Eni of Italy Posts Solid 2013 Results

Eni of Italy announced the company’s results for the fourth quarter and the full year 2013.

Financial highlights 

• Adjusted operating profit: €3.52 billion (down 29%) for the quarter; €12.62 billion (down 34%) for the full year;
• Adjusted net profit: €1.30 billion for the quarter (down 14%); €4.43 billion for the full year (down 35%);
• Reported net loss of €0.61 billion for the quarter (up 69%); reported net profit of €5.20 billion for the full year (up 24%);
• Operating cash flow: €3.18 billion for the quarter; €10.97 billion for the full year;
• Leverage at 0.25, unchanged from 2012;
• Dividend proposal for the full year of €1.10 per share, including an interim dividend of €0.55 per share paid in September 2013 (€1.08 in 2012);
• Activated the share buyback programme in January 2014.

Operational highlights

• Oil and gas production: 1.619 mmboe/d in the year, down 4.8% from 2012, (1.577 mmboe/d in the quarter, down 9.7%) mainly due to geopolitical factors;
• Preliminary year-end proved reserves estimate: 6.54 bboe. The organic reserve replacement ratio was 105%;
• Eni’s interests in the upstream monetized for a total amount of €5.6 billion: Eni’s interest in the joint venture Artic Russia sold for a total consideration of €2.2 billion, cashed-in in January 2014; Eni’s 28.57% share in Eni East Africa, which retains interests in Area 4 mineral property in Mozambique, sold;
• 1.8 billion barrels added to the Company’s resource base following exploration success in Mozambique, Ghana, Congo, Angola, Norway, Australia, Pakistan and Egypt;
• Renegotiated supply terms of 85% of long-term contracted gas;
• €2 billion cash flow improvement from the ongoing turnaround in mid-downstream businesses.

Paolo Scaroni, Chief Executive Officer of Eni, commented:
“In 2013 Eni achieved solid results in a particularly difficult market. Despite problems in Libya and Nigeria, our E&P Division confirmed its capability to deliver high profits thanks to its cost leadership and extraordinary exploration successes. Our Mid and Downstream businesses, while at a disadvantage from the Italian and European crisis, strengthened their restructuring actions achieving a significant improvement in cash generation. Finally, the portfolio rationalisation permitted by the new discoveries has allowed an anticipated monetization of results and cash. The overall effect of what we have done in this challenging year enabled us to deliver an increased net profit versus 2012, to pay a generous dividend and to launch a buyback program, while maintaining a constant debt”.

Press Release, February 13, 2014