E

Business Context and Reporting Period

This Form 6-K filing by Eni S.p.A., dated March 18, 2022, reports the approval of the 2021 Consolidated Financial Statements and the presentation of the Strategic Plan for 2022-2025. The filing covers the full fiscal year ended December 31, 2021, and outlines management's response to the geopolitical crisis in Ukraine, emphasizing energy security and an accelerated transition to net zero.

Key Financial Metrics (2021 Full Year)

Material Changes vs. Prior Period

• Profitability Turnaround: The Group moved from a consolidated net loss of €8.6 billion in 2020 to a net profit of €5.8 billion in 2021, driven by higher energy prices and operational efficiency.
• Revenue Growth: Total revenues increased by 73% year-over-year, rising from €44.9 billion to €77.8 billion.
• Impairment Reversals: Significant improvement in asset valuation, with impairment reversals of €167 million in 2021 compared to impairment losses of €3.2 billion in 2020.
• Working Capital: Cash flow from changes in working capital was negative €3.1 billion in 2021, primarily due to increased trade receivables and inventory levels, contrasting with a negligible impact in 2020.
• Dividend Proposal: The Board proposed a total dividend of €0.86 per share for 2021, a significant increase from the prior year's context of losses.

Guidance, Outlook, and Strategic Plan (2022-2025)

Strategic Priorities

• Accelerated Decarbonization: Eni targets a 35% reduction in Scope 1+2+3 emissions by 2030 and 80% by 2040 (vs. 2018 levels). Scope 1+2 upstream emissions will drop 65% by 2025.
• Investment Allocation: New energy investments will reach 30% of total capex by 2025, rising to 60% by 2030.
• Gas Portfolio: Eni aims to secure 15 MTPA of contracted LNG volumes by 2025 and can make 14 TCF of additional gas resources available in the short-to-medium term.
• Production Growth: Upstream production is expected to grow at an average of 3% annually, reaching a plateau of ~1.9 Mboe/d by 2025.

Financial Outlook and Shareholder Returns

• 2022 Capex: Planned at €7.7 billion (excluding equity accounted entities), with an average of €7 billion annually over the plan period.
• Cash Flow: Cash Flow from Operations (CFFO) before working capital is projected at over €14 billion in 2022 (assuming Brent $80/bbl).
• Enhanced Dividend: The annual total dividend for 2022 is raised to €0.88 per share (based on Brent $80-$90/bbl), paid in four quarterly installments.
• Share Buyback: A €1.1 billion buyback program is approved, with potential upside for scenarios above $90/bbl.

Risks and Contingencies

• Geopolitical Risk: The war in Ukraine creates energy security threats but also opportunities for Eni to supply replacement gas to Europe.
• Downstream Volatility: The downstream business (Refining & Marketing) faces negative EBIT in 2022 due to utility costs and market scenarios, though expected to self-sustain via circular economy projects.
• Market Volatility: Financial projections are sensitive to Brent crude prices and exchange rates (€/$).

Key Facts for Investor Verification

• Dividend Timing: Verify the ex-dividend date of May 23, 2022, and the payment date of May 25, 2022, for the final 2021 dividend installment.
• Profit Adjustment: Note that the final 2021 consolidated net profit (€5.821 billion) is lower than the preliminary result (€6.128 billion) due to finalization of strategic plans and JV adjustments.
• Plenitude Listing: Confirm the status of the Plenitude listing process, which is progressing with a Registration Document filed with the Italian Market Authority.
• Buyback Conditions: Monitor the July and October 2022 assessments for potential additional buybacks triggered by Brent prices exceeding $90/bbl.
• Form 20-F Filing: The full Annual Report on Form 20-F is expected to be filed with the SEC in the first ten days of April 2022.