SECURITIES AND EXCHANGE COMMISSION 

Washington, D.C. 20549

Form 6-K

Report of Foreign Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

For the month of August 2022

Eni S.p.A. 

(Exact name of Registrant as specified in its charter)

Piazzale Enrico Mattei 1 -- 00144 Rome, Italy 

(Address of principal executive offices)

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

Form 20-F  X   Form 40-F

(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2b under the Securities Exchange Act of 1934.)

Yes __  No  X

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): _____)

Table of contents 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorised.

Date: August 31 2022

		Mission
		We are an energy company.
		We concretely support a just energy transition,
		with the objective of preserving our planet
		and promoting an efficient and sustainable access to energy for all.
		Our work is based on passion and innovation,
		on our unique strengths and skills,
		on the equal dignity of each person,
		recognizing diversity as a key value for human development,
		on the responsibility, integrity and transparency of our actions.
		We believe in the value of long-term partnerships with the Countries and communities where we operate, bringing long-lasting prosperity for all.

Global goals for a sustainable development 

The 2030 Agenda for Sustainable Development, presented in September 2015, identifies the 17 Sustainable Development Goals (SDGs) which represent the common targets of sustainable development on the current complex social problems. These goals are an important reference for the international community and Eni in managing activities in those Countries in which it operates.

Disclaimer 

This report contains certain forward-looking statements in particular under the section “Outlook” regarding capital expenditures, dividends, buy-back programs, allocation of future cash flow from operations, financial structure evolution, future operating performance, targets of production and sale growth and the progress and timing of projects. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that will or may occur in the future. Actual results may differ from those expressed in such statements, depending on a variety of factors, including the impact of the pandemic disease; the timing of bringing new oil and gas fields on stream; management’s ability in carrying out industrial plans and in succeeding in commercial transactions; future levels of industry product supply; demand and oil and natural gas pricing; operational problems; general macroeconomic conditions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; development and use of new technology; changes in public expectations and other changes in business conditions; the actions of competitors. “Eni” means the parent company Eni SpA and its consolidated subsidiaries. For the Glossary see website eni.com.

Contents 

Highlights

  Financial performance

On the other side:

  Eni’s shareholders remuneration

  Strengthening the natural gas portfolio

  Operating performance

Business developments:

Decarbonization initiatives:

  ESG performance

Key operating and financial results

Operating review

EXPLORATION & PRODUCTION

PRODUCTION AND PRICES

In the first half of 2022, oil and natural gas production averaged 1,616 kboe/d, down by 2% compared to the first half of 2021. The decrease was due to unplanned outages, such as force majeure at the CPC export pipeline affecting our volumes in Kazakhstan, plant shutdowns in Libya due to a resumption of internal clashes, and rising sabotage and oil thefts in Nigeria. Net of those events, price effects and the progressive easing of OPEC+ production quotas (particularly in the United Arab Emirates), production was essentially unchanged compared to same period of 2021. Production was supported by ramp-ups in Indonesia, in a context of strong global demand for LNG, as well as by higher activity levels in Algeria and Angola, while Italy and the UK benefitted from a lower maintenance activity compared to the first half of 2021.

Liquids production was 760 kbbl/d, down 5% compared to the first half of 2021. The reduction in Kazakhstan, Nigeria and Libya was partly offset by production growth in Angola, Algeria and Italy as well as the progressive easing of OPEC+ production quotas.

Natural gas production amounted to 4,542 mmcf/d, up by 1% compared to the first half of 2021. Production ramp-ups in Indonesia and higher production in Algeria, the UK and Italy were partly offset by reduction in Libya and Nigeria.

Oil and gas production sold amounted to 269.5 mmboe. The 22.9 mmboe difference over production (292.4 mmboe) mainly reflected volumes consumed in operations (21 mmboe), changes in inventory levels and other changes.

MINERAL RIGHT PORTFOLIO AND EXPLORATION ACTIVITIES

As of June 30, 2022, Eni’s mineral right portfolio consisted of 752 exclusive or shared properties for exploration and development oil and gas in 41 countries. Total acreage was 312,738 square kilometers net to Eni, of which 643 square kilometers related to the CCUS activities in the United Kingdom and in Norway. As of December 31, 2021, total acreage was 335,501 square kilometers net to Eni.

In the first half of 2022, changes in total net acreage mainly derived from: (i) acquisition of new leases mainly in Algeria, Norway and the Ivory Coast, as well as the CCUS project in Norway for a total acreage of approximately 5,900 square kilometers; (ii) the relinquishment of licenses mainly in South Africa, Bahrain and Ireland for a total acreage of approximately 26,500 square kilometers; (iii) net acreage increase also due to interest changes mainly in Vietnam and Congo for a total acreage of 700 square kilometers; and (iv) net acreage decrease mainly in Indonesia and Norway for a total acreage of 2,900 square kilometers.

In the first half of 2021, a total of 17 exploratory wells were drilled (7.9 being Eni’s share), as compared to 14 exploratory wells drilled in the first half of 2021 (7.1 being Eni’s share).

PRODUCTION OF OIL AND NATURAL GAS BY REGION

PRODUCTION OF LIQUIDS BY REGION

PRODUCTION OF NATURAL GAS BY REGION

(a) Includes Eni’s share of equity-accounted entities.

(b) Includes volumes of hydrocarbons consumed in operation (116 and 111 kboe/d in the first half of 2022 and 2021, respectively).

GLOBAL GAS & LNG PORTFOLIO

SUPPLY OF NATURAL GAS

In the first half of 2022, Eni’s consolidated subsidiaries supplied 31.80 bcm of natural gas, with a decrease of 2.60 bcm or 7.6% from the first half of 2021.

Gas volumes supplied outside Italy from consolidated subsidiaries (30.18 bcm), imported in Italy or sold outside Italy, represented approximately 95% of total supplies, with a decrease of 2.26 bcm or down by 7% from the first half of 2021 mainly reflecting lower volumes purchased in Russia (down by 3.26 bcm), Libya (down by 0.41 bcm), Norway (down by 0.39 bcm) and the Netherlands (down by 0.26 bcm), partially offset by higher purchases mainly in the European markets (France, Germany, Spain) and Egypt (overall up by 3.03 bcm). Supplies in Italy (1.62 bcm) down by 17.3% from the comparative period. 

SALES

(*) Data include intercompany sales.

In the first half of 2022, natural gas sales were 31.64 bcm, down by 8.1% from the first half of 2021, mainly due to lower volumes marketed in Italy and outside Italy. Sales in Italy were 16.28 bcm down by 1.45 bcm or 8.2% from the first half 2021 (17.73 bcm), due to lower sales marketed mainly to hub and wholesale segment, partly offset by higher sales to thermoelectric segment. Sales in European markets (12.81 bcm) increased by 2.9% as result of the recovery in consumptions, mainly in Germany and Benelux which more than offset lower sales in France.

LNG SALES

LNG sales (5.2 bcm, included in worldwide gas sales) mainly concerned LNG from Qatar, Nigeria and Indonesia and mainly marketed in Europe and in the Asian markets.

REFINING & MARKETING AND CHEMICALS

REFINING & MARKETING

In the first half of 2022, Eni’s Standard Refining Margin – SERM – recorded an exceptional level, setting an average of 8.2 $/barrel vs. negative values reported in the first half of 2021. Growing demand for gasoline, jet fuel and gasoil has materialized from the second half of March 2022 due to the restart of economic activity against a backdrop of limited supply, particularly of gasoil, owing to bottlenecks and capacity constrains across the industry, resulting in very strong products crack spreads.

Eni refining throughputs on own account were 13.48 mmtonnes, up by 2.5% from the first half of 2021, due to a favourable refining scenario. Throughputs increased mainly at the Sannazzaro and Milazzo refineries. Throughputs in the rest of world increased approximately by 1% thanks to higher volumes processed in Germany. Increased by 8 percentage points the average plant utilization rate (80%).

Bio throughputs were 235 ktonnes, down by 22.4% from the same period of 2021. Lower volumes processed at Gela biorefinery following the shutdown occurred in the first months of the year, partially offset by higher volumes at Venice biorefinery.

In the first half of 2022, sales volumes of refined products (13.32 mmtonnes) were up by 0.22 mmtonnes or by 1.7% from the first half of 2021.

Retail sales in Italy were 2.55 mmtonnes, up 10.4% due to higher volumes of gasoil, gasoline and LPG. Eni’s retail market share of the first half 2022 was 21.8% (22.4% in the first half 2021).

As of June 30, 2022, Eni’s retail network in Italy consisted of 4,051 service stations, recording a decrease from June 30, 2021 (4,127 service stations), resulting from the negative balance of acquisitions/releases of lease concessions (68 units), the decrease of 6 motorway concessions and the negative balance of acquisitions/releases of network owned stations (2 units).

Average throughput in Italy (673 kliters) increased by 61 kliters from the first half of 2021 (613 kliters).

Wholesale sales in Italy were 2.92 mmtonnes, up by 6.2% from the first half of 2021 mainly due to higher sales of jet fuel following the economic recovery and the increased mobility compared to 2021, which more than offset lower sales of the other products.

Supplies of feedstock to the petrochemical industry (0.24 mmtonnes) down by 20% from the comparative period due to the contraction of the production activities recorded in the sector.

Retail and wholesale sales in the rest of Europe of 2.19 mmtonnes increased by 14.1% from the first half of 2021. This increase mainly reflects higher volumes marketed in Germany, Austria and Spain, partly offset by lower sales in Switzerland.

Other sales in Italy and outside Italy were 5.17 mmtonnes, down by 7.2% from the first half of 2021.

CHEMICALS

Petrochemicals production of 4,191 ktonnes decreased by 163 ktonnes (down by 3.7%) mainly in the intermediates segment, due to the standstill for reconversion at Porto Marghera and lower production at Priolo plant.

Petrochemicals sales of 2,161 ktonnes decreased by 161 ktonnes (down by 6.9%). In particular, lower volumes sales concerned polymers segment (-105 ktonnes) and intermediates (-49 ktonnes) due to lower product availability following depressed scenario.

Moulding & Compounding sales of 43 ktonnes are related to semi-finished and products of the Finproject group, particularly the last generation compound based on expandable polyolefins under the Levirex^® brand and the ultra-light plastic material under the XL Extralight^® brand.

Elastomers and styrenics margins improved supported by higher prices due to a demand recovery in the packaging sector and thermal insulation in the styrenics segment, and tyres in the elastomer segment. Margins in the styrenics segment also benefitted from lower imports. Margin in the polyethylene decreased from the first half of 2021.

PLENITUDE & POWER

PLENITUDE

RETAIL GAS & POWER

In the first half of 2022, retail and business gas sales in Italy and the rest of Europe amounted to 4.37 bcm, down by 0.23 bcm or 5.1% from the first half of 2021. Sales in Italy amounted to 2.94 bcm down by 1% from the comparative period, mainly reflecting lower volumes marketed at residential segment, partially mitigated by higher volumes marketed at the resellers segment.

Sales in the European markets (1.43 bcm) reported a decrease of 12.5% or 0.20 bcm compared to the first half of 2021. Sales in other European markets increased by 0.05 bcm following the contribution of the acquired assets in the Iberian Peninsula.

In the first half of 2022, retail and business power sales to end customers, managed by Plenitude and the subsidiaries in France, Iberian Peninsula and Greece, amounted to 9.58 TWh, an increase of 27.2% from the first half of 2021, due to sales growth to residential and industrial customers in Europe, leveraging on the expansion in Spain and Portugal, as consequence of Aldro Energía acquisition.

RENEWABLES

Energy production from renewable sources amounted to 1,220 GWh (of which 715 GWh wind and 505 GWh photovoltaic) up by 956 GWh compared to the first half of 2021. The increase in production compared to the previous year benefitted from the entry in operations of new plants in Italy and abroad, as well as the contribution of assets in the United States.

Follows breakdown of the installed capacity by Country and technology:

As of June 30, 2022, the total renewable installed capacity was 1,524 MW, more than a fourfold increase compared to the first half of 2021. Compared to June 30, 2021, the capacity increased by 1,165 MW, mainly thanks to the acquisition of the fully in operation assets in USA (Corazon), in Italy (Fortore Energia) and the installation of the first plant of the Brazoria photovoltaic project (USA).

POWER

Eni’s power generation sites are located in Brindisi, Ferrera Erbognone, Ravenna, Mantova, Ferrara and Bolgiano. As of June 30, 2022, installed operational capacity of EniPower’s power plants was 4.5 GW. In the first half of 2022, thermoelectric power generation was 11.06 TWh, increasing from the first half of 2021. Electricity trading (4.42 TWh) reported a decrease of 19.5% from the comparative period, continuing the optimization of inflows and outflows of power.

In the first half of 2021, power sales in the open market were 11.34 TWh, representing a decrease of 12.6%, following the lower volumes sold to the Power Exchange.

Financial review

PROFIT AND LOSS ACCOUNT

Reported results 

The results of the first half 2022 were achieved in a context characterized by a strengthened commodities price scenario: Brent grew from 65 $/barrel in the first half of 2021, to 108 $/barrel in the first half of 2022 (up 66%); gas prices in Europe reported a fivefold increase; in the chemical business the polyethylene-ethylene spread reached record values. The refining scenario in the European/Mediterranean area also reached a SERM benchmark values at an exceptional level (8.2 $/barrel on average in the first half of 2022 compared to -0.5 $/barrel on average in the same period of 2021) which marked a very short physical market and a better underlying’s performance. 

In particular, after the recovery recorded in the first quarter of 2022, the macroeconomic conditions and the stability of financial markets have significantly deteriorated during the second quarter 2022 amidst continued tightness and disruptions in the global flows of energy supplies and extreme price volatility, with the odds of a global recession gaining momentum against the backdrop of rising inflationary pressures and the ongoing systemic risk in connection with Russia’s military aggression of Ukraine. 

In the first half of 2022, net profit attributable to Eni’s shareholders was €7,398 million compared to €1,103 million in the first half of 2021, an increase of €6.3 billion supported by an excellent operating performance in all business segments (up €7.5 billion the operating profit). Net cash provided by operating activities increased by 78% to €7,281 million, while net borrowings before IFRS 16 decreased by €1,115 million from December 31, 2021, to €7,872 million. 

Against a more favorable economic scenario and improved fundamentals in the energy sector, net result was supported by operating performance and benefitted from the robust performance of equity-accounted JVs and associates (up €1.9 billion), as well as trends in the tax rate reaching the average historical value at consolidated level.

The following table shows the main scenario indicators reported in the first half of 2022:

Adjusted results and breakdown of special items

In the first half of 2022, the Group’s adjusted operating profit of €11,032 million increased by €7.7 billion, more than tripled from the first half of 2021. This result was driven by a robust performance in the upstream segment leveraging on a better pricing environment and lower costs, and in the Refining&Marketing business that reported an operating profit of €1 billion, leveraging on a SERM to 8.2 $/bbl on average in the first half of 2022. Strong contribution from GGP segment thanks to the LNG business, particularly in the first quarter of the year, and portfolio flexibility. 

In the first half of 2022, the Group’s adjusted net profit of €7,078 million increased by €5,879 million from the comparative period, thanks to the operating performance, the significantly higher results at equity-accounted JVs and associates (over €1 billion) and trends in the consolidated adjusted tax rate (38% in the first half 2022 compared to 58% recorded in the first half 2021) that excludes the Italian windfall tax levied on energy companies for fiscal year 2022. The adjusted tax rate trend was mainly driven by reduced tax rate in the E&P segment due to scenario-related effects and a more favorable geographic profit mix reflecting a higher share of taxable income earned in countries with more favorable statutory tax rates. Furthermore, the Group mix of taxable profit improved from a year ago due to a recovery in the profitability outlook of Italian subsidiaries, whereas in 2021 the recognition of deferred tax asset on losses for the period was limited by lower profitability prospects.

The breakdown of special items recorded in operating profit by segment (net charges of €1,061 million) is as follows:

The other special items in the first half of 2022 include: (i) the gain on the share offering of the Vår Energi investee through an IPO and listing at the Norwegian stock exchange; (ii) a charge relating to an Italian windfall tax levied on energy companies for fiscal year 2022 enacted by Law 51/2022; (iii) the alignment to current values of the raw materials and products inventory of the ADNOC refinery.

Analysis of profit and loss account items

Revenues