2019 Third Quarter Results
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- Production for 9M 2019 was 1.85 million barrels of oil equivalent per day, a 2% increase over 9M 2018. Four new start-ups are planned for production. - Exploration discoveries totaled 650 million barrels of oil equivalent in equity resources. - A deal was announced to acquire ExxonMobil's assets in Norway to form Vår Energi, which will have over 350 thousand barrels of oil equivalent per day of production by 2023. - Financial results for 9M 2019 include cash flow from operations of €9.4 billion, a 5% increase over 9M 2018, and capex of €5.6 billion.
2019 Third Quarter Results
- 1. 2019 9M Results October 25, 2019 Norway
- 2. 9M 2019 RESULTSENI’S NEW MISSION We are an energy company. We concretely support a just energy transition, with the objective of preserving our planet and promoting an efficient and sustainable access to energy for all. Our work is based on passion and innovation, on our unique strengths and skills, on the equal dignity of each person, recognizing diversity as a key value for human development, on the responsibility, integrity and transparency of our actions. We believe in the value of long term partnerships with the countries and communities where we operate, bringing long-lasting prosperity for all.
- 3. 9M 2019 RESULTS Production: 1.85 Mboed, +2% vs 9M 2018. Q3 2019: 1.89 Mboed, +6% vs Q3 2018 Projects: 4 planned start-ups in production; in addition Agogo and Nasr ph2 in Q4 Exploration discoveries: 650 Mboe equity resources Vår Energi: deal announced to acquire Exxon’s assets in Norway UPSTREAM FINANCIALS G&P: EBIT already above 2019 guidance R&M: Strong marketing results; Gela Green refinery ramping up Energy Solutions: 150 MW under construction for total year end capacity of 190 MW MID-DOWNSTREAM & RENEWABLES CFFO: € 9.4 bln, +5% vs 9M 2018 Capex: € 5.6 bln Leverage: 25% post acquisition of 20% ADNOC Refining & FY dividend 2019 Buyback: ~70% complete YTD 9M HIGHLIGHTS 3 CFFO pre working capital at replacement cost post IFRS 16
- 4. 9M 2019 RESULTS 4 ANGOLA BLOCK 15/06: MATERIAL DISCOVERIES AND FAST TRACK PRODUCTION FIRST OIL: Q4 2019; 8 MONTHS FROM DISCOVERY Early Prod. ph.1: 20 kboed (100%) DEVELOPMENT: AGOGO FAST TRACK OIL IN PLACE | Billion barrels Kalimba June '18 Afoxè Dec '18 Agogo March '19 Ndungu May '19 Agidigbo June '19 > 0.7 0.3 0.2 0.3 0.4 OIL IN PLACE: ~ 2 BLN BBL DISCOVERED IN THE LAST 18 MONTHS EXPLORATION: A SUCCESSFUL CAMPAIGN AGOGO: subsea tie-back to West Hub Treatment capacity: 100 kboed N’Goma FPSO Ndungu (2019) Agidigbo (2019) 5 new discoveries Dev. leases
- 5. 9M 2019 RESULTS 5 NORWAY: ACCELERATING GROWTH AND FCF GENERATION NEW VÅR ENERGI BREAKEVEN VÅR ENERGI PRODUCTION FCF ACCRETIVE DEAL UNDERPINS A GROWING DIVIDEND TO VÅR ENERGI’S SHAREHOLDERS Opex + 700 Mln boeResources -1.1 MTPACO2 reduction projects $27/ boe MAIN OPERATING IMPACTS OF THE DEAL NEW VÅR RESOURCES: ~ 2 Bln boe CCS / WIND PROJECTS 2018 2019 2023 VÅR ENERGI New assets 170 >350 ∼300 Kboed - $1/boe NEW VAR AVG OPEX: ~ $9/boe
- 6. 9M 2019 RESULTS 6 ABU DHABI: INCREASING FOCUS AND PRESENCE 922 Today 2024 ADNOC REFINING: DEAL COMPLETED CAPACITY CONVERSION CRUDE FLEXIBILITY EFFICIENCY >1,100 REFINERY CAPACITY | Kbpd PLATEAU PRODUCTION (100%) ~ 50 kboed @ 2025 2022 SEPTEMBER 2019 FID TAKEN EXPECTED START UP DALMA GAS PROJECT IN EXECUTION 25% ENI SHARE OP: ADNOC ACQUIRED 20% ADNOC REFINERY CASH OUT: €2.9 Bln
- 7. 9M 2019 RESULTS 7 3Q OIL & GAS PRODUCTION| KBOED 9M UPSTREAM EBIT ADJ| € BLN 72.1 255 1.19 64.7 175 1.12 Brent($/bbl) PSV (€/kcm) FX UPSTREAM: EBIT IMPROVEMENT IN A LOWER SCENARIO Production 9M 2019: 1,854 kboed +6% adj for price & portfolio 1,888 1,803 107 -22 3Q 2018 Price & portfolio Ramp ups + start ups 3Q 2019 7.9 6.6 9M 2018 9M 2019 +7%Excluding Norway, Scenario and IFRS16 effects
- 8. 9M 2019 RESULTS G&P EBIT Adj | € mln R&M EBIT Adj | € mln Versalis EBIT Adj | € mln IMPROVED G&P & R&M RESULTS, VERSALIS IMPACTED BY SCENARIO AND DOWNTIME 8 219 282 9M 2018 9M 2019 3.9 -1.4 4.4 0.1 ($/bbl) SERM SpreadUral-Brent Priolo upset in H1 impact: - €70 mln 960 950 800 710 18 -144 9M 2018 9M 2019 (€/ton)Spreadvs V. Naphtha Polystyrene (GPPS) Elastomers(SBR) 501 511 9M 2018 9M 2019 255 237 18 9.7 175 146 29 5.4 (€/kcm) PSV TTF SpreadPSV-TTF JKM($/Mbtu)
- 9. 9M 2019 RESULTS 9 9M 2019 FCF covered FY Dividend & Buyback CASH FLOW | € bln ROBUST RESULTS * CFFO & FCF are pre working capital at replacement cost post IFRS 16 9M ADJ NET PROFIT: € 2.3 BLN 0.4 8.9 9.4 5.6 3.4 9M18 9M 19 Capex Dividend & Buy back FY 2019 Discretionary Cash Flow
- 10. 9M 2019 RESULTS ~ € 12.8 blnCFFO < € 8 blnCAPEX 1.87 - 1.88 mboedProduction 700 mln boeEXP discoveries € 0.6 blnG&P EBIT € 0.4 blnR&M EBIT 2019 GUIDANCE 10 CFFO (pre working capital & IFRS 16 and at replacement cost) at 2019 scenario: Brent $ 62 /bl, Italian gas price (PSV) € 266 /kcm, $/€ exchange rate 1.15
- 11. 9M 2019 RESULTS Back up 11
- 12. 9M 2019 RESULTSMARKET SCENARIO Brent| $/bbl Exchange Rate| €/$ European Gas Prices| €/kcm Standard Eni Refining Margin| $/bbl PSV TTF 12 1.194 1.124 9M 2018 9M 2019 255 175 237 146 9M 2018 9M 2019 72.1 64.7 9M 2018 9M 2019