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Eni, the international oil and gas company, announced its group results for the first quarter of 2014. Net profit was $1.80 billion, down 15.6% from the first quarter 2013.

In the first quarter of 2014, adjusted operating profit was €3.49 billion, down 6.8% compared to the first quarter of 2013. This decline was driven by lower results achieved by the Exploration & Production Division (adjusted operating profit down by 13.7%), negatively influenced by a weak oil price environment (Brent benchmark down 3.9%) and the appreciation of the euro against the dollar (up 3.7%), and the Refining & Marketing Division, where operating losses were 66.4% more than in the previous-year quarter due to a continuing deterioration in the refining scenario and lower fuels demand.

The Engineering & Construction segment reported a 37.3% reduction in operating profit due to the lower profitability of current contract works.The Gas & Power Division reported a better operating performance (from a €211 million operating loss in the first quarter of 2013 to an operating profit of €241 million) against the backdrop of declining demand and ongoing competitive pressure. The division benefited in particular from the renegotiation of the Norwegian long-term gas supply contract with economic effects retroactive to the previous thermal year.

Adjusted net profit of the first quarter of 2014 amounted to €1.19 billion, down by 14.3% from the first quarter of 2013. This was driven by a lower operating performance and an increased adjusted consolidated tax rate (up 3 percentage points) due mainly to the Exploration & Production Division as a growing share of taxable profit was earned by subsidiaries subject to a higher tax rate.

Capital expenditure for the first quarter of 2014 amounted to €2.54 billion, mainly related to the development of oil and gas reserves and exploration projects.

As of March 31, 2014, net borrowings amounted to €13.8 billion, down €1.16 billion from the close of the previous reporting period. This decline reflected net cash provided by operating activities (€2.15 billion).

Operational highlights:

• Oil and gas production: 1.583 mmboe/d, up by 0.6% on homogeneous basis;

• Renegotiated the Norwegian long-term gas supply contract;

• Cashed the €2.2 billion of the Artic Russia deal;

• Divested a 7% interest in Galp Energia for a cash consideration of €0.7 billion;

• Buy back program: repurchased 8.85 million shares at a cost of €0.15 billion as of March 31, 2014;

• Discovered 200 million boe of resources.

Paolo Scaroni, Chief Executive Officer, commented: “Eni delivered solid results in the first quarter 2014, despite a difficult market environment, thanks to a good performance in E&P and progress in the mid and downstream businesses, in particular with the renegotiation of the Statoil gas supply contract. The outlook for 2014 is in line with our expectations, benefiting from the ramp-up of new projects and restructuring activities in G&P, R&M and Chemicals, in the context of continued volatility in Libya and weakness in European demand.”