E

Business Context and Reporting Period

This Form 6-K filing by Eni S.p.A., dated March 14, 2024, reports the approval of the 2023 Annual Report and the presentation of the 2024-2027 Strategic Plan. The filing covers the full fiscal year ended December 31, 2023, and outlines management's outlook for the subsequent four-year period.

Key Financial Metrics (2023 Full Year)

Note: Debt figures calculated as the sum of Short-term debt, Current portion of long-term debt, and Long-term debt from the Consolidated Balance Sheet.

Material Changes vs. Prior Period

• Revenue Decline: Total revenues decreased by approximately 29% to €94.8 billion, driven primarily by a drop in sales from operations (€93.7 billion vs. €132.5 billion in 2022), reflecting lower energy commodity prices.
• Profitability Compression: Operating profit fell by 53% to €8.3 billion. Net profit attributable to shareholders dropped by 66% to €4.8 billion.
• Impairment Charges: The Group recorded net impairment losses of €1.8 billion in 2023, compared to €1.1 billion in 2022.
• Investment Activity: Net cash used in investing activities increased to €9.4 billion (from €7.0 billion), reflecting continued capital expenditure and acquisitions despite a strategic focus on optimization.

Guidance, Outlook, and Management Commentary

2024-2027 Strategic Plan

• Cash Flow: Eni expects Cash Flow From Operations (CFFO) before working capital to be around €13.5 billion in 2024 and €62 billion over the plan period, representing 30% growth at a constant scenario.
• Capital Expenditure: Overall net capex is projected at €27 billion (€7 billion average per year), a reduction of more than 20% compared to the previous plan.
• Production Growth: Upstream production is expected to grow at an underlying 3-4% CAGR through 2027.
• Transition Targets:
  • Plenitude: Targeting €2 billion pro-forma EBITDA by 2027; renewable capacity to exceed 8 GW.
  • Enilive: Targeting €1.6 billion pro-forma EBITDA by 2027; biorefining capacity to exceed 5 MTPA by 2030.
  • Versalis: Restructuring aims for EBITDA breakeven in 2025 and positive EBIT in 2026.
  • CCS: Targeting 15 MTPA injection capacity before 2030.
• Shareholder Remuneration:
  • Target payout (dividend + buyback) raised to 30%-35% of CFFO (from 25%-30%).
  • 2024 dividend proposed at €1.00 per share (up 6% from €0.94).
  • Share buyback program set at €1.1 billion (up to €3.5 billion).
  • Upside participation increased to 60% of incremental cashflows above the plan.

Risks and Contingencies

Management notes that GGP (Gas Global Portfolio) earnings are sensitive to gas price volatility and geopolitical events. The plan assumes a normalizing gas market; however, positive outcomes in negotiations or market upticks could push GGP pro-forma EBIT above €1 billion. The restructuring of Versalis is contingent on market conditions in the European chemical sector.

Investor Verification Checklist

• Dividend Resolution: Verify the Board's formal approval of the fourth 2023 dividend tranche at the April 4, 2024 meeting.
• 2024 Dividend Yield: Confirm the final €1.00 per share dividend against the current share price to validate the stated ~9% distribution yield.
• Portfolio Divestments: Monitor progress on the €8 billion net cash-in portfolio management target, specifically the "Satellite" strategy and dual exploration model.
• Versalis Turnaround: Track quarterly results to ensure the trajectory toward EBITDA breakeven in 2025 is maintained.
• Capital Discipline: Verify that actual net capex remains within the €7 billion annual average target to support the enhanced payout ratio.