The consolidated end-of-year and fourth-quarter results for 2017 reveal growth at Eni, more than doubling the adjusted net profit and adjusted operating profit for the third quarter. In 2017 Eni saw an adjusted operating profit of €5.8 billion and an adjusted net profit of €2.4 billion.
Exploration and Production: the success of Eni’s integrated model
In the third quarter of 2017, we achieved our best result in the past seven years in hydrocarbon production (1.89 million boe/day), with a growth rate of over 4 per cent excluding price effects at PSAs and OPEC cut. We recorded many major successes during the year, with the biggest achievement being the start of production at the Zohr field in Egypt, managed 28 months after its discovery. This is thanks to Eni’s exploration strategy, which involves the integration of exploration and development. In 2017 this model has produced excellent results in terms of both start-ups and ramp-ups:
- in addition to Zohr, the East Hub project in Angola, OCTP in Ghana and Jangkrik in Indonesia started production with a very short time-to-market and earlier than expected;
- Nooros, in Egypt, accelerated the ramp-up.
Thanks to these success stories, we are predicting a 3 per cent growth in production for 2018. Mexico also offered one of the year’s highlights: Area 1, offshore Gulf of Mexico, contains estimated hydrocarbons in place to 2 billion boe, of which approximately 90% oil.
Refining and Marketing and Chemicals: best result in eight years
In the year that has just ended, Refining & Marketing achieved an adjusted operating profit of €532 million, up by 91% y-o-y. An agreement was signed with Sinopec, the world’s leading refining company, to use Eni Slurry Technology (EST) to build a refinery plant by 2020 with the design capacity of 46,000 barrels per day of heavy refining residue, with significant environmental benefits. A joint venture Lotte-Versalis Elastomers, between Versalis (Eni), global leader in the elastomers sector, and Lotte Chemical, a major petrochemical company based in South Korea, is part of Eni’s strategy to revamp its chemical offering on the international stage.
Gas & Power: target achieved one year ahead
The restructuring of the business led to increased integration with the Upstream sector, aiming to make the most of gas opportunities, maximise the equity value and create added value. The G&P adjusting operating profit in 2017 stood at €0.21 billion, reached one year ahead of plans. In 2018, we are expecting a €0.3 million of profit, due to new renegotiation of long-term supply contracts, reduction of logistic costs and synergies from Upstream integration in the LNG business. The customer base at Eni gas e luce, the company’s retail division, is also growing.
2017 sustainability results
There were three main achievements in 2017 in the field of sustainability. Greenhouse gas emissions in E&P production decreased by 2.7 per cent compared to 2016. A total recordable incident rate (TRIR), which measures the number of accidents recorded in the workplace, improved compared to the previous year (-6.8 per cent). A significant reduction in methane emissions (-39.4 per cent), thanks to the monitoring of fugitive emissions in the E&P and G&P segments.