E

Business Context and Reporting Period

This Form 6-K filing, dated May 31, 2010, presents the "Eni in 2009" report, an extract of Eni S.p.A.'s Annual Report for the fiscal year ended December 31, 2009. Eni is a major integrated energy company engaged in finding, producing, transporting, transforming, and marketing oil and gas. The report details performance against the backdrop of the global economic recession, highlighting the resilience of its integrated business model.

Key Financial Metrics (2009)

Material Changes vs. Prior Period

• Profit Decline: Adjusted net profit decreased 49% year-over-year, primarily driven by a sharp decline in oil prices (Brent down 37% in the first nine months), weak refining margins, and a higher adjusted tax rate.
• Production: Total hydrocarbon production was 1,769 kboe/d, down 1.6% from 2008. Excluding OPEC restrictions, production remained substantially unchanged.
• Refining Loss: The Refining & Marketing division reported an adjusted net loss of €197 million, reversing a €521 million profit in 2008, due to an extremely weak refining scenario.
• Gas & Power Growth: Despite weak market conditions, the Gas & Power division increased adjusted net profit by 10% to €2.92 billion, aided by the acquisition of Distrigas and stable regulated business performance.
• Reserves: Estimated net proved reserves were 6.57 billion boe, with an all-sources reserve replacement ratio of 96%.

Guidance, Outlook, and Risks

Outlook and Guidance

• 2010 Forecast: Management forecasts a modest improvement in global oil demand with a Brent price of $76/barrel for 2010. Natural gas sales are expected to decrease slightly compared to 2009 due to competitive pressures in Italy, offset by European demand recovery.
• Capital Expenditures: Planned at €14 billion for 2010, broadly in line with 2009, with €10.5 billion allocated to Exploration & Production.
• Production Targets: Eni targets an average annual production increase of over 2.5% for the 2010-2013 period, aiming to exceed 2.0 million boe/d by 2013.
• Dividend Policy: Management intends to pay a €1.00 per share dividend for 2010, with future growth aligned with OECD inflation, based on a $65/barrel Brent price scenario.

Risks and Contingencies

• Market Risk: Significant sensitivity to crude oil price fluctuations and the EUR/USD exchange rate.
• Regulatory/Antitrust: Eni filed structural remedies with the European Commission regarding international gas pipelines (TENP, Transitgas, TAG) to settle an antitrust inquiry. Approval is required to avoid fines.
• Operational Risks: Exposure to socio-political developments in operating countries, operational outages, and the timing of new field start-ups.
• Legal Proceedings: Ongoing investigations, including the TSKJ consortium matter, carry the risk of material charges.

Key Facts for Investor Verification

• Dividend Payment: Verify the payment of the remaining €0.50 per share dividend for 2009, scheduled for May 27, 2010.
• Antitrust Resolution: Monitor the European Commission's decision on the proposed divestment of gas pipeline interests to resolve the antitrust inquiry.
• Major Project Execution: Track the progress and start-up dates of key growth drivers: Zubair (Iraq), Junin 5 (Venezuela), and Kashagan (Kazakhstan).
• Refining Turnaround: Assess the Refining & Marketing division's ability to return to positive cash flow by 2012 amidst continued weak margins.
• Leverage Management: Verify the company's ability to reduce the net debt-to-equity ratio below 40% in the medium term as planned.