COMPANY

Previous Year's Results

Financial results

In 2009 the Refining & Marketing division reported an adjusted net loss of €197 million (down €718 million, reversing a prior year profit of €521 million) mainly driven by a lower operating performance, reflecting lower refining margins as a result of an unfavourable trading scenario, as well as decreased earnings reported by equity-accounted subsidiaries.

Return on average capital employed on an adjusted basis was a negative 2.6% declining from 2008 (6.5%).
Capital expenditures totalled €635 million and related mainly to projects designed to improve the conversion rate and flexibility of refineries, logistic assets, the upgrade the refined product retail network in Italy and in the rest of Europe.
In the medium term, management plans to recovery profitability by improving the refining system and reinforcing Eni’s leadership in the Italian retail market and increasing market shares in core European countries.

Operating results
Key performance indicators

Eni’s refining throughputs for 2009 were 34.55 mmtonnes, down 3.6% from 2008. Lower volumes were recorded in Italy (down 3.3%) as refinery operations were rescheduled at certain plants to take account of weak demand for products. Volumes processed outside Italy declined in particular in the Czech Republic due to lower utilization of plant capacity in response to weak market conditions.
In 2009 Eni’s retail market share in Italy averaged 31.5%, up 0.9 percentage points from 2008 driven by the “You&Agip‘ promotional campaign, marketing pricing initiatives (in particular the success of the Iperself program), and the opening of new service stations. While Italian consumption was barely unchanged (down 0.6%), retail sales in Italy were 9.03 mmtonnes (up 2.5%) driven by higher volumes of gasoil and LPG sales.
Retail sales in the rest of Europe (approximately 2.99 mmtonnes) decreased by approximately 230 ktonnes, or 7.1%, mainly reflecting a decline in fuel demand, particularly in Eastern Europe.
In 2009 Eni opened/restructured 53 stores for the sale of convenience items and car services at its service stations in Italy. Excluding the impact of the divestment of marketing activities in the Iberian Peninsula in October 2008, non oil revenues were €147 million, up 2.4% from 2008.

Key performance indicators		2007	2008	2009
Net sales from operations ^{(a) (b)}	(€ million)	36,349	45,017	31,769
Operating profit		686	(988)	(102)
Adjusted operating profit		292	580	(357)
Adjusted net profit		294	521	(197)
Capital expenditures		979	965	635
Adjusted capital employed, net at year end ^(c)		7,149	8,260	7,560
Adjusted ROACE ^(c)	(%)	4.6	6.5	(2.6)
Refinery throughputs on own account	(mmtonnes)	37.15	35.84	34.55
Conversion index	(%)	56	58	60
Balanced capacity of refineries	(kbbl/d)	748	737	747
Retail sales of petroleum products in Europe	(mmtonnes)	11.80	12.03	12.02
Service stations in Europe at year end ^(d)	(units)	6,440	5,956	5,986
Average throughput per service station in Europe ^(d)	(kliters)	2,486	2,502	2,477
Employees at year end	(units)	9,428	8,327	8,166

(a) From January 1, 2009 Eni adopted IFRIC 13 “Customer Loyalty Programmes‘ that requires that the award points granted to clients within the related loyalty programmes be accounted as a separate component of the basic transaction, evaluated at their fair value and recognized as revenues when effectively used. Prior period results have been restated accordingly.
(b) Before elimination of intragroup sales.
(c) For a detailed explanation of adjusted capital employed and adjusted ROACE, see paragraph “Return On Average Capital Employed (ROACE)‘.
(d) 2007 data include downstream activities in the Iberian Peninsula divested to Galp in October 2008.