Key performance/sustainability indicators

Portfolio developments and main projects

In 2010, the acquisition of downstream activities in Austria was finalized. It includes a retail network, wholesale activities, as well as commercial assets in the aviation business and related logistic and storage activities.

The re-branding of Eni’s service stations and the upgrading of Eni’s retail network are ongoing. In 2010, 463 service stations in Italy were re-branded to the “eni” brand, corresponding to approximately 10% of the retail network, with priority awarded to high throughput service stations with non-oil activities.

Financial and operating results

In 2010, the Refining & Marketing Division reported a substantial recovery from 2009 with adjusted net loss improving from -€197 million to -€49 million due to more positive trends in the refining business, an improved performance of the marketing business and increased earnings reported by equity-accounted subsidiaries.

Return on average capital employed on an adjusted basis was a negative 0.6% (-2.6% in 2009).

Capital expenditures totaled €711 million and related mainly to projects designed to improve the conversion rate and flexibility of refineries, logistic assets, the upgrade of the refined product retail network in Italy and in the rest of Europe.

In the medium term, notwithstanding persisting negative trends in the market scenario, management plans to recover profitability and to generate positive free cash flows from 2011. Eni intends to focus on efficiency improvements, optimization of refinery processes, selection of capital projects, and, in marketing, increase retail sales and market share in Italy.

In 2010, the offer of products and non-oil services improved in Eni’s retail network in Italy, due to the opening/restructuring of 257 outlets under the new “eni café” and “eni shop” format, and 50 car wash units.

2010 Highlight