Exane BNP Paribas European Seminar

Transcription

1 Exane BNP Paribas European Seminar Massimo Mondazzi SVP Planning & Control Paris, June 14th, 2007

2 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 2

3 E&P: Long Term Growth Production growth - CAGR From 3% to 4% post 2007 asset acquisitions Reserve replacement ratio > Large and diverse resource base Exposure to world leading projects Renewal of exploration portfolio Technology partner with NOCs Building a global LNG business Uniquely integrated business model Existing Portfolio Future developments & opportunities Enhancing E&P and G&P integration 3

4 Proved Reserves and Resources Proved Reserves (SEC rules) 2006 Total Resources (40$/bl brent) Year-end Brent ($/bl) Organic Reserves Replacement at 40 $/bl: 106% Solid Resource Base to Sustain Long Term Growth > Reserves replacement (%) organic all sources Reserves (Billion boe) Proved Proved+Probable Total* Life index (year) >19 >38 * Proved + Unproved Reserves + Risked Exploration 4

5 Successful Exploration and Portfolio Renewal Added Resources (Bln boe) Resources added per year (2003/06): 700 Mboe Average ROS SEC : ~ 50% Portfolio renewal: 68% of total acreage in 3 years High quality portfolio added 3,0 2,5 2,0 1,5 1,0 0,5 0, Per year Cumulative 2003/06 cumulative production 2006 new net acreage: 152,000 sqkm, 99% operated Core Areas ANGOLA 1 block offshore (Bl. 15) BRAZIL 1 block offshore CONGO 3blocks offshore EGYPT 1 block offshore MOROCCO 1 block onshore NIGERIA 1 block offshore NORWAY 1 licence offshore PAKISTAN 4 blocks onshore USA 1 block GoM 48 blocks Alaska New Areas MALI 5 blocks onshore MOZAMBIQUE 1block offshore TIMOR EAST 5 blocks offshore 5

6 G&P: Robust Cash Generation Free Cash Flow: 2.1 billion in 2010 CAGR 3% ( ) Long term contract portfolio, equity gas and LNG Widespread international infrastructure Strong position in growing markets Pipeline Eni markets LNG existing LNG ongoing Direct access to customers Exploit dual offer 6

7 G&P: Targets (bcm) Gas sales Growth in international sales International sales* 97 42% >100 50% >105 54% CAGR : ~10% outside Italy Italy 58% 50% 46% Previous New Target Target Maintain strength in domestic market (bln ) Free cash flow ** Increase operational efficiency Potential Upside * Including Extra Europe gas sales and E&P equity gas sold in Europe (4 Bcm) ** Normalized to exclude inventory changes and extraordinary commercial credits/debits Previous Target 2010 New Target 7

8 Free Cash Flow Generation Target Billion Activity Areas 1.9* % 20% 59% 80% 50% 50% 24% Regulated business Marketing and Power International pipelines Italy International * Normalized to exclude inventory changes and extraordinary commercial credits/debits 8

9 R&M: Improving Profitability 2010/ % ebit increase at 2006 scenario REFINING Focused investment programme Grow refinery throughput Increase conversion index Pursue operational efficiency International retail presence Refineries MARKETING Increase premium product sales and non-oil activities Grow sales in Europe Efficiency programme 9

10 R&M Targets Refining Improve conversion index and middle distillate yield Increase refinery throughput Enhance operational efficiency Throughput* (Mln ton) Conversion Index (%) Middle Distillate Yield (%) > Target Estimate (*) Excluding processing for third parties of 1.8 Mln ton/y High turnaround potential Marketing Increase sales in Europe Improve retail network economics Efficiency programme Retail sales in Europe (Bln liters) Throughput in Europe (Mln lt/ss)

11 Disciplined Capex Increase Billion bln Regulated 2 Refining upgrading 0.6 Saipem new vessels Others R&M G&P E&P 48% 16% 36% Regulated SRG E&P consolidation pro-forma incremental and forex inflation Additional Activities capex plan PSA Other Strong and selective investment programme 70% of additional capex devoted to grow the business Balancing risk vs return 11

12 Attractive Dividend & Buy Back Dividend Dividend up 13.6% /share dividend sustainable in the period Dividend payment October 2006: 0.60 per share June 2007: 0.65 per share Share buy back 5.7 billion 2000-YTD (1Q07) share buy back (8.6% of capital) 1.7 billion still available 12

13 Recent Acquisitions Core strategic area Strong contribution to long term growth Financial discipline 13

14 The Strategic Rationale Enter hydrocarbon rich regions and strengthen presence in core areas E&P Boost growth in the four year plan and beyond Add valuable resources: over 2 billion boe Operatorship Exploration potential R&M Improve competitive positioning in central Europe Improve integration with local refining capacity Strengthen existing marketing network 14

15 New Gulf of Mexico Assets Cash consideration US$ 4,757 bn Increase materiality in a key area: million boe 2P reserves - from 36 to over 110 kboe/d (effective July 1 st 2007) Strengthen operatorship in the Gulf of Mexico High exploration potential EPS and CFPS accretive from 2007 Miocene New Orleans Neptune Rigel Main Pass 272 Blocks ~ 60% operated 0.78 Million Net Acres Legacy Fields Egom 53 Fields 70% of 2P reserves Front Runner Devil Tower Thunderhawk in 8 fields Dominion assets Production Exploration Core Areas Shelf/State Deepwater 15

16 Arctic Gas and Urengoil Strategic partnership with Gazprom Access to significant resources: ~ 1.5 billion boe Sustain production growth in the long term Leverage on operational skills and technology SINT Assets Moscow Gazprom has an option to acquire a 51% interest within 2 years If Gazprom exercises its call option: Eni s cash consideration: US$ 0.63 bn Eni s interest: 30% 16

17 Congo Assets Operatorship Strengthen materiality in a legacy country Production growth in medium term Reserves upside High exploration potential Assets acquisition completed in May Original Oil in place ~ 1.4 Gbl Commercial assets - M BOUNDI: 43.1%, KOUAKOUALA A: 66.7% KOUAKOUALA B, C, D: 50% Exploration license - KOUILOU: 48% Cash consideration: US$ 1.28 bn 2P reserves: 112 Mboe Acquired assets equity production: 18% CAGR

18 Other E&P recent acquisitions Alaska Angola Nikaitchuq TAPS Operatorship and 70% stake in the Nikaitchuq field 2P reserves: 70 Mboe First oil % stake in A-LNG New 5 million-ton LNG plant Monetize currently untapped reserves Regasification capacity of 5 bcm/y in Pascagoula 18

19 Eastern Europe Downstream Activities Acquired assets 102 retail stations in Czech Republic, Slovakia, Hungary 16.11% stake in Czech Refining Company Enhance Eni s integrated marketing and refining activities Industrial Rationale Increase local refining capacity to 2.6 mln tons per year Improve network quality: 4.9 mln lt/y throughput per site Financial Impact Synergies EPS accretive 19