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Non-GAAP measures

Reconciliation of reported operating profit and reported net profit to results on an adjusted basis

Management evaluates Group and business performance on the basis of adjusted operating profit and adjusted net profit, which are arrived at by excluding inventory holding gains or losses and special items. Furthermore, finance charges on finance debt, interest income, gains or losses deriving from the evaluation of certain derivative financial instruments at fair value through profit or loss (as they do not meet the formal criteria to be assessed as hedges under IFRS, excluding commodity derivatives), and exchange rate differences are all excluded when determining adjusted net profit of each business segment. The taxation effect of the items excluded from adjusted operating or net profit is determined based on the specific rate of taxes applicable to each of them. The Italian statutory tax rate is applied to finance charges and income (38% is applied to charges recorded by companies in the energy sector, whilst a tax rate of 27.5% is applied to all other companies). Adjusted operating profit and adjusted net profit are non-GAAP financial measures under either IFRS, or US GAAP. Management includes them in order to facilitate a comparison of base business performance across periods, and to allow financial analysts to evaluate Eni’s trading performance on the basis of their forecasting models. In addition, management uses segmental adjusted net profit when calculating return on average capital employed (ROACE) by each business segment.

The following is a description of items that are excluded from the calculation of adjusted results.

Inventory holding gain or loss is the difference between the cost of sales of the volumes sold in the period based on the cost of supplies of the same period and the cost of sales of the volumes sold calculated using the weighted average cost method of inventory accounting.

Special items include certain significant income or charges pertaining to either: (i) infrequent or unusual events and transactions, being identified as non-recurring items under such circumstances; or (ii) certain events or transactions which are not considered to be representative of the ordinary course of business, as in the case of environmental provisions, restructuring charges, asset impairments or write ups and gains or losses on divestments even though they occurred in past periods or are likely to occur in future ones. As provided for in Decision No. 15519 of July 27, 2006 of the Italian market regulator (Consob), non recurring material income or charges are to be clearly reported in the management’s discussion and financial tables. Also, special items include gains and losses on re-measurement at fair value of certain non-hedging commodity derivatives, including the ineffective portion of cash flow hedges and certain derivatives financial instruments embedded in the pricing formula of long-term gas supply agreements of the Exploration & Production Division.

Finance charges or income related to net borrowings excluded from the adjusted net profit of business segments are comprised of interest charges on finance debt and interest income earned on cash and cash equivalents not related to operations. In addition, gains or losses on the fair value evaluation of the aforementioned derivative financial instruments, excluding commodity derivatives and exchange rate differences are excluded from the adjusted net profit of business segments. Therefore, the adjusted net profit of business segments includes finance charges or income deriving from certain segmentoperated assets, i.e., interest income on certain receivable financing and securities related to operations and finance charge pertaining to the accretion of certain provisions recorded on a discounted basis (as in the case of the asset retirement obligations in the Exploration & Production Division). Finance charges or interest income and related taxation effects excluded from the adjusted net profit of the business segments are allocated on the aggregate Corporate and financial companies.

For a reconciliation of adjusted operating profit and adjusted net profit to reported operating profit and reported net profit see tables below.

Profit and loss account (€ million) 2007 2008 2009 2010 2011
Net sales from operations  87,204 108,082 83,227 98,523 109,589
Other income and revenues 833 728 1,118 956 933
Total revenues 88,037 108,810 84,345 99,479 110,522
Purchases, services and other (58,133) (76,350) (58,351) (69,135) (79,191)
Payroll and related costs (3,800) (4,004) (4,181) (4,785) (4,749)
Total operating expenses (61,933) (80,354) (62,532) (73,920) (83,940)
Other operating income (expense) (129) (124) 55 131 171
Depreciation, depletion, amortization and impairments (7,236) (9,815) (9,813) (9,579) (9,318)
Operating profit 18,739 18,517 12,055 16,111 17,435
Finance (expense) income 46 (640) (551) (727) (1,129)
Net income from investments 1,243 1,373 569 1,156 2,171
Profit before income taxes 20,028 19,250 12,073 16,540 18,477
Income taxes (9,219) (9,692) (6,756) (9,157) (10,674)
Tax rate (%) 46.0 50.3 56.0 55.4 57.8
Net profit 10,809 9,558 5,317 7,383 7,803
Attributable to:    
- Eni’s shareholders 10,011 8,825 4,367 6,318 6,860
- Non-controlling interest 798 733 950 1,065 943
Net profit attributable to Eni’s shareholders 10,011 8,825 4,367 6,318 6,860
Exclusion of inventory holding (gains) losses (499) 723 (191) (610) (724)
Exclusion of special items 57 616 1,031 1,161 833
 of which:          
- non-recurring items 35 (21) 250 (246) 69
- other special items 22 637 781 1,407 764
Adjusted net profit attributable to Eni’s shareholders 9,569 10,164 5,207 6,869 6,969
Summarized Group Balance Sheet (€ million) 2007 2008 2009 2010 2011
             
Fixed assets
Property, plant and equipment 50,137 55,933 59,765 67,404 73,578
Other assets 563     
Inventories - Compulsory stock 2,171 1,196 1,736 2,024 2,433
Intangible assets 4,333 11,019 11,469 11,172 10,950
Equity-accounted investments and other investments 6,111 5,881 6,244 6,090 6,242
Receivables and securities held for operating purposes 725 1,219 1,261 1,743 1,740
Net payables related to capital expenditures (1,191) (787) (749) (970) (1,576)
62,849 74,461 79,726 87,463 93,367
Net working capital      
Inventories 5,499 6,082 5,495 6,589 7,575
Trade receivables 15,609 16,444 14,916 17,221 17,709
Trade payables (11,092) (12,590) (10,078) (13,111) (13,436)
Tax payables and provision for net deferred tax liabilities (4,412) (5,323) (1,988) (2,684) (3,503)
Provisions (8,433) (9,506) (10,319) (11,792) (12,735)
Other current assets and liabilities (2,653) (4,544) (3,968) (1,286) 281
(5,482) (9,437) (5,942) (5,063) (4,109)
Equity instruments 2,476 2,741     
Provisions for employee post-retirement benefits (935) (947) (944) (1,032) (1,039)
Net assets held for sale including related net borrowings 286 68 266 479 206
CAPITAL EMPLOYED, NET 59,194 66,886 73,106 81,847 88,425
Shareholders’ equity:
attributable to: - Eni’s shareholders (a) 40,428 44,436 46,073 51,206 55,472
Non-controlling interest 2,439 4,074 3,978 4,522 4,921
42,867 48,510 50,051 55,728 60,393
Net borrowings 16,327 18,376 23,055 26,119 28,032
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 59,194 66,886 73,106 81,847 88,425
  1. Net of own shares in portfolio.
Summarized Group Cash Flow Statement (€ million) 2007 2008 2009 2010 2011
           
Net profit 10,809 9,558 5,317 7,383 7,803
Adjustments to reconcile to cash generated from operating profit before changes in working capital: 
- amortization and depreciation and other non monetary items 6,320 8,792 9,117 9,024 9,095
- net gains on disposal of assets (309) (219) (226) (552) (1,170)
- dividends, interest, taxes and other changes 8,850 9,399 6,843 9,368 10,651
Changes in working capital related to operations (1,641) 4,489 (1,195) (1,720) (2,176)
Dividends received, taxes paid, interest (paid) received during the period (8,512) (10,218) (8,720) (8,809) (9,821)
Net cash provided by operating activities 15,517 21,801 11,136 14,694 14,382
Capital expenditures (10,593) (14,562) (13,695) (13,870) (13,438)
Investments and purchase of consolidated subsidiaries and businesses (9,665) (4,019) (2,323) (410) (360)
Disposals 659 979 3,595 1,113 1,912
Other cash flow related to capital expenditures, investments and disposals (35) (267) (295) 228 627
Free cash flow (4,117) 3,932 (1,582) 1,755 3,123
Borrowings (repayment) of debt related to financing activities (479) 911 396 (26) 41
Changes in short and long-term financial debt 8,761 980 3,841 2,272 1,104
Dividends paid and changes in non-controlling interest and reserves (5,836) (6,005) (2,956) (4,099) (4,327)
Effect of changes in consolidation and exchange differences (200) 7 (30) 39 10
NET CASH FLOW FOR THE PERIOD (1,871) (175) (331) (59) (49)
Changes in net borrowings (€ million) 2007 2008 2009 2010 2011
           
Free cash flow (4,117) 3,932 (1,582) 1,755 3,123
Net borrowings of acquired companies (244) (286) (33)
Net borrowings of divested companies   181   (192)
Exchange differences on net borrowings and other changes 637 129 (141) (687) (517)
Dividends paid and changes in non-controlling interest 
and reserves (5,836) (6,005) (2,956) (4,099) (4,327)
CHANGE IN NET BORROWINGS (9,560) (2,049) (4,679) (3,064) (1,913)
Net sales from operations (€ million) 2007 2008 2009 2010 2011
Exploration & Production  26,920 33,042 23,801 29,497 29,121
Gas & Power  27,793 37,062 30,447 29,576 34,731
Refining & Marketing 36,349 45,017 31,769 43,190 51,219
Petrochemicals 6,934 6,303 4,203 6,141 6,491
Engineering & Construction 8,678 9,176 9,664 10,581 11,834
Other activities 205 185 88 105 85
Corporate and financial companies 1,313 1,331 1,280 1,386 1,365
Impact of unrealized intragroup profit elimination(a) 75 (66) 100 (54)
Consolidation adjustment (20,988) (24,109) (17,959) (22,053) (25,203)
87,204 108,082 83,227 98,523 109,589
  1. This item concerned mainly intragroup sales of commodities, services and capital goods recorded in the assets of the purchasing business segment as of end of the period.
Net sales to customers (€ million) 2007 2008 2009 2010 2011
Exploration & Production  10,640 14,125 10,171 12,947 10,677
Gas & Power  27,036 36,189 29,812 28,743 33,648
Refining & Marketing 35,073 43,521 30,804 41,845 48,428
Petrochemicals 6,571 5,905 3,965 5,898 6,202
Engineering & Construction 7,496 7,957 8,349 8,779 10,510
Other activities 174 156 64 80 62
Corporate and financial companies 214 154 128 131 116
Impact of unrealized intragroup profit elimination 75 (66) 100 (54)
87,204 108,082 83,227 98,523 109,589
Net sales by geographic area of destination (€ million) 2007 2008 2009 2010 2011
Italy 37,294 42,843 27,950 47,802 33,805
Other EU Countries 23,074 29,341 24,331 21,125 35,536
Rest of Europe 5,507 7,125 5,213 4,172 7,537
Africa 8,010 12,331 10,174 13,068 11,333
Americas 6,447 7,218 7,080 6,282 9,612
Asia 5,840 8,916 8,208 5,785 10,258
Other areas 1,032 308 271 289 1,508
Total outside Italy 49,910 65,239 55,277 50,721 75,784
87,204 108,082 83,227 98,523 109,589
Purchases, services and other (€ million) 2007 2008 2009 2010 2011
Production costs - raw, ancillary and consumable materials
and goods
44,850 58,662 40,311 48,261 60,724
Production costs - services 10,828 13,355 13,520 15,400 14,034
Operating leases and other 2,276 2,558 2,567 3,066 3,113
Net provisions 573 884 1,055 1,407 551
Other expenses 1,101 1,660 1,527 1,309 1,214
less:
capitalized direct costs associated with self-constructed
tangible and intangible assets
(1,495) (769) (629) (308) (445)
58,133 76,350 58,351 69,135 79,191
Principal accountant fees and services (€ thousand) 2007 2008 2009 2010 2011
Audit fees 26,383 27,962 30,748 21,114 22,407
Audit-related fees 169 152 276 183 1,034
Tax fees 81 46 51 166 26
All other fees 120 1     
26,753 28,161 31,075 21,463 23,467
Payroll and related costs (€ million) 2007 2008 2009 2010 2011
Wages and salaries 2,906 3,204 3,330 3,565 3,704
Social security contributions 690 694 706 714 760
Cost related to defined benefit plans and defined contribution plans 161 107 137 164 158
Other costs 275 282 342 600 360
less:
capitalized direct costs associated with self-constructed tangible
and intangible assets
(232) (283) (334) (258) (233)
3,800 4,004 4,181 4,785 4,749
Depreciation, depletion, amortization and impairments (€ million) 2007 2008 2009 2010 2011
Exploration & Production  5,431 6,678 6,789 6,928 6,251
Gas & Power  739 797 981 963 955
Refining & Marketing 433 430 408 333 351
Petrochemicals 116 116 83 83 90
Engineering & Construction 248 335 433 513 596
Other activities 4 4 2 2 2
Corporate and financial companies 68 76 83 79 75
Impact of unrealized intragroup profit elimination (10) (14) (17) (20) (23)
Total depreciation, depletion and amortization 7,029 8,422 8,762 8,881 8,297
Impairments 207 1,393 1,051 698 1,021
7,236 9,815 9,813 9,579 9,318
Operating profit by Division(a) (€ million) 2007 2008 2009 2010 2011
Exploration & Production  13,433 16,239 9,120 13,866 15,887
Gas & Power  4,465 4,030 3,687 2,896 1,758
Refining & Marketing 686 (988) (102) 149 (273)
Petrochemicals 100 (845) (675) (86) (424)
Engineering & Construction 837 1,045 881 1,302 1,422
Other activities (444) (466) (436) (1,384) (427)
Corporate and financial companies (312) (623) (420) (361) (319)
Impact of unrealized intragroup profit elimination (26) 125 (271) (189)
18,739 18,517 12,055 16,111 17,435
  1. Environmental provisions incurred by the Parent Company Eni SpA due to inter-company guarantees on behalf of Syndial have been reported within the segment reporting unit “Other Activities”.
2007 (€ million)
E&P G&P R&M Petrochemicals E&C Other
activities
Corporate and
financial
companies
Impact of
unrealized
intragroup
profit
elimination
Group
Reported operating profit 13,433 4,465 686 100 837 (444) (312) (26) 18,739
Exclusion of inventory holding (gains) losses 44 (658) (6) (620)
Exclusion of special items
of which:
Non-recurring (income) charges (11) (61) 35 (2) (4) 61 (10) 8
Other special (income) charges: 348 (34) 229 24 7 176 127 877
- environmental charges 15 128 210 12 365
- asset impairments 226 58 6 290
- risk provisions 9 13 22
- provision for redundancy incentives 6 38 31 24 7 18 32 156
- re-measurement gains/losses on
commodity derivatives
74 (16) 6 83 147
- other 42 (71) (3) (71) (103)
Special items of operating profit 337 (95) 264 22 3 237 117 885
Adjusted operating profit 13,770 4,414 292 116 840 (207) (195) (26) 19,004
Net finance (expense) income(a) 60 (5) 1 (8) (25) 23
Net income from investments(a) 176 420 126 1 80 5 4 812
Income taxes(a) (7,678) (1,702) (124) (44) (262) 154 10 (9,646)
Tax rate (%) 54.8     35.2 29.7 28.5 48.6
Adjusted net profit 6,328 3,127 294 74 658 (210) (62) (16) 10,193
of which attributable to:
Non-controlling interest 624
Eni’s shareholders 9,569
   
Reported net profit attributable to Eni’s shareholders 10,011
Exclusion of inventory holding (gains) losses(b) (499)
Exclusion of special items: 57
- non-recurring (income) charges 35
- other special (income) charges 22
Adjusted net profit attributable to Eni’s shareholders 9,569
  1. Excluding special items.
  2. Including €110 million related to equity-accounted entities.
2008 (€ million)
E&P G&P R&M Petrochemicals E&C Other
activities
Corporate and
financial
companies
Impact of
unrealized
intragroup
profit
elimination
Group
Reported operating profit 16,239 4,030 (988) (845) 1,045 (466) (623) 125 18,517
Exclusion of inventory holding (gains) losses (429) 1,199 166 936
Exclusion of special items
of which:
Non-recurring (income) charges (21) (21)
Other special (income) charges: 983 (37) 390 281 (4) 222 341 2,176
- environmental charges 12 76 221 120 309
- asset impairments 989 1 299 278 5 1,572
- gains on disposal of assets 4 7 13 (5) (4) (14) (9) (8)
- risk provisions 4 4
- provision for redundancy incentives 8 20 23 8 4 28 91
- re-measurement gains/losses on commodity derivatives (18) (74) (21) 52 (61)
- other (3) 2 270 269
Special items of operating profit 983 (37) 369 281 (4) 222 341 2,155
Adjusted operating profit 17,222 3,564 580 (398) 1,041 (244) (282) 125 21,608
Net finance (expense) income(a) 70 (13) 1 1 1 (39) (661) (640)
Net income from investments(a) 609 420 174 (9) 49 4 5 1,252
Income taxes(a) (10,001) (1,323) (234) 83 (307) 406 (49) (11,425)
Tax rate (%) 55.9 33.3 31.0 28.1 51.4
Adjusted net profit 7,900 2,648 521 (323) 784 (279) (532) 76 10,795
of which attributable to:
Non-controlling interest 631
Eni’s shareholders 10,164
 
Reported net profit attributable to Eni’s shareholders 8,825
Exclusion of inventory holding (gains) losses(b) 723
Exclusion of special items: 616
- non-recurring (income) charges (21)
- other special (income) charges 637
Adjusted net profit attributable to Eni’s shareholders 10,164
  1. Excluding special items.
  2. Including €118 million related to equity-accounted entities.
2009 (€ million)
E&P G&P R&M Petrochemicals E&C Other
activities
Corporate and
financial
companies
Impact of
unrealized
intragroup
profit
elimination
Group
Reported operating profit 9,120 3,687 (102) (675) 881 (436) (420) 12,055
Exclusion of inventory holding (gains) losses 326 (792) 121 (345)
Exclusion of special items
of which:
Non-recurring (income) charges 250 250
Other special (income) charges: 364 (112) 537 128 (11) 178 78 1,162
-environmental charges 19 72 207 298
- asset impairments 618 27 389 121 2 5 1,162
- gains on disposal of assets (270) (6) (2) 3 (2) (277)
- risk provisions 115 17 (4) 128
- provision for redundancy incentives 31 25 22 10 8 38 134
- re-measurement gains/losses on commodity derivatives (15) (292) 39 (3) (16) (287)
- other (36) 40 4
Special items of operating profit 364 (112) 537 128 239 178 78 1,412
Adjusted operating profit 9,484 3,901 (357) (426) 1,120 (258) (342) 13,122
Net finance (expense) income(a) (23) (15) 12 (525) (551)
Net income from investments(a) 243 332 75 49 1 700
Income taxes(a) (5,826) (1,302) 85 86 (277) 123 (3) (7,114)
Tax rate (%) 60.0 30.9 .. 23.7 53.6
Adjusted net profit 3,878 2,916 (197) (340) 892 (245) (744) (3) 6,157
of which attributable to:
Non-controlling interest 950
Eni’s shareholders 5,207
 
Reported net profit attributable to Eni’s shareholders 4,367
Exclusion of inventory holding (gains) losses(b) (191)
Exclusion of special items: 1,031
- non-recurring (income) charges 250
- other special (income) charges 781
Adjusted net profit attributable to Eni’s shareholders 5,207
  1. Excluding special items.
  2. Including €48 million related to equity-accounted entities.
2010 (€ million)
E&P G&P R&M Petrochemicals E&C Other
activities
Corporate and
financial
companies
Impact of
unrealized
intragroup
profit
elimination
Group
Reported operating profit 13,866 2,896 149 (86) 1,302 (1,384) (361) (271) 16,111
Exclusion of inventory holding (gains) losses (117) (659) (105) (881)
Exclusion of special items
of which:
Non-recurring (income) charges (270) 24 (246)
Other special (income) charges: 18 610 339 78 1,179 96 2,320
- environmental charges 30 25 169 1,145 1,369
- asset impairments 127 436 76 52 3 8 702
- gains on disposal of assets (241) 4 (16) 5 (248)
- risk provisions 78 2 7 8 95
- provision for redundancy incentives 97 75 113 26 14 10 88 423
- re-measurement gains/losses on commodity derivatives 30 (10) (22) (2)
- other 5 (38) 5 9 (19)
Special items of operating profit 18 340 339 78 24 1,179 96 2,074
Adjusted operating profit 13,884 3,119 (171) (113) 1,326 (205) (265) (271) 17,304
Net finance (expense) income(a) (205) 19 33 (9) (530) (692)
Net income from investments(a) 274 406 92 1 10 (2) 781
Income taxes(a) (8,353) (986) 30 27 (375) 96 102 (9,459)
Tax rate (%) 59.9 27.8 .. 27.4 54.4
Adjusted net profit 5,600 2,558 (49) (85) 994 (216) (699) (169) 7,934
of which attributable to:
Non-controlling interest 1,065
Eni’s shareholders 6,869
   
Reported net profit attributable to Eni’s shareholders 6,318
Exclusion of inventory holding (gains) losses(b) (610)
Exclusion of special items: 1,161
- non-recurring (income) charges (246)
- other special (income) charges 1,407
Adjusted net profit attributable to Eni’s shareholders 6,869
  1. Excluding special items.
  2. Including €51 million related to equity-accounted entities.
2011 (€ million)
E&P G&P R&M Petrochemicals E&C Other
activities
Corporate and
financial
companies
Impact of
unrealized
intragroup
profit
elimination
Group
Reported operating profit 15,887 1,758 (273) (424) 1,422 (427) (319) (189) 17,435
Exclusion of inventory holding (gains) losses (166) (907) (40) (1,113)
Exclusion of special items
of which:
Non-recurring (income) charges 10 59 69
Other special (income) charges: 190 354 645 178 21 142 53 1,583
- environmental charges 10 34 1 141 186
- asset impairments 190 145 488 160 35 4 1,022
- gains on disposal of assets (63) (4) 10 4 (7) (1) (61)
- risk provisions 77 8 9 (6) 88
- provision for redundancy incentives 44 40 81 17 10 8 9 209
- re-measurement gains/losses on commodity derivatives 1 45 (3) (28) 15
- other 18 41 27 (13) 51 124
Special items of operating profit 190 354 645 188 21 201 53 1,652
Adjusted operating profit 16,077 1,946 (535) (276) 1,443 (226) (266) (189) 17,974
Net finance (expense) income(a) (231) 33 5 (932) (1,125)
Net income from investments(a) 624 407 99 95 (3) 1 1,223
Income taxes(a) (9,604) (845) 174 68 (440) (1) 410 78 (10,160)
Tax rate (%) 58.3 35.4 .. 28.6 56.2
Adjusted net profit 6,866 1,541 (262) (208) 1,098 (225) (787) (111) 7,912
of which attributable to:
Non-controlling interest 943
Eni’s shareholders 6,969
 
Reported net profit attributable to Eni’s shareholders 6,860
Exclusion of inventory holding (gains) losses(b) (724)
Exclusion of special items: 833
- non-recurring (income) charges 69
- other special (income) charges 764
Adjusted net profit attributable to Eni’s shareholders 6,969
  1. Excluding special items.
  2. Including €65 million related to equity-accounted entities.
Breakdown of special items (€ million) 2007 2008 2009 2010 2011
             
Non-recurring charges (income)   8 (21) 250 (246) 69
of which:            
estimated charge of the possible resolution of the TSKJ matter       250    
curtailment recognized of the reserve for post-retirement benefits for Italian employees   (83)        
provisions and utilizations against antitrust proceedings and regulations   91        
settlement/payments on antitrust and other Authorities proceedings     (21)   (246) 69
Other special charges (income):   877 2,176 1,162 2,320 1,583
- environmental charges   365 309 298 1,369 186
- asset impairments   290 1,572 1,162 702 1,022
- gains on disposal of assets     (8) (277) (248) (61)
- risk provisions   22 4 128 95 88
- provision for redundancy incentives   156 91 134 423 209
- re-measurement gains/losses on commodity derivatives   147 (61) (287) (2) 15
- other   (103) 269 4 (19) 124
Special items of operating profit   885 2,155 1,412 2,074 1,652
Net finance (expense) income   (23)     35 4
Net income from investments   (321) (239) 179 (324) (883)
of which:            
gain from the sale of stakes in Haldor Topsøe AS and Camom SA   (290)        
gain on divestment of GTT (Gaztransport et Technigaz SAS)     (185)      
gains from disposal of International Transport assets           1,044
gains from disposal of assets         (332) (78)
impairments         28 191
Income taxes   (658) (1,402) (560) (624) 60
of which:            
taxes on special items of operating profit   (214) (623) (413) (653) (521)
tax impact pursuant to Law Decree No. 112 of June 25, 2008 for Italian
subsidiaries:
    (270) (27)    
- on inventories     (176)      
- on deferred taxes     (94) (27)    
tax impact pursuant Budget Law 2008 for Italian subsidiaries     (290)      
adjustment to deferred tax for Italian subsidiaries   (394)        
adjustment to deferred tax for Libyan assets     (173)      
deferred tax adjustment in a Production Sharing Agreement           552
impairment on deferred tax assets E&P       72    
other tax items   (50) (46) (192) 29 29
Total special items of net profit   (117) 514 1,031 1,161 833
attributable to:            
- Non-controlling interest   (174) (102)      
- Eni's shareholders   57 616 1,031 1,161 833
Adjusted operating profit by Division (€ million) 2007 2008 2009 2010 2011
Exploration & Production 13,770 17,222 9,484 13,884 16,077
Gas & Power 4,414 3,564 3,901 3,119 1,946
Refining & Marketing 292 580 (357) (171) (535)
Petrochemicals 116 (398) (426) (113) (276)
Engineering & Construction 840 1,041 1,120 1,326 1,443
Other activities (207) (244) (258) (205) (226)
Corporate and financial companies (195) (282) (342) (265) (266)
Impact of unrealized intragroup profit elimination (26) 125 (271) (189)
19,004 21,608 13,122 17,304 17,974
Adjusted net profit by Division (€ million) 2007 2008 2009 2010 2011
Exploration & Production  6,328 7,900 3,878 5,600 6,866
Gas & Power  3,127 2,648 2,916 2,558 1,541
Refining & Marketing 294 521 (197) (49) (262)
Petrochemicals 74 (323) (340) (85) (208)
Engineering & Construction 658 784 892 994 1,098
Other activities (210) (279) (245) (216) (225)
Corporate and financial companies (62) (532) (744) (699) (787)
Impact of unrealized intragroup profit elimination (16) 76 (3) (169) (111)
10,193 10,795 6,157 7,934 7,912
of which attributable to:
Non-controlling interest 624 631 950 1,065 943
Eni’s shareholders 9,569 10,164 5,207 6,869 6,969
Finance income (expense) (€ million) 2007 2008 2009 2010 2011
Income from equity instruments 188 241 163
Exchange differences, net (51) 206 (106) 92 (111)
Finance income (expense) related to net borrowings and other (279) (668) (612) (634) (817)
Net income from securities 39 21 3 10 9
Financial expense due to the passage of time (accretion discount) (186) (249) (218) (251) (247)
Income (expense) on derivatives 155 (427) (4) (131) (112)
less:
Finance expense capitalized 180 236 223 187 149
46 (640) (551) (727) (1,129)
of which, net income from receivables and securities held for financing operating  activities and interest on tax credits 96 78 40 65 68
Income (expense on) from investments (€ million) 2007 2008 2009 2010 2011
Share of profit of equity-accounted investments 906 761 693 717 678
Share of loss of equity-accounted investments (135) (105) (241) (149) (106)
Gains on disposals 301 218 16 332 1,125
Losses on disposals (1) (1)     
Dividends 170 510 164 264 659
Decreases (increases) in the provision for losses on investments 2 (16) (59) (31) (28)
Other income (expense), net 6 (4) 23 (157)
1,243 1,373 569 1,156 2,171
Property, plant and equipment by Division (at year end) (€ million) 2007 2008 2009 2010 2011
Property, plant and equipment by segment, gross 
Exploration & Production 52,780 64,338 71,189 85,494 96,561
Gas & Power 24,641 20,729 22,040 22,510 23,655
Refining & Marketing 12,421 12,899 13,378 14,177 14,884
Petrochemicals 4,918 5,036 5,174 5,226 5,438
Engineering & Construction 5,823 7,702 9,163 10,714 11,809
Other activities 1,543 1,550 1,592 1,614 1,617
Corporate and financial companies 344 391 373 372 422
Impact of unrealized intragroup profit elimination (227) (355) (343) (495) (523)
102,243 112,290 122,566 139,612 153,863
Property, plant and equipment by segment, net
Exploration & Production 25,751 32,355 34,462 40,521 45,527
Gas & Power 15,204 13,038 13,778 13,876 14,517
Refining & Marketing 4,495 4,496 4,397 4,766 4,758
Petrochemicals 1,099 912 853 990 960
Engineering & Construction 3,513 5,154 6,305 7,422 7,969
Other activities 82 83 79 78 76
Corporate and financial companies 196 212 179 171 196
Impact of unrealized intragroup profit elimination (203) (317) (288) (420) (425)
50,137 55,933 59,765 67,404 73,578
Capital expenditure by Division (€ million) 2007 2008 2009 2010 2011
Exploration & Production 6,480 9,281 9,486 9,690 9,435
Gas & Power 1,511 2,058 1,686 1,685 1,721
Refining & Marketing 979 965 635 711 866
Petrochemicals 145 212 145 251 216
Engineering & Construction 1,410 2,027 1,630 1,552 1,090
Other activities 59 52 44 22 10
Corporate and financial companies 108 95 57 109 128
Impact of unrealized intragroup profit elimination (99) (128) 12 (150) (28)
10,593 14,562 13,695 13,870 13,438
Capital expenditure by geographic area of origin (€ million) 2007 2008 2009 2010 2011
Italy 3,246 3,674 3,198 3,044 3,587
Other European Union Countries 1,246 1,660 1,454 1,710 1,337
Rest of Europe 469 582 574 724 1,174
Africa 3,152 5,153 4,645 5,083 4,369
Americas 1,004 1,240 1,207 1,156 978
Asia 1,253 1,777 2,033 1,941 1,608
Other areas 223 476 584 212 385
Total outside Italy 7,347 10,888 10,497 10,826 9,851
10,593 14,562 13,695 13,870 13,438
Net borrowings (€ million)
Debt and bonds Cash and cash
equivalents
Securities held
for non-operating
purposes
Financing receivables
held for non-operating
purposes
Total
2007
Short-term debt 8,500 (2,114) (174) (990) 5,222
Long-term debt 11,330   (225) 11,105
19,830 (2,114) (174) (1,215) 16,327
2008           
Short-term debt 6,908 (1,939) (185) (337) 4,447
Long-term debt 13,929     13,929
20,837 (1,939) (185) (337) 18,376
2009           
Short-term debt 6,736 (1,608) (64) (73) 4,991
Long-term debt 18,064     18,064
24,800 (1,608) (64) (73) 23,055
2010           
Short-term debt 7,478 (1,549) (109) (6) 5,814
Long-term debt 20,305     20,305
27,783 (1,549) (109) (6) 26,119
2011        
Short-term debt 6,495 (1,500) (37) (28) 4,930
Long-term debt 23,102     23,102
29,597 (1,500) (37) (28) 28,032

www.eni.com

  • Eni S.p.a. – Registered head office
    Piazzale Enrico Mattei, 1 00144 Roma

  • Vat number
    n. 00905811006

  • Company share capital
    € 4.005.358.876,00 paid up

  • Rome Company Register
    n. 00484960588

  • Branches
    Via Emilia, 1, e Piazza Ezio Vanoni, 1
    20097 – San Donato
    Milanese (MI)