The document summarizes Eni's 2010 fourth quarter and full year preliminary results. Key highlights include record oil and gas production of 1.815 million barrels of oil equivalent per day for 2010. Exploration efforts discovered over 0.9 billion barrels of oil equivalent in resources. The company achieved cost reductions in refining ahead of target. Net debt increased from €23.1 billion to €26.1 billion due to capital expenditures, acquisitions and dividend payments exceeding operating cash flow and divestment proceeds. For 2011, Eni expects production to increase 1% at an oil price of $70 per barrel through continued growth initiatives.
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Eni 2010 4Q and Full Year Preliminary Results
1. 2010 fourth quarter and full year
preliminary results
16 February 2011
eni.com
2. 2010 highlights
E&P
Record production:1,815 kboed (+1.1%* vs 2009)
Progress on key projects in Iraq, Venezuela and Angola
RRR 137% (organic at 2009 price), Life Index 10.5 years
Exploration: > 0.9 Bboe resources discovered (Venezuela, Angola, Indonesia)
New initiatives: Gulf of Guinea, East Africa, Poland and China
G&P
Long-term gas contract renegotiations ongoing
Increased returns in Italian regulated businesses
R&M
Achieved cost reductions ahead of target
Improved integration of Italian refining system
*Net of updating the natural gas conversion factor
2
11. net debt evolution
billion €
26.1
0.4
0.4
23.1
13.9
14.7
4.1
1.1
Dec 2009 Operating Divestments Dividends Capex Acquisitions Others Dec 2010
cashflow
11
12. 2011: continuing growth
Exploration & Production
Increase production by 1% @ $70/bbl
Gas & Power
Preserve profitability through focused marketing initiatives and contract renegotiations
Refining & Marketing
Further efficiency gains and process optimisation
Capex
In line with 2010
12
14. results of operations
million €
Q4 09 Q4 10 FY 09 FY 10 Δ%
22,077 27,950 Net sales from operations 83,227 98,360
2,466 2,875 Operating Profit 12,055 16,111 33.6
135 132 Inventory holding gains (losses) 345 881
2,331 2,743 Replacement Cost Operating Profit 11,710 15,230 30.1
(1,371) (1,996) Special items (1,412) (2,074)
3,702 4,739 Adjusted Operating Profit 13,122 17,304 31.9
(157) (184) Net financial income (expense) (551) (692)
151 82 Net share of profit from associates (expense) 700 781
3,696 4,637 Profit before income taxes 13,271 17,393 31.1
(2,015) (2,618) Taxation (7,114) (9,459)
54.5% 56.5% Tax rate 53.6% 54.4%
(287) (296) Minority interest (950) (1,065)
391 548 Net Profit 4,367 6,318 44.7
(1,034) (1,271) Special items (1,031) (1,161)
31 96 Inventory holding gains (losses) 191 610
1,394 1,723 Adjusted Net Profit 5,207 6,869 31.9
15. G&P: adjusted operating profit by activities
million €
-31.1%
1,127
91
777
487
68 International Transport
529
Regulated business in Italy
549
180 Marketing
Q4 09 Q4 10
16. unrealized profit in stocks (UPIS)
million €
Q4 09 Q4 10 FY 09 FY 10
(62) (202) E&P vs R&M (42) (229)
8 12 E&P vs G&P 80 (4)
(8) (12) E&C vs Eni Group (38) (38)
(62) (202) Total UPIS 0 (271)
17. eni share of profit from associates
Q4 FY
2009 2010 2009 2010
95 93 Equity method accounted for 322 394
29 17 Gas transportation abroad 60 113
5 - EnBw (GVS) 19 2
28 35 Union Fenosa 108 119
6 7 Blue Stream 33 36
27 34 Others 102 124
9 4 Dividends 164 264
1 0 Disposals 3 0
46 (15) Others 211 123
151 82 Net income from associates 700 781
18. G&P share of profit from associates
million €
-2.1% +22.4%
394
322
113
95 93
60
17 57
29 33
20
6
229 224
60 56
FY 09 FY 10
Q4 09 Q4 10
Marketing Regulated business in Italy
International Transport
19. main operating data
Q4 09 Q4 10 FY 09 FY 10 Δ%
1,886 1,954 Hydrocarbon prod. (kboe/d) 1,769 1,815 2.6
166.8 173.6 Production sold* (mmboe) 622.8 638.0 2.4
10.0 10.5 Natural gas sales in Italy**(bcm) 40.0 34.3 (14.4)
16.0 16.2 Natural gas sales in Europe*** (bcm) 55.4 54.5 (1.7)
21.6 23.0 Natural gas transported in Italy (bcm) 76.9 83.3 8.3
9.4 10.2 Power production sold (TWh) 34.0 39.5 16.4
12.1 12.2 Refined product sales (mmtonnes) 45.6 46.8 2.7
1.0 1.1 Petrochemical sales (mmtonnes) 4.3 4.7 9.3
* Including Eni’s share of production of joint venture accounted for with the equity method
** Including self-consumption
*** Consolidated sales
20. production growth by geographical area
kboe/d
+3.6%
1,886 1,954
401 419
145
209 117
117
403
421
688
565
173 182
Q4 09 Q4 10
Italy North Africa West Africa
Kazakhstan America RoW