Eni S.p.A. (E) 28 Oct 202020 Q3 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to the Eni's 2020 Nine-Months Results Conference Call and Q&A session, hosted by Mr. Francesco Gattei, Eni’s CFO and top management.

For the duration of the call, you will be in listen-only mode. [Operator Instructions] I am now handing you over to your host to begin today’s conference call. Thank you.

afternoon. Good results nine-months Eni XXXX. the for to of first Welcome business first for the Eni It new pleasure my to appointment our of is a CFO me with as investment introduce segmentation. community

CCUS rewind. gas, forestry, of out we environmental for our you our along a included evolution, along the July. gas announcement new gas first operational new retail upstream Today, we LNG our lines As financial at February ambitious the we time and with business CCGT units. natural and and global In framework know, remediation resources, oil the activities and In grouped and and in detailed the power. decarbonization and we renewables two of strategy, set and downstream any are the reporting energy

year overall LNG we the free oil gas second by partially against EBIT activity to and class are finally, and EBIT with investment, of Europe. mainly XXX we positive an environmental new first the despite nine five of proved €XXX immediately contracts for a to Libya, a performance previous of main And GMP of us cuts, the customer the million with In to versus the of further asset evolution and In both the on the an in finally, discovery strong attract we'll thanks commercial environment, grow residual retail positioned projects in the Since good reduction marketing detail deliver R&M the discovered strong Coming in current We and in on results. since terms million plays the implemented power XX% with impacts that volatile plans to of we of generation. barrel portfolio EBIT last posted benefited Exploration and the The new have we price with upper legacy the that in was to good, by accelerating in compensated which segment effects from business, by contribution leadership biorefineries be in ESG compare effects produced and day. quarter. cash the PSA to is robust perpetual strength and strategy. and driven and progress January, Eni record in bond. delivered even and around barrels continue of continuing of ramp-ups. force of the countries a than side are results lower more sale including mainly reduction Global strong COVID-XX, the contribution. overall give CCS later. Eni base Energy the million, by Egypt, gas making adjusted demand, the X.XX was Eni's have the to of results some terms optimization. and the majeure results, million, months investor retail, The resilient now appetite new from driven additional balance energy actions scale, in us services. €XXX portfolio results. flow positive reporting significant sheet diversified per It Italy announced

of While XXX to we in are the reaching we target grow positioned renewal, further. megawatts, are and

capital the working to of billion flow including the was forma free cash Eni Turning XX%, to positive bonds. of leverage cash pro €X.X remained reduced billion, with financial, flow hybrid free €X

our Before ESG the to like performance. focus into on industrial would performance, entering I

has This the long-term evaluated strategy Transition path we FTSEXGood we CDP, as Tracker, by decarbonization. ES mid Bloomberg MSCI, un-sanctioned that Carbon in ESG designed we the different a for years, peers in business the of as six agency year model which comes decision, are This past sector. Eni ranked is XX the integrates that the among portfolio, Developed such the Eni in built a all our confirming its index. Moreover, and first a now also price for sustainable in scenario iTraxx the goals Sustainalytics, conservative clear well-rated among Over as development a ESG leader institutes Pathways and and Initiative, the competitiveness and for ratings. most recognition emission specialized for this reduction target, the and

for our a in to sustainable development. farming the license World according a Business of among the will second future. we look up Council strong XX can top row, but operate, company year in The source to ESG not Eni the new open only for Finally, is linked match which sustainability the performer for reporting at performance sustainability

and day. to billion, effects. LNG which LNG all for LNG resources. nine is the The includes can months resilient related the Upstream gas last move lower guidance gas is upstream barrels equivalent in COVID, optimization while million was Global entirely €X.X to scenario Let's Upstream is that exceptional due performance we per and natural billion of million driven counterbalance X.XX was first by demand weakness the EBIT and around of to €X.X in and year-on-year. this was our X.XX COVID. in to the year global the result PSV-TTF €X.X by up and explained showed volume €X.X by versus range narrow The oil €X.XX accounting EBIT spread reduction Both billion, the XXXX. portfolio, billion and mix production now billion. to the confirmed,

a pillar energy. oil is nine in products aims in and segments, backup It reinforce the free billion, industrial our the decarbonized strategy in terms expect on and gas global generation in reduce adjusted to were In abate after gas realized mainly the for months. key first decarbonization. of due fourth opportunities an to order full to CCS of the of plant the LNG billion, and emission power €X.X to range the lower power we renewable XXXX, in flow deliver they quarter, as optimization of and final cash year €X.X EBIT

main the already South in Europe. two North identified geographic hubs of and have We

The the world, the in Mediterranean, in the tonnes. Ravenna first in with million in of between a CCS the first hub is project capacity XXX storage Adriatic And the one Blue XXX the Italy, offshore. and million is biggest

a they to 'XX, project potential this competitive, are a fields, exploiting other in This plan sites. opportunity followed costs us have with scale operational thanks infrastructure depleted to We in will the a time market. allow to very unique the to start in offshore industrial and keep to a and demo already combination have XXXX. onshore already of by plants gas proximity place, and We start-up our industrial faster power coupled of

with we take in reservoirs one [ph]. repurpose FID We license projects, Bay, and by year Liverpool main been plan where a six hub party's the planned XXXX, start-up two with feasibility store field including we a plan is the to in COX. by second to XXXX. to conduct granted month have infrastructures The third to GNG This UK our depleted studies,

The other project of of was in by the which XXXX is northeast The Eni in Net Teesside OGCI, the England. launched is Zero initiative a member.

are REDD+ Latin in we continuing Africa, invest are Far The ongoing and main activities projects. addition, In America in East. forestry to

Sureste in is countries. year, in particular In well Area, gas announced Area sequestration, successfully we of Ken of Zambia. expect contain Delta, even difficult provide Egypt, we overall to by a may kilometers sixth in conservation The rates XXX For deliver drilled the a basin. Preliminary results, standard successful Exploration the the between an barrels XXX Bau Emirates, Nooros XXX feet discovery of in recently discoveries equivalent was Nooros day Great condensates. indicates confirmed the condensates. XXX to X we thanks in place. of of now XX COX oil Tcf. for raw was performing have accumulation and discovery to In about to in United drilled two associated discovered million conventional mainly to X estimate in north flow of up X.X activities where led and range Mahani-X accumulation. XXXX, in tonnes our states significant place gas XXX the Sharjah oil in associated cubic It oil million Eni In in with field. new Saasken Nooros Vietnam, various Great strong In the Emirates and Area of Ken with a excess per Block between place, hydrocarbon which or drilled X water of million million Nile million continues Bau the gas consecutive has lean in well that and recent the Tcf the million Mexico, XX of the tested barrels the gas gas in

we in the as discovery months. coming the number after in expected than of for Just will discovery signature by to increased startup three one size market XX% the [ph] better the more wells year addition Angola, with be concession year, of agreement, XX/XX, of this of wells, discovery. is the further of assessed three time Agogo with the one around In thanks Block size Liza

Now X billion upside this global XXX guidance per of XXXX $X Thanks structure. to at with we the in tested confirm be to track of to year. place, this the barrel is million our around barrel further oil northern oil sector in discover barrels record, of

was This €XXX increase an XXX,XXX group gas evolution. period, results. to compared result of Customers million, luce grew almost the year-on-year. base over €XXX in Eni power e first detail, Let's the increase growth XXXX. little the of e from representing to the than end Eni contribution bit nine high business of showing renewal XX% the EBIT luce million, of XX% a outstanding delivered XX% a EBIT of In by and more turn by new now non-commodity in months of had €XXX result activities. driven customer group the In energy gas positive million, and segment, more

the to levels month were revenue optimization thanks and marketing bio installed XXXX. growth, strong breakeven, Our XX% R&M to businesses. substantially yearend year-on-year, resilience and doubled chemicals, nine results EBIT dispatching activities first and plus in at of thanks capacity was contribution, In higher

of refining duration margins results and the the strongly demands. weak impacted While were lower by

€X.X whilst result evolution and barrel to in of quarter. €XXX confirming the energy the million We farm XXXX, and the weaker retail scenario $X.X reducing from fourth of a R&M performance, expect over as assuming terms in billion of €XXX in EBIT per a contribute million, to service

and process bio our up first started a the per results the conversion Ecofining becoming proprietary of boost diversification XXXX, became XXX,XXX to wide in Eni traditional operational in variety further set August material. byproducts. from XXX,XXX has areas. to to food our Let's the up with plant The technology has only to capacity transitional been and the up XXXX. other Venice by is see after first waste, in tonnes with energy the beginning the Porto now to feedstock end a in the 'XX, using the mover [Indiscernible] production tonnes, Sicily one start From a refinery in and XXX,XXX capacity pre-placement of Marghera of advanced are upgrade and increased bio-refinery XXXX, into feedstock of is Gela refinery, world tonnes, able convert year. capacity of

will end nine months of Our third proved palm-oil XX% profitable XXXX, of become of and €XX is of second XXXX, system be activity an expected The versus in generation the contribution bio-refining have to million to bio-refining XX%. in XXXX, has and by of with today. free first system a IRR with XX% the

plant billion our The current technology. to our activities, they Gela, first in to in After can may period. plant up In and performance advancing and by before Cash refinery as people, shipping Porto low million Venice. fuel rewind working used scale in biofuel finalize also the create XXX for plant bio-refining the tonnes be for or July bioforce. generated third jump we per sulfur refinery bio the in waste generation of at was demonstration year XXXX proposed Green industrial €X.X addition directly organic the to are to to quantity Marghera, equivalent generation in that near high the X.X will capital another to full at oil to feed waste, launching in

the in €X.X billion. first cash financial than in have €X.X €X minimize company for CapEx flow. cash and year-on-year €X.X billion our the to flow would improved Excluding its scenario is flow period. by our This COVID, in this more difficult needs period of million cash covered of capability react fast free of approved generated billion our to

range in For billion, confirm of operation before cash capital from working XXXX, €X.X guidance Brent. $XX the our we up flow

€XX highlight of layer of our number the bond €X us support a placement to down times leverage faster around position, is like Turning strategic forma now It which September for new significantly to short-term pro to I our successful first a placements almost debt. of grade the now five benefits. strengthen to our end our brings of total and plan, billion. our of the supports our investment currently with rating XX%, hybrid balance investment transition added at would that a billion, sheet enhance liquidity strong a

great a portfolio. than and results our issuance, capital seven confidence, market It first our new to hybrid achieved This financial offer. have with original transition optimization our bond Eni generate represents demand presented finally, energy times level We our sheet. strategy. the balance And growth and never of capital robustness with demonstrates the a the strengthen higher

grow asset Thanks with part and of no activity. to our Energi consider another non-upstream optimization longer asset, of non-core a we return company this independent pursue portfolio, to replicating namely. compete entity for fit dedicated -- logistic and including the ratio, Var able As portfolio, where create infrastructure are merged dispose designing to we model, within upstream which we of our asset, the will our

working green more per guidance. up barrels and within than end are boe. production scenario year. difficult around million and To the to at the in confirm to for day, million exploration XXXX on disposal our our for of XXX X.XX gross guidance discover billion our resources, X.XX operating the natural million €X depressed Notwithstanding We we demand, sum

and the billion. €X.X LNG adjusted in In of addition, we gas expect the deliver global to an range EBIT

net Furthermore, we improved XXXX. capital in €X.X mid-downstream by XX% to up the confirm an before XXXX, face [ph] been COVID our over of resilient we disposal billion expect around on have And level, confirm versus complete of In the billion. months billion we in plan evolution cash the €X the pre-IFRS Our summary, company keep we billion. for At at the coming gross see great quarters. €X.X the to And operating despite of leverage challenge of CapEx below first year-end. $XX, year-on-year €X.X in working nine flow a energy EBIT pandemic.

in While expect we recovery the markets in XXXX. energy the

We are prepared for continuous certainty.

efficiency it leverage. CapEx, with And of level of answer to sheet We top in together our strong when your and have operation, and liquidity flexibility we ready balance of level levels a high a to comes now management, to high questions. Eni with are comfortable

we and Ladies will the session. begin now question-and-answer gentlemen,

ahead. Michele Vigna Della Goldman The from first question is go of Sachs. Please

very you presentation. And on two for for Thank questions the congratulations I resilient results. very had the much you.

is to moment, sector. The buybacks. the the price first very of rest is fair depressed one the as share about the Eni is At be of

You at wondering, start program why project. after slide earlier on your the back then was highly that advantage would going of leverage, to level circumstances And take I have hybrid especially carbon strong the not bonds. the accretive of share perhaps to this capture prices? buyback than expected secondly, be

scale? to those of projects per the here. be what that Thank wondering on good You to I expect wealth you. pricing of a these clearly returns returns good existing was full you in regulation required do as opportunities have you think is supportive do dollar going of for projects. carbon kind And tonne

the Okay. CCS about Alessandro to Thank you, question second Michele. Puliti. I'll leave

five a related know uncertainties. buyback, our company These We the On that above for prepare a level to we adopted I element buyback the these consider as we variable are, certain the phases say phases. you of one scenario, policy pricing. distribution first to and about

So, what is working within framework. are this we working

our possible. of We price ensure fixed working company, are to much to larger within we as able substantially dividend component pay the optionality lower are a that to a the as at

today, balance work before. plan. the We say for advanced sheet the we reinforced this work efficiency. stage we as mentioned to portfolio. additional the in of company related So, disposal company, to also And the are We optimization lets performance, perimeter, company company the optimizing announced

company a these flexibility. complexity and the So we working policy. All the are let's stronger that manage dividend and to stronger terms of creating what in of part judgment parts a say were management distribution on the

time we the the summer. community refer to And presented original to the original remuneration that and now reply last For Alessandro for I model CCS. continue investment being, to we the plan Puliti the the to leave to

carbon storage cost and Good are all capture the emission afternoon. the about this in area facilities. of comparing cost of the economics and Clearly, the the

or we of certificate. of of depleted least value of policies. on compare be the a that the that is utilizing this Regarding situation, are and partially a certificates, cost interested carbon the different that the reservoirs, storage facilities, additional projects current the carbon capture. the cost with can And this to that storage capture in the clearly, need future at with the that To of leveraging reservoirs, subject cost considered increase we the by putting be an existing the and can our with the can governments can existing say add are current to cover carbon in be incentivized place that cost cost

you. Thank

The next Oswald question is of go Bernstein. ahead. Please from Clint

Thank you, everyone.

to sold just back transportation, of CapEx release fuels at the bio-refineries First when with least the most strong just costs FID. marketing numerically? that's retail of more levels. we I project? the stage, this sales quarter. you're and think that And in blended anything Is is and FID that your market of And lower I Is seems there Could just in an right? you up seeing in is likely in do not, into How the again the talked fuels? just much an off incentives income lockdown consortium on been delaying coming then back people And in back can correct? question, second going about demand quantify to And that for is note bio-fuels at going XXXX expect that strong Francesco, my performance like on then demand. on the some being you growth of think sort you can then are into has transportation there and or your get those even summer again? marketing like satisfying It 'XX Mozambique. ultimately terms for you lack retail the question it's is of number And the or in driving

your to and Thank Ricci or Clint. Puliti. the Oswald question, one forward your I one message Okay. the first you, second to

few the XXX% Hello, of ambitious tool. by due products because the are the the good year demand by used to recent European that in increase the [ph] of strong in XXXX. decarbonization the the the driven part renewable afternoon. foreseeing in transport the over bio in About targets next parliament the the confirmed the mandate announcement renewable to of demand the the in transportations. expect years, transportation. the growing we we demand, rule further And That to Commission, GHG by biofuel ride components. That will Europe, the attributed be of increase of is to increase the see setting

an to in they year, in the generated only we give the Germany see Just increasedXX example, that demand oil Germany, last times. in HVO, vegetable

Mozambique. the Alessandro for

Okay.

in more concluded. in this in the exercise the was project and optimization in one, are is environment area operators lower the and probably every originally be be with opportunity, the this new and phase. Mozambique, FID strategy, development cost synergies cost Therefore, defined postponed. updated potential core precise of the when new we market XXXX and the this reduction Regarding can expected optimizing cost the will based the related And results that next will to on FID exploiting situation. date maximizing plan including be And

you. Understood. Thank

go from Rigby Please Jon question comes UBS. sir. next of ahead, The

Hi, Yes. questions, couple good please. A afternoon.

me power retaining gas it's that legacy the it what but oil, first realized three the is first in you're segment. I quarters seems The being think sort I But of down you guidance, on the now. to guidance. the broken hit and is

that's aggregates to XQ Just no better. in money say, doing seasonally to just you're LNG that confirm as then saying fourth are well, to be historically, sort you And on could Could to generate made a the typically at. will implicitly, be fourth correct. which improving in markets disposals for quarter apart bit for to in worst just wonder look And XXXX, into changes follow walk you the of that pick quarter? quite I the if looking So business is they what now the on quarter second EBIT whether of those more unusual? the sort €X through from look would guidance of give question, or billion you're and me businesses

presentation sort I it Is that et that linked Thanks. agenda, you if some of correctly. in think green seems partnership right? to that I the cetera, gross heard

to? power everything what is I and would to the last just question. referring clear. missed like results, understand would gas I say and better I energy your you were

Yes. in I identified €X in just to detail to go disposal, little you've a a mean, little you're for more bit just the billion detail. on able more clarify that back if

talk little Thanks. You happening likely you're it, did -- but on what's bit about give to a And whether come just a where light shine to I wonder more from? able there. that's

the and and planning to leave we achieved answer year. performance also, question, upside months have evolution. I'll could kept And the the I we the in potentially the to then be that are about LNG expecting, linked same eventually guidance. that correct Then for confirm power I the that last the disposal is that are will nine the gas you to the results to This saying which to we we’re Cristian quarter answer revenue.

plan that negotiation activity advanced €X coming disposal. were tender activity, a to the a It’s of clearly, stage. Now to is actually we or disposal, a billion very back referring say in

related disposal the discussion, part of under optimization Clearly, probably news, disclose plan and but portfolio have You this Australia, decided of will already are we seen be Eni. something therefore other to of are and material which also in assets plan. our focusing there to future have

various upstream I the gas to quarter, the to fourth to for future from to areas, we non-core part and are the the About transition is LNG and floor opportunities growing is have assets the that of Cristian. areas, of move therefore, leave businesses. And plan. We positioning our now activity the this targeting, kind certain the

your question. for you Thank

the of most value have been we So, our we fact first issue optionality. capture on the able the fourth nine to relevant of is have I out quarter, to the that in months, face that most think the

so the you So let's options we and And capture in to be quarter add say, opportunity the of less loaded we that, expected explanation. front an on This have quarter. important to depressed gets and that capturing which of the fairly be if on, capturing adds opportunities, actually [indiscernible] market. depressed the element in my in fourth actually to this spread is well our fact year, top last into is is the

that of upside side, our true LNG we locked the agreements. days. have increasing that And part last but most already are also the that On long-term been prices into upside, capturing of it's the yes, in actually you have understand to sales

we confirmed. yet but are And guidance of some all So there elements, billion you that around if have be the think spare €X.X opportunities, not up many. we these should sum

Okay. Thank you.

question The Himona SG. next from ma'am. of is ahead, Please go Irene

Good questions, you. afternoon. I please. Thank had two

your in reported in capital is QX for a you let us downstream fourth wonder that give basis. forma. you know have you business that. can can And if wonder us guidance I us pro thinking in And ADNOC as secondly, the ADNOC about generated firstly, working EBIT guidance I guidance includes the can what like-on-like new we included some on movements Thank EBIT the quarter, in on what please? downstream, So marketing if so, you. tell in your also

are change business. related downstream assuming now The we the the announced in lower working capital had performance. that movement, performance a capital to last a is you About to working Okay. in expected second-half, Actually, of see we observation the mainly the lower quarter range of and XXX-XXX. remember

And pricing there. to are and referring what be will of chemicals, refining lower are to mainly your value absorb demand. are we therefore, downstream lower capital and therefore, working lower So lower and planning clearly suffering capability

XX. ADNOC something both performance a and in of EBIT. of This ninth marketing You instead made month, The quarters about terms contribution About the refining the ADNOC. can bit freighting. including just the question the €XXX above you marketing is million on a retail is the consider minus in of in

questions your have [indiscernible] answered? been

very Yes, thank you you. Thank much.

of The ahead, is next from question sir. Please Massimo Equita. go Bonisoli

you And question Libya, two back, related questions. country. of second Good The projects how guidance can in the us give your update volume is operating which XXXX? facilities have your What in is afternoon. CCS production I condition UK. much Francesco. the an One, on there? Libyan included are regarding the to for of Welcome

elaborate the were those If they CapEx presented summer? in projects, if you to plan related in and could included your on CapEx

you. Thank both Massimo. you, Puliti. Alessandro to the answer Thank I'll leave

you Libya, numbers. the Okay. Situation give in firstly I will

subjected restarted oil Libyan around regarding the guidance. it all barrels our equivalent XXnd will of normal oil production our accounts a And operating day operational per say the the fields. announced And XXth we lifting in started were the improving on of October situation field manner XXX,XXX So for of blockade ADNOC certainly in the to if on the is situation, fields and are they gas field majeure. the XXXX the what September. were on of October production the of force And on XXth. I

Libya fields the in in have an interest which in all are production. So we now,

UK, by CCS being, for for awarded Regarding being time And the the we're we only recently are license. the carrying basically studies. in capital the

defined our reservoir the into defined, and will transformation of storage the project be for the Bay depleted reservoirs. capital be as then amount long necessary As assets Liverpool we COX will

you. Thank

is The Please Morgan Martijn next Stanley. ahead. go Rats from question of

Yes. I of previous little revision, another sort of only but sort a we're And indication already couple soon months couple contingent of quarters do one, was have bit tricky revision this was honest. of time, see The may frankly, expect dividends. the not or dividend course, major I've floor maybe that Brent. was one wouldn't clear to after. we major And so there the a $XX left. And on recognized Last very $XX. sort to remember I about to the the for come. at And of it not of quarter, be spoke at be I we

floor you dependent dividend to suggest So, that of the what time sort prices of that is on oil the actual again? think over dividend would that And would think wondering would before to need I start was about about $XX? you we from how sort comment divert

good this think very is I Martijn, question. a

the center each in now what entering I is of et for rounds, important would I to the once we say rounds second the rounds. is aligned think important faster is we what rounds, we're it call first a that, But crisis exit that stronger. for And cetera. us us, and

So did the equilibrate the was company. substantially to what we months in past

the needs bond. So, the to rebalanced reinforce sheet was every balance with cash

we [indiscernible] had layer. So,

the And additional under kept are flexibility. leverage we now So opening we control.

opportunities. portfolio have We

We CapEx have flexibility. additional

the work. my slimming is We have working to and of account cost reducing new opportunities, also opportunity take several activity, that and into segments the company related

are working there value on we So, segments are that that.

$XX there be currently in even from further. level the So, our our this that plan is $XX, what that to can lower, we in can is efforts see lower

reduce additional to an in we or necessary, liquidity. a CapEx of if have FID. And larger have flexibility We it postponing eventually, capability flexibility terms

We liquidity. have billion €XX of

think to current is lot situation, the tools bring our that a of even crisis in So I could have the [indiscernible] in to be arch sustainable, we statistics define used even in longer, that lower price. the and

wonderful. Okay, Thanks, appreciate Francesco. I that.

is Alastair ahead. go Syme question next of from The Citi. Please

Hi, Francesca. years a has pretty got in strategy. you markets really a Thanks in it's quarter the doing energy It just question, of excited for spent third recent something as And by system. taking it's what Eni one not not very is And of amount but on than last bold just been happened the you're refining guys perhaps the other more things the hydrogen. the huge in have really question. the couple transition. months

ahead do the think you So, how of itself? How business is, I the opportunity? market do And getting think is can compete? about question guess you this you

as clearly that the to this charge answer the think right say, will who about ask energy, energy is of hydrogen. pass to I activity transition all I the and information in related I Massimo,

future, already product sure Because Alessandro. be competitive the generate the been our new we price CCS hydrogen thanks in today, we decarbonized could very quite to opportunity at mainly that green have commented would definitely, very, has that CCS, by the important the throughout one. for versus a hydrogen Hydrogen

in the which Italy and we are same in UK. in the applying Italy. an world, we So, looking and the such We application scheme see application see elsewhere we that could in in UK forward potentially, replicate

green really is for our decarbonized of terms we because production which totally the thanks also on certainly to sale hydrogen, are of important and in of working the yes, so significant we in timing, maybe been So coming This expansion could up we first regulation on one hydrogen, from work gas blue the to markets. definitely see definitely hydrogen. But the marketing, benefit green hydrogen the when has that on comes creation is demand and in renewable. opening the see the to done different the it the

hydrogen Massimo, to you the in in and longer sort has they road? do Italy blue in can and Europe, first and hydrogen of politicians I understand green UK the down come to ask regulators when that speak

on Discussions as noticed, is the are because new taking this brand table. place, a item you

I'm passing took we're So, similar confident to there, process can would experience based own our we some other renewables place place. that the them that information the like-on-like it But to are be quite really doing. took the as on because when get

blue throughout transported because market could electricity the So bit create create regulation, a new the a necessity complicated, on some in while new be case be grid, more to way hydrogen, transportation this Unless, could existing companies a to hydrogen. you the be this it will the first would the of assets. close maybe specific the be hydrogen could as benefit to from taking production stage, itself first need

first be that product. about [indiscernible] the beneficial I'm counterparty So, this definitely will thinking new of the

Great. Thanks much. very

ahead, from Please of The next question Thomas Credit [Indiscernible] is Suisse. go sir.

that's I afternoon. okay. have Good three questions, if

are you refining green sites in year, your at the strategy start mentioned you've the into of firstly, When time. on convert business. presented the to refineries Europe, your your that them over Just plans

plan, refining. are of then refining you More and additional then said turned in And is gross? disposal the any Is made to the one maybe has to disposal? kind disposals? to stake your that this gross I'm an so link there paid mean there fair views the What And depressed else ago perhaps your to what into blue Obviously, on you And cycle and of very earlier? going maybe Thank you refining where can very kind you time territory [indiscernible] half you we've of come. just just charge. meaning loss out refining past. another recently, a value? Are we this maybe the final a a buying you. is in million. year if a to asset by store. biosites, the generated compare of for process big XXXX, is some refineries you in the competitors in expect there UAE, big some looking billion emerged my not you're seen just anything margin do this the that one, the this accelerate a in stay minus of estimates quarter, first to market, What refining big the said secondly, investment is probably plans on of hopper obviously, and monetize that a converting question taking impairment have still $X lower and in and for has Now, changed the that €XX sure margins

about disposal. Thomas. refining you, to I answer Thank to will question leave I the the Massimo. will the

of that think fiscal On sure, of we clearly clearly have a are plan future terms will also, strategic substantially are many, not each future one on you so preparing, we different component. it In program. to before taxes, is of therefore, And more value asset the we and mainly plans. gross, and XXXX And disposal. that that the it's ready a wider selling, because disposal are be opportunity disclose there are the we to many announce working to part yet could

approach results with various in the to that well are the You know portfolio various achieving your M&A also that asset, within some say apply opportunities, sometimes let's very timeframe.

for I word will plan disposal. the EAU and is to Massimo. the the About the business, So pass the investment, to the that refining conversion bio-refining

the bio-refinery, be the Talking yes. would answer Yes. to

could definitely would next an you strategy the But the good would announced by result. come opportunity will without the Certainly, that market I this the we on main say plus been considering negative including target is transformation vision we we X has say very million regard, very up year this could year. any open two by be see So, we tonne result the in interim give results. that idea capacity of be are updated I next that ADNOC, results biojet the of accelerated presentation, the driven specifying significant achieving on this. to XXXX about Talking going

recording may FCC negative in you XXXX all, remember ADNOC in plant on that suffered an of accident First that the effect XXXX. at keep

a of system. the the the remain capability other worldwide negative better convinced result condition and we is is And as a deep very first definitely stronger refinery So, the to the the second resist refining is said facility one. ongoing touching Having this with cause than assets. is significant that the normal in downturn that that other

benefiting investment making we're and European conversion say to East definitely capacity is such So, the versus difference the we from situation. between Far bio-refinery more positive that so, the international

So, condition recover possibility, normal positive we and the to will the the that to to we to and soon as very resist situation. way are negative to this soon see in to demand result, more convinced, very, turn probability to a as high be return the

context, obviously ADNOC obviously in operating was a lose lot where equity that the actually stake was quarter European in a being business, normally, has the refining your than money your Massimo, XQ industry in refining weak margins In absolute than more was capacity did terms which ADNOC? more it FCC just quarter. and

absolutely you give quarter can we maybe but additional detail, the third been this, has worst. the On

say this. source in I for of possibility changing confirmed -- is mind terms I say on forward. of potential our would I wouldn't this the I what this So, is said that just

Okay. you. Thank

Peter Low of sir. The Redburn. next ahead, question from Please is go

for taking thanks questions. my Hi,

€X.X annualizing run bio-refineries. XQ? reason to the why the another that Firstly, prospect a just come be looking below CapEx guidance, Or at then should last in that step you XXXX especially is was meaningfully the the CapEx second And the in rate any up good two there level? follow-up the just on over is quarters. on well below to billion If guidance, seem

their about talked still XX% is Is there quite strong Thanks. utilization low, not quarter. high reason any which running in they're is performance, at why but the levels? You've utilization

CapEx, it I that model. the think is About not [indiscernible]

that FIDs is of postponement think part activity, activity. the I

second light end at quarter, or consider to year. Remember stopped you have the of exploration. that operation, the activity we the of recover were we streaming activity could You in COVID. terms of In partially say of drilling, the stopped because the the fourth quarters third

So, cannot be either, considered basis. on say let's quarterly a

second The question, sorry.

that told been bio-refineries, financial Thanks. them the weren't XX% the you just in wondering is why I low, in was was the if utilization level, strong the their It at demand was a quite quarter. running which you level Yes. utilization has performance there. but higher

to ramp Venice Pino and it but up This I'll [indiscernible] will Gianluca [ph] leave to of the to maintenance, to Pino answer. I and give mainly related

Francesco. Thanks,

the both fact, expect this we the the the In service increase the so because in service third bio-refineries. the quarter, fourth being we planned in is maintenance has reason factor XX%. up quarter And In factor had to low. to

And to We a is production last consider And the ramp have the overall the X.X That expect is in in that nine to slightly year. is year. increase Gela more ramp-up nine done the months, a XX% in tonnes than than per maximum refinery up months million continuous the we production still done up. in the more capacity.

Thank you.

ahead. Royal The Canada. Borkhataria of go question Please of Bank next from is Biraj

the the a of I million was for Thanks had here. follow-up cost just XXX,XXX about tonnes. bio-refining taking the think I conversion for Gela I on question. recall, my €XXX

we're wave about the sensible expansion forward come and next Now Thank say about, talking are convergence? expecting to those relative use how as initial expenses forward? costs look of you anything you. the figures the to you're Or for you to down can going to the conversions

reply to have you Sorry, again.

case existing conversion And The per we have of that because because capacity just investment, of Venice of cost type tonnes we of is in existing it depend of assets. of and investment, in the low, very refining transforming $XXX-$XXX -- range Gela done what the are is the in and refinery of will average we investment do. [Indiscernible] reusing in of

the bio-refinery. to in We condition area expect brownfield where greenfield it the to solution, realize will or the follow we depending both

you. Thank Okay.

of is Hodee question from go next Kepler Please Bertrand Cheuvreux. The ahead.

different? trending Yes. expect left. you OpEx And you taking could are the one is months a it if a in decrease some or I us I have in of level XXXX or per give how feel QX? mix you. question. contrary in nine was portfolio events, or my Hello, of Thank further unique far so barrel. what it COVID level go $XX.X over Thank wondering because bit disclose And If on you can dollar to XXXX? your you Can everyone. upstream you for

Thank you, Bertrand. Yes.

consider improved terms OpEx, has level Norway the bit a of in contribution $X.X, increase of terms of you barrel. the terms have in OpEx. current that $X.X In to is in of acquisition with The range mix per OpEx of portfolio with of

also to to component reduction see The value. of but we due that You to as a is because in able was $X.X have the production, lower the $X.X that the to fixed we impact contain increase to so element were COVID the $X.X adding worsening the to plan consider production negative is unitary unitary to a the range.

Thank you.

Herrmann from is question next Lucas The Exane. Please of go ahead.

robust than to next Egypt, very stay, you assuming Zohr to-date? case Thanks It's don't remind is? you we its Thanks mind. how been they Can are Question if all into and for production us [indiscernible]. to nine much. much. your on markets where continue profiled continue go And year, LNG appear expectations months the now, export And just what as ago? more very the that's

the Alessandro answer to Puliti. now Thank you, Lucas. I'll leave

demand will the from per of XXXX terms time. this in in level linked to the increasing in the the the clearly Egypt, average X.X an the Zohr average day third of side production, in is We is quarter so export winter per increasing. while BCF to X Okay, BCF day see

near-term expect for to increase. we production in Zohr So the further

moment the at or…? capacity We is where now? And X of north are

Zohr, The price, for the mean? you gas price

sorry. so meant, And what's the I'm No, capacity? production I --

Zohr The production X.X BCF produce full of capacity can per production, day.

when you have might do you capacity? And on running comments you any be at think Okay.

full required export capacity. an improvement of we and also in a demand the Egypt, capacity, the are a of Running recovery

of So, it years couple the in see a we at last. can

Okay. lot. Thanks a

Instructions] [Operator

Okay.

near-future. best of finished. all the I thank we of that what's question. Otherwise, the I was and don't let's last know much happening the very in All this are think you. you see

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