Sanford C. Bernstein Strategic Decisions Conference 2008

Transcription

1 Sanford C. Bernstein Strategic Decisions Conference 2008 London - September 23rd, 2008

2 Eni in the World Active in around 70 countries Exploration & Production Gas & Power Refining & Marketing Saipem Snam Rete Gas Polimeri Europa Syndial Divisions Subsidiaries Employees ~75,900 Net sales 87.3 bn Operating Profit 18.9 bn Net Profit 10.0 bn Data at December 31,

3 Eni vs Peers Upside to consensus target price Eni 48% Avg. gas utilities 45% Avg. oil integrated 39% Avg. refiners 38% Data at September 17, 2008 Source: Bloomberg 3

4 Sector Leader Dividend Yield Eni BP RepsolYPF Total RD Shell Chevron ConocoPhillips ExxonMobil BG Dividend yield Media di settore Data at September 17, 2008 Source: Bloomberg 4

5 Eni s Growth Strategy Operational Efficiency E&P Increase production, replace reserves and build a global LNG position G&P Grow internationally and preserve Italian gas business R&M Enhance refining profitability and marketing network Technology 5

6 Production Growth Eni Targets 4.5% Production kboe/d CAGR Proforma 90 $/bl: 120 $/bl: 3.0% ~3% Numerous start-ups and FID in Robust exploration success Extensions and improved recovery Integrated gas projects Development of giant fields Unconventional sources CAGR Strong short and long term organic growth 6

7 Production Growth H1 08 Production Meeting Expectations kboe/d +8.1% net of PSA H1 08 vs H % 1,784 1,735 Eni Total +2.8% +0.5% BP +0.4% Shell -0.6% 1300 Chevron -2.6% ExxonMobil -6.8% 1000 Brent $/bl H1 07 H ConocoPhillips -8.2% Repsol -11.9% Reported 7

8 E&P: Valuable and Resilient Portfolio Volumes 2007 Reserves breakdown Values SEC proved reserves standardized measures (NPV 10%) No sensitivity $/boe $/boe 96$/boe $/boe % Concession Agreements 2% Other 46% PSA 18% Volume Based 10% IRR factor 12% Gas Sensitivity to price % R factor 16% Oil Type of contract PSA Mechanism Projects High sensitivity Overall Conc. PSA Eni Peers Peers: ExxonMobil, BP, Shell, Chevron, Total, ConocoPhillips 8

9 G&P: Enhanced Leadership in the European Gas Market 2007 Gas Sales (bcm) Eni Distrigas 116 bcm gas sales in 2007: 21% market share in Europe Source: Eni elaborations on company data Eni pro-forma sales including Distrigas 9

10 G&P: Resilient Growth EBITDA Pro Forma Adjusted Million 4,896 +4% 5,077 1,009 1,028 International Transportation 1,222 1,289 Regulated Powergen 2,378 2,435 Supply & Marketing

11 Eni with Distrigas Eni-Distrigas integration plan agreed with Publigas Integrated management of gas contracts and infrastructure portfolio Single platform operating in the short term markets Distrigas to become Eni s gas marketing arm in Benelux Transaction status Shareholders agreement signed July, 30 EU Antitrust approval expected by September Mandatory tender offer to be launched by YE2008 on approximately 43% of shares A strategic asset for Eni 11

12 Hewett Gas Storage Project Up to 9 bcm working gas (~10% UK gas demand) Rationale Strategically located to serve UK and North West European markets Capture seasonal gas price differentials and arbitrage opportunities from growing price volatility Complementary to Eni s production, sales and trading activities in Europe Leverage Eni s unique expertise and engineering capabilities Project milestones Closing expected by year end Sanction of the project by H Storage operation start up in 2013 subject to licensing and approvals Leveraging Eni s integrated approach 12

13 R&M: Enhance Profitability mln Ebit* vs 2007 Leading and most complex operator in the Mediterranean basin Refining Focused investment programme Increase conversion index Leverage on proprietary technology (EST) Pursuing operational efficiency International retail presence Refineries Marketing Grow sales in Europe Throughput (Mln ton) Conversion Index (%) Increase premium product sales and non-oil activities Efficiency programme 2007 scenario 13

14 Cash Allocation Priorities 1. Capex Fuel long term growth in core business Tight financial discipline 2. Dividend Dividend sustainability Attractive dividend yield 3. Buy Back Continuing buy back programme Cash less than 40$/bl in 2011 Sustain long term growth and shareholder returns 14

15 2008 Cash Returned to Shareholders 2008 Cash out 2007 Final dividend 2008 Interim dividend proposal Share buyback May 19th * 0.70 /share September 22nd * 0.65 /share YTD 2.6 billion 2.4 billion 0.4 billion 2008 YTD overall cash distribution** = 5.4 billion Highly competitive yield in the Oil & Gas sector Yield*** 6.6% * Ex dividend date ** Up to the end of July considering interim dividend proposal and share buy back *** Overall cash distribution on average market capitalization in July