Overview

In detail:

  • performance data for 2017 in the Gas & Power sector
  • the 2017 Technical Investments Table in Gas & Power sector

2017 Performance

Gas & Power
  201720162015
Employees at year end (number) 4,313 4,261 4,484
TRIR (Total Recordable Injury Rate) (total recordable injuries/worked hours) x 1,000,000 0.37 0.29 0.89
Worldwide gas sales (bcm) 80.83 86.31 87.72
ofwhich:Italy   37.43 38.43 38.44
outsideItaly   43.40 47.88 49.28
Customers in Italy (million) 7.7 7.8 7.9
Direct GHG emissions (mmtonnes CO2  eq) 11.23 11.17 10.57
GHGemissions/kWheq(Eni Power) (gCO2eq/kWheq) 395 398 409
Installed capacity power plants (GW) 4.7 4.7 4.9
Electricity produced (TWh) 22.42 21.78 20.69
Electricity sold   35.33 37.05 34.88
Customer satisfaction rate (scale from 0 to 100) 86.7 86.2 85.6

In 2017, safety performance continued on a positive trend, with a total recordable injury rate of 0.28, down by 18% from 2016. New training and continuing education initiatives as well as HSE awareness programs have been developed. Eni is engaged in maintaining a high safety standard in each of its operations.

  • Upstream GHG intensity index was positive with a reduction of approximately 3% from 2016 leveraging on the continuous improvements in energy efficiency and planned initiatives to contain fugitive emissions due to ongoing maintenance of production sites and programs to improve plant set-up. These results confirm that we are well on track on our long-term targets of a reduction of 43% in 2025 vs. 2014.
  • Water re-injection was 59% in 2017, leveraging on the ongoing programs in certain operational plants, in particular in Congo, Egypt and Ecuador as well as restart of certain production plants in Libya.
  • In 2017 the E&P segment reported more than double of adjusted operating profit and more than four-fold increase of adjusted net profit compared to 2016. This performance was driven by the recovery in crude oil prices (with the Brent price up by 24%), production growth and significant reduction of tax rate.
  • 2017 oil and natural gas production was a record level of 1.82 million boe/d, up by 3.2% compared to the previous year. In December 2017, production reached 1.92 million boe/d, marking an all-time high for Eni. Start-ups and rampups added 243 kboe/d to the production level of 2017. Expected a 4% growth rate in 2018 full-year production.
  • Net proved reserves at December 31, 2017 amounted to 7 bboe based on areference Brent price of $54 per barrel. The organic reserves replacement ratio was 103%. The ratio increased to 151% when excluding the reclassification of proved undeveloped reserves in Venezuela to the unproved category in accordance with the applicable US SEC regulation. The reserves life index was 10.5 years (11.6 years in 2016).

Gas & Power
(€ million)201720162015Change% Ch.
Operating profit (loss) 75 (391) (1,258) 466 119.2
Exclusion of inventory holding (gains) losses 139 90 132  
Exclusion of special items: (89) 1,000  
- impairment losses (impairment reversals), net (146) 81 152  
- environmental charges   1  
- risk provisions   17 226  
- provision for redundancy incentives 38 4 6  
- commodity derivatives 157 (443) 90  
- exchange rate differences and derivatives (171) (19) (9)  
- other 261 270 535  
Adjusted operating profit (loss) 214 (390) (126) 604 154.9
Net finance (expense) income(a) 10 6 11 4
Net income (expense) from investments(a) (9) (20) (2) 11
Income taxes(a) (163) 74 (51) (237)
Taxrate (%) 75.8 .. .. ..
Adjusted net profit (loss) 52 (330) (168) 382 115.8

In 2017, the Exploration & Production segment reported an adjusted operating profit of €5,173 million, increasing by €2,679 million compared to 2016 thanks to the recovery in crude oil prices (with the Brent price up by 24%), as well as the production growth. These positives were partly offset by higher exploratory well write-offs and higher expenses, as well as lower appreciation of Eni’s average realizations than the Brent benchmark, which has not been yet fully reflected in gas prices due to the time lags in oil-linked price formulas. Adjusted operating profit excluded a negative adjustment of €2,478 million.

Capital Expenditure
(€ million)201720162015Change% Ch.
Marketing 138 110 138 28 25.5
Marketing 102 69 69 33 47.8
Italy 63 32 31 31 96.9
Outside Italy 39 37 38 2 5.4
Power generation 36 41 69 (5) (12.2)
International transport 4 10 16 (6) (60.0)
Total of capital expenditure 142 120 154 22 18.3
of which:          
Italy 99 73 100 26 35.6
Outside Italy 43 47 54 (4) (8.5)

In 2017, capital expenditure amounted to €142 million, mainly related to gas marketing initiatives (€102 million) and to the flexibility and upgrading initiatives of combined cycle power plants (€36 million).

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