Eni announces results for the first quarter 2008

San Donato Milanese, April 24, 2008 - Eni, the international oil and gas company, today announces its group results for the first quarter 20081 (unaudited).

Paolo Scaroni, Chief Executive Officer, commented:
"Eni has delivered an excellent set of results, driven by a strong underlying performance and higher oil prices.
The results were achieved despite the impact of adverse currency movements and an unfavorable trading environment in our downstream activities. We are delivering on our strategic objectives, generating value from our 2007 acquisitions and remain focused on continued improvement in all our businesses."

Financial highlights

–   Adjusted operating profit was €5.91 billion, up 12.5% from the first quarter of 2007 and due to an improved operating performance reported by the Exploration & Production division. This was underpinned by higher realizations and production growth. Partly offsetting this was the euro's appreciation against the dollar (up 14.5%) and rising costs. The Petrochemical, Gas & Power and Refining & Marketing divisions reported lower operating profit due to an unfavorable trading environment.
–   Adjusted net profit was up 13.8% to €3.05 billion, mainly as a result of the stronger operating performance.
–   Capital expenditures for the quarter were up 54.9% from a year ago to €3.12 billion mainly related to continuing development activities of oil and gas reserves, exploration projects, and the upgrading of gas transportation infrastructures and Saipem rigs and offshore construction vessels.
–   Net cash generated by operating activities amounted to €4.76 billion and coupled with cash from divestments for €0.3 billion was used to fund expenditures on capital and exploratory projects (€3.12 billion), the completion of the acquisition of Burren Energy Plc (€1.7 billion) and the repurchase of 8.7 million own shares at a cost of €193 million. At March 31, 2008 net borrowings amounted to €15.59 billion, having decreased by €736 million from December 31, 2007, also due to foreign currency translation effects.
–   ‑Return on Average Capital Employed (ROACE) calculated on an adjusted basis for the twelve-month period ending March 31, 2008 was 20.3% (22.7% for the twelve-month period ending March 31, 2007).
–   Leverage, the ratio of net borrowings to shareholders' equity including minority interest, decreased to 0.35 from 0.38 at the end of 2007.

Operational highlights and trading environment

–   Oil and natural gas production for the first quarter averaged 1.796 mmboe/d, an increase of 3.6% compared with the first quarter of 2007 mainly due to the benefit of the assets acquired in 2007 in the Gulf of Mexico and Congo, as well as of Burren Energy from January 1, 2008 (for an overall increase of 118 kboe/d). Start-ups in Egypt and Angola, and field performance in Kazakhstan also supported production growth. These positives were partially offset by planned and unplanned facility downtime in the North Sea and Nigeria and mature field declines. Higher oil prices resulted in lower volume entitlements of approximately 78 kboe/d in Eni's Production Sharing Agreements (PSAs) and similar contractual schemes. Excluding the impact of lower entitlements in PSAs, production was up by over 8%.
–   Eni's worldwide natural gas sales were 30.91 bcm, up 9.3% and driven by higher seasonal sales and growth achieved in international sales.
–   Oil and gas realizations in the quarter were up 45.5%, driven by strength in Brent prices (up 67.8% from the first quarter 2007).
–   Natural gas marketing margins decreased slightly from a year ago due to an unfavorable trading environment reflecting indexation mechanisms of purchase/selling prices in sales to the Italian market.
–   Realized refining margins decreased from a year ago due to the euro's appreciation against the dollar and rising refining utility costs.

Outlook for 2008
The outlook for Eni in 2008 remains positive, with key business trends for the year as follows:
- Production of liquids and natural gas is forecast to be greater than in 2007 (actual oil and gas production averaged 1,736 mmboe/d in 2007) also in a high oil price environment. Management expects a full-year production level in excess of 1.8 mmboe/d assuming Eni's original planning scenario for Brent prices at $64/bl.
Additional production flowing from assets acquired in 2007 in the Gulf of Mexico and Congo, Burren Energy assets from the start of the year, as well as field start-ups in Angola, Egypt, Venezuela, Congo, and the USA will sustain production performance against expected mature field declines.
- Worldwide natural gas sales  are expected to increase by approximately 4% over 2007 (actual sales volumes in 2007 were 98.96 bcm) driven by strong seasonal sales in the quarter and international growth. The increase  expected to be achieved in international sales will be driven by growth in a number of markets in the Rest of Europe, mainly in France, Iberian Peninsula and Turkey, and in the LNG business.
- Refinery throughputs are expected to be unchanged from 2007 (actual throughputs in 2007 were 37.15 mmtonnes). Higher throughputs are forecast at the Ceska Refinerska as a result of the acquisition of an increased stake in 2007. This improvement will be partly offset by an expected decrease in Italy due to facility downtime at the Venice refinery.
- Retail sales of refined products are expected to increase by approximately 2% from 2007 level (11.8 mmtonnes were the comparable volumes achieved in 2007, which exclude volumes marketed in the Iberian Peninsula in 2007) driven by higher sales in Europe due to the full contribution of assets acquired in 2007 in Central-Eastern Europe.

In 2008, management expects to spend approximately €13.3 billion on capital expenditures, up 25% from 2007 (€10.59 billion in 2007). Major increases are expected in the development of oil and natural gas reserves, upgrading of construction vessels and rigs, and of natural gas transport infrastructures.
On the basis of planned cash outflows to fund capital expenditures, the completion of the acquisition of Burren Energy, and shareholders remuneration, management expects the Group's leverage to achieve a level in line with 0.38 as reported in 2007, assuming the revised Eni's scenario for Brent prices at 88 $/barrel for 2008 full-year and absent any further acquisition. Assuming also the exercise of the call options granted to Gazprom to purchase stakes in Eni's Russian assets (these include a 20% interest in OAO Gazprom Neft and a 51% interest in three gas companies), management's expects the Group's leverage to come in below the level reported in 2007.

This press release for the First Quarter of 2008 (unaudited) provides data and information on business and financial performance in compliance with article 154-ter of the Italian code for securities and exchanges ("Testo Unico della Finanza" - TUF).
Quarterly accounts disseminated herein have been prepared in accordance with the evaluation and measurement criteria set by the International Financial Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB) and adopted by the European Commission according to the procedure set forth in Article 6 of the European Regulation (CE) No. 1606/2002 of the European Parliament and European Council of July 19, 2002.
Results are presented for the First Quarter of 2008 and for the First and Fourth Quarters 2007. Information on liquidity and capital resources relates to end of the period as of March 31, 2008 and December 31, 2007.
Tables contained in this press release are comparable with those of 2007 financial statements and the 2007
semi-annual report.
Non-GAAP financial measures and other performance indicators disclosed throughout this report are accompanied by explanatory notes and tables to help investors to gain a full understanding of said measures in line with guidance provided for by recommendation CESR/05-178b.

Eni's Chief Financial Officer, Marco Mangiagalli in his position as manager responsible for the preparation of financial reports, certifies pursuant to article 154-bis paragraph 2 of Testo Unico della Finanza, that data and information disclosed in this press release correspond to the company's evidence and accounting books and entries.

Cautionary statement
This press release, in particular the statements under the section "Outlook", contains certain forward-looking statements particularly those regarding capital expenditures, development and management of oil and gas resources, dividends, share repurchases, allocation of future cash flow from operations, future operating performance, gearing, targets of production and sales growth, new markets, 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 timing of bringing new 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 pricing; operational problems; general economic 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 and other factors discussed elsewhere in this document.

Due to the seasonality in demand for natural gas and certain refined products and the changes in a number of external factors affecting Eni's operations, such as prices and margins of hydrocarbons and refined products, Eni's results from operations and changes in net borrowings for the First Quarter cannot be extrapolated on an annual basis.

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Eni
Società per Azioni, Rome, 1 Piazzale Enrico Mattei
Capital Stock: euro 4,005,358,876 fully paid
Registro Imprese di Roma, c. f. 00484960588
Tel.: +39-0659821 - Fax: +39-0659822141

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This press release for the First Quarter of 2008 (unaudited) is also available on the Eni web site: www.eni.it .

About Eni
Eni is one of the leading integrated energy companies in the world operating in the oil and gas, power generation, petrochemicals, engineering and construction industries. Eni is present in 70 countries and is Italy's largest company by market capitalization.