Overview

Rome headquarter
In detail:

  • the main Upstream targets, as hydrocarbons production and new discoveries expected
  • Gas & Power and Refining & Marketing and chemicals objectives
  • financial strategy forecasts in the next four years (CAPEX reduction and disposal program targets)
  • Health, safety and environment objectives (HSE)

Upstream

Eni confirms the target of an annual growth rate of 3% in the Upstream sector and will maintain this level of growth until 2025. 2017-2020 Strategic Plan foresees to find 2-3 billion boe of new resources (approx. 55% of gas and 45% of oil).
  • Production: CAGR +3% per year; approx. +5% in 2017 vs. 2016
  • Upstream: CAPEX -13% vs previous 2016-2019 plan
  • Exploration: 2-3 bln boe of new resources

Mid-downstream

2017-2020 Strategic Plan foresees the break-even in the Gas & Power sector in 2017 and an operating result that exceeds €600 million per year since 2019 and €2.6 billion of "free cash flow" over the four years. In the refining sector we will reach approximately € 900 million at the end of the plan, while in the Chemistry sector in 2020 we will achieve an operating profit of €300 million per year.
  • G&P: structurally positive results from 2017. EBIT > €600 mln by 2020
  • Refining: margin breakeven $3/bbl by 2018
  • Chemicals: €1.2 bln of cumulative operative cash flow by 2020

Financial Strategy

CAPEX will be reduced by 8% compared to the previous plan and the 4 year plan operating target is set at €47 bln. The main objective of the 2017-2020 Strategic Plan is to have CAPEX cash neutrality lower than $45 per barrel. The new disposal plan aims to achieve approximately €5-7 billion mainly through the dilution of exploration assets, in line with our “dual exploration” model.

Efficiency
  • Capex: -8% vs. previous plan- -13% Upstream CAPEX
  • New projects average breakeven: 30$/bbl
  • New disposals target: €5-7 bln by 2020
Cash Flow
  • €20 bln Free Cash Flow
  • €12 bln per year average Cash Flow From Operations in 2019-2020
  • €47 bln Cash Flow from Operations
  • CAPEX Cash Neutrality (Cash Flow = CAPEX) at <$45/bbl
  • Organic Cash Neutrality (Cash Flow = CAPEX + Dividend): in 2017 with $60/bbl and in 2018-20 with <$/bbl
Shareholder remuneration
  • Confirmation of 2017 dividend proposal of €0.8 per share full cash.
  • Progressive distribution policy based on earnings growth and macro environment.

HSE and decarbonisation strategy

  • Direct emissions of greenhouse gases: -43% reduction for every barrel produced by 2025 (vs 2014)
  • Zero flaring during processing by 2025
  • Upstream fugitive methane emissions: -80% vs 2014
  • 460 MW of renewable power capacity installed by 2020 by New Energy Solutions

Read also

2017 Financial results and presentations

Eni Financial Results and Presentations: quarterly, half year and full year results, and the presentations to the financial community.

2016 results and 2017-2020 strategy

Eni Financial Results and Presentations: quarterly, half year and full year results, and the presentations to the financial community.
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