Annual Report 2021
Explore the 2021 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.
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 with a high technological content, 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 bio refining and chemical, and the development of circular economy processes. Eni extends its reach to end markets, marketing gas, power and products to local markets and to retail and business customers also offering services of energy efficiency and sustainable mobility. Both CO2 capture and storage and Natural Climate Solutions 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. Decarbonization will be achieved through the implementation and strengthening existing technologies and activities such as:
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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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Biorefineries with an increasing input of raw material from waste and from an integrated agribio-feedstock production chain not in competition with food production;
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Circular economy with increased production of biomethane, use of waste products and recycling of end products;
-
Blue and green hydrogen to power highly energy-intensive industrial activities and sustainable mobility;
-
Natural or artificial carbon capture to absorb residual emissions through Natural Climate Solutions, including REDD+ forest conservation initiatives and CCS projects.
Gas will be an important support to intermittent sources in the energy transition.
Eni's activities in the world
Activities
“Eni is now in a position to further strengthen its decarbonisation objectives, with more ambitious interim targets as early as 2025, on the path to zero net emissions by 2050. Specifically, we have announced a -35% reduction in net scope 1, 2 and 3 emissions by 2030 and -80% by 2040 compared to 2018 levels (compared to the -25% and -65% targets in the previous plan). For net scope 1 and 2 emissions, we will reach -40% by 2025 (compared to 2018 levels) and achieve net zero emissions by 2035, five years ahead of the previous plan.”
Claudio Descalzi, Eni’s CEO
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
Eni’s business model envisages a decarbonization path towards carbon neutrality by 2050 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.
Strategy
Eni's strategy is defined in a scenario for the next four years characterized by a Brent price supported by current market dynamics, with a demand growth expected to recover pre-pandemic levels by 2022 and a limited supply from the production issues and financial discipline of the international oil companies.
In the long-term, the price of crude oil is expected to grow in line with inflation until 2035, then decline following the progression of the energy transition. This scenario is subject to continuous monitoring due to the unpredictable evolution of the crisis between Russia and Ukraine. Financial discipline and spending selectivity, cost control and margins expansion will allow Eni to further contain cash neutrality and generate significant operating cash surplus at Eni’s conservative scenario Brent assumptions, which will be used to accelerate the growth of green businesses and keep solid asset ratios.
In the four-year period, Eni's management foresees an investment plan of €28 billion (on average about €7 billion/year) which will be implemented according to the parameters of financial and operational discipline of the Group, in compliance with minimum profitability thresholds, ensuring the consistency of emission profiles with long-term decarbonisation objectives and full coverage through flow of operating cash. The organic free cash flow and gains from the disposals, in particular Plenitude and Vår Energi IPOs on the stock exchange will allow to maintain a solid capital structure and to ensure competitive returns to shareholders.
Capital allocation processes provide a further step forward, coherently with the Paris targets with a 25% share of the capex plan, compared to a 20% share of the previous plan, aimed at strengthening the renewable generation capacity, growing circular economy of biofuels and green chemistry, to the "scaling up" of new energy solutions and services (CCS) and energy efficiency and decarbonization of legacy assets. These objectives will be achievable thanks to the two Business Groups able to implement distinct paths in synergy, aimed at the execution of Eni's net zero emission strategy by 2050: the Natural Resources Business Group committed to maximize value and decarbonize the O&G assets; the Energy Evolution Business Group aimed at developing new businesses in renewables and circular economy and implementing the industrial transformation of legacy assets.
Overall, the 2022-2025 plan projects a Group with robust fundamentals and growing profitability, thanks to the transformation strategy implemented in response to downturn that, on the one hand, increased the resilience of traditional businesses and their ability to generate cash, and, on the other hand, created the conditions for a phase of strong development of the transition business, based on the integration of technologies, on new business models and on the closer collaboration with stakeholders. The expected results in the next four years will make Eni's carbon neutrality strategy by 2050 more solid, thanks to the growing visibility of the intermediate targets and the steps closer.
DECARBONIZING AND ENHANCING OUR UPSTREAM PORTFOLIO
Our upstream commitments are grounded on enhancing the sustainability and value of the portfolio and reducing its cash neutrality and carbon footprint.
We will do this by combining production growth, expanding integrated gas and LNG developments, continuing to apply strict capital discipline, and reducing scope 1 and 2 absolute net emissions.
ROWING PROFITABLY WHILE TRANSFORMING
Following our strategy to reduce scope 3 emissions, over the plan period we are expanding our offer of decarbonized, green and bio energy products to our customers.
To that end, 25% of group investments are dedicated to growing profitable new energy businesses, across the green power value chain and in sustainable mobility.
ALIGNING INDUSTRIAL AND FINANCIAL STRATEGY
Eni’s financial plan is a structural component in the execution of our transition strategy.
While preserving a strict capital discipline, with an average capex of €7 bln per year, in line with last year’s plan, we will continue to restructure our portfolio to highlight the real value of our businesses and to maximize our opportunities of growth.
Moreover, we will continue to align our financial tools to the strategic milestones designed in our decarbonization plan. At the end of the plan €13 billion of financing instruments will be linked to Eni’s strategic kpi.
Over the next 4 years, we will strengthen the balance sheet, with an average leverage pre IFRS of around 10% at Eni’s planning scenario.
A SOLID FREE CASH FLOW GENERATION
Assuming a Brent price of 80$/bbl, Cash Flow from Operation before working capital is expected to exceed €14 billion in 2022 and more than €15 billion at a 90$ price. In 2022 considering capex of €7.7 billion, we expect an organic Free Cash Flow of €6 to 7 billion.
Over the next 4 years, at our planning assumptions, we will generate a cumulative Cash Flow from Operation before working capital of about €55 billion and a free cash flow before working capital of more than €25 billion.
While generating a solid stream of FCF, we will continue to focus on our resilience: cash neutrality, the level of price necessary to cover our capex needs and the floor dividend, will be maintained below 45$/bbl throughout the plan period.
DISTRIBUTION POLICY: SHARING THE UPSIDE WITH OUR SHAREHOLDERS
Reflecting the continued successful execution of our strategic path, a reinforced balance sheet and an improved outlook for commodities, the Board of Directors has decided to enhance 2022 distribution policy through the following set of actions.
Responsible and sustainable approach
Eni’s Mission clearly expresses the commitment of Eni to play a decisive role in the “Just Transition” process to achieve the goal of net-zero emissions by 2050, with a view to sharing social and economic benefits with workers, the supply chain, communities and customers in an inclusive, transparent and socially equitable manner, contributing to the achievement of the Sustainable Development Goals (SDGs).
Carbon neutrality by 2050
Combat 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 2021
- -25% GHG emission intensity index UPS vs. 2014
- -31% volumes of hydrocarbons sent for routine flaring vs. 2014
- -92% UPS fugitive methane emissions vs. 2014 (target achieved)
- -26% UPS Net Carbon Footprint vs. 2018
- -10% Net GHG Lifecycle Emissions vs. 2018
- -2% Net Carbon Intensity vs. 2018
Main targets
- -43% GHG emission intensity index upstream in 2025 vs. 2014
- Zero routine flaring in 2025
- -80% UPS fugitive methane emissions in 2025 vs. 2014
- Net Zero Carbon Footprint UPS in 2030 and Eni in 2035
- Net Zero GHG Lifecycle Emissions and Carbon Intensity in 2050
Operational excellence
People
Commitments
Eni is committed to supporting the “Just Transition” process by consolidating and developing skills, enhancing every (professional and non-professional) dimension of its people and recognising the values of diversity and inclusion of all diversities.
Main results 2021
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31,888 employees in service at 31 December (reported +3.6% vs. 2020)
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+1.6 percentage point increase in women hired (26.2% in 2021)
-
~1.04 mln hours of training (-0.3% compared to 2020)
-
1,500 professional profiles mapped
Main targets
- Increase by 3 percentage points vs. 2020 of women employees by 2030
- Increase in the replacement rate with target >1 to 2025
- Age diversity: +5 p.p. vs. 2021 of the population under 30 by 2025
- +20% hours of training in 2025 vs. 2021
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 2021
- 379,481 health services provided
- 158,784 registrations to health promotion initiatives
- 11 agreements signed with local communities, 8 of which for health crisis management
Main targets
- Digital initiatives for monitoring and improving the healthiness of indoor working environments
- Improving access to community well-being and health
- Development of initiatives to promote correct lifestyles for employees
Safety
Commitments
Eni considers workplace safety an essential value to be shared among employees, contractors and local stakeholders and it is committed to reduce incidents down to zero and to preserve assets integrity.
Main results 2021
- TRIR= 0.34; LTIF(a) = 0.23; FATALITY INDEX = 0
- 114 real emergency drills carried out with the involvement of personnel and operational vehicles
- Over 60 courses on behavioural safety delivered (> 15,000 hours)
- Process Safety: awareness raised for over 14,000 employees and 10,000 contractors
(a) Total Recordable Injury Rate and Lost Time Injury Frequency Rate.
Main targets
- TRIR < 0.40; 0 fatal accidents
- Extension of digital initiatives in the field of safety to contracting companies and digitalization of HSE processes
- Focus on behavioural safety and the human factor
Respect for the environment
Commitments
Eni promotes the efficient management of natural resources and the safeguard of protected and relevant to biodiversity areas through actions aimed at improving energy efficiency and the transition to a circular economy and identifying potential impacts and mitigation actions.
Main results 2021
- 91% reuse of fresh water
- +10% fresh water withdrawn vs. 2020
- +19% waste generated from production activities vs. 2020
- -35% barrels spilled from operational oil spills vs. 2020
- Extension of biodiversity mapping to renewable energy plants
Main targets
- Commitment to minimise fresh water withdrawals in areas under water stress
- Reuse of fresh water in line with the trend of the last 5 years
- Re-injected production water in line with the trend of the last 5 years net of the operating structure
- Development of new technologies for waste recovery and implementation on an industrial scale
Human Rights
Commitments
Eni is committed to respecting Human Rights (HRs) in its activities and to promoting their respect with partners and stakeholders. This commitment is based on the dignity of every human being and the responsibility of businesses to contribute to the well-being of individuals and local communities.
Main results 2021
- 23,893 hours of training provided in the year on HRs
- 100% of the professional procurement family trained on HRs
- Reinforced clauses on HRs included since May 2021 in all contracts with suppliers in the tender documentation and in all contractual standards
- Processing and roll out of the work-related HRs Due Diligence Model
- 98% of security contracts with HRs clauses
Main targets
- Completion of the three-year business and HRs training programme
- Continue in the process of developing specific analysis on 100% of new projects with HRs risks, including agro-business projects
- Keep 100% of new suppliers assessed according to social criteria
Suppliers
Commitments
Develop a sustainable supply chain, generating and transferring value to all stakeholders through the Sustainable Procurement Programme.
Main results 2021
- Subscription of 2,500 qualified Eni suppliers to Open-es, in a path of growth
- ~1,000 suppliers invited to cyber-security training and self assessment
- Application of sustainability safeguards in procurement procedures from April
- Launch of the Sustainable Energy Basket Bond
- Sustainability requirements in procurement procedures for ~ €2.5 bln
Main targets
- Assessment of the sustainable development path for all Eni strategic suppliers by 2025
Transparency, anti-corruption and tax strategy
Commitments
Eni carries out its business activities with loyalty, fairness, transparency, honesty, integrity and in compliance with the laws.
Main results 2021
- 9 Countries where Eni supports EITI(b) Multi stakeholder Groups at local level
- 20 internal audits conducted with anti-corruption checks
- ISO 37001:2016 surveillance audit passed
- Anti-Corruption and Anti-Money Laundering module introduced to the new e-learning course “Code of Ethics, Anti-Corruption and Corporate Responsibility”
- Update of the Anti-Corruption MSG
(b) Extractive Industries Transparency Initiative, supported by Eni since 2005.
Main targets
- Provision to all employees of the new course “Code of Ethics, Anti-Corruption and Corporate Social Responsibility”
- ISO 37001:2016 certification maintained
- Continuous improvement of the Anti-Corruption Compliance Program
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 2021
- €105.3 mln invested in local development
- Cooperation agreements signed including UNDP (United Nations Development Programme), AICS (Italian Agency for Cooperation and Development) and civil society organizations
Main targets
- By 2025 ensure access: to energy for ~290K people; to education for ~72K students; to water services for ~95K people; to economic diversification initiatives for ~17K(c) people; to health services for ~296K people
(c) The 17,000 beneficiaries include only people trained and/or supported for the start-up or strengthening of specific economic activities, not beneficiaries for infrastructure construction (roads, civil buildings, etc.) or for new agro-business activities underway. In some cases beneficiaries are not trained but receive inputs, funds or other to start economic activities.
Cross-cutting themes
Technological innovation
Commitments
For Eni, research, development and rapid implementation of new technologies are an important strategic lever to drive business transformation.
Main results 2021
- €177 million invested in research and development
- 30 new applications for first patent filings, of which 11 related to renewable sources
Main targets
- Guarantee that 70% of investment in research and development is spent on decarbonization issues
Eni at a glance
During 2021, we delivered excellent results and accelerated the pace of our transformation strategy, which leverages the integration of technologies, new business models and valuable relationships with our stakeholders. The strict financial discipline and cost efficiencies we implemented to withstand the downturn have allowed us to best capture the strong economic recovery of 2021. On the one hand, our upstream segment has kept generating the financial resources needed to fund our decarbonization strategy while, on the other, the new energy transition businesses, like those combined under our new entity Plenitude, have performed strongly. In this way, we have reached a Group EBIT of €9.7 bln and adjusted net profit of €4.3 bln. Robust cash generation, underpinned by a selective approach to making investment decisions, has freed €7.6 bln of organic free cash flow, which we used to: boost the growth of green businesses; fund dividends and a share buy-back at pre-pandemic levels; and deleverage the balance sheet - achieving an indebtedness ratio of 20% vs. 31% a year ago. Our portfolio restructuring has moved on to unlock value from our businesses, optimize our cost of capital and maximize growth.
Further reading:
In 2021 Eni achieved one of the best economic and financial performance of the last ten years and accelerated the transformation strategy towards an offer of decarbonized products and services. In 2021, once the emergency overcome, the macroeconomic recovery, progressively expanded from Asia to Western countries, has driven global oil & gas demand which after the decline of the pandemic peak is bounced synchronously across all the geographies, creating supply-side tensions due to investment cuts in the upstream sector, re-proposing the issue of energy security.
Development in renewables business
|
|
2021 |
2020 |
2019 |
||||||||||
Sales from operations |
(€ million) |
76,575 |
43,987 |
69,881 |
||||||||||
Operating profit (loss) |
|
12,341 |
(3,275) |
6,432 |
||||||||||
Adjusted operating profit (loss)(a) |
|
9,664 |
1,898 |
8,597 |
||||||||||
of which: Exploration & Production |
|
9,293 |
1,547 |
8,640 |
||||||||||
Global Gas & LNG Portfolio |
|
580 |
326 |
193 |
||||||||||
Refining & Marketing and Chemicals |
|
152 |
6 |
21 |
||||||||||
Plenitude & Power |
|
476 |
465 |
370 |
||||||||||
Adjusted net profit (loss)(a) (b) |
|
4,330 |
(758) |
2,876 |
||||||||||
Net profit (loss)(b) |
|
5,821 |
(8,635) |
148 |
||||||||||
Net cash provided by operating activities |
|
12,861 |
4,822 |
12,392 |
||||||||||
Capital expenditure(c) |
|
5,313 |
4,644 |
8,376 |
||||||||||
of which: exploration |
|
391 |
283 |
586 |
||||||||||
development of hydrocarbon reserves |
|
3,443 |
3,077 |
5,931 |
||||||||||
Dividend to Eni’s shareholders pertaining to the year(d) |
|
3,022 |
1,286 |
3,078 |
||||||||||
Cash dividend to Eni’s shareholders |
|
2,358 |
1,965 |
3,018 |
||||||||||
Total assets at year end |
|
137,765 |
109,648 |
123,440 |
||||||||||
Shareholders’ equity including non-controlling interests at year end |
|
44,519 |
37,493 |
47,900 |
||||||||||
Net borrowings at year end before IFRS 16 |
|
8,987 |
11,568 |
11,477 |
||||||||||
Net borrowings at year end after IFRS 16 |
|
14,324 |
16,586 |
17,125 |
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Net capital employed at year end |
|
58,843 |
54,079 |
65,025 |
||||||||||
of which: Exploration & Production |
|
48,014 |
45,252 |
53,358 |
||||||||||
Global Gas & LNG Portfolio |
|
(823) |
796 |
1,327 |
||||||||||
Refining & Marketing and Chemicals |
|
9,815 |
8,786 |
10,215 |
||||||||||
Plenitude & Power |
|
5,474 |
2,284 |
1,787 |
||||||||||
Share price at year end |
(€) |
12.2 |
8.6 |
13.9 |
||||||||||
Weighted average number of shares outstanding |
(million) |
3,566.0 |
3,572.5 |
3,592.2 |
||||||||||
Market capitalization(e) |
(€ billion) |
44 |
31 |
50 |
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Performance
for the year
Exploration & Production
|
|
2021 |
2020 |
2019 |
||||||
Hydrocarbon production |
(kboe/d) |
1,682 |
1,733 |
1,871 |
||||||
Net proved reserves of hydrocarbons |
(mmboe) |
6,628 |
6,905 |
7,268 |
||||||
Reserve life index |
(years) |
10.8 |
10.9 |
10.6 |
||||||
Organic reserve replacement ratio |
(%) |
55 |
43 |
92 |
||||||
Profit per boe(a) (c) |
($/boe) |
4.8 |
3.8 |
7.7 |
||||||
Opex per boe(b) |
|
7.5 |
6.5 |
6.4 |
||||||
Finding & Development cost per boe(c) |
|
20.4 |
17.6 |
15.5 |
||||||
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Refining & Marketing and Chemicals
|
|
2021 |
2020 |
2019 |
Capacity of biorefineries |
(mmtonnes/year) |
1.1 |
1.1 |
1.1 |
Sold production of biofuels certified |
(ktonnes) |
585 |
622 |
256 |
Average bio refineries utilization rate |
(%) |
65 |
63 |
44 |
Retail market share in Italy |
|
22.3 |
23.2 |
23.6 |
Retail sales of petroleum products in Europe |
(mmtonnes) |
7.23 |
6.61 |
8.25 |
Service stations in Europe at year end |
(number) |
5,314 |
5,369 |
5,411 |
Average throughput of service stations in Europe |
(kliters) |
1,521 |
1,390 |
1,766 |
Average oil refineries utilization rate |
(%) |
76 |
69 |
88 |
Production of petrochemical products |
(ktonnes) |
8,476 |
8,073 |
8,068 |
Average petrochemical plant utilization rate |
(%) |
66 |
65 |
67 |
Plenitude & Power
|
|
2021 |
2020 |
2019 |
Renewable installed capacity at period end |
(MW) |
1,137 |
335 |
174 |
Energy production from renewable sources |
(GWh) |
986 |
340 |
61 |
Retail and business gas sales |
(bcm) |
7.85 |
7.68 |
8.62 |
Retail and business power sales to end customers |
(TWh) |
16.49 |
12.49 |
10.92 |
Thermoelectric production |
|
22.36 |
20.95 |
21.66 |
Power sales in the open market |
|
28.54 |
25.33 |
28.28 |
Consolidated disclosure of non-financial information
Eni's 2021 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).
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 disclosure on climate change 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, which Eni has adopted since 2017, the first year applicable for reporting.
Operational excellence
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 operational excellence model is based on the 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 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 the promotion of local development through continuous interactions with institutions and local stakeholders to supply gas to the local market, promote access to energy, along with a wide range of interventions necessary to respond to the needs of communities. The resulting development strategies are reinforced by the launch of public-private partnerships and alliances with actors engaged in the territory, from International Organizations to development banks, from national institutions to the private sector, from universities to research centres, from cooperation bodies to civil society organizations. The added value of these collaborations allows the sharing of resources not only economically but also in terms of know-how and experience, contributes to the improvement of people’s quality of life and the achievement of the Sustainable Development Goals (SDGs).
Exploration & Production
|
|
2021 |
2020 |
2019 |
||||||||||||
Total recordable incident rate (TRIR)(a) |
(total recordable injuries/ |
0.25 |
0.28 |
0.33 |
||||||||||||
of which: employees |
|
0.09 |
0.18 |
0.18 |
||||||||||||
contractors |
|
0.30 |
0.31 |
0.37 |
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Profit per boe(b)(c) |
($/boe) |
4.8 |
3.8 |
7.7 |
||||||||||||
Opex per boe(d) |
|
7.5 |
6.5 |
6.4 |
||||||||||||
Cash flow per boe |
|
20.6 |
9.8 |
18.6 |
||||||||||||
Finding & Development cost per boe(c)(d) |
|
20.4 |
17.6 |
15.5 |
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Average hydrocarbon realization |
|
51.49 |
28.92 |
43.54 |
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Production of hydrocarbons(d) |
(kboe/d) |
1,682 |
1,733 |
1,871 |
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Net proved reserves of hydrocarbons |
(mmboe) |
6,628 |
6,905 |
7,268 |
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Reserves life index |
(years) |
10.8 |
10.9 |
10.6 |
||||||||||||
Organic reserves replacement ratio |
(%) |
55 |
43 |
92 |
||||||||||||
Employees at year end |
(number) |
9,409 |
9,815 |
10,272 |
||||||||||||
of which outside Italy |
|
6,045 |
6,123 |
6,781 |
||||||||||||
Direct GHG emissions (Scope 1)(a) |
(mmtonnes CO2eq.) |
22.3 |
21.1 |
22.8 |
||||||||||||
Direct GHG emissions (Scope 1)/operated hydrocarbon gross production(a)(e) |
(tonnes CO2eq./kboe) |
20.2 |
20.0 |
19.6 |
||||||||||||
Methane fugitive emissions(a) |
(ktonnes CH4) |
9.2 |
11.2 |
21.9 |
||||||||||||
Volumes of hydrocarbon sent to routine flaring(a) |
(billion Sm3) |
1.2 |
1.0 |
1.2 |
||||||||||||
Net carbon footprint upstream (Scope 1+2)(f) |
(mmtonnes CO2eq.) |
11.0 |
11.4 |
14.8 |
||||||||||||
Oil spills due to operations (>1 barrel)(a) |
(barrels) |
436 |
882 |
988 |
||||||||||||
Re-injected production water(a) |
(%) |
58 |
53 |
58 |
||||||||||||
|
||||||||||||||||
Performance of the year
- Total recordable injury rate (TRIR) was 0.25, down by 9%, confirming Eni’s commitment to reduce injuries in each of its operations.
- Direct GHG emissions (Scope 1) of the operated assets reported an increase of 6% from 2020, mainly due to the resumption of activities.
- Direct GHG emissions (Scope 1)/operated hydrocarbon gross production was 20.2 tonnes CO2 eq./kboe, substantially in line with 2020.
- Methane fugitive emissions of the operated assets were down by 18% from 2020 mainly as result of the constant commitment to periodic on-site monitoring and the related maintenance activities.
- Net Carbon Footprint upstream (GHG emissions Scope 1 + Scope 2 accounted for on an equity basis net of carbon sink) slightly decrease from 2020.
- Volumes of hydrocarbon sent to routine flaring of the operated assets increased by 12% from 2020, mainly due to the resumption of activities at the Abu-Attifel and El Feel plants in Libya, shut down in 2020.
- Oil spills due to operations more than halved from 2020, leveraging on to the technical measures adopted in the operating activities.
- Re-injected production water increased from 2020 thanks to the complete recovery of the re-injection activities in Congo and Libya.
- Oil and natural gas production was 1.7 million boe/d before price effects. Growth was fueled by continued production ramp-ups at the giant Zohr in Egypt and Merakes (Indonesia) gas fields, with the latter achieving first gas in April. Performance was negative impacted by greater maintenance activity in Norway, Italy and the UK, lower activity in Nigeria and mature fields decline.
- Net proved reserves at December 31, 2021 amounted to 6.6 bboe based on a reference Brent price of 69 $/barrel. The all-sources replacement ratio was 55%; 73% three-year average all sources replacement ratio. The reserves life index was 10.8 years (10.9 years in 2020).
Global Gas & LNG Portfolio
|
|
2021 |
2020 |
2019 |
||||||
TRIR (Total Recordable Injury Rate)(a) |
(total recordable injuries/ |
0.00 |
1.15 |
0.56 |
||||||
of which: employees |
|
0.00 |
0.99 |
0.96 |
||||||
contractors |
|
0.00 |
1.37 |
0.00 |
||||||
Natural gas sales(b) |
(bcm) |
70.45 |
64.99 |
72.85 |
||||||
Italy |
|
36.88 |
37.30 |
37.98 |
||||||
Rest of Europe |
|
28.01 |
23.00 |
26.72 |
||||||
of which: Importers in Italy |
|
2.89 |
3.67 |
4.37 |
||||||
European markets |
|
25.12 |
19.33 |
22.35 |
||||||
Rest of world |
|
5.56 |
4.69 |
8.15 |
||||||
LNG sales(c) |
|
10.9 |
9.5 |
10.1 |
||||||
Employees at year end |
(number) |
847 |
700 |
711 |
||||||
of which outside Italy |
|
571 |
410 |
418 |
||||||
Direct GHG emissions (Scope 1)(a) |
(mmtonnes CO2eq.) |
1.01 |
0.36 |
0.25 |
||||||
|
||||||||||
Performance of the year
- Achieved the zero-injury target for employees and contractors.
- Direct GHG emissions (Scope 1) equal to 1.01 million mmtonnes CO2eq. reported an increase as a result of the growth in gas volumes transported by TTPC and TMPC pipelines and the consolidation of Damietta liquefaction plant.
- Eni worldwide gas sales amounted to 70.45 bcm, increased by 8% compared to 2020 (up by 5.46 bcm).
- LNG sales amounted to 10.9 bcm, representing an increase of 14.7% compared to 2020.
Refining & Marketing and Chemicals
|
|
2021 |
2020 |
2019 |
||
TRIR (Total Recordable Injury Rate)(a) |
(total recordable injuries/ |
0.80 |
0.80 |
0.27 |
||
of which: employees |
|
1.13 |
1.17 |
0.24 |
||
contractors |
|
0.49 |
0.48 |
0.29 |
||
Bio throughputs |
(ktonnes) |
665 |
710 |
311 |
||
Capacity of biorefineries |
(mmtonnes/year) |
1.1 |
1.1 |
1.1 |
||
Average biorefineries utilization rate |
(%) |
65 |
63 |
44 |
||
Conversion index of oil refineries |
|
49 |
54 |
54 |
||
Average oil refineries utilization rate |
|
76 |
69 |
88 |
||
Retail sales of petroleum products in Europe |
(mmtonnes) |
7.23 |
6.61 |
8.25 |
||
Service stations in Europe at year end |
(number) |
5,314 |
5,369 |
5,411 |
||
Average throughput per service station in Europe |
(kliters) |
1,521 |
1,390 |
1,766 |
||
Retail efficiency index |
(%) |
1.19 |
1.22 |
1.23 |
||
Production of petrochemical products |
(ktonnes) |
8,476 |
8,073 |
8,068 |
||
Sale of petrochemical products |
|
4,451 |
4,339 |
4,295 |
||
Average petrochemical plant utilization rate |
(%) |
66 |
65 |
67 |
||
Employees at year end |
(number) |
13,072 |
11,471 |
11,626 |
||
of which: outside Italy |
|
4,044 |
2,556 |
2,591 |
||
Direct GHG emissions (Scope 1)(a) |
(mmtonnes CO2eq.) |
6.72 |
6.65 |
7.97 |
||
Direct GHG emissions (Scope 1)/Refinery throughputs |
(tonnes CO2 eq./ktonnes) |
228 |
248 |
248 |
||
|
||||||
Performance of the year
- Total recordable injury rate (TRIR) of the workforce amounted to 0.80, substantially in line compared to the previous year.
- Direct GHG emissions (Scope 1) increased by 1% compared to 2020, following the resumption of activities mainly in the chemical business.
- Direct GHG emissions (Scope 1)/refining throughputs (raw and semi-finished materials) were down by 8% compared to the previous year, despite the increase of commodities processed at the Sannazzaro and Livorno sites.
- In 2021 Eni’s refining throughputs on own account amounted to 18.78 mmtonnes (excluding the ADNOC Refining) up by 10.5% from 2020, benefitting from the 2021 economic recovery, supported by the resumption of the activities negatively affected in 2020 by the partial lockdown.
- Production of biofuels from vegetable oil amounted to 665 mmtonnes, down by 6% from 2020, affected by a particularly depressed scenario.
- Retail sales in Italy were 5.12 mmtonnes, increased by 12% from 2020 as a result of the progressive economy reopening and greater mobility of people. Market share was 22.3% (23.2% in 2020).
- Sales of petrochemical products were 4.45 mmtonnes, up by 3%, thanks to the macroeconomic growth, rebound in demand of leading sectors, such as packaging and the recovery of the automotive business.
The Group’s environmental activities are developed by Eni Rewind, the Eni’s company that operates in line with the principles of the circular economy to give new life to land, water and waste resources, industrial or deriving from reclamation activities, through sustainable reclamation and revaluation projects, both in Italy and abroad.
Through its integrated end-to-end model, Eni Rewind guarantees the supervision of every phase of the process reclamation and waste management, planning, from the early stages, the projects of enhancement and reuse of resources (soils, water, waste), making them available for new development opportunities.
Reclamation activities
Coherently with the expertise gained and in agreement with the institutions and stakeholders, Eni Rewind identifies the projects for enhancement and reuse of reclaimed areas, allowing the environmental recovery of former industrial area and the resumption of the local economy. In this context, during 2021, were identified suitable areas for the installation of photovoltaic and wind plants.
In 2021, Eni Rewind, owner of the Ponticelle area in Ravenna, a disused industrial area outside the petrochemical plant of Ravenna, obtained the certification for the activities of Permanent Safety Measures (MISP), with the realization of a capping. In addition, was started a redevelopment plan production that includes the application of innovative, sustainable and recovery technologies, as well as to the urbanization works of the area. In the area object of MISP is planned the construction of a photovoltaic plant and a biorecovery platform for the subsequent reuse of land and management of industrial waste. In particular, the latter will be managed by HEA SpA, a joint venture between Eni Rewind and Herambiente Servizi Industriali established in March 2021.
Water & Waste Management
Eni Rewind manages water treatment, aimed at reclamation activities, through an integrated aquifer interception system and the conveyance of water for purification to treatment plants. Currently 42 treatment plants are fully in operation and in Italy, with over 36 million cubic meters of treated water in 2021. Continued the activities of automation and digitalization of groundwater treatment plants and implementation of the remote control. The activity of recovery and reuse of treated water for the production of demineralized water is ongoing for industrial use, as part of the operational plans for the remediation of contaminated sites. In 2021 about 9 million cubic meters of water have been reused after treatment, with an increase of over 3 million cubic meters compared to 2020.
During 2021, completed the installation of 44 devices using the proprietary technology E-Hyrec® for the selective removal of hydrocarbons from groundwater, allowing the improvement of the effectiveness and efficiency of groundwater reclamation, with significant reductions in extraction times and avoiding the disposal of more than 1,000 tons of waste equivalent.
In addition, are ongoing the activities related to the application of Blue Water technology, aimed at treatment and the recovery of production water deriving from crude oil extraction activities. It’s underway the preliminary inquiry for obtaining authorizations from Local Authorities to carry out the first plant on an industrial scale in the Val d’Agri Oil Center in Viggiano, in the Region of Basilicata. Eni Rewind also operates as Eni’s competence center for management of waste deriving from Eni’s environmental remediation activities and production activities in Italy, thanks to its model that, by adopting the best technological solutions available on the market, allows to minimize costs and environmental impacts.
During 2021, Eni Rewind managed a total of approximately 1.9 million tonnes1 of waste by sending for recovery or disposal at external plants. In particular, the recovery index (ratio of recovered/recoverable waste) in 2021 was 73%: the slight decrease compared to 2020 (78%) is due to the qualitative and particle size characteristics of the reclamation waste, detected during characterization, which prevented and/or limited its recovery compared to the previous year, as well as a reduction in availability from external plants, in order to recovery, in specific regions of Italy.
Relating to waste management in line with the principles of the circular economy, the valorization of resources and synergy with the territory, continues the company’s commitment to the development of the Eni’s proprietary ‘Waste to Fuel’ technology that treats the organic fraction of municipal waste to produce bio-oil and biomethane, as well as recovering the water that constitutes the main component of the so-called “wet”, for new industrial and irrigation uses.
(1) The volume includes waste deriving from the management of the environmental activities of the points of sale network (about 92 ktonnes), whose “producer” is the same environmental company in charge of the execution out the work.
Certification
In 2021 Eni Rewind obtained SOA Certification, the mandatory certification for participation in tenders to execute public works contracts with a basic auction amount exceeding €150,000, for its core activities in the OG 12 Reclamation and protection works and plants environmental and in the specialized categories OS 22 Drinking water and purification plants and OS 14 – Waste disposal and recovery plants.
Not-captive initiatives
Starting from 2020, Eni Rewind has expanded the scope of its activities outside the group. In 2021, continued the activities related to the finalization of contracts with Edison, for the reclamation of the Mantova site and Altomonte (Cosenza) and with Acciaierie d’Italia, for the design of reclamation interventions of the former Ilva area in Taranto. In addition completed the qualification processes as a supplier for important national and international operators (Arcadis, MOL Group, Edison, Tamoil, TOTAL, Q8, ADNOC).
Started the participation in several tenders with leading national operators, awarding the contract with ANAS, for survey and characterization services in the Adriatic area (Emilia Romagna, Marche, Abruzzo, Molise, Puglia), where Eni Rewind will provide chemical analysis service, through its environmental laboratories. Signed collaboration agreements with main Italian companies that manage collection and processing of urban waste and with key players in the supply chain (CONAI). These agreements are aimed at assessing the opportunity of setting up new waste treatment and recovery plants on reclaimed land or will become available following the progressive conversion of Eni’s refining and chemical sites.
Eni Rewind outside Italy
Eni Rewind, starting from 2018, has made its expertise available to Eni’s subsidiaries located in foreign countries for environmental issues, in particular for management and enhancement activities of the water resource, soil, as well as training and knowledge sharing. In January 2021, Eni Rewind signed a Memorandum of Understanding (MoU) with the National Authority for oil and gas of the Kingdom of Bahrain (NOGA) with the target to identify and promote joint initiatives for the management, recovery and reuse of water and soil resources and waste in the country. In October, an assessment was carried out at the petrochemical plants and refining of the Kingdom of Bahrain which has identified three possible areas of activity for Eni Rewind related to groundwater modeling, waste management and field testing of the proprietary E-Hyrec® technology.
Eni Rewind obtained the qualification as a supplier to Abu Dhabi Oil Company (ADNOC) for the activities of demolition and reclamation. Completed the feasibility studies on the optimization of waste water management and process water through its reuse for plants located in Algeria and Libya and extended the design services to foreign subsidiaries for environmental activities and decommissioning of the operative and disposed points sales.
Plenitude & Power
|
|
2021 |
2020 |
2019 |
||
Total recordable incident rate (TRIR)(a) |
(total recordable injuries/ |
0.29 |
0.32 |
0.62 |
||
of which: employees |
|
0.49 |
0.00 |
0.30 |
||
contractors |
|
0.00 |
0.73 |
0.95 |
||
Plenitude |
|
|
|
|
||
Retail and business gas sales |
(bcm) |
7.85 |
7.68 |
8.62 |
||
Retail and business power sales to end customers |
(TWh) |
16.49 |
12.49 |
10.92 |
||
Retail/business customers |
(milion of POD) |
10.04 |
9.70 |
9.55 |
||
Energy production from renewable sources |
(GWh) |
986 |
340 |
61 |
||
Installed capacity from renewables at period end |
(MW) |
1,137 |
335 |
174 |
||
Power |
|
|
|
|
||
Power sales in the open market |
(TWh) |
28.54 |
25.33 |
28.28 |
||
Thermoelectric production |
|
22.36 |
20.95 |
21.66 |
||
Employees at year end |
(number) |
2,464 |
2,092 |
2,056 |
||
of which: outside Italy |
|
600 |
413 |
358 |
||
Direct GHG emissions (Scope 1)(a) |
(mmtonnes CO2eq.) |
10.03 |
9.63 |
10.22 |
||
Direct GHG emissions (Scope 1)/equivalent produced electricity (Eni Power)(a) |
(gCO2eq./kWh eq.) |
380 |
391 |
394 |
||
|
||||||
Performance of the year
- The total recordable injury rate (TRIR) of the workforce improved by 9.3% compared to the 2020, as a result of the excellent performance obtained by contractors.
- Direct GHG emissions (Scope 1) reported an increase (up by 4% compared to 2020), due to the growth of the productions at the power generation sites.
- Direct GHG emissions (Scope 1)/equivalent produced electricity reported a decreasing trend from 2020 (down by 3%) following the reduced use of syngas at the Ferrera Erbognone plant.
- Energy production from renewable sources amounted to 986 GWh, almost triplied from the comparative period (340 GWh in 2020) due to the contribution of the acquired assets in operation in Italy, the United States, France and Spain.
- As of December 31, 2021, the installed capacity from renewables was 1,137 MW: 51% attributable to wind farms and 48% attributable to photovoltaic plants (installed storage capacity of 1%).
- Retail and business gas sales amounted to 7.85 bcm, up by 2% compared to 2020, as a result of the lower impact of COVID-19 and Aldro Energía acquisition.
- Retail and business power sales to end customers amounted to 16.49 TWh, recording an increase of 32% benefitting from Aldro Energía acquisition, as well as the development of the activities in Italy and abroad.
- Power sales in the open market amounted to 28.54 TWh, up by 13% following the higher volumes sold to the Power Exchange.
Key data
|
|
2021 |
2020 |
2019 |
||||||
Net profit (loss) |
|
|
|
|
||||||
- per share(a) |
(€) |
1.60 |
(2.42) |
0.04 |
||||||
- per ADR(a)(b) |
($) |
3.78 |
(5.53) |
0.09 |
||||||
Adjusted net profit (loss) |
|
|
|
|
||||||
- per share(a) |
(€) |
1.19 |
(0.21) |
0.80 |
||||||
- per ADR(a)(b) |
($) |
2.81 |
(0.48) |
1.79 |
||||||
Cash flow |
|
|
|
|
||||||
- per share(a) |
(€) |
3.61 |
1.35 |
3.45 |
||||||
- per ADR(a)(b) |
($) |
8.54 |
3.08 |
7.72 |
||||||
Adjusted Return on average capital employed (ROACE) |
(%) |
8.4 |
(0.6) |
5.3 |
||||||
Leverage before IFRS 16 |
|
20 |
31 |
24 |
||||||
Leverage after IFRS 16 |
|
32 |
44 |
36 |
||||||
Gearing |
|
24 |
31 |
26 |
||||||
Coverage |
|
15.7 |
(3.1) |
7.3 |
||||||
Current ratio |
|
1.3 |
1.4 |
1.2 |
||||||
Debt coverage |
|
89.8 |
29.1 |
72.4 |
||||||
Net Debt/EBITDA adjusted |
|
83.7 |
174.1 |
100.7 |
||||||
Dividend pertaining to the year |
(€ per share) |
0.86 |
0.36 |
0.86 |
||||||
Total Share Return (TSR) |
(%) |
52.4 |
(34.1) |
6.7 |
||||||
Dividend yield(c) |
|
7.1 |
4.2 |
6.3 |
||||||
|
||||||||||
|
|
2021 |
2020 |
2019 |
Exploration & Production |
(number) |
9,409 |
9,815 |
10,272 |
Global Gas & LNG Portfolio |
|
847 |
700 |
711 |
Refining & Marketing and Chemicals |
|
13,072 |
11,471 |
11,626 |
Plenitude & Power |
|
2,464 |
2,092 |
2,056 |
Corporate and other activities |
|
6,897 |
7,417 |
7,388 |
Group |
|
32,689 |
31,495 |
32,053 |
|
|
2021 |
2020 |
2019 |
R&D expenditure |
(€ million) |
177 |
157 |
194 |
First patent filing application |
(number) |
30 |
25 |
34 |
|
|
2021 |
2020 |
2019 |
||||||
TRIR (Total Recordable Injury Rate) |
(total recordable injuries/worked hours) x 1,000,000 |
0.34 |
0.36 |
0.34 |
||||||
employees |
|
0.40 |
0.37 |
0.21 |
||||||
contractors |
|
0.32 |
0.35 |
0.39 |
||||||
Direct GHG emissions (Scope 1) |
(mmtonnes CO2eq.) |
40.1 |
37.8 |
41.2 |
||||||
Indirect GHG emissions (Scope 2) |
|
0.81 |
0.73 |
0.69 |
||||||
Indirect GHG emissions (Scope 3) from use of sold products(b) |
|
176 |
185 |
204 |
||||||
Net GHG Lifecycle Emissions (Scope 1+2+3)(c) |
|
456 |
439 |
501 |
||||||
Net Carbon Intensity (Scope 1+2+3)(c) |
(gCO2eq./MJ) |
67 |
68 |
68 |
||||||
Net carbon footprint upstream (Scope 1+2)(c) |
(mmtonnes CO2eq.) |
11.0 |
11.4 |
14.8 |
||||||
Net carbon footprint Eni (Scope 1+2)(c) |
|
33.6 |
33.0 |
37.6 |
||||||
Direct GHG emissions (Scope 1)/operated hydrocarbon gross production (upstream) |
(tonnes CO2eq./kboe) |
20.2 |
20.0 |
19.6 |
||||||
Carbon efficiency index Group |
|
32.0 |
31.6 |
31.4 |
||||||
Methane fugitive emissions (upstream) |
(ktonnes CH4) |
9.2 |
11.2 |
21.9 |
||||||
Volumes of hydrocarbon sent to routine flaring |
(billion Sm3) |
1.2 |
1.0 |
1.2 |
||||||
Total volume of oil spills (> 1 barrel) |
(barrels) |
4,406 |
6,824 |
7,265 |
||||||
of which: due to sabotage |
|
3,051 |
5,866 |
6,232 |
||||||
operational |
|
1,355 |
958 |
1,033 |
||||||
Freshwater withdrawals |
(mmcm) |
125 |
113 |
128 |
||||||
Re-injected production water |
(%) |
58 |
53 |
58 |
||||||
|
||||||||||
