Press Release: Eni announces its 2011-2014 strategic plan
High production growth: > 3% CAGR to 2014Gas sales in Italy and key European markets: +5% CAGR to 2014R&M efficiency program: new target of €200 mln by 2014Sound financial position and sustainable dividend in a 70$/bl scenario
Published on: Mar 4, 2016
Transcripts - Press Release: Eni announces its 2011-2014 strategic plan
Eni announces its 2011-2014 Strategic Plan • High production growth: > 3% CAGR to 2014 • Gas sales in Italy and key European markets: +5% CAGR to 2014 • R&M efficiency program: new target of €200 mln by 2014 • Sound financial position and sustainable dividend in a 70$/bl scenarioLondon, 10 March 2011 – Paolo Scaroni, CEO of Eni, today presents thecompany’s 2011-2014 Strategic Plan to the financial community.In the new plan, Eni confirms a high production growth, the consolidation of itsleadership in the Italian and European gas markets, and an ambitious costreduction program aimed at recovering profitability in R&M.Exploration & ProductionEni confirms its strategy of production growth with an average annual increase ofover 3% in the 2011- 2014 period, higher compared to the previous plan.The suspension of some of our production in Libya, if it remains temporary, will notsignificantly impact on Eni’s production growth target. Investments planned in thecountry over the coming period are limited, and no major projects are expected tostart-up in the next four years.Eni’s growth strategy is based on organic development, also thanks to thesignificant contribution coming from key areas such as Iraq, Venezuela, Angolaand Russia. In 2014, hydrocarbon production will be above the 2.05 million boe/dlevel.
About 80% of the production due to come on-stream over the plan period will befrom giant projects, in particular from those in Venezuela, Russia, the Arctic regionand Angola.Beyond the plan period, production growth will supported by the ramp-up of giantssuch as Junin 5 and Perla in Venezuela, new project start-ups beyond 2014, thepromising exploration prospects in countries such as Togo, Ghana, DemocraticRepublic of Congo and Mozambique as well as from the strategic position that Eniis building in non-conventional gas, also thanks the Memorandum ofUnderstanding signed with Petrochina.Gas & PowerThe gas market scenario over the plan period will be characterized by a growth inEuropean consumption as well as by a rapid rise in demand from emergingmarkets: both factors will contribute to absorb the oversupply in Europe.In this context, Eni’s diversified portfolio of supply contracts will again become acompetitive advantage.Leveraging on the ongoing renegotiations of supply contracts, Eni will boost itscompetitiveness and will increase its 2011- 2014 gas sales by 5% each year onaverage in Italy and key European markets.Ebitda proforma adjusted will reach 4.2 billion euro by 2014, in line with 2009results, taking into consideration the planned sale of certain international pipelines.This result will also be achieved thanks to the realization of an integrated gastrading platform and a focus on high-value market segments.
Refining & MarketingEni’s strategy in R&M is aimed at increasing operational efficiency, therebyreducing fixed and variable costs by 200 million euro by 2014.In refining, Eni will increase the flexibility of the plants and the yield in middledistillates, exploiting its proprietary technologies.In marketing, Eni will improve results thanks to the re-branding of its distributionnetwork, growth in key European markets and the expansion of non-oil activities.All these actions with significantly boost R&M profitability, with the objective ofreaching Ebit of 200 million euro by 2014, at constant 2010 scenario.Capex plan and efficiency programEni plans 53.3 billion euro of investments over the 2011- 2014 period.Over 70% of overall investments are related to upstream activities, in particular thedevelopment of projects such as Zubair, Junin 5, Perla, Goliat and Block 15/06 inAngola, that will sustain production growth over the plan period and beyond.With respect to efficiency, Eni is planning a step-up of its cost reduction program,with 1.7 billion euro of savings planned over the next four years, bringing our totalsince 2006 to 4.1 billion euro. This objective will be achieved through procurementoptimization, a further streamlining of logistics in R&M, as well as increased labourefficiencies.Company contacts:Investor Relations Phone: +39 02 520 51651Press Office Phone: +39 02 52031875 – 06 5982398Switchboard: +39 0659821Freephone for shareholders (from Italy) : 800940924Freephone for shareholders (from abroad) : +firstname.lastname@example.org@email@example.com