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Homepage > Company

Engineering & Construction

Offshore platform

Eni operates in engineering, construction and drilling both offshore and onshore for the oil&gas industry through Saipem, a subsidiary listed on the Italian Stock Exchange (Eni's interest is 43%).

  • In 2012, the Engineering & Construction sector reported adjusted net profit amounting to €1,109 million, in line with 2011 (up 1%). This result reflects the good operating performance recorded mainly in the drilling business deriving from the full operations of Scarabeo 9 and greater profitability from the Saipem 10000 vessel, totally offset by the decline in performance of the Engineering & Construction business due to falling demand for oilfield services and lower margins at certain works related to the general downturn especially in the second half of the year.
  • The overall amount of procurement was €9,584 million in 2012, of which €7,802 million related to operating projects, 51.8% of which was procured with local suppliers.
  • Safety and environment expenditure for individual protection equipment and medical assistance increased by 24% from 2011 (from €83 million to €103 million)
  • Capital expenditure amounted to €1,011 million (€1,090 million in 2011) and mainly regarded the upgrading of the drilling and construction fleet
  • StrategiesStrategies
  • Orders acquiredOrders acquired
  • Orders backlog Orders backlog

Strategies

  • In the Engineering & Construction segment, Eni confirms its target of consolidating the global competitive position achieved in the offshore and onshore businesses and its role as high-quality niche player in the deepwater drilling business. Saipem will leverage on the enhancement of the EPC(I)-oriented business model, its worldclass technology, engineering and delivering skills, its strong local presence and established relationships with oil Majors and National Oil Companies.
  • In this light the company targets to strengthen its construction ability particularly in large highly-complex projects, in harsh environments, keeping a selective commercial approach. Our focus on local content in strategic areas will contribute to the monetization of achieved competitive advantages.

Order acquired at period endOrders acquired amounted to €13,391 million (€12,505 million in 2011), of which 96% represented by projects to be carried out outside Italy, while orders from Eni companies amounted to 5% of the total.

Order backlog at period endOrder backlog amounted to €19,739 million at December 31, 2012 (€20,417 million at December 31, 2011), of which € 10,943 million to be carried out within 2013. The decline in order backlog reflects the cancellation of the Jurassic contract (€700 million) in the third quarter of 2012 in the Engineering & Construction Onshore business.





Last updated on 21/05/13