Overview

In detail:
  • performance data for 2018 in the Refining & Marketing sector
  • the 2018 Technical Investments Table in the Refining & Marketing sector

Performance

In 2018, the total recordable injury rate (TRIR) confirms Eni’s commitment in the field of health and security with a decrease by 9.7% compared to 2017, with both employees and contractors contribution (down by 12.5% and 10.1%, respectively). Greenhouse gas emissions (GHG) reported an increase of 4.7% in absolute terms following higher volumes processed.  Energy efficiency projects contributed to a 2.1% decrease in GHG emissions related to refining throughputs.  In 2018, the Refining & Marketing and Chemicals segment reported an adjusted operating profit of €380 million, down by €611 million, or 62% from 2017. The Refining & Marketing business reported an adjusted operating profit of €390 million (down by 27%), consistent with an unfavorable refining trading environment (SERM down by 26%). This result was also affected by increased standstills, partly offset by the improved performance in marketing activities driven by the effective commercial initiatives. The Chemical business was negatively affected by rising costs of oil-based feedstock in the first ten months of the year and by a sharp decrease in polyethylene prices during the fourth quarter, thus reporting an adjusted operating loss of €10 million from the adjusted operating profit of €460 million reported in 2017. Breakeven refining margin at the budget scenario of exchange rates and oil spreads was 3 $/barrel, in line with the guidance.  In 2018, Eni’s refining throughputs amounted to 23.23 mmtonnes, lower y-o-y (down by 3.3%) due to lower throughputs at the Taranto plant, reflecting higher crude oil volumes processed on behalf of third parties, at the Milazzo refinery due to maintenance standstills and at the Bayernoil refinery following an event occurred in September. These negatives were partially offset by higher volumes processed at the Sannazzaro and Livorno refineries, with the latter affected in 2017 by a shutdown due to a force majeure event.  Production of biofuels from vegetable oil at the Venice green refinery amounted to 0.25 mmtonnes, up by 4.2% compared 2017.  Retail sales in Italy were 5.91 mmtonnes, slightly decreased by 1.7% from 2017.  Retail sales in the rest of Europe (2.48 mmtonnes) were down by 2% compared to the previous year, mainly due to lower volumes traded in Germany, due to the event occurred at Bayernoil refinery and in France.  Sales of petrochemical products in Europe amounted to 4.94 mmtonnes, recording an increase of 6.3% y-o-y, due to higher intermediates sale volumes.  Capital expenditure of €877 million mainly related to refining activities.

Capital Expenditure

Capital Expenditure - Refining & Marketing
(€ milion) 201820172016 Chenge %Ch.
Refining 587 395 298 192 48.6
Marketing 139 131 123 8 6.1
  726 526 421 200 38.0
Chemicals 151 203 243 (52) (25,6)
TOTAL 877 729 664 148 20.3


In 2018, capital expenditure in the Refining & Marketing and Chemicals segment amounted to €877 million and mainly regarded: (i) refining activity in Italy and outside Italy (€587 million) aiming fundamentally at reconstruction works of the EST conversion plant at the Sannazzaro refinery, reconversion of Gela refinery into a biorefinery, maintain plants’ integrity, as well as initiatives in the field of health, security and environment; (ii) marketing activity, mainly regulation compliance and stay in business initiatives in the refined product retail network in Italy and in the rest of Europe (€139 million); (iii) in the Chemical business, upgrading activities (€52 million), maintenance (€32 million), environmental protection, safety and environmental regulation (€26 million), as well as upkeeping of plants (€21 million). Research and Development (R&D) expenditure in the Refining & Marketing and Chemicals segment amounted to approximately €44 million. During the year, 20 patent applications were filed.

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