Oil & Gas Supply Disruption from Libya Affects Eni Business Activities

Eni, the international oil and gas company, today announces its group results for the second quarter and the first half of 2011 (unaudited).

Financial Highlights

• Adjusted operating profit: € 9.1 billion in the first half (up 8%); € 4 billion in the quarter (down 3%).
• Adjusted net profit: € 3.63 billion in the first half (up 4%); € 1.44 billion in the quarter (down 14%).
• Net profit: € 3.8 billion in the first half (down 6%); € 1.25 billion in the quarter (down 31%).
• Cash flow: € 8.6 billion in the first half; € 4.41 billion in the quarter.
• Interim dividend proposal of € 0.52 per share.

Operational Highlights

• Oil and gas production affected by the prolonged crisis in Libya: down by 15% for the second quarter to 1.489 mmboe/d (down by 12% for the first half). When excluding the impact of the production loss in Libya and price effects, the decline was 2% for the quarter (down by 1% for the first half).
• Gas sales: up by 9% for the second quarter to 21 bcm (up by 7% in the first half).
• In the first half 4 new fields have been put into production, in the USA, Congo and Italy.
• Granted new growth opportunities in East-South Asia by acquiring exploration acreage in Indonesia and an interest in two gas discoveries in the Australian Timor Sea.
• Finalized a deal with Sonatrach to pursue development of gas shale plays in Algeria.
• Continued exploration success in Norway, USA, Ghana, Venezuela, UK, Angola and Egypt added 415 million barrels to the Company’s resource base in the first half.

Paolo Scaroni, Chief Executive Officer, commented:

“The main feature impacting Eni’s results in the first half of 2011 was the disruption in supply of oil and gas from Libya, which affected all of our business activities. G&P results also suffered from the high supply costs of natural gas, which currently take no account of the expected retroactive benefits of ongoing renegotiations. In this context, Eni delivered solid results, benefitting in particular from improved profitability in E&P. In the first half of the year we have strengthened our growth prospects through the progress on key development projects, continuing exploration success and new agreements which secure access to resources in core and new high potential areas. Management’s expectations for solid full-year results and the Company’s growth and profitability outlook underpin our dividend policy and our proposal for an interim dividend of €0.52 per share.”

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Source: Eni, July 29, 2011;