Our path to long term value

Transcription

1 Over the past three years, we have transfrmed Eni int a leaner and mre resilient cmpany. We have built a high margin prtfli cnsisting f a large number f mature prjects, which will secure ur prductin grwth ver the medium and lng term, and a huge amunt f reserves, which will give us flexibility and value. Lking t the future, explratin will remain the engine f ur lng-term rganic grwth, while we will cntinue t fcus ur energy n fast tracking the develpment f prjects and maximizing cst efficiency. T capture all pssible upside fr ur sharehlders, we will maintain lw cash neutrality. We believe in the future f gas and ur ambitin is t develp ur upstream psitin t becme a glbal integrated gas and LNG player. Claudi Descalzi, Eni CEO Our path t lng term value Strategic Plan Upstream CEO Descalzi: We have always cnsidered Explratin t be the engine f ur Upstream business, which is based n cnventinal and near-field plays. We perate the majrity f ur prjects thrugh high equity stakes, which enables us t farm dwn assets in advance t bring frward cash generatin. The strng synergies between the Explratin and Develpment businesses guarantee rganic prductin grwth by quickly getting resurces ut f the grund and t market. Prductin CAGR 3% per year; apprx. +5% in 2017 vs Upstream CAPEX -13% vs previus plan 1

2 Explratin: 2-3 bln be f new resurces Mid-dwnstream CEO Descalzi: We have almst cmpleted the restructuring f the Gas & Pwer and Refining & Marketing businesses, increasing efficiency and maximizing equity returns. Althugh we are experiencing versupply in the gas market, with prices expected t remain lw until 2020, ur midstream business will cntinue t benefit frm the alignment f gas supply cntracts t market prices and frm the full recvery f take-r-pay cntracts. In Refining & Marketing, we expect psitive results ver the curse f the new plan as we further reduce ur breakeven refining margin and enhance marketing results. G&P in structural breakeven frm 2017; EBIT > 600 mln by 2020 Refining breakeven at $3/bbl margin by 2018 Chemicals: 1.2 bln f cumulative perative cash flw by 2020 Financials CEO Descalzi: After tw years f lwer investment and fragile cnfidence acrss the glbal il industry, we are frecasting a slw increase in il prices up t 70 $/b by Nnetheless, we will remain disciplined, maintaining ur CAPEX cash neutrality belw 45$/b, n average ver the fur year perid. Financial flexibility will help secure the sustainability f ur remuneratin plicy as il prices remain lwer and enable us t capture upside shuld the ecnmic envirnment imprve. Efficiency Capex: -8% vs. previus plan New prjects average breakeven: 30$/bbl New dispsals target: 5-7 bln by 2020 Cash Flw Free Cash Flw > 20 bln Cash Flw Frm Operatins 47 bln CAPEX Cash Neutrality < $45/bbl 2

3 Organic cash neutrality (CAPEX+dividend): in 2017 with $60/bbl, in < $60/bbl Sharehlder remuneratin Cnfirmed 2017 dividend prpsal f 0.8 per share full cash Prgressive distributin plicy based n earnings grwth and macr envirnment Lndn, March 1, Claudi Descalzi, Eni s CEO, presents tday the cmpany s Strategic Plan t the financial cmmunity. Eni is leveraging n its cre strengths t build a brad prtfli f high margin pprtunities, enabling it t capture upside as il prices imprve and defend value in future dwnturns. Taking int accunt the Grup s transfrmatin prcess and the targets set ut in the plan, Eni intends t cnfirm a 2017 dividend f 0.8/share full cash. The distributin plicy will be prgressive based n underlying earnings grwth and the macr envirnment. Upstream Hydrcarbn prductin is expected t grw by 3% per year acrss the perid. This will be achieved primarily by the ramp-up and start-up f new prjects and the prductin ptimizatin, which are expected t cntribute arund 850 kbed in Explratin remains a fundamental value driver fr the cmpany. Thrughut the plan, Eni expects t deliver new discveries f 2-3 billin be, almst tw times the discveries f the previus plan, by drilling arund 120 wells in mre than 20 cuntries. This will be achieved despite a 10% reductin in explratin CAPEX. 3

4 Eni s prtfli flexibility, the success f its nging explratin strategy, synergies with existing assets and cntract renegtiatins will enable the average breakeven price f new prjects t be apprximately $30/bbl. Gas and Pwer Eni s G&P business is expected t reach breakeven in 2017 and psitive later n as it benefits frm the alignment f gas supply cntracts t market cnditins and a reductin in lgistics csts. The G&P business has a new strategy: t g frm being a leading Eurpean player t becming the cmpany s glbal gas and LNG marketing arm, with a mre integrated relatinship with Upstream prducing benefits. G&P's new strategy will fcus n: Maximising the return f equity gas Develping a cmpetitive LNG prtfli Transfrming the retail business int a subsidiary The EBIT frm 2019 is expected t be in excess f 600 millin. Refining & Marketing and Chemicals In rder t address the structural weaknesses in the Refining sectr, Eni s target is t reduce its breakeven margin t arund $3/bbl by T d this, Eni will leverage n: Optimizatin in existing plans Ramp up f the green refinery in Venice and start up f Gela, targeting ver 1 mln tns f prductin 4

5 Lgistic ratinalizatin Grwth in marketing results thrugh innvatin and efficiency This will generate a cumulative 3.3 billin cntributin t cash flw frm peratins and an EBIT increase f 300 mln ver the plan perid, at a cnstant 2017 scenari. In Chemicals, Eni plans t achieve an EBIT f arund 300 mln per year and a cumulative perating cash flw f 1.2 bln thanks t: Greater integratin, ptimizatin and flexibility Refcusing n high margin specialities Green chemicals and internatinal expansin Financial strategy Investments ver the fur-year plan are fcused n high value prjects with accelerated returns and n the develpment f cnventinal assets. CAPEX f apprximately 31.6 billin represents an 8% reductin at cnstant freign exchange rates versus the previus plan, mstly related t upstream prtfli, prject activity rescheduling and cntract re-negtiatins. This has been partially ffset by the increased effrt f arund 500 mln in ther businesses, mainly renewable energy, a grwing cmpnent f Eni s decarbnizatin strategy. Mrever, uncmmitted CAPEX represents arund 55% f ttal investments in , and gives Eni s prtfli significant flexibility shuld the il price scenari turn negative again in the future. The new dispsal prgram targets 5-7 billin f asset sales primarily thrugh the dilutin f explratin assets, in line with ur dual explratin mdel. 5

6 In cnclusin, this plan will enable Eni t achieve superir cash flw grwth by building a high margin prtfli based n material and cnventinal resurces, designed t cst peratins and high value assets. Cmpany Cntacts: Press Office: Tel Freephne fr sharehlders (frm Italy): Freephne fr sharehlders (frm abrad): Switchbard: uffici.stampa@eni.cm segreteriascietaria.azinisti@eni.cm investr.relatins@eni.cm Web site: 6