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
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
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 $45 per barrel. The new disposal plan aims to achieve approximately €5-7 billion mainly through the dilution of exploration assets, in line with our “dual exploration” model.
- Capex: -8% vs. previous plan- -13% Upstream CAPEX
- New projects average breakeven: 30$/bbl
- New disposals target: €5-7 bln by 2020
- €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
- 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