Eni SpA (NYSE:E) Q3 2019 Earnings Conference Call Transcript

Oct 25, 2019 • 06:00 am ET

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Eni SpA (NYSE:E) Q3 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good afternoon. Ladies and gentlemen, and welcome to Eni's Third Quarter Results Conference Call hosted by Mr. Massimo Mondazzi, Chief Financial Officer.

[Operator Instructions]

I will now hand you over to your host to begin today's conference. Thank you.

Executive
Massimo Mondazzi

Good afternoon, and welcome to Eni's nine months results. Before turning to our results, I would like to highlight Eni's new mission. We are determined to contribute to the achievement of the UN Sustainable Development Goals, and bring about a just energy transition. The new mission is the foundation of the Company's business model, which focuses on long-term inclusive development for our company and its host countries, considering all the sustainable development goals. In line with this mission, we have already taken a number of commitments over the medium and long term, including zero net carbon emissions for the upstream by 2030. At the next strategy presentation, beginning of 2020, we will provide a further update on our targets and energy transition part.Good afternoon, and welcome to Eni's nine months results. Before turning to our results, I would like to highlight Eni's new mission. We are determined to contribute to the achievement of the UN Sustainable Development Goals, and bring about a just energy transition. The new mission is the foundation of the Company's business model, which focuses on long-term inclusive development for our company and its host countries, considering all the sustainable development goals. In line with this mission, we have already taken a number of commitments over the medium and long term, including zero net carbon emissions for the upstream by 2030. At the next strategy presentation, beginning of 2020, we will provide a further update on our targets and energy transition part.

The 2019 share buyback continues with purchases for two-third of the planned EUR400 million already completed. Upstream production increased to 1.85 million BOE, up 2% at the same price in perimeter [Phonetic], thanks to our startups in Algeria, Egypt, Norway, the new field in Mexico and the ramp-up of Zohr.Exploration continues to create new opportunities for future developments. During the nine months, we discovered 650 million BOE of equity resources at the special cost of $1.1 per barrel. In the coming months, we plan further exploration activities in Mexico, Egypt, Norway and Angola.

Gas and power performance was robust, notwithstanding the lower LNG price level, thanks to gas price volatility and the growth in the retail customer base. In downstream, we posted strong marketing result, while refining has been impacted by the narrowing of crude differentials. Chemical results were impacted by weak product demand and by worsening of elastomer and styrenic margins.

On renewables, we have 115 megawatt under construction, and we are targeting to have 190 megawatt of capacity by year-end. Before turning to the results, I would like to highlight our key strategic achievements this year, starting with Angola, a country which plays a key role in any strategy for organic growth. Our exploration team has discovered in the last 18 months around 2 billion