Q1 2017 results
10 May 2017
Highlights
2
Upstream
• Production growth: 1,795 kboed (+6% net of PSA and Opec cuts vs IQ2016)
• 2017 start-ups
• Jangkrik & OCTP start-up in coming weeks
• Zohr start-up confirmed by end of this year
• Kashagan ramp up on track: 200 kbbl/d oil reached
Mid-downstream
• G&P: 2017 structural breakeven on track
• Refining: breakeven margin reduced below $4/bbl
• Chemicals: strong economic results
Disposals
• 2017 announced deals €2.7bn post tax (€3bn pre-tax)
• 25% Area 4 in Mozambique to ExxonMobil. Completion by 4Q17
• Belgium gas & power retail unit
• Additional cash – in from Zohr disposals : ~€1bn net in 2017
Market scenario
Brent ($/bbl)
Exchange rate (€/$)
53.8
49.5
1.102
1.078
1.065
33.9
1Q 2016
1Q 2016
4Q 2016 1Q 2017
European gas prices (€/kcm)
PSV
3
1Q 2016
Standard Eni Refining Margin ($/bbl)
TTF
202
153 136
4Q 2016 1Q 2017
219
182
195
4Q 2016
1Q 2017
4.7
4.2
1Q 2016
4.2
4Q 2016 1Q 2017
Upstream
EBIT Adj | € mln
Oil & Gas Production | kboed
Higher
exploration
write offs for
€100 mln
1,900
1,850
1,800
+6%
55
OPEC cuts + PSA
effect
1,415
1,750
1,700
1,754
1,795
95
1,650
1Q 2016
1Q 2017
16
1Q1Q
2016
17
1Q1Q2017
2017 production and cash flow targets confirmed
4
2017 start-ups
OCTP – Ghana
ZOHR – Egypt
(WI: 44%)
(WI: 60%)
Execution Time 29 months
Execution Time 22 months
JANGKRIK – Indonesia
(WI: 55%)
Execution Time 41 months
FID
FID
96%
Start
up
FID
FID
90%
Start
up
FID
FID
60%
Start
up
December 2017
 Peak 100%: 80 kboe/d
5
 Peak 100%: 85 kboe/d
 Peak 100%: 500 kboe/d
Upstream cost - relative benchmark
F&D | $/boe
Opex | $/boe
16
160
60
12
35
8
4
10
2012
2013
2014
2015
2016
2012-14
Eni’s portfolio is low cost
6
Peers: BP, CVX, COP, XOM, RDS, STL, TOT
2013-15
2014-16
Discounted Net Cash Flow (DNCF) vs peers
2016 DNCF
$ bln
53
52
49
32
Proved Reserves
bln boe (31 Dec 16)
Unit DNCF
$/boe
peer 1
peer 2
peer 3
peer 4
20.0
11.1
17.8
13.2
2.7
4.7
2.8
2.4
31
29
21
peer 5
peer 6
peer 7
7.5
11.5
5.0
6.4
4.2
2.6
4.3
1.9
Eni’s portfolio is high value and resilient
7
Peers: BP, CVX, COP, XOM, RDS, STL, TOT
12
Mid-Downstream
G&P EBIT adj | € mln
R&M EBIT adj | € mln
Versalis EBIT adj | € mln
338
123
285
1Q 2016
1Q 2017
66
66
111
1Q 2016
1Q 2017
1Q 2016
Strong economic performance
8
1Q 2017
Group economic results
Group EBIT adj | € bln
0.2
0.1
1.83
1.35
0.6
1Q 2016
scenario
OPEC + oneoffs
growth +
efficiency
Adjusted net profit: €744 M
9
1Q 2017
Cash flow pre working capital at replacement cost
€ bln
2.6
2.2
1.5
1.0
1Q 2015
1Q 2016
2Q 2016
1.4
1.6
3Q 2016
4Q 2016
1Q 2017
without Saipem
54
$/bbl
54
$/bbl
Accelerated and accretive cash generation
10
2017 Cash Balance
€ bln
15
10
5
DIVIDEND
CFFO +
proceeds
from
disposals
CAPEX
0
CASH IN
CASH OUT
55
$/bbl
Dividend cash neutrality around $45/bbl
11