sj0313en6k
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN ISSUER
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

For the month of March 2013

Eni S.p.A.
(Exact name of Registrant as specified in its charter)

Piazzale Enrico Mattei 1 - 00144 Rome, Italy
(Address of principal executive offices)

     (Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

Form 20-F x                    Form 40-F o

     (Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2b under the Securities Exchange Act of 1934.)

Yes o                    No x

     (If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):               )

 

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TABLE OF CONTENTS

 

 

Press Release dated March 13, 2013

Press Release dated March 14, 2013

Press Release dated March 14, 2013

Press Release dated March 14, 2013

 

 

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SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorised.

         
  Eni S.p.A.
 		  
         
    Name: Antonio Cristodoro   
    Title:   Head of Corporate Secretary's Staff Office   
 

Date: March 31, 2013

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Eni announces first production from the Junín-5 giant heavy oil field in Venezuela

 

San Diego de Cabrutica (Venezuela), March 13, 2013 - PetroJunín, joint venture formed by PDVSA (60%) and Eni (40%), has started production from the Junín-5 giant heavy oil field, located in the Faja del Orinoco, the area with the largest untapped hydrocarbon reserves in the world. The block is located around 550 kilometers south east of Caracas and covers an area of approximately 425 square kilometers.

The Junín-5 block, currently under development, holds 35 billion barrels of oil equivalent (boe) of certified oil in place and is jointly operated by two joint ventures (Empresa Mixta) formed by PDVSA (60%) and Eni (40%): PetroJunín for the development and production and PetroBicentenario for the construction and operation of a refinery in the Jose Industrial Complex, with a 350,000 barrels per day capacity.

Today, with the first well on stream, the production start-up was achieved nine months ahead of the approved development plan for Phase 1 (early production phase). PDVSA and Eni plan to increase production to approximately 15,000 barrels a day by the year end and subsequently to 75,000 barrels a day by early 2015, through the drilling of approximately 180 wells.

The development of Phase 2 (full field) will bring production to a level of 240,000 barrels a day by the end of 2018. Throughout the expected 40 years of the field life, the drilling of nearly 1,500 wells is planned.

The diluted crude oil of Junín-5 will be transported to PetroBicentenario’s Refinery in Jose where it will be processed and converted into oil products (diesel, naphtha and LPG) to be exported.

In Venezuela, Eni is also co-operator in Cardón IV, the operating company which manages the super-giant Perla gas field. The current estimated Perla gas in place is approximately 17 Trillion cubic feet (Tcf), or 3.1 billion barrels of oil equivalent. Perla shareholders, following the entry of PDVSA in the project, will be PDVSA (35%), Eni (32.5%) and Repsol (32.5%).

Eni also holds a participating interest in Petrosucre, the operating company of the Corocoro offshore field (PDVSA 74%, Eni 26%), with a net production of approximately 10,000 barrels of oil per day.

 

Company Contacts:

Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +39. 800 11 22 34 56
Switchboard: +39-0659821

ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com

Web site: www.eni.com

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Eni sells a 20% share of Area 4 in Mozambique to CNPC and signs a Joint Study Agreement
for cooperation for the development of the Rongchang shale gas block in China

 

Beijing, March 14, 2013 - Eni CEO, Paolo Scaroni, and the CEO of Petrochina Company Limited, controlled by China National Petroleum Corporation (CNPC), Zhou Jiping, signed an agreement in Beijing for Eni’s sale to CNPC of 28.57% of Eni East Africa’s shares, owner of the 70% interest in Area 4, in Mozambique. With this operation, CNPC indirectly acquires a 20% stake in Area 4, while Eni remains the owner of 50%. The remaining shares in the Area are held by Empresa Nacional de Hidrocarbonetos de Mocambique (ENH, 10%), Kogas (10%) and Galp Energia (10%).

The agreed price is equal to 4,210 million US dollars.

The completion of the transaction is subject to the fulfillment of certain standard conditions including obtaining all necessary authorizations from Mozambique’s authorities.

CNPC’s entrance into Area 4 is strategically important for the project thanks to the worldwide relevance of the new partner in the upstream and downstream sectors.

During the meeting, Eni and CNPC signed a Joint Study Agreement for cooperation for the development of the Rongchang shale gas block, which covers about 2,000 square kilometers in the Sichuan Basin. This area, closely located to the main consumption markets in China, has already been de-risked by research activities and production tests carried out in nearby blocks and has proven to be the most promising in the country to date.
The agreement will allow for the study of the area which will be conducted simultaneously with the negotiations for the signing of the Production Sharing Agreement.

 

Company Contacts:

Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +39. 800 11 22 34 56
Switchboard: +39-0659821

ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com

Web site: www.eni.com

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Eni: 2012 Consolidated Financial Statements and Draft
Financial Statements of the Parent Company

Convening of the Annual Shareholders’ Meeting

•   Consolidated financial statements:
    -   Group net profit: euro 7.79 billion
    -   Net profit from continuing operations1: euro 4.20 billion
•   Separate financial statements:
    -   Net profit: euro 9.08 billion
    -   Net profit from continuing operations: euro 6.21 billion
•   Dividend proposal: euro 1.08 per share
•   Approval for continuation of the buyback program

 

San Donato Milanese, March 14, 2013 - Today, the Board of Directors approved Eni’s consolidated financial statements and the draft financial statements of the parent company for the year ended December 31, 2012. As announced on February 15, 20132, with respect to Eni’s preliminary results, consolidated net profit amounted to euro 7,788 million (euro 4,198 million excluding the contribution and gains from the disposal of Snam accounted as discontinued operations). Net profit of the parent company amounted to euro 9,078 million (euro 6,207 million excluding dividends and gains related to Snam).

The Board of Directors intends to submit a proposal for the distribution of a cash dividend of euro 1.08 per share (euro 2.16 per ADR) at the Annual Shareholders’ Meeting. Included in this annual distribution is euro 0.543 per share which was paid as an interim dividend in September 2012. The balance of euro 0.54 per share (euro 1.08 per ADR) is payable to shareholders on May 23, 2013, the ex-dividend date being May 20, 2013 and the record date being May 22, 2013.

The review of the sustainability performance in 2012 has been included in the Annual Report to provide a comprehensive insight into the Company’s business model by highlighting the long-term value creation through the connections between the financial and sustainability elements of the Company’s strategy and results.

The 2012 Annual Report was submitted to the Board of Statutory Auditors and Eni’s independent auditors. In accordance with the provisions of Legislative Decree No. 58/98 (the Italian comprehensive code for exchanges and securities), the 2012 Annual Report will be made available to the public by April 8, 2013 at the Company’s headquarters and on Eni’s website eni.com and through other sources provided by the regulation in force, together with the statutory and independent auditors’ reports.

Enclosed are the 2012 IFRS consolidated statements of the companies within the Eni group as included in the approved Annual Report and the statements of the parent company Eni SpA.
The Board of Directors also approved the Report on Corporate Governance and Shareholding Structure and the Remuneration Report which have been prepared in accordance with Article 123-bis and ter of the Italian comprehensive code for exchanges and securities, respectively. These reports will be filed with the Italian Exchange Authority and published on Eni’s website, in the "Corporate Governance" and "Investor Relations" sections, together with the 2012 Annual Report.

__________________

(1)    Due the divestment of the Regulated Gas Businesses in Italy, Snam results have been represented as discontinued operations.
(2)    The press release on Eni’s preliminary results for the year 2012, published on February 15, 2013, is available on Eni’s website, eni.com, in the Investor Relations section.
(3)    Dividends are not entitled to tax credit and, depending on the receiver, are subject to a withholding tax on distribution or are partially cumulated to the receiver’s taxable income.

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Continuation of the buyback program
The Board of Directors has approved to propose to the Annual Shareholders’ Meeting to grant a proxy to the Board of Directors to continue the purchase program of treasury shares for a period of 18 months beginning from the date of the Annual Shareholders’ Meeting, up to a maximum of 363 million shares, representing approximately 10% of the share capital, for a maximum consideration of euro 6 billion, at a price not less than euro 1.102 per share and not more than 5% above the reference price registered on the trading day preceding each purchase. The maximum of shares subject to the program related to treasury shares possibly acquired after the shareholders’ resolution of July 16, 2012.
The restarting of the buyback program was announced to the market on May 30, 2012.
The purchases will be made in accordance with Article 144-bis, paragraph 1, lett. b) of Consob Regulation 11971/1999 and with the provisions that still apply, and then on regulated markets, according to the procedures established in the regulations of organization and management of the markets.
Treasury shares held by Eni as of March 13, 2013 are No. 11,388,287 equal to 0.31% of the share capital, purchased on the basis of the previous buyback programs. Eni’s subsidiaries do not own any shares in the Company.

Convening of the Annual Shareholders’ Meeting on May 10, 2013
The Board of Directors convened the Annual Shareholders’ Meeting on May 10, 2013 to approve the 2012 financial statements of the parent company and the dividend proposal and to authorize the new buyback program and the withdrawal, for the part not executed, of the authorization to the buyback program approved by the Shareholders’ Meeting held on July 16, 2012. The Annual Shareholders’ Meeting was also convened to express its consultative vote about the remuneration policy that the Company intends to adopt in 2013 as disclosed in first section of the Remuneration Report.

 

Eni’s Chief Financial Officer, Massimo Mondazzi, in his capacity as manager responsible for the preparation of the Company’s financial reports, certifies pursuant to rule 154-bis paragraph 2 of Legislative Decree No. 58/1998, that data and information disclosed in this press release correspond to the Company’s evidence and accounting books and entries.

* * *

Contacts
E-mail: segreteriasocietaria.azionisti@eni.com

Investor Relations
E-mail: investor.relations@eni.com
Tel.: +39 0252051651 - Fax: +39 0252031929

Eni Press Office
E-mail: ufficio.stampa@eni.com
Tel.: +39 0252031287 - +39 0659822040

* * *

Eni
Società per Azioni Roma, Piazzale Enrico Mattei, 1
Share capital: euro 4,005,358,876 fully paid
Tax identification number 00484960588
Tel.: +39-0659821 - Fax: +39-0659822141

* * *

This press release is also available on the Eni website eni.com.

 

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Attachment

IFRS Consolidated Financial Statements

PROFIT AND LOSS ACCOUNT

(euro million)
 

2011

  

2012
 
 
REVENUES            
Net sales from operations   107,690     127,220  
Other income and revenues   926     1,546  
Total revenues   108,616     128,766  
   
 
OPERATING EXPENSES            
Purchases, services and other   78,795     95,363  
- of which non-recurring charges   69        
Payroll and related costs   4,404     4,658  
OTHER OPERATING (EXPENSE) INCOME   171     (158 )
   
 
DEPRECIATION, DEPLETION, AMORTIZATION AND IMPAIRMENTS   8,785     13,561  
   
 
OPERATING PROFIT   16,803     15,026  
   
 
FINANCE INCOME (EXPENSE)            
Finance income   6,376     7,218  
Finance expense   (7,410 )   (8,274 )
Derivative financial instruments   (112 )   (251 )
   
 
    (1,146 )   (1,307 )
INCOME (EXPENSE) FROM INVESTMENTS            
Share of profit (loss) of equity-accounted investments   500     278  
Other gain (loss) from investments   1,623     2,603  
   
 
    2,123     2,881  
PROFIT BEFORE INCOME TAXES   17,780     16,600  
Income taxes   (9,903 )   (11,659 )
   
 
Net profit - Continuing operations   7,877     4,941  
Net profit (net loss) - Discontinued operations   (74 )   3,732  
   
 
Net profit   7,803     8,673  
Eni’s shareholders:            
- continuing operations   6,902     4,198  
- discontinued operations   (42 )   3,590  
   
 
    6,860     7,788  
Non-controlling interest:            
- continuing operations   975     743  
- discontinued operations   (32 )   142  
   
 
    943     885  
Net profit per share (euro per share)            
- basic   1.89     2.15  
- diluted   1.89     2.15  
Net profit from continuing operations per share (euro per share)            
- basic   1.90     1.16  
- diluted   1.90     1.16  
 
 

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BALANCE SHEET

(euro million)
  

  

   

Dec. 31, 2011

   

Dec. 31, 2012
     
 
ASSETS            
Current assets            
Cash and cash equivalents   1,500     7,765  
Other financial assets held for trading or available for sale   262     235  
Trade and other receivables   24,595     28,621  
Inventories   7,575     8,496  
Current tax assets   549     771  
Other current tax assets   1,388     1,230  
Other current assets   2,326     1,624  
   
 
    38,195     48,742  
Non-current assets            
Property, plant and equipment   73,578     63,466  
Inventory - compulsory stock   2,433     2,538  
Intangible assets   10,950     4,487  
Equity-accounted investments   5,843     4,265  
Other investments   399     5,085  
Other financial assets   1,578     1,229  
Deferred tax assets   5,514     4,913  
Other non-current receivables   4,225     4,400  
   
 
    104,520     90,383  
Assets held for sale   230     516  
   
 
TOTAL ASSETS   142,945     139,641  
   
 
LIABILITIES AND SHAREHOLDERS’ EQUITY            
Current liabilities            
Short-term debt   4,459     2,223  
Current portion of long-term debt   2,036     2,961  
Trade and other payables   22,912     23,581  
Income taxes payable   2,092     1,622  
Other taxes payable   1,896     2,162  
Other current liabilities   2,237     1,437  
   
 
    35,632     33,986  
Non-current liabilities            
Long-term debt   23,102     19,279  
Provisions for contingencies   12,735     13,603  
Provisions for employee benefits   1,039     982  
Deferred tax liabilities   7,120     6,740  
Other non-current liabilities   2,900     1,977  
   
 
    46,896     42,581  
Liabilities directly associated with assets held for sale   24     361  
TOTAL LIABILITIES   82,552     76,928  
   
 
SHAREHOLDERS’ EQUITY            
Non-controlling interest   4,921     3,514  
Eni shareholders’ equity:            
Share capital   4,005     4,005  
Reserves   53,195     49,579  
Reserve related to the fair value of cash flow hedging derivatives net of tax effect   49     (16 )
Treasury shares   (6,753 )   (201 )
Interim dividend   (1,884 )   (1,956 )
Net profit   6,860     7,788  
Total Eni shareholders’ equity   55,472     59,199  
TOTAL SHAREHOLDERS’ EQUITY   60,393     62,713  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   142,945     139,641  
 
 

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STATEMENT OF CASH FLOWS

(euro million)
 

2011

  

2012
 
 
Net profit - continuing operations   7,877     4,941  
Adjustments to reconcile net profit to net cash provided by operating activities:            
Depreciation, depletion and amortization   7,755     9,538  
Impairments of tangible and intangible assets, net   1,030     4,023  
Share of loss of equity-accounted investments   (500 )   (278 )
Gain on disposal of assets, net   (1,176 )   (875 )
Dividend income   (659 )   (431 )
Interest income   (99 )   (108 )
Interest expense   773     803  
Income taxes   9,903     11,659  
Other changes   331     (1,945 )
Changes in working capital:            
- inventories   (1,400 )   (1,395 )
- trade receivables   218     (3,170 )
- trade payables   34     2,029  
- provisions for contingencies   109     338  
- other assets and liabilities   (657 )   (1,175 )
Cash flow from changes in working capital   (1,696 )   (3,373 )
Net change in the provisions for employee benefits   (10 )   16  
Dividends received   955     988  
Interest received   99     91  
Interest paid   (927 )   (825 )
Income taxes paid, net of tax receivables received   (9,893 )   (11,868 )
Net cash provided from operating activities - continuing operations   13,763     12,356  
Net cash provided from operating activities - discontinued operations   619     15  
Net cash provided from operating activities   14,382     12,371  
Investing activities:            
- tangible assets   (11,658 )   (11,222 )
- intangible assets   (1,780 )   (2,295 )
- consolidated subsidiaries and businesses   (115 )   (178 )
- investments   (245 )   (391 )
- securities   (62 )   (17 )
- financing receivables   (715 )   (1,634 )
- change in payables and receivables in relation to investments and capitalized depreciation   379     54  
Cash flow from investments   (14,196 )   (15,683 )
Disposals:            
- tangible assets   154     1,229  
- intangible assets   41     61  
- consolidated subsidiaries and businesses   1,006     3,521  
- investments   711     1,203  
- securities   128     52  
- financing receivables   695     1,578  
- change in payables and receivables in relation to disposals   243     (252 )
Cash flow from disposals   2,978     7,392  
Net cash used in investing activities   (11,218 )   (8,291 )
 
 

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STATEMENT OF CASH FLOWS (continued)

(euro million)
 

2011

  

2012
 
 
Proceeds from long-term debt   4,474     10,484  
Repayments of long-term debt   (889 )   (3,784 )
Increase (decrease) in short-term debt   (2,481 )   (753 )
    1,104     5,947  
Net capital contributions by non-controlling interest   26        
Net purchase of treasury shares   3        
Net acquisition of treasury shares made by consolidated subsidiaries other than the parent company   17     29  
Disposal (acquisition) of interests in consolidated subsidiaries   (126 )   604  
Dividends paid to Eni’s shareholders   (3,695 )   (3,840 )
Dividends paid to non-controlling interests   (552 )   (539 )
Net cash used in financing activities   (3,223 )   2,201  
Effect of change in consolidation (inclusion/exclusion of significant/insignificant subsidiaries)   (7 )   (4 )
Effect of exchange rate changes on cash and cash equivalents and other changes   17     (12 )
Net cash flow for the period   (49 )   6,265  
   
 
Cash and cash equivalents - beginning of the period   1,549     1,500  
Cash and cash equivalents - end of the period   1,500     7,765  
 
 

 

 

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Eni SpA Financial Statements

PROFIT AND LOSS ACCOUNT

(euro million)
 

2011
Eni stand alone

  

2011
Restated (a)

  

2012
 
 
 
REVENUES                  
Net sales from operations   45,492     45,603     51,197  
Other income and revenues   278     283     267  
   
 
 
    45,770     45,886     51,464  
OPERATING EXPENSES                  
Purchases, services and other   (43,846 )   (43,951 )   (50,283 )
Payroll and related costs   (1,056 )   (1,065 )   (936 )
OTHER OPERATING (EXPENSE) INCOME   115     115     (173 )
DEPRECIATION, DEPLETION, AMORTIZATION AND IMPAIRMENTS   (1,277 )   (1,278 )   (1,126 )
   
 
 
OPERATING PROFIT   (294 )   (293 )   (1,054 )
   
 
 
FINANCE INCOME (EXPENSE)                  
Finance income   3,783     3,784     3,539  
Finance expense   (4,247 )   (4,247 )   (4,010 )
Derivative financial instruments   208     208     (240 )
   
 
 
    (256 )   (255 )   (711 )
INCOME (EXPENSE) FROM INVESTMENTS   4,339     4,338     8,666  
PROFIT BEFORE INCOME TAXES   3,789     3,790     6,901  
Income taxes   (17 )   (19 )   (694 )
   
 
 
Net profit for the period - continuing operations   3,772     3,771     6,207  
Net profit for the period - discontinued operations   441     441     2,871  
   
 
 
Net profit for the period   4,213     4,212     9,078  
 
 
 
     
(a)   2011 data have been restated due to the merger of Agosta Srl, Eni Gas & Power Belgium SpA, Eni Hellas SpA and Toscana Energia Clienti SpA, with legal effects by November 1, 2012. The operations of the merged companies have been accounted in Eni's Balance Sheet by January 1, 2012 also for fiscal purposes.

 

 

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BALANCE SHEET

(euro million)
 

Dec. 31, 2011
Eni stand alone

  

Dec. 31, 2011
Restated (a)

  

Dec. 31, 2012
 
 
 
ASSETS                  
Current assets                  
Cash and cash equivalents   354     356     6,400  
Trade and other receivables   19,862     19,910     22,907  
Inventories   2,324     2,324     2,448  
Current income tax assets   316     316     314  
Other current tax assets   413     435     368  
Other current assets   1,396     1,396     659  
   
 
 
    24,665     24,737     33,096  
Non-current assets                  
Property, plant and equipment   6,402     6,403     6,927  
Inventory - compulsory stock   2,441     2,441     2,664  
Intangible assets   1,037     1,095     1,155  
Equity-accounted investments   31,772     31,685     32,024  
Other financial assets   10,412     10,412     2,784  
Deferred tax assets   2,315     2,320     1,823  
Other non-current receivables   2,977     2,977     3,095  
   
 
 
    57,356     57,333     50,472  
Assets held for sales               16  
TOTAL ASSETS   82,021     82,070     83,584  
   
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY                  
Current liabilities                  
Short-term debt   5,874     5,838     4,750  
Current portion of long-term debt   2,024     2,024     2,705  
Trade and other payables   9,844     9,892     9,675  
Income taxes payable               81  
Other taxes payable   1,213     1,236     1,515  
Other current liabilities   1,321     1,321     889  
   
 
 
    20,276     20,311     19,615  
Non-current liabilities                  
Long-term debt   21,016     21,016     16,834  
Provisions for contingencies   2,776     2,784     4,093  
Provisions for employee benefits   285     287     277  
Other non-current liabilities   2,413     2,413     2,187  
   
 
 
    26,490     26,500     23,391  
Liabilities directly associated with assets held for sales               1  
TOTAL LIABILITIES   46,766     46,811     43,007  
SHAREHOLDERS’ EQUITY                  
Share capital   4,005     4,005     4,005  
Legal reserve   959     959     959  
Other reserves   34,715     34,720     28,692  
Interim dividend   (1,884 )   (1,884 )   (1,956 )
Treasury shares   (6,753 )   (6,753 )   (201 )
Net profit   4,213     4,212     9,078  
TOTAL SHAREHOLDERS’ EQUITY   35,255     35,259     40,577  
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY   82,021     82,070     83,584  
 
 
 
     
(a)   2011 data have been restated due to the merger of Agosta Srl, Eni Gas & Power Belgium SpA, Eni Hellas SpA and Toscana Energia Clienti SpA, with legal effects by November 1, 2012. The operations of the merged companies have been accounted in Eni's Balance Sheet by January 1, 2012 also for fiscal purposes.

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Eni 2013-2016 Strategic Plan
Well positioned to deliver growth and returns

 

London, March 14, 2013 - Paolo Scaroni, CEO of Eni, today presents the company’s 2013-2016 Strategic Plan to the financial community.

In the new plan, Eni targets:

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Exploration & Production

Eni confirms its strategy of production growth, raising its average annual target to over 4% in the 2013-2016 period. This growth is based on a scenario of $90/bbl to 2016, but it is resilient to higher oil prices.

Eni’s growth strategy is founded on organic development, thanks to the significant contribution coming from key development hubs including – Russia (Yamal), the Barents Sea, Kazakhstan, Venezuela, the Far East and the sub-Saharan region.

Projects due to come onstream over the plan period will add over 700 kboe/d of production by 2016. 80% of this new production will come from giant projects, and 40% will come from additional development phases of producing fields.

Beyond the plan period, production growth of over 3% per year to 2022 will be based on our diversified and synergic development pipeline, and on a low decline rate of about 4%, coming from dynamic reservoir management and intense production optimization activities.

 

Gas & Power

The outlook on the gas market environment, especially in Italy, remains challenging mainly due to a still weak macroeconomic environment. As a result, the Italian market is still oversupplied, lacking physical export capacity which would allow the reverse flow of significant take or pay volumes delivered to Italy.

In this context, Eni is renegotiating the most of the supply contracts in its portfolio. The renegotiations aim at realigning gas purchased with those of the prevailing hubs, aiming also at obtaining more flexibility in the volumes of the take or pay contracts.

On the commercial front, Eni will continue to focus on solid segments like retail and LNG, and support margins in wholesale through the enrichment of its portfolio with flexible and innovative products as today's market requires.

This is facilitated by the integration of this segment with trading within a new organization.

The EBITDA proforma adj expected in 2016 will be approximately 1.5 bln euro.

 

Refining & Marketing

In Refining, Eni will increase the flexibility of its plants, optimizing the production cycles, reducing costs and exploiting its proprietary technologies. A key project will be the conversion of the Venice refinery into a bio-refinery to recover profitability.

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The EST (Eni Slurry Technology), plant in Sannazzaro refinery, exploiting our proprietary technology for the full conversion of the barrel, will be on stream in the second half of 2013, improving the competitiveness of our refining system.

In Marketing, results will increase thanks to the completion of the re-branding of the distribution network, the automation of petrol stations and the expansion of non-oil activities as well as sales abroad.

Eni is targeting an EBIT enhancement of more than euro 500 million to 2016.

 

Versalis

The scenario for basic chemicals in Europe is characterized by increasing pressure on prices. Eni’s strategy will be focused on greater exposure on high value segments and growing markets.

Even excluding any improvement in the scenario, Eni expects to reach break-even by the end of the plan period thanks to further rationalization and integration and the refocusing of the portfolio on valuable segments and growing markets.

Segments of interest include elastomers, with targeted production growth of over 60% to 2016, and green chemicals. In 2013 there will be the start-up of the first two lines in the Matrica plant, a joint venture with Novamont in Porto Torres, one of the biggest biochemical projects in the world.

Eni is committed to the expansion of its emerging markets activities through strategic partnerships and will continue to promote initiatives to improve the efficiency of its plants and processes.

The new plan increases Eni’s target from >euro 400 by 2015 to over euro 500 million by 2016.

 

Financial strategy

Eni’s strategic growth prospects are supported by a transformed balance sheet, with net debt at the end of 2012 almost halved compared with 2011. This stronger financial position is coherent with our new business profile, more exposed to the E&P business. Eni expects to maintain leverage within a target range of 10-30%, using this flexibility to absorb temporary fluctuations in oil prices, in market environments and in our business results.

Eni plans to make approximately euro 56.8 billion of investments over the 2013-2016 period, an increase, at the exchange rate euro/dollar of approximately euro 1.6 bln over the last plan period. The increase is largely related to the new growth opportunities in E&P, including Mozambique.

The capex plan will be funded by strong cash generation in the region of euro 20 bln per year over the period, driven by increasing E&P production, the gradual recovery in our mid and downstream businesses, and over euro 10 bln of disposal opportunities including Galp and Snam, and some rebalancing in our E&P portfolio.

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New shareholder distribution policy

Given its modified business profile and the strengthened balance sheet, Eni plans to adopt a new shareholder distribution policy. This consists of a progressive dividend, and a new buyback program.

The sustainability of a progressive dividend is compatible with the prices scenario expected in the plan, a gradual recovery of the European gas demand and it leverages on the underlying earnings and cashflow growth expected during the plan period.

According to this policy and our projections for 2013, the Eni board intends to propose a dividend of euro 1.10/sh, an increase of around 2% on 2012.
The buyback will be activated at management’s discretion and when a number of conditions are met. These include, but are not limited to, satisfactory leverage, well-within our target range limit of 30%, and full coverage for capex and dividends throughout the plan period.

 

 

Company Contacts:

Press Office: Tel. +39.0252031875 - +39.0659822030
Freephone for shareholders (from Italy): 800940924
Freephone for shareholders (from abroad): +39. 800 11 22 34 56
Switchboard: +39-0659821

ufficio.stampa@eni.com
segreteriasocietaria.azionisti@eni.com
investor.relations@eni.com

Web site: www.eni.com

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