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IVQ 16 | IQ 17 | IQ 16 | % Ch. | ||
---|---|---|---|---|---|
49.46 | Brent dated | $/bbl | 53.78 | 33.89 | 59 |
1.078 | Average EUR/USD exchange rate | 1.065 | 1.102 | (3) | |
1,856 | Hydrocarbon production | kboe/d | 1,795 | 1,754 | 2 |
1.286 | Adjusted operating profit (loss)(a) | € million | 1,834 | 583 | 215 |
1.400 | of which: E&P | 1,415 | 95 | .. | |
(72) | G&P | 338 | 285 | 19 | |
75 | R&M and Chemicals | 189 | 177 | 7 | |
459 | Adjusted net profit (loss)(a)(b) | 744 | 2 | .. | |
0.13 | - per share (€) | 0.21 | 0.00 | ||
340 | Net profit (loss)(b) | 965 | (383) | .. | |
0.09 | - per share (€) | 0.27 | (0.11) | ||
1,556 | Adjusted cash flow from operations(c) | 2,597 | 1,473 | 76 | |
3,248 | Net cash flow from operations | 1,932 | 1,370 | 41 | |
2,250 | Capital expenditure | 2,831 | 2,455 | 15 | |
14,776 | Net borrowings | 14,931 | 12,222 | 22 | |
0.28 | Leverage | % | 0.28 | 0.23 | 0 |
a) Non-GAAP measure. For further information see the paragraph "Non-GAAP measures" on page 12. b) Attributable to Eni's shareholders - continuing operations. c) Non GAAP measure. Net cash flow from operations before changes in working capital and excluding inventory holding gains or losses. |
Yesterday, Eni’s Board of Directors approved group results for the first quarter 2017 (unaudited). Commenting on the results, Claudio Descalzi, CEO of Eni, remarked:
“Eni has markedly improved its financial and operational performance in the first quarter of 2017. The Group has delivered a 60% increase in adjusted net profit to €750 million, compared with €460 million in the fourth quarter of 2016 when oil prices had already recovered to levels close to those experienced in this quarter. The operating growth is even bigger if compared with the first quarter 2016, when oil prices were at their lowest. Furthermore, the Group has seen with €2.6 billion its strongest cash generation in seven quarters. This performance was driven by the ongoing execution of Eni strategy across all business segments on 2017 targets, which are all confirmed. Flagship upstream projects, such as Jangkrik in Indonesia and OCTP in Ghana, are all about to come on stream, while Zohr in Egypt is progressing ahead of schedule. All this makes me confident about the full year budget production guidance. The disposal of assets in Egypt and Mozambique, which are expected to close before the end of the year, will contribute to a further strengthening of the Group’s financial position while maintaining future growth prospects. We expect that in 2017 organic cash generation, coupled with proceeds from disposals, will allow us to fully fund our capex and dividend requirements at an oil price well below the current level.”
Exploration & Production
Gas & Power
Refining & Marketing and Chemicals
Group results
(1)Excluding reimbursement of capex relating to asset disposals, see page 10.
Exploration & Production
Confirmed 2017 target of 0.8 bln boe of new resources, at a unitary discovery cost of approximately 1 $/bbl.
Confirmed FY production target of 1.84 mln boe/d (up by 5% from 2016) leveraging on new project start-ups and ramp-ups of fields entered into operations in 2016, mainly in Egypt, Kazakhstan, Angola, Indonesia and Norway. Other initiatives of production optimization are expected to be implemented, which were not included in the initial plans. These additions will absorb mature fields decline and Val d’Agri shutdown lasting up to 90 days. Actions are underway in order to reduce the expected downtime period.
Gas & Power
Gas & Power Confirmed the target of structural break-even since 2017.
Planned cost position improvements by leveraging on long-term supply contracts revision and logistic cost reduction. Eni plans to retain market share in the large customers and retail segments, increasing the value of the existing customer base by developing innovative commercial initiatives, integrating services and optimizing operations.
Refining & Marketing and Chemicals
Confirmed the target of breakeven refining margin at 3 $/barrel from 2018.
Refinery intakes on own account are expected to slightly decrease y-o-y due to the lack of availability of certain assets at the Sannazzaro Refinery, partially offset by higher volumes at Livorno and Milazzo refineries. Against a backdrop of strong competition, management expects to consolidate volume and market share in the Italian retail market by leveraging innovation and product and service differentiation. In the rest of Europe, sales are expected to remain stable, excluding the effects of asset disposals in Eastern Europe.
In the Chemical business, sales are expected to trend up, due to higher production supplies. Cracker and polyethylene margins are expected to decline, while a recovery is expected in the butadiene and styrenics businesses.
Group
Confirmed the target of 18% reduction in capex y-o-y on a pro-forma basis, i.e. net of the capex which will be reimbursed in connection with asset disposals.
Cash neutrality: confirmed the organic coverage of capex and dividends at a Brent price of approximately 60 $/bbl in 2017.
Leverage at the end of 2017: projected to decline from 2016 level, also reflecting the expected closing of portfolio transactions, particularly the Mozambique deal.
The full version of the Press Release is available in PDF format.
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EnergIA (ener'dʒia) is a system based on Generative Artificial Intelligence.
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EnergIA (ener'dʒia) is a system based on Generative Artificial Intelligence.
Thanks to this technology, we can respond to your requests by querying the most relevant content and documents available on eni.com. (Note: financial documents from the last 12 months and press releases from the last 2 years are considered.)
Through EnergIA, you can delve into topics of interest and have a real-time window into the world of Eni.
If you wish to search for a specific document, press release or news, use the traditional search engine via the magnifying glass icon.
Like all systems that leverage Generative Artificial Intelligence, EnergIA may generate inaccurate or outdated responses. Always consult the sources that EnergIA proposes as the origin of the generated information.
If the system fails to find an exact match for the requested content, it still tends to provide a response.
If you find any inaccuracies in the provided response, please send us your feedback at the bottom of the page: it will be very helpful for us to improve.
Remember that the content generated by the system does not represent Eni’s official position. We therefore invite stakeholders to refer to their designated contacts for official statements: Press Office for journalists, Investor Relations for analysts and investors, Company Secretariat for shareholders etc..
EnergIA can understand questions posed in almost all languages, but we prefer to provide you with a response in English or Italian, the two languages available on eni.com. If you ask a question in Italian, the content on the site in Italian will be consulted. If you ask it in English or any other language, the content in English will be consulted. (Note: the language Eni uses for financial documents/content is predominantly English.)
If questions are formulated that violate the set security criteria, the system will not proceed with processing the response. Please remember not to send personal data.
By using this service, the users acknowledge that they have read and accepted the terms and conditions of use.
A new window into Eni’s world, at your disposal. EnergIA is an innovative tool based on artificial intelligence capabilities, which can help you navigate the contents of eni.com, quickly finding answers to your questions.