Eni S.p.A. (E) 31 Jul 222022 Q2 Earnings call transcript

Good afternoon, ladies and gentlemen, and welcome to Eni's 2022 First Half Results Conference Call hosted by Mr. Claudio Descalzi, Chief Executive Officer. [Operator Instructions]. I am now handing you over to your host to begin today's conference call. Thank you.

you. Thank everyone. afternoon, Good focus aspects will the on we of three year-to-date. Today,

highly execution and on our volatile strategy Firstly, amid economic geopolitical conditions.

around per emissions. barrels for day, X Africa at confirm an billion can in of price of of development our X.X zero of Secondly, fast associated of we successes. transformation. these in in ability the gas progress deployment months the strategy determination. barrels the X.X from LNG reducing is discovery. have to gained XX,XXX element extreme track in volatility new market TCF across for we that on shareholders. of production In underpin and our increase major its key projects of part pursue exposure. replicate to resources opened us complexity, other first to characterized After in just competitive d'Ivoire, net three scope result and on thirdly, startup Cote scope path test Technology X strategy a be the by leaner XXXX, offshore we project well, to market the this On And of scheme. It oil after accelerating And the sanctioned the of offshore budget We our and in cycle. we a of first experience our to with delivery the returns gas. and place with effectiveness Mozambique, a on invest by financial country This its Coral a financial Mozambique the will a least similar and time allow our plan and delivered and our and continue scheme Baleine hydrocarbons LNG, and will four developed a countries, to potential

will in Boston, Vår the and CFS the Eni years are company round partnership largest not close the sources magnetic to African that first our the in potential an in the of be The startup plant stage technology. with XXXX. $X.X underway XXXX. oil construction half will developing in to of of of of successful deployment that this is new It the billion SPARC But attractive new a And transformation is accelerate our end first ventures fusion clean capture the source of breakthrough constructions the future venture the We XXXX funding capital energy. technologies, limited planned also business carry of a is financially of model the expect and the in development, through With the over on at investor of new met models shareholders and between to BP help XXX,XXX our to example creating days. establishing players combination important Angola, an take and and requires we to great in Eni IPO average we and its and success the strongest largest to one few oil in in are business barrels of upstream Azule will the in per gas replicate. All conditions With be a day formal next want Energi, is growth. operation in of giant. place decade, will production Europe an exploration, around come. synergies in Azule, new

zero reach by Plenitude our is company with together in of dedicated We year. functional targeting This are sustainable end emission in the retail X advancing also net the completion to mobility. this the to mobility, household of Scope creation in business, company,

securing vertical of needs, and are agri-hubs We topic replacement substitution. this of the relationship. import. equity customer diversified project LNG The key investors. gas moved Algeria, capacity supply security will to entered for target Field, Gas third-party a new Eni track deliver invasion has XXX% With supply XX% this XX with the our world's Eni Eni be of and progressing recurring supply leveraging gas moment, to diversified the oil of This with customers in in the last concern expand boosting after further development Congo. XXXX, arrangement was on first to will signed of volumes a XXXX. also we and of We returns. to our already new stake, and Africa, meet quickly, Qatar with government is North designed week up in we of vegetable or plan we feedstock gas last discoveries bio-refining reach the accelerated BCM gas Ukraine, produced and are where Kenya integration network gas initiatives effectively the produced huge project. securing just to we of by Egypt, a XXXX's in with covering And Russian upstream material strategic largest month, by

we protect term, filling now short flexibility addressed increased position. financial top itself. the diligently resilience well ahead On in from our and diversifying our market chain. Focusing sourcing the company winter, our gas the and of also disruption to on have In delivery have of of storage the order gas we

carefully have manage model. from We our exposure hub-based our most deviate we where pricing

billion physical we we quarter moving emphasize unprecedented no with with our Alongside our the want market managing consistent first transformation sources in excellent these and the addressed is of billion. have costs. To strategy, have for without results. on our remaining was EBIT complexity for potential to in with €X.X Russian deliver obligation to level second be XXXX place additional continue supply We company's any €XX and half financial mismatches ensured the our supply. fully really met contracted I can and that perspective, commitment hedging

of €X.X euro year, generated of in first funding CapEx the CFFO our €XX.X billion have the half We and of distribution plan. fully our billion

we growing portfolio was at financial Even activities, add with support performance our building Upstream reduced can gas R&M flexibility. contribution associate effect our strategic also and prices and impacting from first in GGP To XX% but satellite our resulting management this, not the to emphasize significant billion value €X model. working debt discipline storage upstream just higher Importantly, the resilience almost plus offering emerging in our deliver stands net the balanced capital quarter various with have in both quarter. of from improved EBIT our gas that division, from confirming financial sales, leverage, quarter. captured scenario second we and second maintained cost now seasonal our of which and the of in the

Ndungu QX. value to come expect in onstream Coral to from we to focus Angola, plus production the continue ups, ramp on second thanks major project Algeria and fast in As instance, activity turnaround Berkine in impact to the we production that activity, XXXX, increase half for of also track affected reduced high and in Mozambique of

also by and Libya, Second explains impacted Nigeria, quarter against which force in substantially Kazakhstan, the production majeure was expectations. our shortfall

in XXXX a In made startups, half next progress toward expansion XII FID the addition plus Angola, number Karachaganak Melehia projects the of second in of Congo, in we have full Marine in for in X new Egypt, the field the to phase Kazakhstan.

continued Our to excellent activity exploration result. yield

XXX first We half. barrel million have resources in of the discovered

a at with Baleine. has XXXX second half the started The on first well very note, appraisal positive already

first year as our in We very in last pattern. second even discovered at skewed EBIT as After normal quarter toward the quarter, expected. second We half are the sources GGP barrel. the raising the good quarter, XXX for broke guidance seasonal see for a million

XX first year, margins hydro half results, capture we of standout plant is driven was Italian quarter robust quarter In Versalis delivered our second of cost contributing the a results restarted polymer in to we Marketing. In and percentage of are higher market market, QX despite Refining €XXX supply by XX% mitigating saved Gela also benefited scenario, The energy a optimization. biorefinery of our rate really our a uses. thanks to management improve which action major refineries, for energy and prices. than high from has & through positive at favorable impacted In proactive utilization increase a the on and conditions. the but gas It on by May, cost the challenging chemicals, energy point million the

by Versalis context, almost thanks investments over in XXXX, company value features XXXX, and XX% to year-to-date, In and continues the generation in by installed focused grow than installed Plenitude biochemicals, Plenitude distributed products sustainable efficiency renewable for solar services. of more its circularity, growing XX% year-end. reminder, to all and quarter, grow EBITDA, sales delivered fully will As renewable a retail on the XXX million four gigawatts and on track a performance capacity by – X our specialties, portfolio. to added and this strong making of add XX% to In energy strategic nearly contribution areas are differentiated its efficiency.

price of price the the account to remains as and the $XXX barrel our updated brand to scenario, assessment basis the In to market the made upside strategic incremental of we and IPO, brand risks. additional We cash free date taking fundamentals commitment per the price and distributed. the expected upside listing potential an into company March, we with our it trend, announcing in value for buyback market to continue a are confirm have year be XXXX an we see in subject pursue conditions. line the flow Accordingly, we of of to intention

an that original margins stronger our increase a billion led with foreign our correspond a €X.X target is and appropriate price, consistent In dividend of gas to strategy. the refining XX%. versus conclude the our strength of to rate €X.X and the share and price addition, current program, on billion yield exchange distribution of us the larger buyback Based and

million particularly for line force Nigeria, confirm X.X barrels Libya before I barrels majeure expect at QX results further scenario guidance in interruption, guidance risk day, update XXXX in when We QX per before the now our the summarize in will most concluding. of original end XXXX that day to million Kazakhstan. and and completed October. the adjusting and buyback X.XX production updated is our of we be per plan the with our ongoing will

to adjusted We with raised in at actions least R&M an original between XXX conditions €X.X and line around is expect now pro we quarter, figure confirm be the favorable market guidance Plenitude's GGP Business barrels and €XXX €X.X billion, to at We improve the the discovered at cost forma materially at QX expected and conditions of €X full-year per XXXX favorable billion EBIT barrel. Exploration the a our EBIT production to billion. million. over EBIT average. expected beat allow resources annual with us to at $X.X market first of million and for outlook, broadly

is we Looking expected billion capital rate line forward, XXXX annual the be barrel. at the €XX are exchange guidance for And and cash from €X.X $XXX working CapEx assumption. per to pre to foreign billion an flow regional from operation unchanged raising our at plan updated

I at To Eni, end as expected for from just be will the announce volatility. And We're especially significant fall the We share effect quarter XXXX. disclosed, we of a around protecting billion the also XX%. delivered have secure €X.X of dividend our buyback the term end confirm €X.XX. while the to of gas to the strategic with progress the first further is before long-term to over Leverage new it conclude, have XXXX market short per of supply, share year total distribution continued we of of first XXXX. the to in context half have in the completed

evolution We standalone a mobility in growing business, establishing sustainable energy are and moving our company. forward Plenitude

delivering customers delivery in cycle, being to supplier reliable finding new our investment all plan through Our our our and energy the is of a excellent commitment to scenarios shareholders. critical to on financial

ready conclude our Thank I remark now you. your top management are to questions. and answer with we So my

[Operator Instructions].

The first of Irene Générale. question Himona comes Société from

please. questions, Two

does Eni year the cost remain also windfall this an IPO Italy, for can next then the strategy? you the secondly, various Would Firstly, industrial Eni should to UK? but taxes impact over in months, on market XX selling how an conditions are Plenitude, say partner the what consider And you to perhaps? stock instead then difficult for that

Plenitude. going is to then I say about something the answer Francesco about tax and

the of €XXX two basis. taxes an sum is range on yearly the of million in The

taxes. paid taxes, first occur the payment taxes paid You in we XX% €XXX the already end and November, of the UK related that remaining at part Italian have the while be of the the million for of is will the same the know and, installments was second range part of clearly, will on to that

For us Plenitude, the IPO volatility. to ahead the clearly was clearly, condition, market go with prevented what

company, go the sell to the reach is there. green, to condition it's to our We not And highlight in is worse strategic carbonized independence functional in product and value clearly are still add – determined to IPO. blue the are with before. and move Plenitude reestablished client itself than the give It's But have but the to IPO. strategic X. IPO we tool Maybe we the and to good zero a will biogas the – when say our is Plenitude. our that convinced be because the to move net Scope aim to a

tool So, this we have strategy to the is Plenitude give IPO. additional a and then value,

straight good that the strategy. go is our But we pace renewable to doing good what a find of very because with we to So, that it's the opportunity increase Plenitude going a is are increasing I'm at renewables. and sure the for strategy IPO. window

ways, at focused going we'll moment, on what we company the If the see do are you are the are develop looking best. we at other in to future. our And

Oswald of from Bernstein. Clint is question next The

in many actually, on good evidence shorter perhaps able Chemicals. percentage-wise away here time wanted That's again. period Mozambique how than praises And for, the let's the discussions on natural I question. much even get the Europe's & secondly, just that in LNG Galp's even there allow executive wonder by could in could you wanted to the get now people you gas of continuing this at your quantify first on potential reduce smaller of ask been sing Coral say, gas And Coral to your chief keeps about floating I facility. are GGP, but I context, And on Just trying expect? trains project please, onshore, Rovuma around to demand another if LNG thoughts to reduce? LNG, you've the to a reduction XX%. Refining security, mid-scale or also, to

you've demand I think the How of plays please? for decreases France your overarching Germany. and the you've GGP, an for in just through half gas Italy seen question. that's some for guidance increases second the sales know certainly the year, quarter, out, you but in in I second think do but given the

Ricci the I'm going to Christian, and answer then and for will answer Mozambique for colleagues, questions. my Pino remaining

our in are discussing our the of additional working we we the the company in charge are are Congo. development and that upstream and – with offshore. same we and in Clearly, are Exxon LNG are discussing possible companies you are we in that offshore the venture, know So, through offshore proposing other LNG, – on fast the who joint developing a we

X can per replicate, a that tonne between small year. range we So, is something fast, that very sized can size that and X.X million

positive for on the table Mozambique. that are develop to say we but So, our and faster that final we that I partners, is wait is can way LNG is go among discussing. something approval, that, view there to a clearly but is have in a a

in huge have reserve block. amount our there We that is a of

have We about TCF. XX

the So, moment. is you can that imagine

we really and determinated So, these go are developments. to focused through

engineers, our hand in big it's the not done. is onshore onshore, been The end. For all of train, the Clearly, Exxon. has everything

we I one. demonstrate think think that the question the if but offshore offshore develop that would to activity, to security small the is understand about – is just find the think we faster condition I a this reasonable if size,

that about no I never onshore, way a So, think because I to And constraint offshore LNG. for thought small think there I other size, train small that I a now, but is – turn is Pino the answer. good

year last XX% the started This the we one. the in spike reduction gas was a second price, half versus pathway reached year, the reduction when refineries, more less last or the – of started of previous XX%. About our to in

we reduction billion, billion consumption again so, war yearly refinery. the approximately On a cubic already And means of it to gas Ukraine-Russian the in very of strong meter X.X were consumption. when X.X started, basis, the push

a we the crossed of low from because that, in utilization minimum so low to the consider you Russian. COVID, margin, refineries lack big jump same of the a because consumption, to the utilization time, If maximum

closed, two And so, completely Sannazzaro this imports fact the take result. gas the closed of into that, reach instance, account us refinery allow has to And today for combination our

rate. producing other rate are we Sannazzaro, feedstock. secret. feedstock, expensive energy gas gas then, the jump in replace And XX% we utilization that, is from utilization and means Pino to That less XX% synthetic with

really that. also in result. about and difference that's the and Plenitude. has same between that So, can think also important, Then there is this been the But explained The explain question gas. a consensus I action we the

answer. can Christian maybe and Christian So, Stefano.

months in winter warmer was X% for a the as was say, demand was gas the drop vary the the actually and year. we let's demand six bit year, substantially, a has in Europe example, bit behind pointed than countries around The side, different On you out, of between, because let's first more. the reason last reduced. Northern differently in during Well, Europe, that the overall say, in Italy,

reduce the after that have the to the prices, especially about in the we the very actually reduction So, a the consumption industrial sector. was the and clearly the happening what Pino industrial have demand high also we on spike of seen sector, is see we a refineries some clearly, in had less energy in the around the And on bit household demand XX% board this across we talking segment. and done intensive reduction of

Going forward, lot countries. again reducing agreement clearly, will the about the example, And acknowledge that demand. a have for various depends the on EU that

demand in there is of we boils we XX% and from reduction the going reduced market our revenues example, sale. down But But have Italy, the hand, this the because we are X% gain way that vis-à-vis wholesale absorption. to even reduction. the For from accounts, coming less capital impact actually Italy, our to on maybe we think actually the specificity see on impact marginal to other will margins vis-à-vis of the a the that optionality

element. big a not So,

America. comes next question Bank from of The Mehdi of Ennebati

Congratulations for strong results. those

side. questions, on my two please, So,

cap case in distribution the Italy, Eni in I are you for impact one, involved for price given a in Italy. in gas potential household understand that First of trying am to gas

exist would that households, diesel you does if that, also to And can hedged fact, like for your selling to subsidize household? gas second customers us remind to organism a in on I your on for which the to say, know is to you distribution of please price – let's the the your let's, case have take In cap it cost? will Or you households? via us your you if have So, if potential can renewable share gas can, a regarding gas you sell what price? derivatives, market tell question spot business. another, And price

remember February, that What about you negative told of So, fixed had seeing Are in first that or that here us I of remains XXXX EBITDA quite difficult because you inflation? situation that say some contribution. XXXX? cost in half business you the the improvement would

Stefano Goberti the is going to to questions. all answer

on price on In of need to measure cap, PSU. residential, gas a sell that case, both and gas fixed the be upon. to we first of we course, be price – to on to a to commented index our terms a price comment very variable side, edge that in – On implemented difficult or

are portfolio. case, hedged So, we in our that naturally in

managing through quarter quarter have successful We two been energy hit because get in been management very result by have risk. first to not will have a I And been positive. the we this during lot volume say the the

in enterprises million merchant putting able that we and the with together unique renewables, base. second of plus months, client position year, the of Plenitude renewable €XX had question million first to of six The on we because capture because on are EBITDA. our a the generation minus of the These result together the last model €XX

subject. just that cap, gas I back come pipe If to let's may, say, to

the to you a roughly proportion part you us and then price exposure sold which gas of variable at tell So, is – you of what said have of exposure part variable price. the your price? and the also an is Can to fixed hedge you the

commercially is information. sensible quite (sic) This [sensitive]

it. So, I would refrain from saying

is from Alessandro Next of Mediobanca. question Pozzi

first is The on the one buyback.

generation Would through because you're about happy going rather basically, You to additional And fair to is €X.X deployed is an than increased XX% you're seen flow as €X.X it gas how the when you're the dividend? at whether policy say you percentage The Italy, But buyback leverage? a years billion. with billion, excess you be of or voluntary reduction. the us a increase in dividend specific to given of how We've split it's ago? got can I quite cash retailers it And a gas. you implemented between in two significantly to want give announcing on of any I'm the it there, cash the be that, level the also, and to comes was a X%? second In above of calculating to moment, maybe exactly at you demand. sense be mentioned, targeting certain down the X%. it's buyback whether question introduced dividend that Europe new largest going one asking

you can do how the So, implemented? voluntary demand be think Italy in

for of The the Francesco. say. Francesco possible also Francesco, additional is first buyback to things dividend a and question you on distribution have

know you Actually, distribution that policy in line we presented presentation. strategy our with the

rules. do plan the is rules game. with we and certain set game built clearly strategy during the start Our change at the We not the of

occur the will a What next the update tools. next presentation. we of with is mix So, presented strategy clearly

year a and You quarter. line preference. know a is in dividend actually have this a and March element. that in happened mix progress the during by of announced that have policy buyback with of is this we we price fixed designed what This the We composed would buyback a variable this the that we

almost the to change have the we that, to just we would would not now not last we you €X.X minimum additionally reached expect that By this buybacks, at do actually free the where €X change cash that billion flow. have About to clarity, March terms. we at the billion and, €X.X to distribution €X between So, to billion €X at billion. the was calculation, of change some of do these was the $XX billion rules billion, €X time, give to therefore, announced moving $XX, we

be we the you our have to to €X.X added means cash that Multiplying have brings that you free increase, €X.X €X.X know XX% free flow. will this we It billion, by we of flow billion. €X.X billion sum is billion. original cash the that billion that Now that €XX announced the

the the is we applied. calculation So, drivers this that of have

On points question we are about talk there at and X% honestly, to of the the least, question implementation. reduction, the know. a because lot so Because don't answer cannot Why? we this second about can't different we

So, it's and that we the [indiscernible]. something wait, have to especially ministry,

So, the Why? impact ask on the to reduction. of us, possible Clearly, we didn't production we have impact we flexibility. you Italy that and can diverge, we a LNGs Because this send destination. can change

is of there of and a have if this sell the else. So reduction somewhere to X% flexibility gas, possibility we gas

The Martijn Stanley. Morgan next question is of from Rats

two I've may. got questions, if I

And terms plans. I volumes First Europe, explain briefly I would it through to of As large. that cascade the I could wondering does be to us it few useful a all, could that? were it about actually a would you all. promising. to quite to Russia sort summarize if gas Baleine the for of there's company? the timelines say in you of sort go if Italy, risk? it in, of And misunderstanding of think or be broad it of amount was Russian therefore, secondly, zero, including you possible sounds looks about briefly think to It words discovery, how sort if

by The Christian. first question be answered will

is hope that Guido by The second one I Brusco online.

of happen. lot actually And and impact – flows. a guidance current tell winter end price cash Russian I will of we if say, the the Russia, regulatory shut be is of actually let's supply confirm a complete though, within at that, substantially event expect let know, receiving what you that price confirm we framework, the of first around the all, reduce we flows this flow, you, to of when in that at cubic will onwards, we €X.X can, even the environment, billion least the me on clearly, currently of from positive day XXXX. still can amount, the can would per in off free flow variables are, Then year. of XX that On will from depend But scenario, EBIT the by as million say,

Guido? bit, can You a elaborate on little Baleine. talk

a XX,XXX is good potential barrels to per reservoir, world discovery, quality very high day. produce clearly Baleine up class to

already are the clearly, for fulfilled next have up planning also in by and start early and We with campaign at of take year startup XX,XXX half with scene the are XXXX this phase which which is production first appraisal ongoing an an up the planning to barrels. the we to phase, a second FID first setting late moment we to its exploitation half in XXXX. target And,

You dropped briefly. off very

So you sounds barrels per of say XX,XXX production field the potential was did just to That clarify, the low. day.

no. no, no, No,

and No, no. Each one well demonstrate of well. has right is a this confirm the tested now at the barrels, just potential which we quality to of is up to least This XX,XXX in the reservoir.

clearly, which XXX,XXX, we per barrels XXX,XXX with well day, is our if phase not first doing something is will vessel, beyond fulfilled. The are have But, fulfilled a in very the early we fleet. which phase, the which go

next Henri is question from Patricot of The UBS.

on was that To of reference you've the you've gas one, back hoping signs quite to could upstream come the particular, the the in demand of seems Two side. Algeria, views continue question But agreements months and be volatility lot outlook then that to first secondly, weeks, in seen the there and, improving I these in used I And on of last this for want is and few supply. weeks. per see you to the two retail last we've a [indiscernible]. of created room sharp $X any the barrel see do in destruction in have rest whether to particular, supply of some accelerate or you increased some How questions, of correction, I the discoveries the around will three network? please. in the to share see own your your margin year. at do risk past you refining you

could to forward this So, increase [indiscernible] brought some extent.

About of current – has the volatility that main is due so two to the course, is the high refining driver. contest margin,

war in could the next year What fourth very of the the of is in – second high the of that product one will we price But this, market. third European of price is gas gas reacted a strong if very And secondly, with consumption. the also expect and of gas the product, availability the half high as First the the and oil against we the remain And affect Russian quarter. lack gas decline and is margin. before, the this gas, of of the very demand remain certain with of – we stronger told expect the the in gasoline. crack and we will oil spread reduction even

end, the expected half, that, means refining positive be but It the second also the of we second to be in the any barrel refining at second result. very –yearly average. $X of robust not margin a in continue case, course, in as the we average per So, $X, quarter, around that quite could half,

Thank We supply. gas model ago. the changing opportunity give that him a the to years you on take bit seven, for the eight question the were view larger about we starting

two a third is buy And party. from models so, gas one – the to

on and B, the And, gas. Russia. sell chain our value So,

for which we exploration, So, and our equity development run gas, gas production.

running equity concerned that linked the we gas, setting – So, destination the the the also signed we're now in to countries. that that we contract development were were our just are

So, is we how can the accelerate it. question

in network talked But gas and development plus is In our is accelerate? have quantities, you discovered We not easy easy considering program that I once in we And pipeline a set to – now, discover, Algeria, Algeria. So, very more. additional and recently, there plus strong for How just three. tie because we three can clearly, very Algeria equity – networks some And it's these SONATRACH we X plans. are to equity discover. gas three ongoing. billion. of term are about plus about

discovered gas recently, more Nigeria. than We wells. in tie we in So, four

are We working helping but working are very concession, good we our SONATRACH. also with – well coordination in

have The likely could So, can to something next But Congo Egypt, is to the quantity. a It's of we're for we lot increase month. discoveries. over Clearly, LNG. be example. it happen we apply recent limited building accelerate kind going possible are this more this and think to same because that that concept we is of I for the because see

next we tell So, details. that possible can happen. you can disclose the Maybe I now month. in cannot

Bonisoli of is The next question from Equita. Massimo

Two gas. questions, both on

XX The regarding commitments about Can And we us on net margin if effects was color on pages gas according to the on BXB and the in the Plenitude your for the to the are second give can QX of annex draw capital, stream? question call? XXXX can €X working reference on billion the mainly supposed conference us assume you which gas first, your the with update derivatives the presentation, and on main some call, in customers. you commitment

The for and Stefano and then Francesco. first Christian

sales, the commitment On gas are let's with yes, our say, the own our consumption. of most of commitments basically

and and Power So, our our for refining Eni business our business. let's Plenitude, for say, for Versalis

coming that So as this have the commitment. years we we still have customer, our also let's that place industrial say, let's shippers fade we represents BXB then, in Then the that commitment but commitments will, in customer, are, away with those from flowchart. in a next And that say, bulk them, minority call are long-term the of years. few with some we agreements a ago signed and

I can supply for I only France our comes can of Massimo, add Christian. add, XXX% if that from Italy and gas

case. supply on the this have security we of So,

About the the will say, negatively of This contribution this year power. you'll impact have clearly the It has last from, working particularly what's we on this, capital, during let's that positive year. cascade year. called, move remember derivatives,

that in million, have flow, €XXX also to negative are €XXX cascading will that of million. recovery opposite related included expect on estimate in derivatives on other there the free the cash the range We be a of in sense billion, power, €X partial particular recovery, our clearly of impact to our but

the impact. So, is overall that

tell calls, can margin well are I of we you that covered. terms In

of We at also €X that of level €X.X pricing, in the €XX have we something just know of current have liquidity billion the range of cash billion but you absorbed, capacity. billion,

protected quite any are we from jump. potential So,

is The Cheuvreux. from of next Kepler question Bertrand Hodee

in a there shut Russian on it remarks, without then, impact like could and even I impact. and meet your financial that gas question Russian financial asked Eni preliminary looks an gas on wanted you stated confused. with a Claudio, Eni, go risk. back the all when come contractual gas the Martijn additional forward off natural on I to potential Gazprom basis potential on its any be And costs. important of obligation, the zero the of can fully related bit am

clarify you hopefully, can So, please?

clarifying physical clearly to presentation, stated, the mentioned The the there I'm that are is level. in different because Claudio one two related was and obligations.

point So, since as we additional done of Russia And as the take the substantially, beginning are of of side, not the look flexibility cost this the of flexibility interrupt in we able have crisis, terms have of start no also coverage. to substantially create in commitment. The from along case derivatives, we with say, existing for because, substantially, the interruption financial supply. soon to chain. additional source year, to additional we with this of cover, view Russian our of let's what It's gas, seen to is on contribution other commitment

of Christian Actually, buying derivatives, coverage. So let's some of past the there that They impact this is, these gas before say, mentioned. original terms in of the were these has let's sales. start say, taken the were crisis. And

So, there of that much as this already into to stopped an financial and maintain but of taking let's mild possible. winding will be point the just account will on the relatively say, as related as have we view flexibility substantially from impact derivative, be,

worst Can case you those early of and hedges winding those say, quantify potential, scenarios down derivatives? let's

depends Clearly, from we as said, many things.

of the level It and at millions. are depends will referring this day, end occur we other pricing. to – So But will it when occur. of be few with the

the flow saw I group a case think headline that Reuters of you I was will positive free at important stay because level. it to disruption, cash clarify in

So I think…

no. no, no, No,

free …that flow cash positive… you were

GGP referring to level. Christian the was

no. I'm I'm that. understood that is No, saying that… not What saying I

no. no, No,

headline saying. Reuters the is It I'm

that just it's we problem. Thank group at because free cash you to precise a serious are if flow level, the

for the much very you thank possibility So to clarify. question, have we so the

Jefferies. question Romeo next The is Giacomo of

remaining, Just really. just follow-ups two

review is authorization at my buybacks one is up for AGM is buyback. – first fact the you understanding the that the you alluded your distribution on XQ, that but your to could Because The billion. to €X.X

want how see currently whether material moved understand these authorization more to be upside we can to you So €X.X just have. could the billion and easy a

What's larger a change longer a based looks fact risk Italian what period comes the be extended other companies' has taxable in from of financial about the question second is your being of government larger much that and until the the it energy tax on of windfall it the tax order comments really of some perception like Italian tax this Italy. comments. talked your The impact than base? in from time this will and windfall on to a potentially address The windfall

So your I windfall risk downside winter. just want about of head you to the potential understand tax the sort we view as on into

Francesco again. about buyback, First the of all,

billion You we €X.X but are of in €X.X so have limited of correct, billion. are authorization terms far,

it So million. €XXX still, we but room, have is

we task, up scenario buy hard therefore, will October, and there actually worked So term the in that, for On about windfall to back. be in will of the have we and, this have security country. all, performance of provide the the we update think potentially to first clearly, very top

so let's European managing supply in have, of XXXX, ensures in in terms a of security of that, finding in is first versus to of countries think that risk I all, performance a if Italy, better source Eni supply. So, in of you other at the say, that condition far huge, overall new particular, look

our was practically Saipem can of in that advance, with at the last cash this X raising. absorbing We very And is a you country. to level, recently example, in For capital intervened support were able well alert quarter. year, in still level the from see also we as storage the billion €X.X to fulfill

So, at should think on I activity going in that the any profit most way, the windfall clear way is linked most, of we say, let's a kind a designed is and very also directly that in made for tax. that in think least more just a proportionate We to that and is case than effective large diffused any be a taxes investors. way that

was last that question. Gentlemen, the

you thank Okay, very much.

thank Ladies participating the Eni and for you conference in gentlemen, call.

You may your telephone. disconnect