E - Earnings call transcript Q1 2022

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Operator

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

Francesco Gattei

Good afternoon. first call. XXXX Eni to quarter conference Welcome

also March. investment, On began as prevailing XXXX of highly to per recovering production hasten direct further, been and of on supply the in draws, is wider to energy means strain market continue further been demand, the results excellent to low years with of impacted capacity of market, the a volatile, the have sustained the the loss of by inventory and context already these energy back is number yielding a the outlook both tightening The upstream prices and strategy the has dynamics a its complexity market. for of energy, able and refining saw adding during oil Eni downstream by has and effect quarter. was its and cost economy its been In and implication achieved gas. of the the a of progress, and tight the recovery markets war uncertain. of The current financial margins the an significant Ukraine conflict in rapid to impacted Russia Correspondingly, global rising effect impact raw condition boast material albeit, be

The first in period quarter transformation. was a Eni's strategic particularly active

are business our mid-February, almost XX%. two approach delivered in new context increased progressed despite by models, potential listed uncertainty, successfully through of we distinctive value the we have volatility and price We unlocking asset IPOs. crystallizing growth its VAR of Since and

third biggest Angola which on market the that Height to condition. London [ph] for the for energy is Plenitude March, business are final effective the planned we efficiently authorization quarter. of subject SPAC obtain we Stock In combination just NEOA, the we XXXX listed first early in during to to BP, addition, and waiting the IPO hope with in Exchange. make Furthermore, transition-oriented

and biorefining incorporation now mobility a our marketing announced project sustainable strategy that of We of company. at have And forward. businesses also is the this into moving

partnership our to Novamont, world's our have growing in the from biochemical XX% strengthened company, leading We also XX%. stake

Finally, to have fired power we thanks gas alliances Notably our completed plants ecosystem, our XXXX, in of Europe. to contributing Street. context strategic supply XX% the to of establishing we of the Sixth for been opportunities alternative gas sale

We have also to this Benin for strategic the further the of [indiscernible] our with jointly reduction to accelerate local and sustainable flattening By [indiscernible], execution been improving recently of by supply issuance. target, new bond benefiting of develop to agro widening authorized our to signing instance, €X continued approach feedstock emission path, while XXXX successful Mozambique positively pace economies. March, in biorefineries, billion at the senior our zero and we Board has agreement up

announcing came solid with strategic from and returns the in Libya, value combined based point downtime we In in CPC line by of financial view. both to in with the and production, increased operational guidance Finally, a portfolio commitment the quarter Kazakhstan. on unforeseen shareholder and of another XXXX prices. E&P via the reconfirm share policy share progress from some with despite set export strength the asset dividend backed of attractive buyback, yield The current Eni's X% offering distribution the very results, and

to improvement customers. to once country, Emirates, months, downstream, During and Mexico, FPSO continue manage by Block we activity in time and renewable Angola a remained the were plant high LNG for volatility just Ndungu by export negatively the €X.X In initiated quarter, the flexible Angola, over XXX markets of significant These continue the foreign more to adjusted putting oil power integrated XX discovered year, our operation to of in a the around capacity €X.X to track in billion. to million serve cost €XXX Exploration of our the impacted and R&M, quarter supply of a impacted last crude Xx year, EBIT us Adjusted generation to value on deliver resulting oil first able asset customers. ability in positive X feedstock on the we lead, mainly meet is startup business last the also the while quality the GGP. our be was and XX/XX our barrels market. maximize the in our of record of and one our results achieved confirming started billion the It Chemicals, our the challenging planned in higher guidance. the we contributes of our short by allowed fast an confirm to months, installed we project third robust company increased than the In we startup field, time net which year, portfolio equivalent, Plenitude, In market. In the again a continues and results. Algeria, profit than up and we business. million million first with to versus Egypt, side X increased other by which to to us model. in just utilities scenario. Xx

that on working distribution against free Our €X high flow CapEx have yields an this to we or to funding progressed from also leverage entirely And almost cash net of side debt capital policy. organic billion requirements operation €X.X our quarter, despite cash flow covers the falling billion of with €X.X billion, annual X.XX.

production, more lower in to from in VAR X.X offsetting Mozambique, fulfill by oil XXXX focus Algeria, and X flat due floating more [indiscernible] and value Let's than in IPO. the activities high up detail. quarter equivalent On per on billion, decline our around cost Mexico, with capturing EBIT now ramp of barrels Berkine and new and management startup we market prevailing first plus scenario. the driven Coral as natural LNG contribution to of was the such €X.X XXXX at in move a offshore day, Angola resources confirm production Upstream Area in the entitlement million

in Europe. X.X quarter day, the in of of maintenance EBIT. contributed range mainly of barrels Italy, X production International €X.X LNG second expect We by the billion The the in half Careful from market of adjusted the a the evolution billion, XX% GGP to adjusted an impacted The production performance seasonal new guidance. gas million, volatility. X% to our second of assuming X.XX of before activities to annual year. in portfolio million to of per supply up ramp increase results. of XX% volume energy EBIT recorded led sold supply the and to Russia, recovering on manage demand current the in helping an the crisis our a expect €X.X X% security. prompt expected and increase achieved, disruption not and gas effort we Considering us price optimization already significant strength renewed original has

alternative partnership are Algeria actively short-term, were global producing XXXX, additional Libya. our We with a countries. relying upstream Italy, from and opportunities In and supply for pursuing the and additional strategic pipeline Europe, portfolio specifically and volume leveraging XXXX, on we

with proved production. medium capitalize and contribute current to Plenitude imports from and additional And with we into account with sources regasification LNG LNG include corresponding mainly our be renewable signed have well also Nigeria, the now We import volatility distinctive which volume and to Qatar business Prior high in activated. This suited Authority. partially may filed to softer the the pipeline term, float registration development time the of Congo, In resilient gas and signed compensated with within we confirm additional volumes. hedge employing move was and the market generated acceleration for we capacity provides takes utilization expect This Other recently a IPO from where This an of power having condition, Italy. document profitability. by Plenitude LNG conditions. increase metal where and Sonatrach. existing In are rate, to Italia portfolio recently that from Angola an progress, with market, MOU also agreement rising energy even in we upstream Egypt, both approach. to Africa for These to it thanks evolution. the subject to via in XXXX, And retail. potentially the available expect our prices North certain gas strategy performance in let's we model conditions. Congo, to to market accelerated fast exposure on the with higher development are We expect Market on is consistent current track modular

EBITDA able for therefore product, sequential refining some full the of reflecting the to €X.X final diesel. specially rebound In remarkable from improvement, billion. are mainly year margin a guidance off benefiting March, a a market quarter, reconfirm during experienced R&M We tight over

activity our and optimizing to cost continued energy. the have focus of We on mitigate high

quarter €XX we million positive As quarter to suffered On €XXX loss report able the in a EBIT negative and strong a optimization of compared about efficiency by weak to forma asset improved to outlook the were a first and Downstream feedstock pro now action previously chemicals, refining XXXX. million positive, and Versalis cost or due a result, EBIT in increase expected XXXX initiatives. of is driven utilities expenses. oil-based the macro

around enhanced billion. operation further working balance absorption billion. €X organic was than cash Finally, capital impacted billion underlying from €X that flow the of CapEx, in more price cash working before cash notwithstanding our of flow and seasonal free capital was €X.X links The Xx resulting by

year, billion, a in cycle year than Capital the we through €X revising more and CFFO the was are to $XX of at our billion full billion discipline confirming €XX previous the original per component estimate. For our strategy. the €X quarter for exchange guidance guidance barrel, power at billion €X.X our critical is same expected around rate. is at CapEx

for a welcome portfolio stands assessment with Eni barrel July now buyback. CapEx $XX. The in resilience XX% per average basis. we offer upside in cash financial at event floor $XX expect questions. in equivalent we after management my extra net now €X.X a plan and XXXX strategic and the our your be XX% on gearing along capital to have line of competitive the will per oil also year, building $XX buyback scenario That prepared Even yearly with update top its this the cash debt buyback quarter, barrel the the flexibility. establishing flow with around the I, in the incremental of neutrality Low for concludes reduced working which ENI of billion remarks. dividend will price free to exceed this leverage. confirm For activity and that

Operator

[Operator Michele Instructions] The first Vigna Della comes Sachs. question from of Goldman

Michele Della Vigna

you I much for so had questions. two the Thank presentation.

need one the but potentially Congo. delayed volumes, a announcement tracking the time up higher Algeria, one an supply cetera. your return exploration Europe's floating this Egypt, much project later which LNG was fast has we've at around ideally Angola, suits strategy, really in seen is extra onshore first your concerns. gas whole and clearly you. I which security in to will what Congo, the fast tracking, The to if year, in add wondering you And be do for et the moment. track Thank the do I way first the you indefinitely transferred the then from X can you going Mozambique, And are and these because become of fast wondering development incremental where quicker together, be Could of market? years? all to on staying of was with X get up resources within opportunities new next that, you to can could start of how the security been developed

Francesco Gattei

Thank that size, approach, of LNG is more concept, you, concept description understood market short substantially On for trying a with to it new the less is completely will obligations. to other new capital a shorter reply to that project question, time leave the create Michela. contract second question. you will less for I for reduce floating upfront, a the model the cycle [indiscernible] as well Very help then fast LNG, to on LNG

to in LNG [indiscernible] making model terms similar of let's less, committing or oil long-term So, delivery. based, more more say the an market say,

have to of opportunity a as alternative are, security. let's say that currently clearly, is you Mozambique to concept but as an identified a So, lot this applying uses of we Congo,

but opportunity that will So there -- be could emerge. other

Now I on more leave question. detail it for the to Guido

Guido Brusco

question. Okay, you. the Thank And for thank you, Francesco. you thank

plan in current to project we've given XXXX. Egypt, our have projects additional to unlock activity deliver to this [indiscernible]. XX in in more able and XXX,XXX to barrels mobilize in in TCF and gas clearly So already resources of of gas scenario, deliver And we been Algeria than Congo,

a problem microphone. with Sorry, the

add in thanks Congo, our to also So, terms our This opportunity This are XX,XXX CapEx infrastructure you me Egypt, of can a also hear have we in configuration given to in but now? the equity project lead X-year XXXX exploration, in plan, Algeria. in And production in may project. about our -- in barrels. profile of

of upstream. We expected X% CapEx is within our increase, -- which well less upstream our flexibility than overall CapEx

to leveraging on the while -- Area the Going -- know, you concept is optimize Mozambique, the the is still monitoring, the X. Area operator opportunities with to looking security synergies as situation to with

On hand, we come short are those, are modular we to and stakeholders. other and you. will the opportunities partners Fastrack we other implement at Congo engaging back already in of development and looking like on Thank

Michele Della Vigna

Thank you.

Operator

ahead. Himona The question Irene of go next is Generale. from Societe Please

Irene Himona

Good a quarter. strong two I you. and questions, on afternoon, please. congratulations Thank had

declining the quarters. million higher than Firstly, your leverage. is previous materially €XXX QX in interest is despite expense two your This

update production Kazakhstan, the disruption an can if wonder current to flows understand recently? reported us damage level? weather through you a the there is secondly, Russian I And pipeline particularly you. this, So, sharp And What please. given Thank your very is help on increase?

Francesco Gattei

to you FX. to foreign increase to reply exchange interest is yields. that interest. the I Yes, is impacting is related first related the the see And the the change rates, effect mainly other to related clearly The that in

less that increase I are there for are back drivers Guido. Then So, that see. relevant. floor main some, one-off the effects let's production, you two to Kazakhstan are say leave About the the the that

Guido Brusco

days, Kazakhstan some been last but equivalent in CPC. this export on of our is back we the and of couple happened barrels Now It oil has indeed We production are April, -- the production. full of we in per in XXX,XXX recovered mid above line in now day. disruption had

Irene Himona

much. very you Thank

Operator

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

Massimo Bonisoli

indication in April. Three the One afternoon. Good on very if for refining the quick an margin, can question. [indiscernible] average provide you

The networking capital. the second on

on If following rest in some third you IPO? and Novamont effect the if decision of -- on Novamont you are the the any of considering of on the the can even provide remaining or there year? resource And over company, the guidance stake strategy the strategic the increase the

Guido Brusco

Yes, the thank past last saw -- this the from in practically middle in completely are progressively through versus the seeing negative March from entire XXXX, last month. -- quarter. you, was XXXX we and the the we Massimo. of About a [indiscernible] clearly, [indiscernible] [indiscernible] from trend different Particularly really increasing for in April the in March,

between -- last rented from the per is average per $XX The $XX barrel. more barrel. $XX to April, XX starting than So, car around figures are

materially So, market. by impacted the clearly is diesel the see that spread you [indiscernible] in the

is all in the This trade amplified that quarter receivable In capital, capital clearly terms increase of working you are all working scenario This that have seen of the a on of first quarter. see in that is amount. is clearly the year, It's there an trend you the that during we normal. absorb -- reverted price the by year. seeing, so is first seasonal

particularly the last the impact capital year that year if We there additional remember impact at of you the -- plan year, -- last almost the results during quarter, a of is with element in the advance. was have the this clearly this [indiscernible] during positive power, is this -- will in remaining end the a from will that well an €X that return we working but during in cascade billion have

something the Fannie expecting additional this will see to from color working the is the on the About the but of There move the you this a partnership. I in to referred an reinforce -- around billion -- leave of of to will working that XX% we return of €X opportunity question new. in So, range coming or of impact the I reduction capital because effect are negative effect, like our [indiscernible] will to Novamont, some quarter -- capital this the [indiscernible] I clearly before. now XX%. of

Francesco Gattei

the Sure. Thanks question. for

governance and strong So technology and bioplastics of the in sector field a this Novamont the years also based technology has has strength with XX traditional that combining in enhance of partnership two that the polygynous value start agreement they've market intention that course possible course market lever a Versalis this creation terms portfolio the in in any Novamont with The a solution now plus the over different during for in future the and chemistry. green last company make been to and also the enjoying plastic and have of by today a of developed terms in have a terms discussing Versalis that participation open to different and of order in on

Massimo Bonisoli

very you much. Thank clear. Very

Operator

Borkhataria Biraj is Please RBC. ahead. go question next from The of

Biraj Borkhataria

Hi, Thanks taking there. for question. my

from wondering you was give organization bit 'XX The is the in in of will very policy of the strong the the And slide energy. accelerate the could expectation, into on low results parts in a that looks be various you obviously, that in the going carbon looks on side. I your volumes And second gas first given of XXXX. carbon raised question ones through like seen terms come trading acceleration anticipated, color Eni Obviously, than low content incremental forward? previously more in What particularly all if there'll is opportunities we've on transition. to it for the guidance QX. as of little an the Europe, shows and

cash So, this point? accelerate well carbon flow given a we as of expect low debt the cycle and on Eni kind short should management such Thank in gas profile as to front, strong looking you. free at

Francesco Gattei

Cristian question, the second. for will to now I then first for back leave the I Okay. Signoretto come

Cristian Signoretto

Hello.

your So, thanks question. for

this quarter two been On has sustained clearly for the LNG let's trading business, say reasons.

capturing. value the If to On coming of that last we actually And of an increasing future, let's into availability optimization prone the environment this was one year. tell trajectory portfolio in clearly a you year. the LNG I I LNG price the clearly, very have will also say project vis-à-vis had we increase and hand, for have

So for stress. the volume situation the current and further and stay clearly the And the optimization. LNG this gas geopolitical available will think a tight and believe we we while for other going the provide hand, increasing given current CS that opportunities mean, to is on I for for quite market

expect would business. clearly I of tightening also that So, that clearly will line a scenario also benefit

Francesco Gattei

About Day carbon say, and have terms our seen growing we opportunity, let's decarbonizing quite, Capital that transition you've towards in last are and low Markets pace the clearly presented of an aggressive improved the that activities. opportunity

adding were to example, Novamont, tools to in new the we to solutions opportunity, exposure business trajectory to to invested to but and we venture. are as added also referring nuclear this the that to made that mobility say to and we improve are in are for quarter, let's clearly another In that planning SPAC, capture The so element leadership plan referring also financial our do, the business And have is implementing. tools additional this and before, model, increasing not biochemicals. maintaining evolution. CFS, of in fusion, to option technology opportunity We add this new, sustainable These are to we the that only this have we are position our on company.

and is that Eni including say will continue businesses already emerging, front line that segments Eni exploit that page. so where and say, well we an different all additional, the is the on to let's CCS, So, is for business diversified committed the example, most, way, in the let's are

speed this we many scenario, and of be the have up I emerging capability these in fronts. in the there in with So, that you different -- opportunity will market I will think agree to -- also

Biraj Borkhataria

Okay, thank you.

Operator

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

Oswald Clint

Yes. Thank everyone. you

time this just logistics about to was gas is quarter and tell mean, there market trying trading the to of that best back global business if some into tighter, and please. what I'm a gas the to really into team could portfolio. kind and a bit us business, you more stay the Europe, in as terms the of going old-time on spreads, pipeline from you the little more into And bringing said the in I optimize gas of the and get up the performance global we part you're Just Italy, just around piece could focus on

sustained So, refining about talked as the here? And cost well. think then is could against But you this performance utility about level energy secondly, that. we being there of margin headwinds

you you're some of out Just that, the you're those So, of you. some we pressures? to I a exactly those us what rest alleviate taking those to doing could taking steps please. little through tell but XXXX, flesh alleviate effect And bit, see please? Thank know could

Francesco Gattei

and Thank you, to will question the is I back Oswald. to Pino Ricci Giuseppe that then leave phone second come by connected Cristian.

Cristian Signoretto

the for thanks question. So,

-- the on So, sorry.

Francesco Gattei

if the could … answer Pino, you about

Giuseppe Ricci

immediately, and like reduce replace year, in a [indiscernible]. replacing utilities the also with produce [ph] of are start we refining I in these Francesco. service the system to from lot plant of we our our all cost. put in our BTU margin Okay. and metal last all are for configuration gasification the to modify gas, the quarter refineries But are starting of consumer a recently initiatives the steam hydrogen methane a consumption January, that also, affected consumption in in last extra the use fuels the metal means LPG effect, in consumption we These this low XX%. minimize to course, neutralized. About the the implemented of margin the fourth that the other able margin, of the are of [indiscernible] in in other plant we losses, recover And And station. for the metal reformer April, And better gain to very of in saw that of these cost two-thirds of are In by reduce of we a March, the way, utilities condition. order February. of the because methane. we And production month, much high of power

Francesco Gattei

Okay.

back Now leave Cristian. to

Cristian Signoretto

Yes.

So, the for gas quarter. result on this

volatile. very we time optionalities of the our surely clearly been contracts, advantage has market with the took the and in And flexibilities clearly, all, of First spread.

are the unseen, the of in spread, we flexibility and markets Europe quarter, you which let's had are situation in movements, of seen of this our that probably spreads say because of have the many price market. the anticipated because we So, between the contracts the but on geographical there that -- wild, also

of So the the at XX% clearly the quarter. result least explain basically of exceptional this activity first is in

ahead, going I the as And one hand, flexibilities know, have have in you being on then the optimized, our we is are can -- in are can then a courses business but bit extra order we make there bit to which we some that cyclical months. mean, so be a the already we quarters as in sense able we the So I less in outbid that monetize borrowing which of the market, to following well, to also in explained, so performance.

And clearly so, the which the when billion of the a then which €X.X able achieve we we winter will which we're a probably the quarter, by let's last end volatility is quarter, I project results be that let's quarters be such say means the target. will to that going year, to be there quarter weak, say is some of in that

stress One the -- as thing On that want and are to while there I opportunities. again, disruption hand, clearly assuming be is movements to Francesco clearly if the was this other from steady Russia. captured wild and will flow be no there target market is opportunities saying

Oswald Clint

you you. Thank Thank all.

Operator

of Henri from Please go is question next ahead. The UBS. Patricot

Henri Patricot

please. the for you thank Yes, Two update. questions,

second And the of be gas to one, follow-up would refining. an just for And The Italy your expectations Russia. update an interruption of a on Can first you gas you was payment and terms one quick supply your from What coming here? are or on business what give the are on Eni supply us the mechanism? another? where in for one new just gas there if reason impact

in Just year? the more some maintenance to see of get of second market to or rest first higher do XX% with utilization Thank in quarter. [Indiscernible] a the a sense from having the have you the the capture you. quarter

Francesco Gattei

the the to that the back situation I About mechanism are sanctions. in Pino. European we government. gas coordination with can pay the and and come what going and Italian pay, are of international delivered compliance reply continuing the to say what Okay. following we contract terms the That the will clearly payment, to with analyze with the to we authorities we strict the in will are and then first we clearly

to we The we currency now contract So, account. and what opened to have clearly invoices rate not refining for we That and receive is [indiscernible] leave euro I accrued say the in we respect rules. and will Pino these to can all performance. continue euro in is the now. utilization of it

Giuseppe Ricci

our the the in -- in Thanks, increase the to utilization utilization utilization Francesco. quarter, capacity In But the moment the the plant gain rate difficulty] started refining March, of all to difficulty]. maximum [technical quarter [technical in the have And in about XX%. system. we was we in third expected massive just second

difficult [technical We [indiscernible]. the [technical in in in part this shutdown the avoid difficulty]. difficulty] have Europe difficulty] same shutdown moved [technical of the next And year to order any Italy, in and

Henri Patricot

Okay. Thank you.

Operator

of Mediobanca. question next from go Alessandro The ahead. Pozzi Please is

Alessandro Pozzi

there. few Hi, I a have questions.

the -- year-on-year. of the prices two down the should was I was gas in MO impact also also, is if on the purely the at impact planning moving And and The give wondering X% over what of of a had color more to bit improvement believe first what positive you And been the factor. to parts Italy But maybe spot I the I been what's wondering one rate. sales, impact retail wondering a are us in on high gas or And one sales was I the do higher next [indiscernible] given Clearly, in make quarters. planning I [ph] the key a next quantify positive tax whether including think think and your managed oil clients. prices back the prices. impact to if [indiscernible], [indiscernible]. a I it's higher big very it's I power you lastly, that really the few [indiscernible] low year? the that when can quarter. terms is if rest one assume look exploration helps we they're maybe for the to just sales, of retail lowering demand you that high of or was can have Libya. second this you're

Francesco Gattei

Thank you, Alessandro.

the the rate. for Luca-Bertelli then Plenitude, to for answer come Now I to it related leave Goberti and will Stefano back then to tax for the exploration, I

Luca-Bertelli

Okay, activity part [indiscernible] Egypt, we are the in have that will for in drill we remaining what concern flatter flatter of wells the Angola. going in year, to activity

also We will [indiscernible] will also on become wells Ballet discovery. We well drilling year. And finally, And already back in offshore this start development new Mozambique. in while field in have a [ph] to Angola finally, drill -- [indiscernible] we other

Alessandro Pozzi

Which one those? most important think do the you one of is

Luca-Bertelli

don’t know to The know most I what's important don’t say -- I what's the one. one important -- most

risk a So, lot of associated. our is work

all package say I'd for. expect of would the a wells is results that that together we So, good that provide

Alessandro Pozzi

Fair you. Thank it. Got enough.

Francesco Gattei

Stefano, please.

StefanoGoberti

that become that -- serve Plenitude -- period Thank itself linked Okay. the a -- volume fixed the colder On And shorter quarter need their to to fact rebuy to was Alessandro. was at retail result was because we this were end the to the order we compared our mainly bit particularly we the the quarter. it forecast. there client because effect, quarter the to of that than softer There we at sell that last when of little prices. are in you, in commodity against the consumption we first

economic this the on result. So, is effect the

way specific Plenitude, a Maybe other record [indiscernible] you trend to in in of the portfolio, of the your overall referring we did reduction terms we the but In of question. condition. maybe consume, portfolio by volume, are naïve in not because weather

Alessandro Pozzi

Yes. Okay.

Francesco Gattei

the in $XX, $XX we tax XX% already of -- rate, in past guided tax terms order. with a clearly rate rate In have that

tax that The Now, above has we impacted of the that. are results composition rate. clearly, clearly

with positive rate affiliate. as oil price the the tax benefit the to of results the soon you is GGP As in by growing, have the to the IMP businesses. tax and countries helping and contribution rates contributor benefited Also, also is [indiscernible] gas the lower of reduce of of

So And gas, from as this the thumb more clearly to reduced will tax positive also benefit is than $XXX of even of comments rate. The is price a year per rule another clearly in in business. guidance, say I contributor, $XXX the results XX%. -- factors that barrel Libyan the something contributor current current sort environment that $XX, Italy the is around of per environment, for of the range a to barrel. of the helping I in -- in price a in have upstream related the confirm would that

Alessandro Pozzi

April a Okay. deadline the the next Thank When for just the the follow-up to Maybe payment much. deliveries? payment mechanism gas on for you is very Russia.

Francesco Gattei

You within following pay know that the month. you

the deliveries April paid during May. So

Alessandro Pozzi

May. Sometime in

Thank Okay. you.

Operator

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

Bertrand Hodee

serve you Yes. the reason, Hello, financial committed can for these short, And Gazprom committed forward-basis. risk price? sell a for be to on already under were to able your alternative terms? gas is mismatch selling of supply you already terms what of supply stop one will gas of any have to majeure condition? force question and Francesco, quantify If everyone. left. I to some your of gas call you have source there in and And parties risk in between a

Francesco Gattei

is It complicated a question.

difficult an during an called is volumes that the have to there think I flexibility terms to and you and legal options, there our In different LNG majeure. is the or many say, let's because the were roads there general past could of there [indiscernible] be, before special that that added protection there through in We portfolio. are that there coverage too therefore, contractual market a we give if are speaking, also And alternatives in is answer additional could components Clearly will it resting new opportunity. force condition, clearly month. referring to lot that are now be matched. general be be of

also could condition, you fostering of So, protection. in level [ph] case, that that have

scenarios. So, activated different different there I that in be tools that will are say could

Bertrand Hodee

Thank selling basis a follow-up? longer you completely from say, selling, on volumes Are that month than eventually supply your disappear? you. Gazprom or stop expected I let's you if ahead just could X forward still Can ask a

Francesco Gattei

I think this a is prefer disclose. that commercial sensitive to I information not

Bertrand Hodee

Fair Thank enough. you.

Operator

we go of Gentlemen, Please Syme Alastair another have that has ahead. joined from question Citi.

Alastair Syme

come just that Can Francesco. the I the still put for ask just on bit into Thanks, the in of year the to terms quarter treatment little remainder this of you've recapitalization? gone through of accounting or Saipem, unclear a what's what's

Francesco Gattei

have, in will of increase portfolio M&A financial let's support activity. that We see of say, to terms capital in Saipem the consider contribution we future provided our you

portfolio, the -- portfolio was the billion. the activity. of net is the practically of €X.X contribution amount in first is share it of That that included So, Eni Eni, step already of

Alastair Syme

the as But are to on balance future is something that there has -- sheet well? you underwriting for go the

Francesco Gattei

included have additional the We of the already for increase provision capital.

Alastair Syme

Right.

very much. Thanks Okay.

Operator

closing questions make no like are any you there more Gentlemen, Would to time. at this remarks?

Francesco Gattei

Thank you. Thank you question. to all for the

think contact. the effective in we was you thank remain quarter And that clearly, we I of will our confirming path the strategic the and and execution.

with for Thank new John -- know very additional much. well as Investor as there your Relations our Jonathan that any a is -- all answering you you question, team very Rigby add For questions.

Eni S.p.A. (E) 29 Apr 222022 Q1 Earnings call transcript