OREANDA-NEWS. Yesterday, Eni’s Board of Directors approved group results for the second quarter and first half of 2015 (unaudited).

Operational highlights

  • Hydrocarbon production: 1.754 million boe/d in the quarter, up 10.7%; 1.726 million boe/d in the first half, up 9%, record organic growth since 20001. Excluding positive price effects, production increased 7.1% (up 5.2% in the first half);
  • Increased guidance for full-year production growth from 5% to over 7%;
  • New fields start-ups and ramp-ups added 105 kboe/d to first half production, mainly in Angola (West Hub and Kizomba Satellites Phase 2), Congo (Nen? Marine) and in the United States (Hadrian South and Lucius);
  • Perla, the giant offshore gas field in Venezuela, started up in July, with industry leading time-to-market;
  • The Goliat offshore oilfield in Norway’s Barents Sea is next to achieve start-up;
  • The resource base increased by 300 million boe in the first half, at an average cost of 1.71\\$/boe;
  • Signed agreements for the development of new oil&gas projects in Egypt and the revision of current petroleum contracts;
  • Signed LNG sale agreements for the development of the Jangkrik offshore project in Indonesia, expected to start-up in 2017.

 

Financial highlights

  • Cash flow2: €3.37 billion for the quarter (€5.68 billion in the first half), stable compared to 2014 in spite of the sharply lower oil prices;
  • Net borrowings: €16.5 billion at the end of June; leverage at 0.26 (0.22 at the end of 2014);
  • Adjusted operating profit excluding Saipem: down 41% at €1.50 billion for the quarter (down 51% at €2.91 billion for the first half); G&P, R&M and Chemical were profitable in both 2015 reporting periods;
  • Adjusted operating profit: down 72% at €0.76 billion for the quarter (down 63% at €2.33 billion for the first half);
  • Adjusted net profit excluding Saipem: €0.45 billion for the quarter, down 46%; €1.05 billion for the first half, down 47%;
  • Adjusted net profit: €0.14 billion for the quarter, down 84%; €0.79 billion for the first half, down 62%;
  • Net profit: down €0.11 billion for the quarter; €0.59 billion for the first half, down 70%;
  • Dividend proposal of €0.40 per share.

1)  With the exception of the second half of 2012, when production was supported by the recovery of the Libyan production.
2)  Net cash provided by operating activities.

Claudio Descalzi, Chief Executive Officer, commented:
"In the first half of the year we have achieved excellent industrial results across our businesses, which enable us to revise upwards several of the targets set out in the strategic plan presented in March. In upstream we delivered record production growth and we have significantly contained costs. Furthermore, the recent start-up of production in the Perla field in Venezuela, and forthcoming start-up of Goliat in Norway will provide an important contribution in the second half. The mid-downstream businesses all reached profitability, thanks to the strong progress we have made in restructuring our refineries and petrochemical plants, successful renegotiations of gas contracts and further interventions on efficiency. These actions have helped to contain the impact of the fall in hydrocarbons prices, both in terms of economics and cash generation. Despite the halving of oil prices, we have generated €5.7 billion of cash flow, in line with the first half of 2014, which has financed almost all capital investment in the half year. This is a very significant result, given that self-financing investment is the main challenge facing the sector today. These better than expected results enable me to confirm the proposal of an interim dividend of €0.40 per share to the Board of Directors, on September 17".

At the same time as reviewing this press release, the Board has approved the interim consolidated report as of June 30, 2015, which has been prepared in accordance to Italian listing standards as per article 154-ter of the Code for securities and exchanges (Testo Unico della Finanza). The document was immediately submitted to the Company’s external auditor. Publication of the interim consolidated report is scheduled within the terms of law alongside completion of the auditor’s review.