Eni announces results for the Fourth Quarter and the Full Year 2011

• Adjusted operating profit: €17.97 billion for the full year (up 4%); €4.26 billion for the quarter (down 10%)
• Dividend proposal for the full year of €1.04 per share (includes an interim dividend of €0.52 per share paid in September 2011)
• 80% of the Company's Libyan output now online; full plateau seen in the second half of 2012
• The giant discovery in Mozambique has exceeded expectations and opens new growth opportunities in the gas market

San Donato Milanese, February 15, 2012 – Eni, the international oil and gas company, today announces the Group preliminary results for the fourth quarter and the full year 2011 (unaudited).

Financial Highlights

• Adjusted operating profit: €17.97 billion for the full year (up 4%); €4.26 billion for the quarter (down 10%)
• Adjusted net profit: €6.97 billion for the full year (up 2%); €1.54 billion for the quarter (down 10%)
• Net profit: €6.89 billion for the full year (up 9%); €1.32 billion for the quarter (up 141%)
• Cash flow: €14.39 billion for the full year; €3.19 billion for the quarter
• Dividend proposal for the full year of €1.04 per share (includes an interim dividend of €0.52 per share paid in September 2011)

Operational Highlights

• 80% of the Company's Libyan output now online; full plateau seen in the second half of 2012
• Oil and natural gas production down 14% in the quarter to 1.68 mmboe/d (down 13% for the full year). Excluding the impact of the force majeure in Libya and price effects, production was unchangedPreliminary year-end proved reserves estimate: 7.09 bboe with a reference Brent price of $111 per barrel.
  The all-sources reserve replacement ratio was 142%
• Natural gas sales: down 11% to 25.5 billion cubic meters in the quarter (unchanged on yearly basis)
• The giant discovery in Mozambique has exceeded expectations and opens new growth opportunities in the gas market
• Sanctioned the development plan of the Perla gas field in Venezuela
• Strengthened the exploration portfolio in the Barents Sea, Angola, Indonesia and Australia through new discoveries and contracts

Paolo Scaroni, Chief Executive Officer, commented:

"2011 was a year of significant exploration success for Eni. The large Mamba discovery in Mozambique opens up extraordinary development opportunities and is ideally placed to serve the fast-growing Asian gas markets. We have also made important discoveries in the Barents Sea, Angola and South-East Pacific. Meanwhile, we have rapidly restarted our Libyan operations, reducing the impact of the Revolution on 2011 results. The difficult macro economic situation in Italy and Europe has impacted our results in Gas & Power, Refining & Marketing and in the petrochemical sector. Despite that, thanks to our excellent strategic positioning, Eni will continue to generate industry-leading results, and create value for its shareholders in the long term".

(a) For a detailed explanation of adjusted operating profit and net profit see paragraph "Reconciliation of reported operating and net profit to results on an adjusted basis" page 26.
(b) Profit attributable to Eni's shareholders.
(c) Fully diluted. Dollar amounts are converted on the basis of the average EUR/USD exchange rate quoted by the ECB for the periods presented.
(d) One ADR (American Depositary Receipt) is equal to two Eni ordinary shares.

Adjusted operating profit

Eni's adjusted operating profit for the fourth quarter of 2011 was €4.26 billion, a decrease of 10.1% from the fourth quarter 2010 driven by the operating losses recorded by the downstream businesses against the backdrop of a recessionary environment. This development was partly absorbed by an improved operating performance reported by the Exploration & Production division (up 4.3%) reflecting higher oil prices and the effort made to recover the Libyan output. The Gas & Power division reported sharply lower operating profit (down 50.5%) dragged down by losses in the Marketing business. This reflected depressed gas consumption and rising competitive pressures, which squeezed unit margins and lowered sales opportunities. The Marketing results reflected only a part of the benefits associated with the renegotiations of the supply contracts, some of which are still pending necessarily delaying the recognition of the associated economic effects. The Refining & Marketing division and the Petrochemical segment both reported wider operating losses driven by the high supply cost of petroleum feedstock which was only partially transferred to product prices pressured by weak demand trends on their respective market outlets.

Full-year adjusted operating profit was €17.97 billion, an increase of 3.9% from 2010 driven by a robust performance delivered by the Exploration & Production division. This positive was partly offset by sharply lower results in the other businesses as well as lengthening times to renegotiate certain gas supply contracts.

Adjusted net profit

Adjusted net profit for the fourth quarter of 2011 was €1.54 billion, down 9.5% compared with a year ago. This decrease reflected lower operating results and higher consolidated adjusted tax rate (up 2 percentage points) due to an increasing taxable profit earned by the Exploration & Production subsidiaries as well as a changed tax regime for certain Italian subsidiaries as a result of the Italian budget laws enacted in the summer which increased by 4 percentage points to 10.5% the Italian windfall tax levied on energy companies (the so-called Robin Tax) and enlarged its scope to include gas transport and distribution companies. These negative effects were partly offset by increased results reported by equity-accounted and cost-accounted entities (up €250 million).

For the full year, adjusted net profit increased by 1.5% to €6.97 billion. The increased operating profit was partly offset by higher net finance charges (down €433 million) and Group adjusted tax rate (up approximately 2 percentage points).

Capital expenditure

Capital expenditure amounted to €3.89 billion for the quarter and €13.44 billion for the full year, mainly relating to the continuing development of oil and gas reserves, the upgrading of rigs and offshore vessels in the Engineering & Construction segment and of the gas transport infrastructure. The Group also incurred expenditures of €0.36 billion to finance joint-venture projects and equity investees.

Cash flow

The main cash inflows for the quarter were net cash generated by operating activities amounting to €3,189 million (€14,394 million for the full year) which benefited from a larger amount of receivables due beyond the end of the reporting period transferred to financing institutions (up by €654 in the fourth quarter; €500 million in the full year). Proceeds from divestments amounted to €1,577 million (€1,911 million for the full year) and mainly related to the divestment of the company's interests in the entities engaged in the international transport of gas from Northern Europe and Russia. These inflows were used to fund part of the financing requirements associated with capital expenditure of €3,894 million (€13,438 million for the full year), and, in the full year outflows, expenditures in joint venture initiatives, and the dividend payments to Eni's shareholders amounting to €3,695 million, that included both the interim dividend for fiscal year 2011 and the payment of the balance of the 2010 dividend. Other dividend payments to

non-controlling interests amounted to €549 million. As a result, net borrowings 1 as of December 31, 2011 amounted to €28,032 million, representing an increase of €1,913 million from December 31, 2010, while decreasing by €241 million from September 30, 2011.

Financial Ratios

The ratio of net borrowings to total equity (shareholders' equity plus non-controlling interest) – leverage 2 – was 0.46 at December 31, 2011 down from 0.47 as of December 31, 2010.
Return on Average Capital Employed (ROACE)2 calculated on an adjusted basis for the twelve-month period to December 31, 2011 was 9.9% (10.7% at December 31, 2010).

Dividend 2011

The Board of Directors intends to submit a proposal for distributing a cash dividend of €1.04 per share 3 (€1.00 in 2010) at the Annual Shareholders' Meeting. Included in this annual payment is €0.52 per share which was paid as interim dividend in September 2011. The balance of €0.52 per share is payable to shareholders on May 24, 2012, the ex-dividend date being May 21, 2012.

(1) Information on net borrowings composition is furnished on page 34.
(2) Non-GAAP financial measures disclosed throughout this press release are accompanied by explanatory notes and tables to help investors gain a full understanding of said measures in line with guidance provided for by CESR Recommendation No. 2005-178b. See pages 34 and 35 for leverage and ROACE, respectively.
(3) Dividends are not entitled to tax credit and, depending on the receiver, are subject to a withholding tax on distribution or are partially cumulated to the receiver's taxable income.

Exploration & Production
In the fourth quarter of 2011, Eni's reported liquids and gas production of 1.678 mmboe/d down by 14.1% from the fourth quarter of 2010 (down by 12.9% from 2010). This reduction was driven by a lowered flow from Eni activities in Libya, which was affected by the shut down of almost all the company's plants and facilities including the GreenStream pipeline throughout the peak of the Country's internal crisis (which lasted approximately 6 months). The extraordinary effort made in the last part of the year to restart production and reopen the GreenStream pipeline enabled the Company to bring back online an average Libyan output of 160 kboe/d in the quarter, up from approximately 50 kboe/d in the third quarter, partly offsetting the impact of force majeure. Performance for the quarter was impacted by lower entitlements in the Company's PSAs due to higher oil prices with an overall effect of approximately 20 kboe/d compared to the previous year's (approximately 30 kboe/d from the full year). When excluding these negative effects, the production of the two reporting periods was unchanged. The ramp-up of the field started in 2010 and the 2011 start-ups, in particular in Italy and Australia in the fourth quarter, offset a lower-than-anticipated growth in Iraq and the impact of planned facility downtimes, particularly in the UK and Kazakhstan in the quarter.

Gas & Power
In the fourth quarter of 2011 Eni's gas sales fell by 11.4% to 25.47 bcm due to weak demand and increasing competitive pressure driven by the oversupply in the marketplace. Volumes marketed on the domestic market decreased by 11.8% down in all segments, with the thermoelectric sales affected by the higher competitiveness of renewable sources and coal, and sales to wholesalers, medium-sized enterprises, services and residential users impacted by unusual winter weather.

Eni's volumes on the European markets decreased by 6% reflecting increased competitive pressure and unfavourable weather conditions, mainly in Benelux (down 44%), Hungary (down 12%) and France (down 11%), partly offset by higher sales in Turkey and Germany/Austria. In addition sharply lower off-takes by importers to Italy were registered in the period (down 76%) due to the declaration of force majeure on Libyan gas, suspended on December 20, 2011.

For the full year, gas sales (96.76 bcm) were barely unchanged from 2010. Volumes marketed in Italy reported a positive trend in the first part of the year, almost completely offset by lower sales registered in the fourth quarter. Outside Italy the decrease of sales to importers in Italy (down 62%) was absorbed by the higher volumes marketed on the European target markets (up 8%) driven by growth in Turkey, UK/Northern Europe, France, Germany/Austria and the Iberian Peninsula while sales in Benelux sharply decreased due to competitive pressure, mainly in the wholesale segment. LNG sales in extra European markets increased mainly in the Far East and South America.

Refining & Marketing
Refining margins for the quarter remained at unprofitable levels (the marker Brent margin was $2.52 per barrel; down 8% from the fourth quarter of 2010) due to high feedstock costs which were only partially transferred to prices at the pump driven by weak underlying fundamentals (sluggish demand, excess capacity and high inventory levels). Eni's margins in the same period decreased due to narrowing light-heavy crude differentials in the Mediterranean area dragging down the profitability of Eni's high conversion refineries. For the full year, Eni's refining margins were influenced by the same factors as in the quarter.

In the fourth quarter of 2011, Eni marketed lower volumes on its Italian retail network, down by 6% (down 3% for the full year) reflecting weak fuel consumption. The Company implemented a number of commercial initiatives intended to preserve its market share which remained stable in spite of a down market (30.4% in the fourth quarter; 30.5% in the full year). Retail sales in the European market were in line with the fourth quarter of 2011, while decreasing by 3% from 2010.

Currency
Results of operations for the full year were negatively impacted by the appreciation of the euro vs. the US dollar (up 4.9%).

Portfolio developments

The year 2011 was marked by the Libyan crisis on the one hand; on the other hand the Company showed its extraordinary resilience as it managed to recover its production levels in the Country almost completely in a very short time frame, following a situation of total standstill of its industrial activities during the peak of the crisis. In spite of those developments, we continued to pursue our long-term growth strategy laying foundations for a new development stage for Eni. The Mamba discovery found a massive gas field off the coast of Mozambique, representing by far the most important operated finding ever made by Eni. It promises to change the Group profile ensuring years of future growth and opportunities for investments and returns. The Final Investment Decision of the Perla giant gas field was sanctioned. The Perla field is located in the offshore Cardon IV Block in the Gulf of Venezuela. In the year 2011 we achieved start-ups at eleven oil and gas fields which are expected to add approximately 80 kboe/d at plateau to our medium-term production. We made final investment decisions to develop large projects such as the jointly-operated Samburgskoye and Urengoskoye giant gas fields in Siberia, in addition to the above mentioned Perla project. Many important deals were finalized to broaden the Company's portfolio of growth options in the unconventional resources, including agreements signed in China, Algeria and Ukraine. Several exploration successes strengthened the Company's resource base in the core areas of the Barents Sea, Angola, Indonesia, the USA and Ghana. In the Gas & Power division, we consolidated our leading market position by integrating the Altergaz customer portfolio in France and acquiring Nuon in Belgium, targeting the valuable residential and industrial segments in both cases. We started the "green chemistry" project at our industrial site of Porto Torres, Sardinia, paving the way to a strategic shift in our petrochemicals activity away from the old, commoditized businesses in favour of growing niche and innovative production. In this way, we are aiming to restore the economic equilibrium of Polimeri Europa over the medium-term. Lastly, we rationalized our asset portfolio by divesting our interests in the entities engaged in international gas transport form Northern Europe and Russia, and exited certain other marginal assets.

Fourth Quarter

Update on the Libyan situation
Following the conclusion of the internal conflict, and the gradual return to political and social normality in the Country, we have stepped up our efforts to fully resume production at our Libyan sites and facilities and gas exports through the GreenStream pipeline on the back of our stable contacts with the Interim Transitional National Council and continued collaboration with the NOC. Major milestones achieved in the final part of the year include the restart of oil production at the Wafa and Bu Attifel fields in September, the reopening of the GreenStream and gas production at the Wafa field in October, and the return to production of the Sabratha gas platform at the Bahr Essalam field in November which fills the GreenStream, and the El feel and Bouri oilfields during the same month. Production at our Libyan sites is currently flowing at approximately 240 kboe/d and we are targeting to achieve the pre-crisis production plateau of 280 kboe/d and full ramp-up by the second half of 2012. On December 20, 2011 we notified our counterpart in the Libyan petroleum contracts, NOC, of the termination of the declaration of force majeure which had occurred in April 2011.

Karachaganak
On December 14, 2011, the Republic of Kazakhstan (RoK) and the contracting companies in the giant Karachaganak gas-condensate field in north-west Kazakhstan reached an agreement to settle all pending claims relating to the recovery of costs incurred to develop the field, as well as a series of tax disputes. The agreement will support the further development of the field.

The agreement, effective from June 30, 2012 on satisfaction of conditions precedent, involves Kazakhstan's KazMunaiGas (KMG) acquiring a 10% interest in the project. This will be done by each of the contracting companies transferring 10% of their rights and interest in the Karachaganak Final Production Sharing Agreement (FPSA) to KMG. The contracting companies will receive $1 billion net cash consideration ($325 million being Eni's share).

In addition the agreement provides for the allocation of an additional 2 million tonnes of liquids per annum capacity for the Karachaganak project in the Caspian Pipeline Consortium export pipeline. The effects of the agreement on profit and loss and reserve and production entitlements will be recognized in the 2012 financial statements.

Indonesia
In November 2011, Eni was awarded two operated gas exploration contracts: (i) the Arguni I block (Eni's interest 100%) located onshore and offshore in the Bintuni basin near a liquefaction facility; (ii) the North Ganal Block, located offshore Indonesia near the relevant Jangkrik discovery and the Bontang liquefaction terminal, in a consortium with other international oil companies.

Australia
In November 2011, Eni acquired a 32.5% stake in the Evans Shoal gas discovery in the Timor Sea with approximately 7 Tcf of volumes of gas in place.

Venezuela
In December 2011, Eni and its partner Repsol (50%-50%) signed a Gas Sales Agreement for developing the giant Perla gas discovery, containing over 17 Tcf of gas in place with the Venezuelan national oil company PDVSA. The development plan provides for three phases, targeting production of approximately 9 Tcf until 2036 or 1.2 mmcf/d at peak. The gas produced will be used locally and exported. The investment plan for the first development phase is estimated at $1.4 billion. The national oil company PDVSA is entitled to acquire a 35% interest in the development project by proportionally diluting the interest of each of the international partners.

Angola
In December 2011, Eni and the Angolan authorities signed a Production Sharing Contract for the exploration of Block 35, located in a very promising offshore basin. Eni also signed agreements with Sonangol for joint mineral initiatives, the implementation of a pilot project on food and biodiesel and development projects related to non associated gas in Block 15/06, as well as an Intent Protocol for the construction of a refinery.

Belgium
In January 2012, Eni completed the acquisition of Nuon Belgium NV and Nuon Power Generation Wallon NV that supply gas and electricity to the industrial and residential segments in Belgium for a cash consideration amounting to €214 million.

Full-year 2011

Mozambique
A full range of activities is ongoing at the giant gas discovery Mamba South 1 (Eni operator with a 70% interest), located in Area 4 in the offshore Rovuma Basin. The Mamba South 1 discovery well was drilled in two sequential stages. According to field test results, the mineral potential of the area is huge, with up to 22.5 Tcf of gas in place, confirming the Rovuma Basin as a world-class natural gas province. The first exploration well makes it the largest operated discovery in the Company's exploration history. The potential of the Mamba complex has been further consolidated by the Mamba North 1 discovery in the first part of 2012, which encountered an additional mineral potential of 7.5 Tcf. It is estimated that the total volume of gas in place now reaches about 30 Tcf.

Algeria
In April 2011, Eni signed a cooperation agreement with Sonatrach to explore for and develop unconventional hydrocarbons, particularly shale gas plays.

China
In January 2011, Eni signed a Memorandum of Understanding with CNPC/Petrochina to pursue joint initiatives targeting development of both conventional and unconventional resources in China and outside China.

Ukraine
In April 2011, an agreement was signed with Cadogan Petroleum plc for the acquisition of an interest in two exploration and development licences located in the Dniepr-Donetz basin, in Ukraine.

Australia
In May 2011, Eni signed an agreement with MEO Australia to farm-in the Heron and Blackwood gas discoveries in the NT/P-68 permit, located in the Timor Sea. Eni will acquire a 50% stake and operatorship in both gas discoveries by financing exploration activities relating to the drilling of two appraisal wells for Heron, and one appraisal well and seismic surveys for Blackwood. The agreement also provides an option to acquire an additional 25% in both the discoveries by financing the development plan required to reach a Final Investment Decision (FID).

Bio-based chemicals
In June 2011, through its subsidiary Polimeri Europa, Eni signed a cooperation agreement with Novamont SpA to convert Eni's Porto Torres chemical plant into an innovative bio-based chemical complex to produce bio-plastics and other bio-based petrochemical products (bio-lubricants and bio-additives) for which significant growth is expected in the medium-long term. The project will be supported by an integrated supply chain and raw materials of vegetable origin. Novamont will contribute its technologies and skills in the bio-plastics and bio-based chemical sector. Eni will contribute to the joint entity the Porto Torres plant, infrastructure and professional staff as well as its industry, technical-engineering and commercial know-how in the petrochemical sector. In addition, Eni aims to build a biomass power plant and to carry out a number of projects for the environmental restoration and clean-up activities. Eni plans to make capital expenditure totalling approximately €1.2 billion in the 2011-2016 period to execute the above mentioned projects, directly or through the joint entity.

Exploration activities
In 2011, in addition to Mamba, significant exploratory success was achieved in

1. Norway where the Skrugrad and the Havis oil and gas discoveries in the PL532 license (Eni 30%) found a combined amount of 500 mmbbl of recoverable resources. Both fields are planned to be put in production by means of a fast-track synergic development;
2. Angola, where a number of discoveries were made offshore Block 15/06 (Eni operator with a 35% interest) (i) with the Mukuvo-1 discovery and Cinguvu-2 appraisal and Cabaça South East-3 oil wells. These discoveries will be put into production through the West (already sanctioned in 2010) and East Hubs projects; (ii) the Lira gas and condensates discovery. In addition exploration activity yielded positive results in Block 2 (Eni's interest 20%) within the Gas Project, with the drilling of the Garoupa-2 and Garoupa Norte 1 appraisal wells containing gas and condensates;
3. Indonesia, with the Jangkrik North East gas discovery in the offshore Block Muara Bakau (Eni operator with a 55% interest);
4. USA, in the Gulf of Mexico, with the Hadrian North appraisal well containing oil and natural gas resources in Block KC919 (Eni's interest 25%);
5. Ghana, with the appraisal well Sankofa-2 and the Gye Nyame discovery containing gas and condensates in the offshore Block Cape Three Points (Eni operator with a 47.22% interest). Possible development synergies are under evaluation;
6. Venezuela, where the Perla 4 and 5 appraisal wells in the Cardon IV Block (Eni's interest 50%) were successfully drilled. Results exceeded the initial resource estimation bringing it to more than 16,000 bcf.

1. Denise B (Eni's interest 50%), in the Nile Delta in Egypt, which started to flow at approximately 7 kboe/d and production peaking at approximately 14 kboe/d net to Eni in 2012;
2. Kitan (Eni operator with a 40% interest), located deep offshore between Timor-Leste and Australia and production start-up of approximately 3 kbbl/d net to Eni. Production at the Kitan field is supported through subsea completion wells connected to an FPSO (Floating Production Storage and Offloading) and is expected to peak approximately 11 kbbl/d in 2012;
3. Capparuccia (Eni's interest 95%) and Guendalina (Eni's interest 80%) in Italy, with an initial production of approximately
   3 kboe/d net to Eni;
4. Libondo (Eni's interest 35%), offshore Congo, which started to flow at 3 kboe/d net to Eni;
5. Nikaitchuq (Eni operator with a 100% interest), offshore Alaska, with an initial production of approximately 5 kbbl/d. Production is expected to peak at approximately 21 kbbl/d;
6. Appaloosa (Eni's interest 100%), in the Gulf of Mexico, with a production of approximately 4 kbbl/d.

Outlook

Eni will host a strategy presentation on March 15, 2012 to outline the Company's targets for the 2012-2015 four-year plan.

Eni expects the 2012 outlook to be a challenging one due to continuing signs of an economic slowdown, particularly in the Euro-zone, and volatile market conditions. International oil prices will be supported by robust demand growth from China and other emerging economies, as well as ongoing geopolitical risks and uncertainties, partly offset by a recovery in the Libyan output. For investment planning purposes and short-term financial projections, Eni assumes a full-year average price of $90 a barrel for the Brent crude benchmark. Recovery perspectives look poor in the gas sector. Gas demand is expected to be soft due to slow economic activity and increasing competition from renewables; in the meantime the marketplace is seen well supplied. Against this backdrop, management expects ongoing margin pressures to continue in 2012, and reduced sales opportunities due to rising competition. Management foresees the persistence of a depressed trading environment in the European refining business. Refining margins are anticipated to remain at unprofitable levels due to high costs of oil supplies, sluggish demand and excess capacity.

Against this backdrop, key volumes trends for the year are expected to be the following:

• Production of liquids and natural gas: production is expected to grow compared to 2011 (in 2011 hydrocarbons production was reported at 1.58 million boe/d) driven by a progressive recovery in the Company's Libyan output to achieve the pre-crisis level, coming fully online by the second half of 2012. Excluding this important development, management still sees a growth trajectory in production, boosted by the continuing ramp-up in Italy and Iraq and new field start-ups at certain large projects in Algeria and offshore Angola and the gas joint development in Siberia. These increases will be partly offset by mature field declines;
• Worldwide gas sales: management expects natural gas sales to be roughly in line with 2011 (in 2011, worldwide gas sales were reported at 96.76 bcm and included sales of both consolidated subsidiaries and equity-accounted entities, as well as upstream direct sales in the US and the North Sea). In spite of weak demand growth in Italy, management is targeting to boost sales volumes and market share and to retain and develop its retail customer base; outside Italy the main engines of growth will be sales expansion in the key markets of France and Germany/Austria and opportunities in the Far East. Management intends to leverage on an improved cost position due to the benefits of contract renegotiations, integration of recently-acquired assets in core European markets, development of the commercial offer through a multi-country platform, and service excellence. Management is also planning to enhance trading activities to draw value from existing assets;
• Refining throughputs on Eni's account: management foresees refinery processed volumes to be in line with 2011 (in 2011 refining throughputs on own account were reported at 31.96 million tonnes) in response to a negative trading environment. Management is planning to pursue process optimization measures by improving yields, cycle integration and flexibility, as well as efficiency gains by cutting fixed and logistics costs and energy savings in order to reduce the business exposure to the market volatility and achieve immediate benefit on the profit and loss. Enhancement of oil trading activities will help expand industrial margins;
• Retail sales of refined products in Italy and the Rest of Europe: management foresees retail sales volumes to be slightly lower than in 2011 (in 2011, retail sales volumes in Italy and Rest of Europe were reported at 11.37 million tonnes). In Italy where fuel consumption is expected to continue on a downward trend and a new wave of liberalization promises to spur competition, management intends to preserve the Company's market share leveraging marketing initiatives tailored to customers' needs, the strength of the eni brand targeting to complete the rebranding of the network, and an excellent service. Outside Italy, the Company will grow selectively targeting stable volumes on the whole;
• Engineering & Construction: the profitability outlook of this business remains bright due to an established competitive position and a robust order backlog.

For the full year 2012, management expects a capital budget almost in line with 2011 (in 2011 capital expenditure amounted to €13.44 billion, while expenditures incurred in joint venture initiatives and other investments amounted to €0.36 billion). Management plans to continue spending on exploration to appraise the mineral potential of recent discoveries (Mozambique, Norway, Ghana and Indonesia) and investing large amounts on developing growing areas and maintain field plateaus in mature basins. Other investment initiatives will target the upgrading of the gas transport and distribution networks, the completion of the EST project in the refining business, and strengthening selected petrochemicals plants. The ratio of net borrowings to total equity – leverage – is projected to be roughly in line with the level achieved at the end of 2011 assuming a Brent price of $90 a barrel.

This press release has been prepared on a voluntary basis in accordance with the best practices on the marketplace. It provides data and information on the Company's business and financial performance for the fourth quarter and the full year 2011 (unaudited). In this press release results and cash flows are presented for the third and fourth quarter of 2011, the fourth quarter of 2010 and the full year 2011 and 2010. Information on liquidity and capital resources relates to the end of the periods as of December 31 and September 30, 2011, and December 31, 2010. Tables contained in this press release are comparable with those presented in the management's disclosure section of the Company's annual report and interim report.

Full year and quarterly accounts set forth herein have been prepared in accordance with the evaluation and recognition 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. The evaluation and recognition criteria applied in the preparation of this report are unchanged from those adopted for the preparation of the 2010 Annual Report.

Non-GAAP financial measures and other performance indicators disclosed throughout this press release are accompanied by explanatory notes and tables to help investors to gain a full understanding of said measures in line with guidance provided by recommendation CESR/05-178b.

Eni's Chief Financial Officer, Alessandro Bernini, in his position as manager responsible for the preparation of the Company's financial reports, certifies pursuant to rule 154-bis paragraph 2 of Legislative Decree No. 58/1998, that data and information disclosed in this press release correspond to the Company's evidence and accounting books and records.

Cautionary statement
This press release, in particular the statements under the section "Outlook", contains certain forward-looking statements particularly those regarding capital expenditure, development and management of oil and gas resources, dividends, 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 fourth quarter of the year cannot be extrapolated on an annual basis.