Eni’s Board of Directors approved group results for the fourth quarter and the full year 2015 (unaudited)

• Robust cash generation: operating cash flow^1-2 of €4.01 billion in Q4 2015 (€12.19 billion in FY2015) in spite of sharply lower oil prices (Brent down 43% to $44 per barrel in the Q4, down 47% to $53 per barrel in FY2015) down by 12% y-o-y (down by 15% in FY2015)
• Reduced the target oil price under which full-year capex are funded by operating cash flow: down to $50 per barrel in 2015 vs. our previous guidance of $63 per barrel for the period 2015-2016
• Finalized Saipem transaction by divesting a 12.5% stake to FSI, the pro-quota subscription of the investee’s capital increase and the reimbursement of intercompany financing receivables
• Efficiency gains and cost rephasing exceeded our expectations: capex reduced by 17% (vs. an initial guidance of 14%); Opex per boe reduced by 13% (vs. an initial guidance of 7%); G&A down €0.6 billion (vs. an initial guidance of €0.5 billion)
• Hydrocarbon production growth: up 14% to 1.88 million boe/d in Q4 2015, the highest level in 5 years; up 10% (vs. an initial guidance of +5%) to 1.76 million boe/d for the FY2015
• Exploration activities in the year added 1.4 bboe of fresh resources (vs. an initial guidance of 0.5 bboe), at an average cost of 0.7 $/barrel, also boosted by the supergiant Zohr discovery off Egypt
• Organic reserve replacement ratio: 148% (135% on average since 2010)
• R&M: positive adjusted EBIT³ and FCF⁴ in 2015 achieved earlier than  forecast  of  our strategic plan
• G&P: 2015 adjusted EBIT almost at break-even in line with our guidance
• Confirmed a dividend of €0.8⁵ per share for FY2015 

Results

• Continuing operations:
  • standalone adjusted EBIT: down 64% in Q4 2015 to €0.86 billion; down 64% in the FY2015 to €4.1 billion;
  • standalone adjusted earnings: a loss of €0.20 billion in Q4 2015; a profit of €0.34 billion in the FY2015 (down 91%);
  • reported earnings: a loss of €6.89 billion in Q4 2015; a loss of €7.79 billion in FY2015 due to asset impairments driven by the oil scenario adopted by Eni
• Group net earnings: a loss of €8.46 billion in Q4 2015; a loss of €8.82 billion in FY2015
• Net borrowings: €16.86 billion at year-end; leverage at 0.31. Pro-forma effects of Saipem transaction at December 31, 2015: net debt down by €4.8 billion, leverage at 0.22.

¹In this press release adjusted results from continuing operations exclude as usual the items "profit/loss on stock" and extraordinary gains and losses (special items), while they reinstate the effects relating to the elimination of gains and losses on intercompany transactions with sectors which are in the disposal phase, E&C and Chemical, represented as discontinued operations under the IFRS5. A corresponding alternative performance measure has been presented for the cash flow from operating activities. For further information, see “Disclaimer‘ on page 7.
²Net cash provided by operating activities of continuing operations on a standalone basis
³Operating profit.
⁴Free cash flow: net cash provided by operating activities plus proceeds from disposals less capex.
⁵An interim dividend of €0.4 per share was paid in September 2015

"In 2015, Eni achieved remarkable results in its transformation process, which will see the group become even more focused on its core oil&gas business, and even better organized to compete in a low energy price environment as reflected in the Eni scenario which is aligned with a conservative market consensus. The complex deconsolidation of Saipem has been completed in four months providing Eni with net proceeds of €4.8 billion. Our efforts to rationalize costs have achieved better than expected results, and enabled us to self-finance capex in 2015 at 50$/bbl, $13/bbl less  than  expected  a  year  ago.  These  actions  of  efficiency, however, have not affected Eni’s impressive level of growth in the market, in the short or the medium term. In E&P, production grew by 10%. Both our exploration resources and our proven reserves, recorded high growth, demonstrating the quality of our portfolio of assets. In the G&P and R&M businesses, consolidation has continued, with the G&P’s results in line with expectations and R&M’s results beating expectations. In 2016, similar to the previous year, we are continuing Eni’s transformation process with the goal of making the group even stronger and better able to operate in difficult external conditions, enabling us to maintain solid growth expectations. Based on these results, I will propose to the Board of Directors on 17 March the distribution of a final dividend of € 0.4 per share" commented Claudio Descalzi, Eni’s Chief Executive Officer.