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 2014

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 o

     (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 o                    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

Interim Consolidated Report as of June 30, 2014

Press Release dated August 6, 2014

Press Release dated August 13, 2014

Press Release dated August 20, 2014

Press Release dated August 27, 2014

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.

Eni S.p.A.
	Name: Antonio Cristodoro
	Title:	Head of Corporate Secretary's Staff Office

Date: August 31, 2014

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164

Eni Interim Consolidated Report / Highlights

Results >In the first half of 2014 Eni reported net profit of euro 1.96 billion, up by 7.9% from the first half of the previous year. Adjusted results were up by 9% and 4.8% at the operating and net level at euro 6.22 billion and euro 2.06 billion, respectively. When excluding the exceptional loss made by Saipem in 2013, adjusted results were down by 3% and 8%, respectively.

- This result was driven by a sizeable improvement in the Gas & Power performance (up by approximately euro 1 billion) driven by the gas supply contracts renegotiation whereby the Company achieved to align about 60% of contracted volumes to market conditions and to downsize take-or-pay exposure, against the backdrop of continuing weak demand and strong competitive pressure.

- The Exploration & Production segment reported a decrease of 13.2% in adjusted operating profit due to lower production sold impacted mainly by geopolitical issues in Libya, higher depreciation charges taken in connection with the start-ups and ramp-ups of new fields by the second half of 2013 and the appreciation of the euro vs. the dollar (up 4.3%).

- Refining & Marketing and Versalis reported increasing operating losses, up by 42.6% and 25.5%, respectively, driven by weak fundamentals in their respective industries which were affected by slow recovery in the Euro-zone, excess capacity and increasing competitive pressure from product streams imported from Russia and Middle East, and higher prices of oil-based feedstock.

- Eni delivered robust cash flow¹ at euro 5.74 billion. Asset divestments contributed euro 3 billion of cash, relating to the divestment of the interest in Artic Russia, which operates gas assets in Siberia, to certain Gazprom subsidiaries (euro 2.2 billion) and the sale of an 8% interest in Galp Energia (euro 0.8 billion).

- The cash inflows were used to fund capital expenditure of euro 5.52 billion, mainly focused on the exploration and development of hydrocarbon reserves, payment of the balance dividend 2013 to Eni’s shareholders (euro 2 billion) and the repurchase of the Eni’s shares (euro 0.2 billion). As of June 30, 2014, net borrowings amounted to euro 14.60 billion, down by euro 0.36 billion from December 31, 2013.

- Leverage decreased to 0.24 at June 30, 2014 with respect to 0.25 at December 31, 2013.

Interim dividend >In light of the financial results achieved in the first half of 2014 and management’s expectations for full-year results, the interim dividend proposal to the Board of Directors on September 17, 2014 will amount to euro 0.56 per share (euro 0.55 per share in 2013). The interim dividend is payable on September 25, 2014, with September 22, 2014 being the ex dividend date.

Rationalization of mid-downstream assets >As part of its strategy of rationalizing its mid-downstream portfolio, Eni signed preliminary agreements to sell its interest in the joint venture for marketing and transportation of gas in Germany, EnBw, as well as the retail networks in the Czech Republic, Slovakia and Romania and the related interest in a local refinery. These transactions are subject to the approval of the competent European antitrust authorities.

Liquids and gas production >In the first half of 2014 Eni reported liquids and gas production of 1.583 million boe/d. Compared to the first half of the previous year, on a homogeneous basis, excluding the effects of the assets disposal in Siberia and geopolitical factors, production level remained substantially unchanged. Ramp-ups in the United Kingdom and Algeria were offset by mature fields’ declines.

Exploration successes >Exploration successes mainly achieved in Congo, Egypt and Nigeria added 420 million boe of fresh resources to the Company’s resource base. In addition, in July, Eni achieved a new important discovery offshore Gabon with a potential in place of 500 million boe.

New exploration acreage >Acquired new exploration acreage with high mineral potential in strategic basins of presence (Indonesia, Vietnam, Egypt, China and the United States) and in frontier areas

__________________________

(1) Net cash provided by operating activities.

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Eni Interim Consolidated Report / Highlights

(Greenland) for a total acreage of 19,000 square kilometers (net to Eni), targeting to rejuvenate Eni’s mineral right portfolio and to ensure new growth options.

Natural gas sales >In the first half of 2014 natural gas sales amounted to 45.85 bcm, down by 6.9% from the first half of the previous year, reflecting unusual winter weather conditions and continuing weakness in the power generation segment which was also affected by excess hydroelectric production.

Agreement in Venezuela >Defined with PDVSA a Memorandum of Understanding providing a framework for the commercial development of liquids associated with the super-giant Perla field’s gas reserves.

Green chemistry and Bio-refining >In the first half of 2014 achieved the start-up of the Porto Torres green chemistry plant, in joint venture with Novamont, producing chemical products for industrial use from renewable raw materials. The target capacity of the plant is 70 ktonnes/year of bio-monomers and intermediates. At the Venice refinery, achieved the start-up of the new production line of Green Diesel, with target capacity of approximately 300 ktonnes/year.

Safety >In the first half of 2014 the employees’ injury frequency rate was affected by a slightly higher number of incidents reported in the Exploration & Production, Refining & Marketing and Engineering & Construction segments. Total number of injuries increased to 48, from 42 of the first half of 2013. In the first six months of 2014, the communication and training program "eni in safety" and the "zero fatalities" project went on, in order to face critical issues of injuries.

GHG emissions >GHG emissions decreased, reflecting lower operating performance, energy efficiency actions and projects on gas flaring reduction. In particular, flared hydrocarbon volumes decreased by 40% compared to the first half of 2013, following the start-ups of flaring down projects in Ogbaindiri and Akri (Nigeria) and M’Boundi (Congo).

Use of water in production process >A further improvement registered in the use of re-injected water in production in the Exploration & Production segment, with a water re-injection rate increasing to 57%.

Expenditure for the territory >The overall expenditure for the territory in the first half of 2014 amounted to euro 35.7 million, including community investment of euro 24.5 million (over 93% of which was spent in the Exploration & Production segment). Investments regarded mainly Kazakhstan, Nigeria, Italy and Congo.

Financial highlights
i	i	i	First half

2013 (euro million) 2013 2014

114,697	Net sales from operations		59,287	56,556
8,888	Operating profit		5,338	5,901
12,650	Adjusted operating profit		5,705	6,219
5,160	Net profit (a)		1,818	1,961
4,433	Adjusted net profit (b)		1,961	2,055
11,026	Net cash provided by operating activities		4,815	5,740
12,800	Capital expenditure		5,947	5,524
138,341	Total assets at period end		137,887	140,076
61,049	Shareholders' equity including non-controlling interest at period end		61,717	61,261
14,963	Net borrowings at period end		15,984	14,601
76,012	Net capital employed at period end		77,701	75,862
17.49	Share price at period end	(euro)	15.78	19.98
3,622.8	Number of shares outstanding at period end	(million)	3,622.8	3,615.0
63.4	Market capitalization (c)	(euro billion)	57.2	72.2

(a) Profit attributable to Eni's shareholders.

(b) For a detailed explanation of adjusted (net and operating) profits, that exclude inventory holding gain/loss and special items, see paragraph "Reconciliation of reported operating profit and reported net profit to results on an adjusted basis".

(c) Number of outstanding shares by reference price at period end.

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Eni Interim Consolidated Report / Highlights

Summary financial data *
i	i	i	First half

2013 2013 2014

	Net profit
1.42	- per share (a)	(euro)	0.50	0.54
3.77	- per ADR (a) (b)	(USD)	1.31	1.48
	Adjusted net profit
1.22	- per share (a)	(euro)	0.54	0.57
3.24	- per ADR (a) (b)	(USD)	1.42	1.56
5.9	Adjusted Return On Average Capital Employed (ROACE)	(%)	7.0	6.8
0.3	Leverage		0.3	0.24
8.8	Coverage		8.8	12.0
1.5	Current ratio		1.5	1.6
73.7	Debt coverage		30.1	39.3

* See "Glossary" for ratios explanation.

(a) Fully diluted. Ratio of net profit and average number of shares outstanding in the period. Dollar amounts are converted on the basis of the average EUR/USD exchange rate quoted by ECB for the period presented.

(b) One American Depositary Receipt (ADR) is equal to two Eni ordinary shares.

Operating and sustainability data
i	i	i	First half

2013 2013 2014

82,786	Employees at period end	(number)	81,564	84,990
	of which:
13,596	- women		13,313	13,847
55,781	- outside Italy		54,761	58,100
19.3	Female managers	(%)	18.9	19.4

0.40	Employees injury frequency rate	(No. of accidents per million hours worked)	0.37	0.41
0.32	Contractors injury frequency rate		0.29	0.27
0.98	Fatality index	(fatal injuries per one hundred millions of worked hours)	0.95	1.04

1,901	Oil spills due to operations in the environment	(barrels)	1,104	748
47.30	GHG emission	(mmtonnes CO2 eq)	23.70	21.46
197	R&D expenditures (a)	(euro million)	88	85
	Exploration & Production
1,619	Production of hydrocarbons	(kboe/d)	1,624	1,583
833	- Liquids	(kbbl/d)	832	817
4,320	- Natural gas	(mmcf/d)	4,350	4,208
555.3	Production sold	(mmboe)	276.1	267.7
	Gas & Power
93.17	Worldwide gas sales (b)	(bcm)	49.26	45.85
35.86	- in Italy		19.03	18.45
57.31	- outside Italy		30.23	27.40
	Refining & Marketing
27.38	Refinery throughputs on own account	(mmtonnes)	13.76	11.69
9.69	Retail sales of petroleum products in Europe		4.82	4.54
1,828	Average throughput of service stations in Europe	(kliters)	910	844
	Versalis
5,817	Production	(ktonnes)	3,025	2,801
3,785	Sales of petrochemical products		1,968	1,852
65.3	Average utilization rare	(%)	67.7	74.0
	Engineering & Construction
10,062	Orders acquired	(euro million)	6,704	13,132
17,065	Order backlog at period end		21,169	24,215

(a) Net of general and administrative costs.

(b) Includes Exploration & Production natural gas sales amounting to 1.51 bcm (1.34 and 2.61 bcm in the first half of 2013 and in the year 2013, respectively).

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Eni Interim Consolidated Report / Operating review

Exploration & Production

Key performance indicators
i	i	i	First half

2013 2013 2014

0.14	Employees injury frequency rate	(No. of accidents per million of worked hours)	0.10	0.29
0.26	Contractors injury frequency rate		0.32	0.23
31,264	Net sales from operations (a)	(euro million)	15,614	14,802
14,868	Operating profit		7,435	6,221
14,643	Adjusted operating profit		7,407	6,431
5,950	Adjusted net profit		3,110	2,464
10,475	Capital expenditure		4,893	4,688
	Average realizations (b)
99.44	- Liquids	($/bbl)	97.60	100.04
7.26	- Natural gas	($/mcf)	7.27	7.19
71.87	- Hydrocarbons	($/boe)	70.33	71.87
	Production of hydrocarbons (b)
833	- Liquids	(kbbl/d)	832	817
4,320	- Natural gas	(mmcf/d)	4,350	4,208
1,619	- Hydrocarbons	(kboe/d)	1,624	1,583
12,352	Employees at period end	(number)	11,880	12,548
8,219	of which: outside Italy		7,877	8,296
1,728	Oil spills due to operations (>1 bbl)	(bbl)	968	526
5,493	Oil spills from sabotage (>1 bbl)		1,118	3,299
55	Reinjected water	(%)	45	57
25.71	Direct GHG emissions	(mmtonnes CO2 eq)	12.85	11.59
8.48	of which: from flaring		4.67	2.96

(a) Before elimination of intragroup sales.

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

Mineral right portfolio and exploration activitiesAs of June 30, 2014, Eni’s mineral right portfolio consisted of 958 exclusive or shared rights for exploration and development in 39 Countries on five continents for a total acreage of 287,581 square kilometers net to Eni (276,256 square kilometers net to Eni as of December 31, 2013).
In the first half of 2014, changes in total net acreage mainly derived from: (i) new leases mainly in Indonesia, Vietnam, Egypt, China, Greenland and the United States, and for a total acreage of approximately 19,000 square kilometers; (ii) the total relinquishment of licenses mainly in Egypt, Poland and Togo, covering an acreage of approximately 8,000 square kilometers; (iii) partial relinquishment in Indonesia and Egypt for approximately 1,000 square kilometers.
In addition, Eni has been granted three prospection permits in Algeria for a net acreage of approximately 23,000 square kilometers.
In the first half of 2014, a total of 22 new exploratory wells were drilled (11.3 of which represented Eni’s share), as compared to 28 exploratory wells drilled in the first half of 2013 (15 of which represented Eni’s share).

Oil and gas production
In the first half of 2014, Eni’s liquids and gas production was 1.583 million boe/d. On a homogeneous basis, excluding the effects of the divestment of Eni’s interest in certain gas assets in Siberia effective from the beginning of the year, as well as the negative impact of geopolitical factors, production was broadly in line compared to the first half of 2013. Production ramp-ups mainly in the United Kingdom and

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Eni Interim Consolidated Report / Operating review

Algeria were offset by mature fields declines. The share of oil and natural gas produced outside Italy was 89%.

Liquids production (817 kbbl/d) decreased by 15 kbbl/d, or 1.8%, reflecting lower production volumes in Libya and Angola and the effect of the divestment of the Siberian assets. These negatives were partly offset by new field start-ups and ramp-ups mainly in the United Kingdom, Algeria and the United States.

Natural gas production (4,208 mmcf/d), when excluding the effect of the divestment of the Siberian assets, was in line with the same period of the previous year. Mature fields declines were offset by new field start-ups and ramp-ups.

Oil and gas production sold amounted to 267.7 mmboe. The 18.9 mmboe difference over production (286.6 mmboe) reflected mainly volumes of natural gas consumed in operations (15.8 mmboe).

Hydrocarbons production ^{(a) (b)}

First half

2013 (kboe/d) 2013 2014 Change % Ch.

186	Italy		181	180	(1	)	(0.6	)
155	Rest of Europe		154	193	39		25.3
556	North Africa		576	546	(30	)	(5.2	)
332	Sub-Saharan Africa		317	322	5		1.6
100	Kazakhstan		104	96	(8	)	(7.7	)
144	Rest of Asia		145	100	(45	)	(31.0	)
116	America		115	119	4		3.5
30	Australia and Oceania		32	27	(5	)	(15.6	)
1,619			1,624	1,583	(41	)	(2.5	)
555.3	Production sold	(mmboe)	276.1	267.7	(8.4	)	(3.0	)

Liquids production ^(a)

First half

2013 (kbbl/d) 2013 2014 Change % Ch.

71	Italy	65	73	8		12.3
77	Rest of Europe	77	95	18		23.4
252	North Africa	257	241	(16	)	(6.2	)
242	Sub-Saharan Africa	239	229	(10	)	(4.2	)
61	Kazakhstan	64	56	(8	)	(12.5	)
49	Rest of Asia	51	36	(15	)	(29.4	)
71	America	68	80	12		17.6
10	Australia and Oceania	11	7	(4	)	(36.4	)
833		832	817	(15	)	(1.8	)

Natural gas production ^{(a) (b)}

First half

2013 (mmcf/d) 2013 2014 Change % Ch.

630	Italy	637	588	(49	)	(7.7	)
430	Rest of Europe	423	540	117		27.7
1,674	North Africa	1,753	1,674	(79	)	(4.5	)
496	Sub-Saharan Africa	433	510	77		17.8
214	Kazakhstan	216	219	3		1.4
521	Rest of Asia	519	354	(165	)	(31.8	)
245	America	258	210	(48	)	(18.6	)
110	Australia and Oceania	111	113	2		1.8
4,320		4,350	4,208	(142	)	(3.3	)

(a) Includes Eni’s share of equity-accounted entities.
(b) Includes volumes of gas consumed in operation (479 and 415 mmcf/d in the first half 2014 and 2013, respectively and 451 mmcf/d in 2013).

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Eni Interim Consolidated Report / Operating review

Main exploration and development projects

Italy

In the Val d’Agri concession (Eni’s interest 60.77%), the development plan of oil reserves is ongoing as agreed with the regional administrative authority in 1998: (i) the construction of a new gas treatment line has progressed, aiming at improving the environmental performance of the treatment unit and achieving a production capacity of 104 kbbl/d; (ii) an environmental monitoring plan is ongoing which management believes to be a best practice to safeguard the environment. Eni has also implemented a plan to preserve biodiversity in Val d'Agri adopting the best standards on the marketplace; (iii) continuing improvement and maintenance activities have progressed to optimize environmental and production performance of the field.
Other main development activities concerned: (i) the maintenance and production optimization at the Armida, Barbara, Cervia and Clara fields; (ii) the ongoing development activities of the Fauzia and Elettra fields in the Adriatic offshore.

Rest of Europe

Norway Exploration activities yielded positive results in the PL 532 license (Eni’s interest 30%) with the Drivis oil and gas discovery, in addition to the recent oil and gas discoveries of Skrugard, Havis and Skavl. The total recoverable resources of the license are estimated at over 600 million barrels at 100%.
Development activities progressed at the Goliat field (Eni operator with a 65% interest) in the Barents Sea. Start-up is expected in 2015, with a production plateau of approximately 62 kboe/d net to Eni in 2016. During the first half of 2014 the implementation of oil spill contingency and response progressed by means of the development of techniques and methodologies to support the oil spill preparedness program. The performed activity in the drilling phases has been acknowledged by the Norwegian Authorities as the reference standard for oil response in the coastal areas. The project was launched by Eni and its partner in the program jointly with the Norwegian Clean Seas Association for Operating Companies (NOFO) and involved other oil companies operating in the oil and gas exploration in the Barents Sea as well as local and international research institutes. The achieved results were presented to the Norwegian Environmental Agency, the local administrations and all stakeholders. These results reaffirmed that the Goliat project is characterized by a well-advance emergency system for the oil spill management, in terms of organization, consolidation of the emergency apparatus, as well as equipment and technology advancement.
Other ongoing activities aimed at maintaining and optimizing production at the Ekofisk field (Eni’s interest 12.39%) by means of drilling of infilling wells, upgrading of existing facilities and optimization of water injection.

United Kingdom Exploration activities yielded positive results with the Romeo North discovery, which has already been linked to the production platform of the Jade field (Eni’s interest 7%).
During the first half of 2014 Eni acquired Block 22/19c (Eni operator with a 50% interest) in the North Sea.
In April 2014 Eni acquired the operatorship of the Liverpool Bay assets with a 100% interest. Development programs include commitments on the education, health and environmental safety in the country.
Development activities mainly concerned the West Franklin field (Eni’s interest 21.87%) with the construction and installation of production platforms and linkage to nearby treatment facilities. Start-up is expected at the end of 2014.

North Africa

Algeria Development activities and production optimization progressed at the MLE-CAFC fields (Eni operator with a 75% interest). Project includes an additional oil development phase with start-up expected in 2017 and a production plateau of approximately 33 kboe/d net to Eni. Production ramp-up progressed at the El Merk field (Eni’s interest 12.25%) with the drilling of 23 additional productive wells and the construction of the NGL train. Production peak of 18 kboe/d net to Eni is expected in the year.

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Eni Interim Consolidated Report / Operating review

During the first half of 2014 Eni was granted three prospection permits in the Timimoun and Oued Mya areas, in onshore southern Algeria. The agreements expire in two years and cover a total acreage of 46,837 square kilometers. The program includes studies and drilling of exploration wells to assess the mineral potential.

Egypt Exploration activities yielded positive results with the ARM-14 oil well in the Abu Rudeis concession (Eni’s interest 100%) located in the Gulf of Suez. The discovery was linked to nearby production facilities.
Development studies were started-up to put in production the new mineral potential in the concession.
During the first half of 2014 Eni acquired the Shorouk exploration concession (Eni’s interest 100%) in the Mediterranean offshore.
Development activities concerned: (i) drilling of infilling wells at the Belayim (Eni’s interest 100%), Ha’py (Eni’s interest 50%), El Temsah (Eni operator with a 50% interest) and Port Fouad (Eni's interest 100%) fields to optimize the recovery of their mineral potential; (ii) sub-sea development project of the DEKA field (Eni operator with a 50% interest) with a start-up expected by the end of the year; and (iii) start-up of the sub-sea END Phase 3 project (Eni’s interest 50%).

Sub-Saharan Africa

Angola Exploration activities yielded positive results in the Block 0 (Eni’s interest 9.8%) with the appraisal of the Pinda Fm discovery.
Development activities progressed at the West Hub project in the Block 15/06 (Eni operator with a 35% interest), with start-up expected at the end of 2014.
In Block 0, activities progressed to reduce flaring gas at the Nemba field. In 2015 once the project will be completed flared gas is expected to decrease by approximately 85% from current level.
The development activities concerned: (i) the Mafumeira field (Eni’s interest 9.8%), with start-up in 2016; (ii) the second phase of Kizomba satellites (Eni’s interest 20%). The project provides to put into production three additional discoveries that will be linked to the existing FPSO. Start-up is expected in 2015.

Congo Exploration activities yielded positive results in the block Marine XII (Eni operator with a 65% interest) with the Nené Marine 3 appraisal well, confirming the oil and gas mineral potential of the area.
Activities on the M’Boundi field (Eni operator with an 83% interest) moved forward with the start-up of gas injection and flaring down program and a reduction of approximately 60 mmcf/d of flared gas. The activities allow to optimize the recovery of mineral potential and to monetize associated gas.
Gas is sold under long-term contracts to power plants in the area including the CEC Centrale Electrique du Congo (Eni’s interest 20%) with a 300 MW generation capacity. These facilities will also receive in the future gas from the offshore discoveries of the Marine XII permit.
Project Integrée Hinda (PIH) progressed to support the population in M’Boundi area. The social project provides to improve education, production capacity in agriculture, health and access to water. In the first half 2014 the progress of the project was over 60%. The program will involve more than 25,000 people.
In addition, Eni and The Earth Institute of the Columbia University launched a program to design a monitoring system to assess the effectiveness of the project and to check its support to the development of the area.
Development program progressed at the Litchendjili sanctioned project in the block Marine XII. The project provides for the installation of a production platform, the construction of transport facilities and onshore treatment plant. The start-up is expected by the end of 2015, with a production plateau of 12 kboe/d net to Eni. Production will also feed the CEC power station.

Mozambique Exploration activities yielded positive results with Agulha 2 appraisal gas well, the twelfth well successfully drilled in Area 4 (Eni operator with a 50% interest), confirming the mineral potential in the southern section of the Agulha discovery. Management estimates that Area 4 may contain up to 2,407 billion cubic meters of gas in place.
Leveraging on Eni’s cooperation model, the construction of a gas fired power plant for domestic consumption is being planned with the support of the Mozambican government.

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Eni Interim Consolidated Report / Operating review

A significant program of ecosystems evaluation and the analysis of biodiversity has started in the country. This program will be included in the development project of recent discoveries.
In addition, Eni is working with the Mozambican authorities to identify education, health and access to energy projects to support local development.

Nigeria Exploration activities yielded positive results with the Abo 12 oil well in the OML 125 block (Eni operator with a 85% interest). The discovery will be linked to existing facilities this year.
In the first half of 2014 the revamping phase II project progressed at the Ebocha flowstation in the OML 61 block (Eni operator with a 20% interest). The project provides for the treatment and re-injection of produced water with a start-up by the end of the year.
In the OML 28 block (Eni’s interest 5%) within the integrated oil and natural gas project in the Gbaran-Ubie area, the drilling campaign progressed. The development plan provides for the supply of natural gas to the Bonny liquefaction plant, by means of the construction of a Central Processing Facility (CPF) with a treatment capacity of approximately 1 bcf/d of gas and 120 kbbl/d of liquids.
The development activities progressed at the Forkados-Yokri field (Eni’s interest 5%). The project includes the drilling of 24 producing wells, the upgrading of existing flowstations and the construction of transport facilities. Start-up is expected in 2015.
The development program progressed at the Bonga NW field in the OML 118 block (Eni’s interest 12.5%). The activities include the drilling and completion of producing and infilling wells, with start-up in 2014.
Eni launched a website to report the sustainability activity performed in the Country. In particular, information and data related to oil spills, gas flared emissions and a summary on the environmental impact studies are available.

Kazakhstan

New initiatives In June 2014 Eni signed a strategic agreement with Kazakh state-owned company KazMunayGas (KMG) for the exploitation of exploration and production rights in Isatay, an offshore area of high potential located in the north Caspian Sea. KMG and Eni each will held 50% of exploration and production rights. The agreement also involves the construction of a shipyard project in Kuryk.

Kashagan During the course of 2014, the consortium performed a risk assessment of the technical issues which forced the joint venture to shut down production of the Kashagan field (Eni’s interest 16.81%) in October 2013, shortly after the production start-up. The findings of the assessment confirmed the necessity to fully replace the pipelines for transporting acid gas, where the inconvenient occurred. The operator is expected to make a cost estimation of the upgrade in due time. The partners of the consortium are making their best effort to restart production as soon as possible in compliance with the maximum safety standards.
The Phase 1 (Experimental Program) of the field development project targets an initial production capacity of 150 kbbl/d; by the time a second treatment offshore train and compression facilities for gas reinjection come online, production capacity is expected to increase up to 370 kbbl/d. The partners are planning to further increase available production capacity up to 450 kbbl/d by installing additional gas compression units for re-injecting gas in the reservoir. The partners submitted the scheme of this additional phase to the relevant Kazakh Authorities.
During the first half of 2014 the integrated program for the management of biodiversity in the Ural Delta (Ural River Park Project - URPP) was completed. The program was launched by Eni under the sponsorship of the Environment and Water Resources Kazakh Authority and aimed to protect the environment and ecosystems in the Caspian area. In June 2014 the project received an official UNESCO designation to be included in the Man and Biosphere Program.
An innovative environmental monitoring system was performed in the first half of 2014. The project designed by Eni provides for the application of a mobile underwater vehicle (AUV) able to realize an environmental monitoring and asset integrity at the production facility.
Within the agreements reached with the local authorities, Eni continues its training program for Kazakh resources management positions.

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Eni Interim Consolidated Report / Operating review

Karachaganak An expansion project of the Karachaganak field (Eni’s interest 29.25%) is currently being assessed by the consortium which is intended to develop gas and condensates reserves by means of the installation, in stages, of gas treatment plants and re-injection facilities to support liquids production plateau and increase gas marketable volumes. Studies of economical and technical feasibility are under discussion.
Eni continues its involvement to support local communities by means of the construction of schools and educational facilities as well as health assistance for the villages located in the nearby area of Karachaganak.

Rest of Asia

Indonesia Development activities progressed at the operated Jangkrik (Eni’s interest 55%) offshore field. The project includes drilling of production wells linked to a Floating Production Unit for gas and condensate treatment as well as construction of a transportation facility to the Bontang liquefaction plant. Start-up is expected in 2017 with a production peak of 80 kboe/d (42 kboe/d net to Eni) in 2018.
Development activities are underway at the Indonesia Deepwater Development project (Eni’s interest 20%), located in the East Kalimantan, to ensure gas supplies to the Bontang plant. The project initially provides for the linkage of the Bangka field to existing production facilities, with start-up expected in 2016. Then the project also provides for the integrated development of 2 Hubs: the first one including the Gendalo, Gandang, Maha fields and the second Hub of the Gehem field. Start up is expected in 2018.
The ongoing exploration program in the West Papua area provides for the launch of biodiversity and ecosystems studies to reduce potential impacts on the environment.
In the first half of 2014, leveraging on Eni’s cooperation model the activities implemented were: (i) a project to support farming communities in the district of Samboja in Kalimantan, in particular a training program; and (ii) supply of relief goods in the Manado and Jakarta areas particularly affected by flooding at the beginning of the year.

America

United States Development plan progressed at the Heidelberg field (Eni’s interest 12.5%) in the deep offshore of the Gulf of Mexico. The project provides for the drilling of 5 producing wells and the installation of a producing platform. Start-up is expected at the end of 2016 with a production of approximately 9 kboe/d net to Eni. Other development activities in the Gulf of Mexico mainly concerned: (i) development drilling activities at the operated Devils Tower (Eni’s interest 75%) and Pegasus (Eni’s interest 85%) fields as well as at the non-operated Europa (Eni’s interest 32%) and K2 (Eni’s interest 13.39%) fields; (ii) completion of drilling activities at the Lucius (Eni’s interest 8.5%) and Hadrian South (Eni’s interest 30%) fields with start-up expected by the end of the year.
Drilling activities progressed at the Nikaitchuq (Eni operator with a 100% interest) and Oooguruk (Eni’s interest 30%) fields in Alaska. In June 2014, the Nikaitchuq field achieved production target of 25 kboe/d. This relevant result required the expertise and the application of Eni’s proprietary technologies in an area with extreme climate and environmental constraints, which helped to build one of the most advanced production facilities in the North Slope, with maximum environmental compatibility and high operating efficiency.
The activity to put on stream the unconventional gas resources (shale gas) in the Alliance area (Eni’s interest 27.5%) located in Texas progressed with the production start-up of additional 10 wells.

Venezuela Drilling activities progressed at the giant Junin 5 field (Eni’s interest 40%) with 35 bbbl of certified heavy oil in place, located in the Orinoco oil belt. Early production start-up was achieved in 2013, targeting a production plateau of 75 kbbl/d. The subsequent, full-field development is expected to achieve a long-term plateau of 240 kbbl/d. The project provides for the construction of a refinery with a capacity of approximately 350 kbbl/d. Eni agreed to finance part of PDVSA’s development costs for the early production phase and engineering activity of refinery plant up to $1.74 billion.

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Eni Interim Consolidated Report / Operating review

Ongoing development activities moved forward at the giant gas Perla field located in the Cardon IV Block (Eni’s interest 50%), in the Gulf of Venezuela. PDVSA exercised its 35% back-in right. Eni will retain the 32.5% joint controlled interest in the company, once the transfer of the stake is closed. The early production start-up is expected in the first quarter of 2015 and includes the utilization of the existing discovery/appraisal wells, the drilling of 9 additional wells and the installation of production platforms linked by pipelines to the onshore treatment plant. Production ramp-up is expected in 2017 with a target of approximately 800 mmcf/d. The final phase of the development program includes the drilling of additional wells and the upgrading of treatment facilities to reach a production plateau of approximately 1,200 mmcf/d in 2020.
In June 2014 Eni signed a Memorandum of Understanding with PDVSA for the commercial development of the condensates reserves associated with the Perla field. The agreement provides for the establishment of a joint company (Eni will have interest of 20%). Eni will fund the share of development costs of PDVSA by contributing up to $500 million. The agreements are subject to final contracts to be signed and to the approval of local authorities.

Capital expenditure
Capital expenditure of the Exploration & Production Division (euro 4,688 million) concerned development of oil and gas reserves (euro 3,944 million) directed mainly outside Italy, in particular in Norway, the United States, Angola, Congo, Nigeria, Kazakhstan and Egypt. Development expenditures in Italy concerned the well drilling program and facility upgrading in Val d’Agri as well as sidetrack and workover activities in mature fields.
About 98% of exploration expenditures (euro 697 million) were directed outside Italy in particular to Nigeria, Mozambique, the United States, Angola, Liberia and Norway. In Italy, exploration activities were directed mainly to the Adriatic offshore, Val d’Agri and Po Valley.

Capital expenditure

First half

2013 (euro million) 2013 2014 Change % Ch.

795	Italy	393	435	42		10.7
2,127	Rest of Europe	1,139	786	(353	)	(31.0	)
1,024	North Africa	388	422	34		8.8
3,481	Sub-Saharan Africa	1,606	1,680	74		4.6
665	Kazakhstan	324	242	(82	)	(25.3	)
1,001	Rest of Asia	527	473	(54	)	(10.2	)
1,244	America	481	608	127		26.4
138	Australia and Oceania	35	42	7		..
10,475		4,893	4,688	(205	)	(4.2	)

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Eni Interim Consolidated Report / Operating review

Gas & Power

Key performance indicators
i	i	i	First half

2013 2013 2014

1.31		Employees injury frequency rate	(No. of accidents per million of worked hours)	1.06		0.77
1.80		Contractors injury frequency rate		1.50		0.80
32,212		Net sales from operations (a)	(euro million)	17,415		14,782
(2,967	)	Operating profit		(531	)	653
(638	)	Adjusted operating profit		(635	)	311
(818	)	Marketing		(743	)	232
180		International transport		108		79
(253	)	Adjusted net profit		(368	)	197
(28	)	EBITDA pro-forma adjusted		(318	)	551
(346	)	Marketing		(489	)	401
318		International transport		171		150
229		Capital expenditure		83		75
93.17		Worldwide gas sales (b)	(bcm)	49.26		45.85
35.86		- in Italy		19.03		18.45
57.31		- international		30.23		27.40
35.05		Electricity sold	(TWh)	17.85		16.00
4,531		Employees at period end	(number)	4,592		4,547
11.16		Direct GHG emissions	(mmtonnes CO2 eq)	5.55		5.00

(a) Before elimination of intragroup sales.

(b) Include volumes marketed by the Exploration & Production Division of 1.51 bcm (1.34 and 2.61 bcm in the first half and full year of 2013).

Marketing

Natural gas

Supply of natural gas
In the first half of 2014, Eni’s consolidated subsidiaries supplied 41.73 bcm of natural gas, down by 2.52 bcm, or 5.7% from the first half of 2013.
Gas volumes supplied outside Italy (38.61 bcm from consolidated companies), imported in Italy or sold outside Italy, represented approximately 92% of total supplies, with a decrease of 1.96 bcm, or 4.8% from the first half of 2013 mainly reflecting lower volumes purchased in all markets, in particular from the Netherlands (down 1.88 bcm) and Norway (down 0.51 bcm), with the exception of Russia (up 1.35 bcm).
Supplies in Italy (3.12 bcm) decreased by 0.56 bcm from the first half of 2013.

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Eni Interim Consolidated Report / Operating review

Supply of natural gas

First half

2013 (bcm) 2013 2014 Change % Ch.

7.15		Italy	3.68		3.12		(0.56	)	(15.2	)
29.59		Russia	15.02		16.37		1.35		9.0
9.31		Algeria (including LNG)	4.89		4.64		(0.25	)	(5.1	)
5.78		Libya	3.09		2.91		(0.18	)	(5.8	)
13.06		Netherlands	6.86		4.98		(1.88	)	(27.4	)
9.16		Norway	5.02		4.51		(0.51	)	(10.2	)
3.04		United Kingdom	1.44		1.23		(0.21	)	(14.6	)
0.48		Hungary	0.29		0.18		(0.11	)	(37.9	)
2.89		Qatar (LNG)	1.49		1.53		0.04		2.7
3.63		Other supplies of natural gas	1.72		1.38		(0.34	)	(19.8	)
1.58		Other supplies of LNG	0.75		0.88		0.13		17.3
78.52		Outside Italy	40.57		38.61		(1.96	)	(4.8	)
85.67		TOTAL SUPPLIES OF ENI'S CONSOLIDATED SUBSIDIARIES	44.25		41.73		(2.52	)	(5.7	)
(0.58	)	Offtake from (input to) storage	0.80		0.40		(0.40	)	..
(0.31	)	Network losses, measurement differences and other changes	(0.07	)	(0.15	)	(0.08	)	..
84.78		AVAILABLE FOR SALE BY ENI'S CONSOLIDATED SUBSIDIARIES	44.98		41.98		(3.00	)	(6.7	)
5.78		Available for sale by Eni's affiliates	2.94		2.36		(0.58	)	(19.7	)
2.61		E&P volumes	1.34		1.51		0.17		12.7
93.17		TOTAL AVAILABLE FOR SALE	49.26		45.85		(3.41	)	(6.9	)

Sales of natural gas

Gas sales by entity

First half

2013 (bcm) 2013 2014 Change % Ch.

83.60	Total sales of subsidiaries	44.35	41.44	(2.91	)	(6.6	)
35.76	Italy (including own consumption)	18.96	18.45	(0.51	)	(2.7	)
42.30	Rest of Europe	22.50	20.84	(1.66	)	(7.4	)
5.54	Outside Europe	2.89	2.15	(0.74	)	(25.6	)
6.96	Total sales of Eni's affiliates (net to Eni)	3.57	2.90	(0.67	)	(18.8	)
0.10	Italy	0.07		(0.07	)	..
5.05	Rest of Europe	2.70	2.13	(0.57	)	(21.1	)
1.81	Outside Europe	0.80	0.77	(0.03	)	(3.8	)
2.61	E&P in Europe and in the Gulf of Mexico	1.34	1.51	0.17		12.7
93.17	WORLDWIDE GAS SALES	49.26	45.85	(3.41	)	(6.9	)

Sales of natural gas in the first half of 2014 amounted to 45.85 bcm, reporting a decrease of 3.41 bcm, or 6.9% from the first half of 2013, driven by a challenging trading environment due to weak demand and ongoing competitive pressure. Sales included Eni’s own consumption, Eni’s share of sales made by equity-accounted entities and Exploration & Production sales in Europe and in the Gulf of Mexico.

Sales volumes in the Italian market amounted to 18.45 bcm, down by 0.58 bcm, or 3% from the first half of 2013, due to unusual winter weather conditions as well as a tougher trading environment for electricity sales affected by excess hydroelectric production and lower demand, partially offset by higher spot sales.
Sales to importers in Italy decreased by 0.65 bcm reflecting a lower availability of Libyan gas.

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Eni Interim Consolidated Report / Operating review

Sales in Europe of 21.14 bcm decreased by 7% mainly driven by lower sales in Germany/Austria and France due to competitive pressure, partly offset by higher volumes marketed in the Iberian Peninsula and Turkey as a result of effective commercial initiatives.
Sales in markets outside Europe reported a negative trend (down 0.77 bcm) reflecting lower LNG sales, in particular in the United States and Argentina.
Direct sales of the Exploration & Production segment in Northern Europe and in the United States (1.51 bcm) increased by 0.17 bcm due to higher sales in the Northern Europe.

Gas sales by market

First half

2013 (bcm) 2013 2014 Change % Ch.

35.86	ITALY	19.03	18.45	(0.58	)	(3.0	)
4.58	Wholesalers	3.07	2.43	(0.64	)	(20.8	)
10.68	Italian gas exchange and spot markets	4.64	6.36	1.72		37.1
6.07	Industries	3.34	2.42	(0.92	)	(27.5	)
1.12	Medium-sized enterprises and services	0.57	0.93	0.36		63.2
2.11	Power generation	1.02	0.79	(0.23	)	(22.5	)
5.37	Residential	3.54	2.77	(0.77	)	(21.8	)
5.93	Own consumption	2.85	2.75	(0.10	)	(3.5	)
57.31	INTERNATIONAL SALES	30.23	27.40	(2.83	)	(9.4	)
47.35	Rest of Europe	25.20	22.97	(2.23	)	(8.8	)
4.67	Importers in Italy	2.48	1.83	(0.65	)	(26.2	)
42.68	European markets	22.72	21.14	(1.58	)	(7.0	)
4.90	Iberian Peninsula	2.42	2.86	0.44		18.2
8.31	Germany/Austria	4.48	3.78	(0.70	)	(15.6	)
8.68	Benelux	4.79	4.51	(0.28	)	(5.8	)
1.84	Hungary	1.09	0.90	(0.19	)	(17.4	)
3.51	UK	1.86	1.53	(0.33	)	(17.7	)
6.73	Turkey	3.25	3.53	0.28		8.6
7.73	France	4.36	3.79	(0.57	)	(13.1	)
0.98	Other	0.47	0.24	(0.23	)	(48.9	)
7.35	Extra European markets	3.69	2.92	(0.77	)	(20.9	)
2.61	E&P in Europe and in the Gulf of Mexico	1.34	1.51	0.17		12.7
93.17	WORLDWIDE GAS SALES	49.26	45.85	(3.41	)	(6.9	)

Power

Availability of electricity
In the first half of 2014, power generation was 9.64 TWh, down by 0.76 TWh, or 7.3% from the first half of 2013, mainly driven by a lower production at the Brindisi and Livorno plants due to a weak electricity demand. As of June 30, 2014, installed operational capacity was 4.8 GW (4.8 GW at December 31, 2013). Electricity trading declined by 1.09 TWh due to lower purchases related to the decline in demand.

Power sales
In the first half of 2014, electricity sales of 16 TWh were directed to the free market (75%), the Italian power exchange (13%), industrial sites (9%) and others (3%).
Compared to the first half of 2013, electricity sales were down by 1.85 TWh, or 10.4%, due to weaker electricity demand and excess production of hydroelectric energy. Lower volumes sold to wholesalers (down 1.27 TWh) and large clients (down 1.13 TWh) were partially offset by higher volumes traded on the Italian power exchange (up 0.65 TWh).

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Eni Interim Consolidated Report / Operating review

First half

2013 2013 2014 Change % Ch.

4,295	Purchases of natural gas	(mmcm)	2,119	1,987	(132	)	(6.2	)
449	Purchases of other fuels	(ktoe)	235	177	(58	)	(24.7	)
21.38	Power generation	(TWh)	10.40	9.64	(0.76	)	(7.3	)
9,907	Steam	(ktonnes)	5,236	4,689	(547	)	(10.4	)

Availability of electricity

First half

2013   (TWh) 2013 2014 Change % Ch.

21.38	Power generation	10.40	9.64	(0.76	)	(7.3	)
13.67	Trading of electricity (a)	7.45	6.36	(1.09	)	(14.6	)
35.05		17.85	16.00	(1.85	)	(10.4	)
28.73	Free market	14.07	11.98	(2.09	)	(14.9	)
1.96	Italian Exchange for electricity	1.44	2.05	0.61		42.4
3.31	Industrial plants	1.63	1.52	(0.11	)	(6.7	)
1.05	Other (a)	0.71	0.45	(0.26	)	(36.6	)
35.05	Power sales	17.85	16.00	(1.85	)	(10.4	)

(a) Includes positive and negative imbalances.

Capital expenditure
In the first half of 2014, capital expenditure of euro 75 million mainly related to the flexibility and upgrading initiatives of the combined cycle power plants (euro 40 million) and gas marketing initiatives (euro 29 million).

Capital expenditure

First half

2013 (euro million) 2013 2014 Change % Ch.

206	Marketing	74	69	(5	)	(6.8	)
23	International transport	9	6	(3	)	(33.3	)
229		83	75	(8	)	(9.6	)

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Eni Interim Consolidated Report / Operating review

Refining & Marketing

Key performance indicators
i	i	i	First half

2013 2013 2014

0.31		Employees injury frequency rate	(No. of accidents per million of worked hours)	0.30		0.86
1.68		Contractors injury frequency rate		0.75		0.97
57,238		Net sales from operations (a)	(euro million)	29,683		28,686
(1,492	)	Operating profit		(541	)	(623	)
(457	)	Adjusted operating profit		(310	)	(442	)
(232	)	Adjusted net profit		(190	)	(324	)
672		Capital expenditure		229		229
27.38		Refinery throughputs on own account	(mmtonnes)	13.76		11.69
62		Conversion index	(%)	64		61
787		Balanced capacity of refineries	(kbbl/d)	767		697
9.69		Retail sales of petroleum products in Europe	(mmtonnes)	4.82		4.54
6,386		Service stations in Europe at period end	(units)	6,337		6,348
1,828		Average throughput per service station in Europe	(kliters)	910		844
1.28		Retail efficiency index	(%)	1.38		1.23
7,422		Employees at period end	(number)	7,513		7,319
5.18		Direct GHG emissions	(mmtonnes CO2 eq)	2.56		2.59
10.80		SOx emissions (sulphur oxide)	(ktonnes SO2 eq)	4.87		3.66

(a) Before elimination of intragroup sales.

Refining
In the first half of 2014, Eni’s refining throughputs were 11.69 mmtonnes, down by 2.07 mmtonnes, or 15.1% from the first half of 2013. Volumes processed in Italy (down 19.1%) registered a decline from the same period of 2013 due to the shutdown of the Venice Refinery for the conversion in Green Refinery, the standstill of the Gela site, as well as the standstill of the Residue Hydroconversion Unit (RHU) at Taranto site to be converted in Hydrocracking.
Outside Italy, Eni’s refining throughputs increased by 0.12 mmtonnes (up 5.2%) in particular at CRC (Czech Republic) and PCK (Germany) sites due to planned standstills performed in 2013.
Total throughputs at refineries in Italy (9.57 mmtonnes) declined by 2.19 mmtonnes, or 18.6% from the first half of 2013. Utilization rate of refinery plants declined to 65.5% from the first half of the previous year (71.9%) driven by negative market trends. Approximately 24.1% of volumes of processed crude were supplied by Eni’s Exploration & Production segment (up by 2 percentage points from 22.1% in the first half of 2013).

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Eni Interim Consolidated Report / Operating review

Availability of refined products

First half

2013 (mmtonnes) 2013 2014 Change % Ch.

		ITALY
23.13		Refinery throughputs	11.76		9.57		(2.19	)	(18.6	)
(0.57	)	Less input on account of third parties	(0.31	)	(0.31	)
22.56		Refinery throughputs on own account	11.45		9.26		(2.19	)	(19.1	)
(1.23	)	Consumption and losses	(0.60	)	(0.56	)	0.04		6.7
21.33		Products available for sale	10.85		8.70		(2.15	)	(19.8	)
4.42		Purchases of refined products and change in inventories	2.09		2.61		0.52		24.9
(1.85	)	Products transferred to operations outside Italy	(1.50	)			1.50		100.0
(0.55	)	Consumption for power generation	(0.28	)	(0.30	)	(0.02	)	(8.3	)
23.35		Sales of products	11.16		11.01		(0.15	)	(1.4	)
		OUTSIDE ITALY
4.82		Refinery throughputs on own account	2.31		2.43		0.12		5.2
(0.22	)	Consumption and losses	(0.10	)	(0.10	)
4.60		Products available for sale	2.21		2.33		0.12		5.4
13.69		Purchases of refined products and change in inventories	6.21		8.01		1.80		29.0
1.85		Products transferred from Italian operations	1.50				(1.50	)	(100.0	)
20.14		Sales of products	9.92		10.34		0.42		4.2
27.38		Refinery throughputs on own account	13.76		11.69		(2.07	)	(15.0	)
5.93		of which: refinery throughputs of equity crude on own account	2.78		2.62		(0.16	)	(5.8	)
43.49		Total sales of refined products	21.08		21.35		0.27		1.3
43.96		Crude oil sales	18.47		23.96		5.49		29.7
87.45		TOTAL SALES	39.55		45.31		5.76		14.6

Marketing of refined products
In the first half of 2014, sales volumes of refined products (21.35 mmtonnes) were up by 0.27 mmtonnes, or 1.3% from the first half of 2013, mainly due to higher sales to oil companies in Italy.

Product sales in Italy and outside Italy by market

First half

2013 (mmtonnes) 2013 2014 Change % Ch.

6.64	Retail	3.36	3.05	(0.31	)	(9.2	)
8.37	Wholesale	3.94	3.47	(0.47	)	(11.9	)
1.32	Chemicals	0.63	0.48	(0.15	)	(23.2	)
7.01	Other sales	3.24	4.01	0.77		23.6
23.34	Sales in Italy	11.17	11.01	(0.16	)	(1.4	)
3.05	Retail rest of Europe	1.46	1.49	0.03		2.1
4.23	Wholesale rest of Europe	2.02	2.18	0.16		7.7
0.43	Wholesale outside Italy	0.21	0.21
12.44	Other sales	6.22	6.46	0.24		3.9
20.15	Sales outside Italy	9.91	10.34	0.43		4.3
43.49	TOTAL SALES OF REFINED PRODUCTS	21.08	21.35	0.27		1.3

Retail sales in Italy
In the first half of 2014, retail sales in Italy amounted to 3.05 mmtonnes, down by approximately 310 ktonnes, or 9.2% from the first half of 2013, due to lower consumption of all products. Eni’s retail market share for the first half of 2014 was 26.3%, down by 2.3 percentage points from the corresponding period of 2013 (28.6%).
At June 30, 2014, Eni’s retail network in Italy consisted of 4,724 service stations, 38 less than at December 31, 2013 (4,762 service stations), resulting from the closing of service stations with low

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Eni Interim Consolidated Report / Operating review

throughput (43 units) partly offset by the positive contribution of acquisitions/releases of lease concessions (5 service stations).
With reference to the promotional initiative "you&eni", the loyalty program for customers launched in February 2010 for a five year period, the cards that made at least one transaction in the period were approximately 1.7 million at June 30, 2014, of which approximately 902 thousand where represented by the new consumer payment cards. Volumes sold to customers cumulating points on their card were approximately 35% of total throughputs (net of "iperself" sales that do not allow to accumulate points).
Average throughput (754 kliters) decreased by approximately 86 kliters from the first half of 2013 (839 kliters), with a higher decline than domestic fuel consumption (down 10.1%) due to increased competitive pressure.

Retail sales in the Rest of Europe
Retail sales in the rest of Europe of approximately 1.49 mmtonnes were up by 2.1% (approximately 30 ktonnes) compared to the first half of 2013. Higher sales in Germany and Austria were offset by lower volumes in other European countries due to lower demand.
At June 30, 2014, Eni’s retail network in the rest of Europe consisted of 1,624 units, unchanged from December 31, 2013.
Average throughput (1,096 kliters) decreased by approximately 20 kliters from the first half of 2013 (1,117 kliters).

Wholesale and other sales
Wholesale sales in Italy amounted to 3.47 mmtonnes, down by approximately 0.47 mmtonnes, or 11.9% from the first half of the previous year, mainly due to lower sales of gasoil and fuel oil for bunkering.
Supplies of feedstock to the petrochemical industry (0.48 mmtonnes) declined by 23.2% related to lower feedstock supplies due to lower demand from industrial customers.
Wholesale sales in the rest of Europe were 2.18 mmtonnes, up by 7.7% from the first half of 2013 mainly in Austria, France and Hungary.
Other sales (6.46 mmtonnes) increased by 0.24 mmtonnes, or 3.9%, mainly due to higher sales volumes to oil companies.

Capital expenditure
In the first half of 2014, capital expenditure in the Refining & Marketing Division amounted to euro 229 million and regarded mainly: (i) refining, supply and logistics in Italy and outside Italy (euro 181 million), with projects designed to improve the conversion rate and flexibility of refineries, in particular the Sannazzaro refinery, as well as expenditures on health, safety and environmental upgrades; (ii) upgrade and rebranding of the refined product retail network in Italy (euro 33 million) and in the rest of Europe (euro 15 million).

Capital expenditure

First half

2013 (euro million) 2013 2014 Change % Ch.

497	Refinery, supply and logistics	183	181	(2	)	(1.1	)
175	Marketing	46	48	2		4.3
672		229	229

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Eni Interim Consolidated Report / Operating review

Versalis

Key performance indicators
i	i	i	First half

2013 2013 2014

0.76		Employees injury frequency rate	(No. of accidents per million of worked hours)	1.07		0.43
0.30		Contractors injury frequency rate		0.34		0.36
5,859		Net sales from operations (a)	(euro million)	3,063		2,804
2,709		Intermediates		1,418		1,235
2,933		Polymers		1,531		1,477
217		Other sales		114		92
(725	)	Operating profit		(278	)	(286	)
(386	)	Adjusted operating profit		(145	)	(182	)
(338	)	Adjusted net profit		(136	)	(153	)
314		Capital expenditure		111		125
5,817		Production	(ktonnes)	3,025		2,801
3,785		Sales of petrochemical products		1,968		1,852
65.3		Average plant utilization rate	(%)	67.7		74.0
5,708		Employees at period end	(number)	5,701		5,573
3.66		Direct GHG emissions	(mmtonnes CO2 eq)	1.95		1.65
1.53		SOx emissions (sulphur oxide)	(ktonnes SO2 eq)	0.78		0.69

(a) Before elimination of intragroup sales.

Sales - production - prices
In the first half of 2014, sales of petrochemical products (1,852 ktonnes) decreased by 116 ktonnes, or 5.9% from the first half of 2013, due to weakness in commodity consumption, notwithstanding slight recovery in demand of polymers in the second quarter of 2014.
Declines in sales mainly related to olefins volumes marketed (in particular ethylene and butadiene, down by 53% and 44%, respectively) due to lower production availability as a result of the standstill of Porto Marghera plant, from the end of February, due to the negative scenario. Polymers sales were broadly unchanged from 2013.
Overall, average sales prices trended down by 2.2% from the first half of 2013, with different tendency in the various businesses: elastomers prices declined by 14%, due to increasing competition from Asian producers, stable the prices of styrene polymers and polyethylene, intermediates registered a slight decrease (down 2.3%).
Petrochemical production (2,801 ktonnes) decreased by 224 ktonnes, or 7.4% from the first half of 2013 mainly due to lower volumes of intermediates (down 12.2%) affected by the accidental standstill at the Brindisi plant as well as the above mentioned shutdown at Porto Marghera, and polyethylene (down 4.2%), due to the shutdown of the Priolo plant since September 2013. Elastomers production were down by 2.7%. Styrenics increased by 5%.
Nominal production capacity declined from the first half of 2013 due to rationalization measures, with an average plant utilization rate of 74%, calculated on nominal capacity (compared to 67.7% of the first half of 2013).

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Eni Interim Consolidated Report / Operating review

Product availability

First half

2013 (ktonnes) 2013 2014 Change % Ch.

3,462		Intermediates	1,808		1,588		(220	)	(12.2	)
2,355		Polymers	1,217		1,213		(4	)	(0.3	)
5,817		Production	3,025		2,801		(224	)	(7.4	)
(2,394	)	Consumption and losses	(1,224	)	(1,202	)	22		(1.8	)
362		Purchases and change in inventories	167		253		86		51.5
3,785			1,968		1,852		(116	)	(5.9	)

Business trends

Intermediates
In the first half of 2014, intermediates revenues (euro 1,235 million) were down by euro 183 million, or 12.9% from the first half of 2013 due to lower volumes sold (down 12%) mainly reflecting olefins sales (down 24%) as a result of lower product availability due to standstills of Brindisi and Porto Marghera plants. These negatives were partly offset by higher sales volumes of aromatics and derivatives (up 12% and 9%, respectively).
Average prices decreased by 2.3%, in particular average prices of aromatics were down by 11.4% driven by steep decline in xylene prices (down 17.8%) due to weak demand, prices of derivatives were down by 2.4%, unchanged prices of olefins due to higher propylene prices partially offset by lower ethylene and butadiene prices.
Intermediates production (1,588 ktonnes) decreased by the first half of 2013 (down by 220 ktonnes, or 12.2%) reflecting lower production of olefins and aromatics (down 16.3% and 15%, respectively) due to Porto Marghera and Brindisi standstills. Derivatives production reported an increase of 11%.

Polymers
Polymers revenues (euro 1,477 million) were down by euro 54 million, or 3.5% from the first half of 2013. This reflects decline in average prices of elastomers (down 14%) due to continuing weak demand in the automotive industry and competitive pressure from Asian producers. Average prices of polyethylene and styrene remained barely unchanged.
Elastomers sales were broadly in line with the first half of 2013, reflecting higher sales of thermoplastic rubbers (up 22.6%) and polyethylene due to higher sold volumes of HDPE (up 9%) and LLDPE (up 2%) following higher demand, as well as styrenics (up 0.6%) reflecting higher sales of expandable polystyrene (up 13%) due to the partial recovery in the construction and industrial packaging segments and ABS/SAN (up 9.4%). These positives were partly offset by lower sales of BR rubbers, NBR and lattices.
Polymers production (1,213 ktonnes) was barely unchanged from the first half of 2013 (down by 4 ktonnes, or 0.3%) with different trends recorded in the various businesses. LLDPE production in polyethylene business were down by 14.6% due to the accidental standstill at Brindisi cracker as well as Priolo standstill from September 2013, partly offset by higher volumes of EVA (up 11.6%), HDPE (up 3.8%) and LDPE (up 1.5%). Elastomers productions decreased by 2.7% due to lower volumes produced of latex and SBR rubbers due to the definitive closing of Hythe plant in March. Styrene productions increased by 5%, due to higher volumes of ABS/San (up 18%), styrol (up 5%) and compact polystyrene (up 4%).

Capital expenditure
In the first half of 2014 capital expenditure amounted to euro 125 million (euro 111 million in the first half of 2013) mainly regarded: (i) plant upgrades (euro 80 million); (ii) environmental protection, safety and environmental regulations (euro 15 million); (iii) upkeeping of plants (euro 11 million); (iv) maintenance and savings (euro 8 million).

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Eni Interim Consolidated Report / Operating review

Engineering & Construction

Key performance indicators
i	i	i	First half

2013 2013 2014

0.46		Employees injury frequency rate	(No. of accidents per million of worked hours)	0.42		0.42
0.10		Contractors injury frequency rate		0.08		0.12
2.01		Fatality index	(No. of fatalities per 100 million of worked hours)	1.92		0.71
11,598		Net sales from operations (a)	(euro million)	5,001		5,966
(98	)	Operating profit		(476	)	291
(99	)	Adjusted operating profit		(474	)	293
(253	)	Adjusted net profit		(519	)	215
902		Capital expenditure		490		329
10,062		Orders acquired	(euro million)	6,704		13,132
17,065		Order backlog		21,169		24,215
47,209		Employees at period end	(number)	46,325		49,475
89.1		Employees outside Italy	(%)	89.3		89.9
1.54		Direct GHG emissions	(mmtonnes CO2 eq)	0.77		0.63

(a) Before elimination of intragroup sales.

Activity of the period

In the first half of 2014 Saipem acquired new orders for euro 13,132 million, about 97% of which was represented by work to be carried out outside Italy, and 8% by work originated by Eni’s companies.

Main orders were acquired were in the Engineering & Construction business (euro 12,566 million) and mainly related to:

- EPCI contract on behalf of Total concerning conversion of the two FPSO units, with an oil capacity of 115,000 bbl/day and a storage capacity of 1.7 mmboe. The two converted FPSO units will be utilized to support the development of Kaombo field, located in Block 32 offshore Angola;

- Contract on behalf of South Stream Transport BV for the construction of the first line of the South Stream Offshore Pipeline, from Russia to Bulgaria. The pipeline construction will be laid by the pipe-laying vessel Saipem 7000. In addition, Saipem will carry out support activities for the second line of the pipeline;

- Contracts on behalf of Saudi Aramco relating to the Integrated Gasification Combined Cycle project (Jazan) as part of the activities related to the construction of the largest power plant in the world to be located near the namesake city of Jizan. Furthermore, Saudi Aramco awarded to Saipem an EPC contract for the Loops 4 & 5 of the Shedgum-Yanbu’ Gas Pipeline;

- A transportation and installation contract on behalf of BP for the Phase 2 of the Shah Deniz field development, offshore Azerbaijan. Moreover, Saipem was awarded by the Shah Deniz consortium a contract for the construction and commissioning of the expansion of the South Caucasus Pipeline between Azerbaijan and Georgia;

- EPCI contract on behalf of Petrobras for the "Lula Norte, Lula Sul and Lula Extremo Sul Project" to be developed offshore the coasts of Rio de Janeiro and Sío Paulo. Three offshore pipelines will be installed in the Lula field in water depth up to 2,200 meters.

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Eni Interim Consolidated Report / Operating review

As of June 30, 2014, order backlog was euro 24,215 million (euro 17,065 million at December 31, 2013). Projects to be carried out outside Italy represented 96% of the total backlog, while orders from Eni’s companies amounted to 4% of the total.

Orders acquired

First half

2013 (euro million) 2013 2014 Change % Ch.

10,062		6,704	13,132	6,428		95.9
5,581	Engineering & Construction Offshore	4,038	8,238	4,200		..
2,193	Engineering & Construction Onshore	1,635	4,328	2,693		..
1,401	Offshore drilling	913	142	(771	)	(84.4	)
887	Onshore drilling	118	424	306		..
	of which:
1,514	- Eni	1,134	1,040	(94	)	(8.3	)
8,548	- Third parties	5,570	12,092	6,522		..
	of which:
547	- Italy	378	406	28		7.4
9,515	- Outside Italy	6,326	12,726	6,400		..

Order backlog

Dec. 31, 2013 (euro million) June 30, 2013 June 30, 2014 Change % Ch.

17,065		21,169	24,215	3,046		14.4
8,320	Engineering & Construction Offshore	10,552	13,374	2,822		26.7
4,114	Engineering & Construction Onshore	6,235	6,552	317		5.1
3,390	Offshore drilling	3,543	2,976	(567	)	(16.0	)
1,241	Onshore drilling	839	1,313	474		56.5
	of which:
2,261	- Eni	3,213	2,850	(363	)	(11.3	)
14,804	- Third parties	17,956	21,365	3,409		19.0
	of which:
784	- Italy	1,838	928	(910	)	(49.5	)
16,281	- Outside Italy	19,331	23,287	3,956		20.5

Capital expenditure
In the first half of 2014, capital expenditure amounted to euro 329 million, mainly related to: (i) the construction of a new pipe-layer, the progression of the construction of a new fabrication yard in Brazil and upkeep works, in the Engineering & Construction Offshore business; (ii) equipment and structures acquisition related to Canada base, in the Engineering & Construction Onshore business; (iii) upkeep and upgrading of the current asset base, in the Drilling Offshore business; (iv) new plants and the upgrading of asset base.

Capital expenditure

First half

2013 (euro million) 2013 2014 Change % Ch.

373	Engineering & Construction Offshore	202	131	(71	)	(35.1	)
116	Engineering & Construction Onshore	84	17	(67	)	(79.8	)
172	Offshore drilling	124	104	(20	)	(16.1	)
210	Onshore drilling	62	68	6		9.7
31	Other expenditure	18	9	(9	)	(50.0	)
902		490	329	(161	)	(32.9	)

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Eni Interim Consolidated Report / Financial review and other information

Information of the comparative periods were restated following adoption of IFRS 10 and IFRS 11, which were enacted by the European Commission in December 2012 with regulation No. 1254. These new accounting standards were applied retrospectively by adjusting the opening balance as of January 1, 2013 and the 2013 profit and loss account. More details about the adoption of those accounting standards are provided in the explanatory notes 2 to the consolidated financial statements of this Interim Report as of June 30, 2014.
Information of the comparative periods did not reflect the restatement of the 2012 results that was made by Eni’s subsidiary Saipem, which engages in the Engineering & Construction segment, as part of the Consob proceedings, which were disclosed in Eni Annual Report – Operating and Financial Review – Other information (p. 104). Hence, results of the comparative periods in this Interim Consolidated Report for the first half of 2014 are the same as disclosed in the Eni Interim Consolidated Report for the first half of 2013, published on August 2, 2013 (with the exception of the impacts of the adoption of the new international accounting standards as described above).

Profit and loss account

First half

2013 (euro million) 2013 2014 Change % Ch.

114,697		Net sales from operations	59,287		56,556		(2,731	)	(4.6	)
1,387		Other income and revenues	375		192		(183	)	(48.8	)
(95,304	)	Operating expenses	(49,633	)	(46,062	)	3,571		7.2
(71	)	Other operating income (expense)	(10	)	403		413		..
(11,821	)	Depreciation, depletion, amortization and impairments	(4,681	)	(5,188	)	(507	)	(10.8	)
8,888		Operating profit	5,338		5,901		563		10.5
(1,009	)	Finance income (expense)	(610	)	(493	)	117		19.2
6,085		Net income from investments	632		621		(11	)	(1.7	)
13,964		Profit before income taxes	5,360		6,029		669		12.5
(9,005	)	Income taxes	(3,925	)	(4,111	)	(186	)	(4.7	)
64.5		Tax rate (%)	73.2		68.2		(5.0	)
4,959		Net profit	1,435		1,918		483		33.7
		attributable to:
(201	)	- non-controlling interest	(383	)	(43	)	340		88.8
5,160		- Eni's shareholders	1,818		1,961		143		7.9

Net profit
In the first half of 2014, net profit attributable to Eni’s shareholders amounted to euro 1,961 million, up by euro 143 million, or 7.9% from the first half of 2013; operating profit amounted to euro 5,901 million reporting an increase of 10.5%. It is worth mentioning that y-o-y comparability was affected by the exceptional loss of euro 680 million incurred by Saipem in the first half of 2013. In addition to these drivers, Eni’s results for the first half of 2014 were boosted by substantial improvement in the performance reported by the Gas & Power segment following the renegotiation of a large portion of the long-term gas supply contracts, with economic effects relating in part to gas volumes supplied in previous years.
The other Eni’s business segments were negatively impacted by continued geopolitical risks and the appreciation of the euro against the dollar in the Exploration & Production segment, as well as weak refining and chemicals fundamentals. These were weighted down by the slow recovery in the Euro-zone, declining energy demand, excess capacity and increasing competitive pressure from product streams imported from Russia, Asia and the USA, as well as higher prices of crude oil. These headwinds were reflected in falling margins on the production and sale of fuels and commodity chemicals.
The Group tax rate declined by 5 percentage points reflecting the fact that in the first half of 2013 the Company could not recognize any tax-loss carried forward at the loss-making Engineering & Construction segment and a lower share of taxable profit reported by the Exploration & Production segment, partly offset by a rise in the Exploration & Production tax rate due to a higher share of taxable profit reported in Countries with higher taxation.

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Eni Interim Consolidated Report / Financial review and other information

Adjusted net profit

First half

2013 (euro million) 2013 2014 Change % Ch.

5,160		Net profit attributable to Eni's shareholders	1,818		1,961	143	7.9
438		Exclusion of inventory holding (gains) losses	210		11
(1,165	)	Exclusion of special items	(67	)	83
4,433		Adjusted net profit attributable to Eni's shareholders (a)	1,961		2,055	94	4.8

(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".

Adjusted net profit attributable to Eni’s shareholders amounted to euro 2,055 million, up by euro 94 million, or 4.8% from the same period of the previous year (when excluding the exceptional loss made by Saipem in the first half of 2013, adjusted net profit was down by 8%). This increase was driven by a better operating performance (up 9%, down 2.6% when excluding Saipem’s losses) and a reduction in the adjusted tax rate that was down by approximately 6 percentage points driven by the same factors that explained the reduction in the reported consolidated tax rate.

Adjusted net profit was calculated by excluding an inventory holding loss of euro 11 million and special items made up of net losses of euro 83 million, stated net of exchange rate differences and exchange rate derivative instruments reclassified in operating profit, as they mainly related to derivative transactions entered into to manage exposure to the exchange rate risk implicit in commodity pricing formulas, resulting in a net positive adjustment of euro 30 million.

Special items of operating profit amounted to euro 303 million and mainly related to:

(i)	impairment losses in the Exploration & Production segment (euro 187 million) that mainly related to an oil & gas property whose development activities Eni does not expect to finance in the future;
(ii)	impairment losses relating to the retail networks in the Czech Republic and Slovakia which were aligned to the expected sale price, the effect of which was partly offset by a write-up of Eni’s interest in the refining joint venture which currently supplies the divested networks (euro 51 million); finally investments made for compliance and stay-in-business purposes were impaired as they related to certain Cash Generating Units which were completely written off in previous reporting periods and continued to lack any profitability prospects in the Refining & Marketing segment (euro 96 million) and Versalis (euro 7 million in the first half);
(iii)	the effects of fair-value evaluation of certain commodity derivatives contracts lacking the formal requisites to be accounted as hedges under IFRS (gain of euro 281 million);
(iv)	environmental provisions and provisions for redundancy incentives (euro 30 million);
(v)	exchange rate differences and exchange rate derivative instruments reclassified as operating items (loss of euro 30 million).

Non-operating special items refer to net gains on the divestment of the residual interest in Galp (euro 96 million).

The breakdown of adjusted net profit by segment is shown in the table below:

First half

2013 (euro million) 2013 2014 Change % Ch.

5,950		Exploration & Production	3,110		2,464		(646	)	(20.8	)
(253	)	Gas & Power	(368	)	197		565		..
(232	)	Refining & Marketing	(190	)	(324	)	(134	)	(70.5	)
(338	)	Versalis	(136	)	(153	)	(17	)	(12.5	)
(253	)	Engineering & Construction	(519	)	215		734		..
(205	)	Other activities	(113	)	(91	)	22		19.5
(476	)	Corporate and financial companies	(284	)	(222	)	62		21.8
39		Impact of unrealized intragroup profit elimination (a)	78		22		(56	)
4,232		Adjusted net profit	1,578		2,108		530		33.6
		attributable to:
(201	)	- non-controlling interest	(383	)	53		436		..
4,433		- Eni's shareholders	1,961		2,055		94		4.8

(a) This item concerned mainly intragroup sales of commodities, services and capital goods recorded in the assets of the purchasing business segment as of end of the period.

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Eni Interim Consolidated Report / Financial review and other information

Group results were achieved in a scenario featured by higher crude oil prices reflecting higher Brent benchmark price, up 1.3% from the first half of 2013. In the meantime, natural gas prices continued on a weak trend.
Eni’s standard refining margin that gauges the profitability of Eni’s refineries considering the typical raw material slate and yields, reported a 45.3% decrease from the first half of 2013, in an extremely volatile trading environment, due to the structural weakness of the refining business adversely impacted by overcapacity, lower fuel demand and increasing competitive pressure from import streams of refined products from Russia, Middle East and the USA.
The European gas market continued to be characterized by weak demand, competitive pressures and oversupply. Price competition among operators has been stiff taking into account minimum off-take obligations provided by gas purchase take-or-pay contracts and reduced sales opportunities. Spot prices in Europe reported a decrease of 18.7% from the first half of 2013. Electricity sales reported negative margins due to oversupply and increasing competition from more competitive sources (photovoltaic and coal-fired plants). Results were also affected by the appreciation of the euro against the dollar (up 4.3%).

First half

2013 2013 2014 % Ch.

108.66	Average price of Brent dated crude oil (a)	107.50	108.93	1.3
1.328	Average EUR/USD exchange rate (b)	1.313	1.370	4.3
81.82	Average price in euro of Brent dated crude oil	81.87	79.51	(2.9	)
2.43	Standard Eni Refining Margin (SERM) (c)	3.16	1.73	(45.3	)
10.64	Price of NBP gas (d)	10.76	8.75	(18.7	)
0.2	Euribor - three-month euro rate (%)	0.2	0.3	50.0
0.3	Libor - three-month dollar rate (%)	0.3	0.2	(33.3	)

(a) In USD per barrel. Source: Platt’s Oilgram.
(b) Source: ECB.
(c) In USD per barrel FOB Mediterranean Brent dated crude oil. Source: Eni calculations. It gauges the profitability of Eni's refineries against the typical raw material slate and yields.
(d) In USD per million BTU (British Thermal Unit). Source: Platt’s Oilgram.

Analysis of profit and loss account items

Net sales from operations

First half

2013 (euro million) 2013 2014 Change % Ch.

31,264		Exploration & Production	15,614		14,802		(812	)	(5.2	)
32,212		Gas & Power	17,415		14,782		(2,633	)	(15.1	)
57,238		Refining & Marketing	29,683		28,686		(997	)	(3.4	)
5,859		Versalis	3,063		2,804		(259	)	(8.5	)
11,598		Engineering & Construction	5,001		5,966		965		19.3
80		Other activities	48		34		(14	)	(29.2	)
1,453		Corporate and financial companies	680		671		(9	)	(1.3	)
18		Impact of unrealized intragroup profit elimination	(27	)	(31	)	(4	)
(25,025	)	Consolidation adjustment	(12,190	)	(11,158	)	1,032
114,697			59,287		56,556		(2,731	)	(4.6	)

Eni’s net sales from operations in the first half of 2014 (euro 56,556 million) decreased by euro 2,731 million, or 4.6% from the first half of 2013, driven by the appreciation of the euro against the dollar, lower prices of products and natural gas, lower production and sales volumes, partially offset by the Engineering & Construction segment due to the fact that the first half of 2013 was impacted by sharply lower levels of activities.

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Eni Interim Consolidated Report / Financial review and other information

Operating expenses

First half

2013 (euro million) 2013 2014 Change % Ch.

90,003	Purchases, services and other	47,047		43,346	(3,701	)	(7.9	)
539	of which: - other special items	(21	)	75
5,301	Payroll and related costs	2,586		2,716	130		5.0
270	of which: - provision for redundancy incentives and other	19		30
95,304		49,633		46,062	(3,571	)	(7.2	)

In the first half of 2014 operating expenses (euro 46,062 million) reported a decrease of euro 3,571 million, or 7.2% from the first half of 2013. Purchases, services and other costs (euro 43,346 million) declined by euro 3,701 million, or 7.9%, reflecting lower supply costs of raw materials in euro terms and the benefit of renegotiation of certain long-term gas supply contracts, with economic effects relating in part to volumes procured in previous reporting periods.
Purchases, services and other costs included special items of euro 75 million mainly related to environmental provisions.
Payroll and related costs (euro 2,716 million) registered an increase of euro 130 million, or 5% from the first half of 2013, due to a higher average number of employees outside Italy.

Depreciation, depletion, amortization and impairments

First half

2013 (euro million) 2013 2014 Change % Ch.

7,810		Exploration & Production	3,811		4,074		263		6.9
413		Gas & Power	198		164		(34	)	(17.2	)
345		Refining & Marketing	169		140		(29	)	(17.2	)
95		Versalis	42		49		7		16.7
721		Engineering & Construction	356		362		6		1.7
1		Other activities
61		Corporate and financial companies	30		33		3		10.0
(25	)	Impact of unrealized intragroup profit elimination	(13	)	(12	)	1
9,421		Total depreciation, depletion and amortization	4,593		4,810		217		4.7
2,400		Impairments	88		378		290		..
11,821			4,681		5,188		507		10.8

Depreciation, depletion and amortization (euro 4,810 million) increased by euro 217 million, or 4.7% from the first half of 2013, mainly in the Exploration & Production Division following the start-ups and ramp-ups of new fields in the second half of 2013.

Impairment charges amounting to euro 378 million in the first half of 2014 are described in the discussion on special charges above.

The breakdown of impairment charges by segment is shown in the table below:

First half

2013 (euro million) 2013 2014 Change

19	Exploration & Production	39	187	148
1,685	Gas & Power		1	1
633	Refining & Marketing	41	178	137
44	Versalis	6	7	1
19	Other activities	2	5	3
2,400		88	378	290

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Eni Interim Consolidated Report / Financial review and other information

Operating profit
The breakdown of the reported operating profit by segment is provided below:

First half

2013 (euro million) 2013 2014 Change % Ch.

14,868		Exploration & Production	7,435		6,221		(1,214	)	(16.3	)
(2,967	)	Gas & Power	(531	)	653		1,184		..
(1,492	)	Refining & Marketing	(541	)	(623	)	(82	)	(15.2	)
(725	)	Versalis	(278	)	(286	)	(8	)	(2.9	)
(98	)	Engineering & Construction	(476	)	291		767		..
(337	)	Other activities	(193	)	(145	)	48		24.9
(399	)	Corporate and financial companies	(154	)	(143	)	11		7.1
38		Impact of unrealized intragroup profit elimination	76		(67	)	(143	)
8,888		Operating profit	5,338		5,901		563		10.5

Adjusted operating profit
The breakdown of the adjusted operating profit by segment is provided below:

First half

2013 (euro million) 2013 2014 Change % Ch.

8,888		Operating profit	5,338		5,901		563		10.5
716		Exclusion of inventory holding (gains) losses	336		15
3,046		Exclusion of special items	31		303
12,650		Adjusted operating profit	5,705		6,219		514		9.0
		Breakdown by division:
14,643		Exploration & Production	7,407		6,431		(976	)	(13.2	)
(638	)	Gas & Power	(635	)	311		946		..
(457	)	Refining & Marketing	(310	)	(442	)	(132	)	(42.6	)
(386	)	Versalis	(145	)	(182	)	(37	)	(25.5	)
(99	)	Engineering & Construction	(474	)	293		767		..
(210	)	Other activities	(107	)	(88	)	19		17.8
(332	)	Corporate and financial companies	(158	)	(139	)	19		12.0
129		Impact of unrealized intragroup profit elimination and other consolidation adjustment	127		35		(92	)
12,650			5,705		6,219		514		9.0

Eni’s adjusted operating profit, calculated by excluding an inventory holding loss of euro 15 million and special items made up of special net losses of euro 303 million, amounted to euro 6,219 million, with an increase of euro 514 million, or 9% from the first half of 2013, reflecting a better operating performance recorded by the following segments:

- The Gas & Power reported an adjusted operating profit of euro 311 million, which was significantly better than the operating loss of euro 635 million registered in the same period of the previous year (up euro 946 million). This was driven by the renegotiations of a large portion of long-term supply contracts, with economic effects relating in part to gas volumes supplied in previous years. This profit was partly offset by continuing margin and volume weakness for gas and electricity reflecting poor demand and strong competitive pressure;

- The Engineering & Construction, where Eni operates through its subsidiary Saipem, reverted to adjusted operating profit of euro 293 million from a loss of euro 474 million reported in the first half of the previous year. The euro 767 million increase owed to a gradual return to profitability of core operations in 2014 and the fact that the y-o-y comparability was affected by the exceptional loss made at certain large contract which impacted the result of the first half of 2013.

These positives were partially offset by the lower operating profit reported by:

- The Exploration & Production (down by euro 976 million, or 13.2%) driven by lower production sold, largely impacted by geopolitical issues in Libya, higher depreciation charges following the start-ups and

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ramp-ups of new fields in the second half of 2013, as well as the appreciation of the euro vs. the dollar (up 4.3%). These negatives were partly offset by higher hydrocarbons realizations in dollar terms (up 2.2% on average), driven by higher Brent prices that absorbed the weakness of gas prices;

- The Refining & Marketing reported higher adjusted operating losses (from a loss of euro 310 million reported in the first half of 2013 to a loss of euro 442 million in the first half of 2014), driven by a continued deterioration in refining margins on the back of weak demand for refined products, mainly in the Mediterranean area.

Finance income (expense)

First half

2013 (euro million) 2013 2014 Change

(827	)	Finance income (expense) related to net borrowings	(402	)	(417	)	(15	)
(923	)	- Finance expense on short and long-term debt	(458	)	(460	)	(2	)
43		- Net interest due to banks	24		13		(11	)
4		- Net income from financial activities held for trading			16		16
49		- Net income from receivables and securities for non-financing operating activities	32		14		(18	)
(92	)	Income (expense) on derivative financial instruments	(19	)	(33	)	(14	)
(91	)	- Derivatives on exchange rate	(18	)	(54	)	(36	)
40		- Derivatives on interest rate	30		31		1
(41	)	- Derivatives on securities	(31	)	(10	)	21
37		Exchange differences, net	(89	)	14		103
(297	)	Other finance income (expense)	(179	)	(134	)	45
61		- Net income from receivables and securities for financing operating activities	25		34		9
(240	)	- Finance expense due to the passage of time (accretion discount)	(132	)	(138	)	(6	)
(118	)	- Other	(72	)	(30	)	42
(1,179	)		(689	)	(570	)	119
170		Finance expense capitalized	79		77		(2	)
(1,009	)		(610	)	(493	)	117

Net finance expense of euro 493 million decreased by euro 117 million from the first half of 2013, reflecting positive exchange rate differences of euro 103 million partially offset by losses on exchange rate derivative (down euro 36 million) which did not meet the formal criteria to be designated as hedges under IFRS. Other gains regarded the effects of the valuation at fair value of securities held for trading (euro 16 million) following the establishment of a strategic reserve of liquidity in the second half of 2013 as well as lower fair value of the options that are embedded in the convertible bonds relating to Snam’s and Galp’s shares for euro 21 million due to the closer maturity and evidence that the current market price of the Galp share makes the option out-of-money, while Snam market price is slightly above the strike price.

Net income from investments
The table below sets forth the breakdown of net income from investments by segment:

First half 2014
(euro million) Exploration & Production Gas & Power Refining & Marketing Engineering & Construction Other segments Group

Share of gains (losses) from equity-accounted investments	57	35	6	15	(2	)	111
Dividends	86		34		54		174
Gains on disposal				3	96		99
Other income (expense), net	1	12	31		193		237
	144	47	71	18	341		621

Net income from investments amounted to euro 621 million and related to: (i) dividends received from entities accounted for at cost (euro 174 million), in particular the Nigeria LNG Ltd; (ii) Eni’s share of profit of equity-accounted investments (euro 111 million), mainly in the Exploration & Production, Gas & Power and

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Engineering & Construction segments; (iii) net gains on the divestment of the residual interest in Galp of euro 96 million, of which euro 77 million related to reversal of the equity evaluation reserve.
Other income amounted to euro 237 million and mainly related to the fair value revaluation of Snam’s shares (euro 96 million) and Galp’s shares (euro 97 million) underlying the convertible bonds as of June 30, 2014.
The table below sets forth a breakdown of net income/loss from investments for the first half of 2014:

First half

2013 (euro million) 2013 2014 Change

222	Share of gains (losses) from equity-accounted investments	161		111	(50	)
400	Dividends	306		174	(132	)
3,598	Gains on disposal	174		99	(75	)
1,865	Other income (expense), net	(9	)	237	246
6,085		632		621	(11	)

The dividends reduction (down euro 132 million from the first half of 2013) reported in particular in the Exploration & Production segment and lower performance of equity-accounted entities (down euro 50 million) in the Gas & Power and Exploration & Production segments were offset by gains accrued on the fair value revaluation of the interests in Snam and Galp underlying convertible bonds (up euro 225 million).

Income taxes

First half

2013 (euro million) 2013 2014 Change

		Profit before income taxes
(3,885	)	Italy	(1,156	)	300	1,456
17,849		Outside Italy	6,516		5,729	(787	)
13,964			5,360		6,029	669
		Income taxes
306		Italy	(160	)	214	374
8,699		Outside Italy	4,085		3,897	(188	)
9,005			3,925		4,111	186
		Tax rate (%)
..		Italy	..		71.3	..
48.7		Outside Italy	62.7		68.0	5.3
64.5			73.2		68.2	(5.0	)

Income taxes in the first half of 2014 were euro 4,111 million, up by euro 186 million compared to the same period of the previous year, mainly in the Gas & Power segment, which in 2013 reported net operating loss, partially offset by lower income taxes currently payable which were incurred by subsidiaries in the Exploration & Production segment operating outside Italy due to a declining taxable profit.
The reported tax rate was 68.2%, with a decrease of 5 percentage points, reflecting the lower share of taxable profit reported by subsidiaries in the Exploration & Production segment operating outside Italy and due to the fact that in the 2013 the Company could not recognize any tax-loss carry forward at the loss-making Engineering & Construction segment, partly offset by a rise in the Exploration & Production tax rate due to a higher share of taxable profit reported in countries with higher taxation.
Adjusted tax rate, calculated as ratio of income taxes to net profit before taxes on an adjusted basis, was 65.8% and it was lower than in the first half of 2013 (72%) due to the same drivers.

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Results by segment¹

Exploration & Production

First half

2013 (euro million) 2013 2014 Change % Ch.

14,868		Operating profit		7,435		6,221		(1,214	)	(16.3	)
(225	)	Exclusion of special items:		(28	)	210
19		- asset impairments		39		187
(283	)	- net gains on disposal of assets		(65	)	2
7		- risk provisions				(5	)
52		- provisions for redundancy incentives		10		20
(2	)	- commodity derivatives				2
(2	)	- exchange rate differences and derivatives		(9	)	7
(16	)	- other		(3	)	(3	)
14,643		Adjusted operating profit		7,407		6,431		(976	)	(13.2	)
(264	)	Net financial income (expense) (a)		(125	)	(134	)	(9	)
367		Net income (expense) from investments (a)		283		146		(137	)
(8,796	)	Income taxes (a)		(4,455	)	(3,979	)	476
59.7		Tax rate (%)		58.9		61.8		2.9
5,950		Adjusted net profit		3,110		2,464		(646	)	(20.8	)
		Results also include:
7,829		- amortization and depreciation		3,850		4,261		411		10.7
		of which:
1,736		exploration expenditures		891		816		(75	)	(8.4	)
1,362		- amortization of exploratory drilling expenditures and other		730		649		(81	)	(11.1	)
374		- amortization of geological and geophysical exploration expenses		161		167		6		3.7
		Average hydrocarbons realizations
99.44		Liquids (b)	($/bbl)	97.60		100.04		2.44		2.5
7.26		Natural gas	($/mcf)	7.27		7.19		(0.08	)	(1.1	)
71.87		Hydrocarbons	($/boe)	70.33		71.87		1.54		2.2

(a) Excluding special items.
(b) Includes condensates.

In the first half of 2014, the Exploration & Production segment reported an adjusted operating profit of euro 6,431 million, down by euro 976 million, or 13.2% from the same period of 2013. This decrease was driven by lower sold production, affected by geopolitical issues in Libya, higher depreciation charges following the start-ups and ramp-ups of new fields by the second half of 2013, as well as foreign currency translation differences reflecting the appreciation of the euro vs. the dollar. These negatives were partly offset by hydrocarbons realizations in dollar terms (up 2.2%) reflecting the marker Brent trend which absorbed the weakness of gas prices.

Special charges excluded from adjusted operating profit amounted to euro 210 million, mainly related to impairment losses (euro 187 million) including an oil & gas property whose development activities Eni does not expect to finance in the future; provisions for redundancy incentives (euro 20 million) and exchange rate differences and exchange rate derivative instruments reclassified as operating items (loss of euro 7 million).

Adjusted net profit decreased by euro 646 million to euro 2,464 million (down 20.8%) from the first half of 2013, due to a lower operating performance.

(1) For a detailed explanation of adjusted operating profit and net profit see the paragraph "Reconciliation of reported operating profit and reported net profit to results on an adjusted basis".

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Gas & Power

First half

2013 (euro million) 2013 2014 Change % Ch.

(2,967	)	Operating profit	(531	)	653		1,184		..
191		Exclusion of inventory holding (gains) losses	(33	)	(107	)
2,138		Exclusion of special items:	(71	)	(235	)
1,685		- asset impairments			1
1		- net gains on disposals of assets
292		- risk provisions	(102	)
(1	)	- environmental provisions
10		- provisions for redundancy incentives	1		1
314		- commodity derivatives	54		(283	)
(186	)	- exchange rate differences and derivatives	(39	)	11
23		- other	15		35
(638	)	Adjusted operating profit	(635	)	311		946		..
(818	)	Marketing	(743	)	232		975		..
180		International transport	108		79		(29	)	(26.9	)
14		Net finance income (expense) (a)	12		4		(8	)
70		Net income (expense) from investments (a)	57		35		(22	)
301		Income taxes (a)	198		(153	)	(351	)
..		Tax rate (%)	..		43.7
(253	)	Adjusted net profit	(368	)	197		565		..

(a) Excluding special items.

In the first half of 2014, the Gas & Power segment reported an adjusted operating profit of euro 311 million, representing a significant improvement compared to the euro 636 loss registered in the first half of 2013. This result was driven by the renegotiations of a large portion of the long-term supply portfolio that were finalized between the fourth quarter of 2013 and June 30, 2014 as well as renegotiations of a number of gas supply contracts, the economic effects of which were retroactive to previous years. This positive trend was partly offset by continuing headwinds in the gas market as spot selling prices in Italy declined, dragged down by structural weak demand and oversupplies, and also triggered price revisions at certain long-term buyers. Furthermore, prices in the residential market were affected by a reduction in regulated tariffs set by the Italian Authority for Electricity and Gas, which replaced the previous oil-linked indexation mechanism of the raw material with prices quoted at spot markets, and finally margins on electricity production and sale were sharply lower, reflecting an ongoing downturn in the thermoelectric sector. The International transport activity reduced its operating profit (down 26.9%).

The special items excluded from adjusted operating profit amounted to euro 235 million, mainly related to the gains on re-measurement at fair value of certain non hedging commodity derivatives of euro 283 lacking the formal requisites to be accounted as hedges under IFRS and to the effects of the alignment to the net realization value of the deferred cost related to the pre-paid volumes of gas due to the incurrence of the take-or-pay clause (euro 31 million).

The Gas & Power segment reported an adjusted net profit of euro 197 million, representing an increase of euro 565 million compared to the first half of 2013.

Other performance indicators
Follows a breakdown of the pro-forma adjusted EBITDA by business:

First half

2013 (euro million) 2013 2014 Change % Ch.

(28	)	Pro-forma EBITDA adjusted	(318	)	551	869		..
(346	)	Marketing	(489	)	401	890		..
318		International transport	171		150	(21	)	(12.3	)

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization charges) on an adjusted basis is calculated by adding amortization and depreciation charges to adjusted operating profit, which is also

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modified to take into account the impact associated with certain derivatives instruments as detailed below. This performance indicator includes the adjusted EBITDA of Eni’s wholly-owned subsidiaries and Eni’s share of adjusted EBITDA generated by certain associates which are accounted for under the equity method for IFRS purposes. Management believes that the EBITDA pro-forma adjusted is an important alternative measure to assess the performance of Eni’s Gas & Power segment, taking into account evidence that this division is comparable to European utilities in the gas and power generation sector. This measure is provided in order to assist investors and financial analysts in assessing the divisional performance of Eni Gas & Power, as compared to its European peers, as EBITDA is widely used as the main performance indicator for utilities. The EBITDA pro-forma adjusted is a non-GAAP measure under IFRS.

Refining & Marketing

First half

2013 (euro million) 2013 2014 Change % Ch.

(1,492	)	Operating profit	(541	)	(623	)	(82	)	(15.2	)
221		Exclusion of inventory holding (gains) losses	195		(63	)
814		Exclusion of special items:	36		244
633		- asset impairments	41		178
(9	)	- net gains on disposals of assets	(2	)
93		- environmental provisions	16		41
91		- provisions for redundancy incentives	4		4
5		- commodity derivatives	(2	)	(1	)
(2	)	- exchange rate differences and derivatives	(19	)	11
3		- other	(2	)	11
(457	)	Adjusted operating profit	(310	)	(442	)	(132	)	(42.6	)
(6	)	Net finance income (expense) (a)	(3	)	(5	)	(2	)
56		Net income (expenses) from investments (a)	39		40		1
175		Income taxes (a)	84		83		(1	)
(232	)	Adjusted net profit	(190	)	(324	)	(134	)	(70.5	)

(a) Excluding special items.

In the first half of 2014, the Refining & Marketing segment reported an adjusted operating loss of euro 442 million, down by euro 132 million, or 42.6% from the first half of 2013. The decline was impacted by a continuing deterioration in the refining scenario driven by excess capacity, weak demand for oil products, in particular in the Mediterranean area and increasing competitive pressure from product streams imported from Russia, Middle East and the USA. Against these ongoing trends, Eni’s margin (Standard Eni Refining Margin) that gauges the profitability of Eni’s refineries considering the typical raw material slate and yields, reported a 45.3% decrease from the first half of 2013. This trend was partly counteracted by efficiency initiatives, in particular aimed at reducing energy and operating costs, and optimizing of assets by reducing throughputs of less competitive plants.
Marketing results registered a decline compared to the same period of the previous year, due to lower consumption and increasing competitive pressure.

Special charges excluded from adjusted operating loss amounted to euro 244 million, mainly related to impairment losses of the retail networks in the Czech Republic and Slovakia which were aligned to the expected sale price, the effect of which was partly offset by a write-up of the Eni’s interest in the refining joint venture that currently supplies the divested networks (euro 51 million), impairment of investments made for compliance and stay-in-business purposes were completely written-off as they related certain Cash Generating Units which were impaired in previous reporting periods and continued to lack any profitability prospects (euro 96 million), environmental provisions (euro 41 million) and provisions for redundancy incentives (euro 4 million).

Adjusted net loss was euro 324 million, down by euro 134 million from the first half of 2013 (adjusted net loss of euro 190 million), mainly due to higher operating losses.

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Versalis

First half

2013 (euro million) 2013 2014 Change % Ch.

(725	)	Operating profit	(278	)	(286	)	(8	)	(2.9	)
213		Exclusion of inventory holding (gains) losses	123		83
126		Exclusion of special items:	10		21
44		- asset impairments	6		7
4		- risk provisions	4
61		- environmental provisions	2		7
23		- provisions for redundancy incentives	1		3
(1	)	- commodity derivatives	1		1
(5	)	- exchange rate differences and derivatives	(4	)	1
		- other			2
(386	)	Adjusted operating profit	(145	)	(182	)	(37	)	(25.5	)
(2	)	Net finance income (expense) (a)	(1	)	(2	)	(1	)
		Net income (expenses) from investments (a)	(1	)	(2	)	(1	)
50		Income taxes (a)	11		33		22
(338	)	Adjusted net profit	(136	)	(153	)	(17	)	(12.5	)

(a) Excluding special items.

In the first half of 2014, Versalis reported an adjusted operating loss, with an increase of euro 37 million, or 25.5% compared to the first half of the previous year, driven by increased oil-based feedstock costs, continued weakness in commodity demand reflecting slow economic growth and increasing competition from Asian producers which left product margins at depressed levels.

Special charges excluded from adjusted operating loss of euro 21 million, related mainly to environmental provisions (euro 7 million), impairment of marginal business lines due to lack of profitability perspectives (euro 7 million), as well as to provisions for redundancy incentives (euro 3 million).

Adjusted net loss of euro 153 million increased by euro 17 million, or 12.5% compared to the same period of the previous year.

Engineering & Construction

First half

2013 (euro million) 2013 2014 Change % Ch.

(98	)	Operating profit	(476	)	291		767		..
(1	)	Exclusion of special items:	2		2
107		- net gains on disposal of assets	1		1
2		- provisions for redundancy incentives			1
(1	)	- commodity derivatives	1
(109	)	- others
(99	)	Adjusted operating profit	(474	)	293		767
(5	)	Net finance income (expense) (a)	(2	)	(3	)	(1	)
2		Net income (expenses) from investments (a)	9		15		6
(151	)	Income taxes (a)	(52	)	(90	)	(38	)
..		Tax rate (%)	..		29.5
(253	)	Adjusted net profit	(519	)	215		734		..

(a) Excluding special items.

In the first half of 2014, the Engineering & Construction segment reported an adjusted operating profit of euro 293 million, with an improvement of euro 767 million from the first half of 2013. The y-o-y comparison was boosted by the magnitude of the operating loss incurred by Saipem in the same period of 2013 due to exceptional loss.

The adjusted net loss amounted to euro 215 million, up by euro 734 million from the first half of 2013.

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Other activities

First half

2013 (euro million) 2013 2014 Change % Ch.

(337	)	Operating profit	(193	)	(145	)	48	24.9
127		Exclusion of special items:	86		57
19		- asset impairments	2		5
(3	)	- net gains on disposals of assets
31		- risk provisions	23		3
52		- environmental provisions	36		26
20		- provisions for redundancy incentives	1
8		- other	24		23
(210	)	Adjusted operating profit	(107	)	(88	)	19	17.8
4		Net financial income (expense) (a)	(6	)	(3	)	3
1		Net income (expense) from investments (a)
		Income taxes (a) (b)
(205	)	Adjusted net profit	(113	)	(91	)	22	19.5

(a) Excluding special items.
(b) Deferred tax assets relating to Syndial losses are recognized by the parent company Eni SpA based on intercompany agreements which regulate the Italian consolidated accounts for tax purposes.

Corporate and financial companies

First half

2013 (euro million) 2013 2014 Change % Ch.

(399	)	Operating profit	(154	)	(143	)	11		7.1
67		Exclusion of special items:	(4	)	4
		- risk provisions			3
72		- provisions for redundancy incentives	2		1
(5	)	- other	(6	)
(332	)	Adjusted operating profit	(158	)	(139	)	19		12.0
(560	)	Net financial income (expense) (a)	(366	)	(392	)	(26	)
290		Net income (expense) from investments (a)	43		247		204
126		Income taxes (a)	197		62		(135	)
(476	)	Adjusted net profit	(284	)	(222	)	62		21.8

(a) Excluding special items.

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NON-GAAP measure
Reconciliation of reported operating profit and reported net profit to results on an adjusted basis

Management evaluates Group and business performance on the basis of adjusted operating profit and adjusted net profit, which are arrived at by excluding inventory holding gains or losses, special items and, in determining the business segments’ adjusted results, finance charges on finance debt and interest income. The adjusted operating profit of each business segment reports gains and losses on derivative financial instruments entered into in order to manage exposure to movements in foreign currency exchange rates which impact industrial margins and the translation of commercial payables and receivables. Accordingly currency translation effects recorded through profit and loss are also reported within business segments’ adjusted operating profit. The taxation effect of the items excluded from adjusted operating or net profit is determined based on the specific rate of taxes applicable to each of them. The Italian statutory tax rate is applied to finance charges and income. Adjusted operating profit and adjusted net profit are non-GAAP financial measures under either IFRS or US GAAP. Management includes them in order to facilitate a comparison of base business performance across periods, and to allow financial analysts to evaluate Eni’s trading performance on the basis of their forecasting models.

The following is a description of items that are excluded from the calculation of adjusted results.

Inventory holding gain or loss is the difference between the cost of sales of the volumes sold in the period based on the cost of supplies of the same period and the cost of sales of the volumes sold calculated using the weighted average cost method of inventory accounting.

Special items include certain significant income or charges pertaining to either: (i) infrequent or unusual events and transactions, being identified as non-recurring items under such circumstances; (ii) certain events or transactions which are not considered to be representative of the ordinary course of business, as in the case of environmental provisions, restructuring charges, asset impairments or write ups and gains or losses on divestments even though they occurred in past periods or are likely to occur in future ones; or (iii) exchange rate differences and derivatives relating to industrial activities and commercial payables and receivables, particularly exchange rate derivatives to manage commodity pricing formulas which are quoted in a currency other than the functional currency. Those items are reclassified in operating profit with a corresponding adjustment to net finance charges, notwithstanding the handling of foreign currency exchange risks is made centrally by netting off naturally-occurring opposite positions and then dealing with any residual risk exposure in the exchange rate market. As provided for in Decision No. 15519 of July 27, 2006 of the Italian market regulator (Consob), non recurring material income or charges are to be clearly reported in the management’s discussion and financial tables. Also, special items include gains and losses on re-measurement at fair value of certain non hedging commodity derivatives, including the ineffective portion of cash flow hedges and certain derivatives financial instruments embedded in the pricing formula of long-term gas supply agreements of the Exploration & Production Division. Furthermore, special items include gains and losses on re-measurement at fair value of certain non hedging commodity derivatives, including the ineffective portion of cash flow hedges and certain derivative financial instruments embedded in the pricing formula of long-term gas supply agreements of the Exploration & Production Division.

Finance charges or income related to net borrowings excluded from the adjusted net profit of business segments are comprised of interest charges on finance debt and interest income earned on cash and cash equivalents not related to operations. Therefore, the adjusted net profit of business segments includes finance charges or income deriving from certain segment-operated assets, i.e., interest income on certain receivable financing and securities related to operations and finance charge pertaining to the accretion of certain provisions recorded on a discounted basis (as in the case of the asset retirement obligations in the Exploration & Production Division). Finance charges or interest income and related taxation effects excluded from the adjusted net profit of the business segments are allocated on the aggregate Corporate and financial companies.

For a reconciliation of adjusted operating profit and adjusted net profit to reported operating profit and reported net profit see tables below.

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First half 2014 (euro million) Exploration & Production Gas & Power Refining & Marketing Versalis Engineering & Construction Corporate and financial companies Other activities Impact of unrealized intragroup profit elimination Group

Reported operating profit	6,221		653		(623	)	(286	)	291		(143	)	(145	)	(67	)	5,901
Exclusion of inventory holding (gains) losses			(107	)	(63	)	83								102		15
Exclusion of special items:
- environmental charges					41		7						26				74
- asset impairments	187		1		178		7						5				378
- net gains on disposal of assets	2								1								3
- risk provisions	(5	)									3		3				1
- provisions for redundancy incentives	20		1		4		3		1		1						30
- commodity derivatives	2		(283	)	(1	)	1										(281	)
- exchange rate differences and derivatives	7		11		11		1										30
- other	(3	)	35		11		2						23				68
Special items of operating profit	210		(235	)	244		21		2		4		57				303
Adjusted operating profit	6,431		311		(442	)	(182	)	293		(139	)	(88	)	35		6,219
Net finance (expense) income (a)	(134	)	4		(5	)	(2	)	(3	)	(392	)	(3	)			(535	)
Net income (expense) from investments (a)	146		35		40		(2	)	15		247						481
Income taxes (a)	(3,979	)	(153	)	83		33		(90	)	62				(13	)	(4,057	)
Tax rate (%)	61.8		43.7		..				29.5								65.8
Adjusted net profit	2,464		197		(324	)	(153	)	215		(222	)	(91	)	22		2,108
of which attributable to:
- non-controlling interest																	53
- Eni's shareholders																	2,055
Reported net profit attributable to Eni's shareholders																	1,961
Exclusion of inventory holding (gains) losses																	11
Exclusion of special items																	83
Adjusted net profit attributable to Eni's shareholders																	2,055

(a) Excluding special items.

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Eni Interim Consolidated Report / Financial review and other information

First half 2013 (euro million) Exploration & Production Gas & Power Refining & Marketing Versalis Engineering & Construction Corporate and financial companies Other activities Impact of unrealized intragroup profit elimination Group

Reported operating profit	7,435		(531	)	(541	)	(278	)	(476	)	(154	)	(193	)	76		5,338
Exclusion of inventory holding (gains) losses			(33	)	195		123								51		336
Exclusion of special items:
- environmental charges					16		2						36				54
- asset impairments	39				41		6						2				88
- net gains on disposal of assets	(65	)			(2	)			1								(66	)
- risk provisions			(102	)			4						23				(75	)
- provisions for redundancy incentives	10		1		4		1				2		1				19
- commodity derivatives			54		(2	)	1		1								54
- exchange rate differences and derivatives	(9	)	(39	)	(19	)	(4	)									(71	)
- other	(3	)	15		(2	)					(6	)	24				28
Special items of operating profit	(28	)	(71	)	36		10		2		(4	)	86				31
Adjusted operating profit	7,407		(635	)	(310	)	(145	)	(474	)	(158	)	(107	)	127		5,705
Net finance (expense) income (a)	(125	)	12		(3	)	(1	)	(2	)	(366	)	(6	)			(491	)
Net income (expense) from investments (a)	283		57		39		(1	)	9		43						430
Income taxes (a)	(4,455	)	198		84		11		(52	)	197				(49	)	(4,066	)
Tax rate (%)	58.9		..		..				..								72.0
Adjusted net profit	3,110		(368	)	(190	)	(136	)	(519	)	(284	)	(113	)	78		1,578
of which attributable to:
- non-controlling interest																	(383	)
- Eni's shareholders																	1,961
Reported net profit attributable to Eni's shareholders																	1,818
Exclusion of inventory holding (gains) losses																	210
Exclusion of special items																	(67	)
Adjusted net profit attributable to Eni's shareholders																	1,961

(a) Excluding special items.

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Eni Interim Consolidated Report / Financial review and other information

2013 (euro million) Exploration & Production Gas & Power Refining & Marketing Versalis Engineering & Construction Corporate and financial companies Other activities Impact of unrealized intragroup profit elimination Group

Reported operating profit	14,868		(2,967	)	(1,492	)	(725	)	(98	)	(399	)	(337	)	38		8,888
Exclusion of inventory holding (gains) losses			191		221		213								91		716
Exclusion of special items
- environmental charges			(1	)	93		61						52				205
- asset impairments	19		1,685		633		44						19				2,400
- net gains on disposal of assets	(283	)	1		(9	)			107				(3	)			(187	)
- risk provisions	7		292				4						31				334
- provisions for redundancy incentives	52		10		91		23		2		72		20				270
- commodity derivatives	(2	)	314		5		(1	)	(1	)							315
- exchange rate differences and derivatives	(2	)	(186	)	(2	)	(5	)									(195	)
- other	(16	)	23		3				(109	)	(5	)	8				(96	)
Special items of operating profit	(225	)	2,138		814		126		(1	)	67		127				2,841
Adjusted operating profit	14,643		(638	)	(457	)	(386	)	(99	)	(332	)	(210	)	129		12,445
Net finance (expense) income (a)	(264	)	14		(6	)	(2	)	(5	)	(560	)	4				(819	)
Net income from investments (a)	367		70		56				2		290		1				786
Income taxes (a)	(8,796	)	301		175		50		(151	)	126				(90	)	(8,385	)
Tax rate (%)