth of the customer base outside Italy.
- Power sales in the open market amounted to 25.33 TWh, down by 10.4% following the economic slowdown due to the restrictive measures implemented during the pandemic.
- Energy production from renewable sources amounted to 339.6 GWh, more than a five-fold increase from the comparative period (60.6 GWh in the 2019) due to the entry in exercise of new capacity and the contribution of the acquired assets in the USA.
- As of December 31, 2020, the renewable installed capacity was 307 MW: 80% attributable to photovoltaic plants (including installed storage capacity) and 20% attributable to wind farms.
Key data
|
|
2020 |
2019 |
2018 |
||||||
Net profit (loss) |
|
|
|
|
||||||
- per share(a) |
(€) |
(2.42) |
0.04 |
1.15 |
||||||
- per ADR(a)(b) |
($) |
(5.53) |
0.09 |
2.72 |
||||||
Adjusted net profit (loss) |
|
|
|
|
||||||
- per share(a) |
(€) |
(0.21) |
0.80 |
1.27 |
||||||
- per ADR(a)(b) |
($) |
(0.48) |
1.79 |
3.00 |
||||||
Cash flow |
|
|
|
|
||||||
- per share(a) |
(€) |
1.35 |
3.45 |
3.79 |
||||||
- per ADR(a)(b) |
($) |
3.08 |
7.72 |
8.95 |
||||||
Adjusted Return on average capital employed (ROACE) |
(%) |
(0.6) |
5.3 |
8.5 |
||||||
Leverage before IFRS 16 |
|
31 |
24 |
16 |
||||||
Leverage after IFRS 16 |
|
44 |
36 |
n.a. |
||||||
Gearing |
|
31 |
26 |
14 |
||||||
Coverage |
|
(3.1) |
7.3 |
10.3 |
||||||
Current ratio |
|
1.4 |
1.2 |
1.4 |
||||||
Debt coverage |
|
29.1 |
72.4 |
164.6 |
||||||
Net Debt/EBITDA adjusted |
|
174.1 |
100.7 |
45.2 |
||||||
Dividend pertaining to the year |
(€ per share) |
0.36 |
0.86 |
0.83 |
||||||
Total Share Return (TSR) |
(%) |
(34.1) |
6.7 |
4.8 |
||||||
Dividend yield(c) |
|
4.2 |
6.3 |
5.9 |
||||||
|
||||||||||
|
|
2020 |
2019 |
2018 |
Exploration & Production |
(number) |
9,815 |
10,272 |
10,448 |
Global Gas & LNG Portfolio |
|
700 |
711 |
734 |
Refining & Marketing and Chemicals |
|
11,471 |
11,626 |
11,457 |
Eni gas e luce, Power & Renewables |
|
2,092 |
2,056 |
2,056 |
Corporate and other activities |
|
7,417 |
7,388 |
7,006 |
Group |
|
31,495 |
32,053 |
31,701 |
|
|
2020 |
2019 |
2018 |
R&D expenditure |
(€ million) |
157 |
194 |
197 |
First patent filing application |
(number) |
25 |
34 |
43 |
|
|
2020 |
2019 |
2018 |
||||
TRIR (Total Recordable Injury Rate) |
(total recordable injuries/worked hours) x 1,000,000 |
0.36 |
0.34 |
0.35 |
||||
employees |
|
0.37 |
0.21 |
0.37 |
||||
contractors |
|
0.35 |
0.39 |
0.34 |
||||
Direct GHG emissions (Scope 1) |
(mmtonnes CO2eq.) |
37.8 |
41.2 |
43.4 |
||||
Indirect GHG emissions (Scope 2) |
|
0.73 |
0.69 |
0.67 |
||||
Indirect GHG emissions (Scope 3) other than those due to purchases from other companies(b) |
|
185 |
204 |
203 |
||||
Net GHG Lifecycle Emissions(b) |
|
439 |
501 |
505 |
||||
Net Carbon Intensity(b) |
(gCO2eq./MJ) |
68 |
68 |
68 |
||||
Net Carbon Footprint upstream (GHG emissions Scope 1 + Scope 2)(b) |
(mmtonnes CO2eq.) |
11.4 |
14.8 |
14.8 |
||||
Direct GHG emissions (Scope 1)/operated hydrocarbon gross production (upstream) |
(tonnes CO2eq./kboe) |
20.0 |
19.6 |
21.4 |
||||
Carbon efficiency index Group |
|
31.6 |
31.4 |
33.9 |
||||
Methane fugitive emissions (upstream) |
(ktonnes CH4) |
11.2 |
21.9 |
38.8 |
||||
Volumes of hydrocarbon sent to routine flaring |
(billion Sm3) |
1.0 |
1.2 |
1.4 |
||||
Total volume of oil spills (>1 barrel) |
(barrels) |
6,789 |
7,265 |
6,687 |
||||
of which: due to sabotage |
|
5,831 |
6,232 |
4,022 |
||||
operational |
|
958 |
1,033 |
2,665 |
||||
Freshwater withdrawals |
(mmcm) |
113 |
128 |
117 |
||||
Re-injected production water |
(%) |
53 |
58 |
60 |
||||
|
||||||||
