46 Information by industry segment and by geographical area
Information by industry segment
Eni’s segmental reporting reflects the Group’s operating segments, whose results are regularly reviewed by the chief operating decision maker (the CEO) to make decisions about resources to be allocated to each segment and to assess segment performance.
Segment performance is evaluated based on operating profit or loss. Other segment information presented to the CEO include segment revenues and directly attributable assets and liabilities.
As of December 31, 2017, Eni had the following reportable segments:
| • | Exploration & Production: is engaged in exploring for and recovering crude oil and natural gas, including participation to projects for the liquefaction of natural gas; |
| • | Gas & Power: is engaged in supply and marketing of natural gas at wholesale and retail markets, supply and marketing of LNG and supply, production and marketing of power at retail and wholesale markets. Gas & Power is engaged in supply and marketing of crude oil and oil products targeting the operational requirements of Eni’s refining business and in commodity trading (including crude oil, natural gas, oil products, power, emission allowances, etc.) targeting to both hedge and stabilize the Group industrial and commercial margins according to an integrated view and to optimize margins. |
| • | Refining & Marketing and Chemical: is engaged in manufacturing, supply and distribution and marketing activities for oil products and chemical products. |
| • | Corporate and other activities: represents the key support functions, comprising holdings and treasury, headquarters, central functions like IT, HR, real estate, captive insurance activities, as well as the Group environmental cleanup and remediation activities performed by the subsidiary Syndial. The Energy Solutions Department, which engages in developing the business of renewable energy, is an operating segment, which is reported within Corporate and other activities because it does not meet the materiality threshold for separate segment reporting. |
The information by segmental reporting is the following:
|
Discontinued operations |
||||||||||||||||||||||||||||||||||||||||
| (€ million) |
Exploration & Production |
Gas & Power |
Refining & Marketing and Chemical |
Engineering & Construction |
Corporate and other activities |
Adjustments of intragroup profits |
Total |
Engineering & Construction |
Intragroup eliminations |
Continuing operations | ||||||||||||||||||||||||||||||
| 2017 | ||||||||||||||||||||||||||||||||||||||||
| Net sales from operations(a) | 19,525 | 50,623 | 22,107 | 1,462 | ||||||||||||||||||||||||||||||||||||
| Less: intersegment sales | (12,394 | ) | (10,777 | ) | (2,336 | ) | (1,291 | ) | ||||||||||||||||||||||||||||||||
| Net sales to customers | 7,131 | 39,846 | 19,771 | 171 | 66,919 | 66,919 | ||||||||||||||||||||||||||||||||||
| Operating profit | 7,651 | 75 | 981 | (668 | ) | (27 | ) | 8,012 | 8,012 | |||||||||||||||||||||||||||||||
| Net provisions for contingencies | 479 | (20 | ) | 182 | 245 | 886 | 886 | |||||||||||||||||||||||||||||||||
| Depreciation and amortization | 6,747 | 345 | 360 | 60 | (29 | ) | 7,483 | 7,483 | ||||||||||||||||||||||||||||||||
| Net impairments (reversals) | (158 | ) | (146 | ) | 54 | 25 | (225 | ) | (225 | ) | ||||||||||||||||||||||||||||||
| Write-off | 260 | 2 | 1 | 263 | 263 | |||||||||||||||||||||||||||||||||||
| Share of profit (loss) of equity-accounted investments | (99 | ) | (10 | ) | (57 | ) | (101 | ) | (267 | ) | (267 | ) | ||||||||||||||||||||||||||||
| Identifiable assets(b) | 66,661 | 11,058 | 11,599 | 1,108 | (610 | ) | 89,816 | |||||||||||||||||||||||||||||||||
| Unallocated assets | 25,112 | |||||||||||||||||||||||||||||||||||||||
| Equity-accounted investments | 1,234 | 509 | 321 | 1,447 | 3,511 | |||||||||||||||||||||||||||||||||||
| Identifiable liabilities(c) | 17,273 | 8,851 | 4,005 | 4,053 | (306 | ) | 33,876 | |||||||||||||||||||||||||||||||||
| Unallocated liabilities | 32,973 | |||||||||||||||||||||||||||||||||||||||
| Capital expenditure | 7,739 | 142 | 729 | 87 | (16 | ) | 8,681 | |||||||||||||||||||||||||||||||||
| 2016 | ||||||||||||||||||||||||||||||||||||||||
| Net sales from operations(a) | 16,089 | 40,961 | 18,733 | 1,343 | ||||||||||||||||||||||||||||||||||||
| Less: intersegment sales | (9,711 | ) | (8,898 | ) | (1,605 | ) | (1,150 | ) | ||||||||||||||||||||||||||||||||
| Net sales to customers | 6,378 | 32,063 | 17,128 | 193 | 55,762 | 55,762 | ||||||||||||||||||||||||||||||||||
| Operating profit | 2,567 | (391 | ) | 723 | (681 | ) | (61 | ) | 2,157 | 2,157 | ||||||||||||||||||||||||||||||
| Net provisions for contingencies | 123 | 50 | 171 | 438 | (277 | ) | 505 | 505 | ||||||||||||||||||||||||||||||||
| Depreciation and amortization | 6,772 | 354 | 389 | 72 | (28 | ) | 7,559 | 7,559 | ||||||||||||||||||||||||||||||||
| Net impairments (reversals) | (700 | ) | 81 | 104 | 40 | (475 | ) | (475 | ) | |||||||||||||||||||||||||||||||
| Write-off | 153 | 2 | 195 | 350 | 350 | |||||||||||||||||||||||||||||||||||
| Share of profit (loss) of equity-accounted investments | (198 | ) | 19 | (3 | ) | (144 | ) | (326 | ) | (326 | ) | |||||||||||||||||||||||||||||
| Identifiable assets(b) | 75,716 | 12,014 | 10,712 | 1,146 | (520 | ) | 99,068 | |||||||||||||||||||||||||||||||||
| Unallocated assets | 25,477 | |||||||||||||||||||||||||||||||||||||||
| Equity-accounted investments | 1,626 | 592 | 289 | 1,533 | 4,040 | |||||||||||||||||||||||||||||||||||
| Identifiable liabilities(c) | 17,433 | 8,923 | 3,968 | 3,939 | (332 | ) | 33,931 | |||||||||||||||||||||||||||||||||
| Unallocated liabilities | 37,528 | |||||||||||||||||||||||||||||||||||||||
| Capital expenditure | 8,254 | 120 | 664 | 55 | 87 | 9,180 | ||||||||||||||||||||||||||||||||||
| 2015 | ||||||||||||||||||||||||||||||||||||||||
| Net sales from operations(a) | 21,436 | 52,096 | 22,639 | 11,507 | 1,468 | |||||||||||||||||||||||||||||||||||
| Less: intersegment sales | (12,115 | ) | (9,917 | ) | (2,007 | ) | (1,243 | ) | (1,314 | ) | ||||||||||||||||||||||||||||||
| Net sales to customers | 9,321 | 42,179 | 20,632 | 10,264 | 154 | 82,550 | (10,264 | ) | 72,286 | |||||||||||||||||||||||||||||||
| Operating profit | (959 | ) | (1,258 | ) | (1,567 | ) | (694 | ) | (497 | ) | (23 | ) | (4,998 | ) | 694 | 1,228 | (3,076 | ) | ||||||||||||||||||||||
| Net provisions for contingencies | 221 | 41 | 148 | 104 | 226 | 8 | 748 | (104 | ) | 644 | ||||||||||||||||||||||||||||||
| Depreciation and amortization | 8,080 | 363 | 454 | 618 | 71 | (28 | ) | 9,558 | (618 | ) | 8,940 | |||||||||||||||||||||||||||||
| Net impairments (reversals) | 5,212 | 152 | 1,150 | 590 | 20 | 7,124 | (590 | ) | 6,534 | |||||||||||||||||||||||||||||||
| Write-off | 686 | 2 | 688 | 688 | ||||||||||||||||||||||||||||||||||||
| Share of profit (loss) of equity-accounted investments | (446 | ) | (2 | ) | (20 | ) | 17 | (3 | ) | (454 | ) | (17 | ) | (471 | ) | |||||||||||||||||||||||||
| Identifiable assets(b) | 73,073 | 14,290 | 10,483 | 13,608 | 1,117 | (543 | ) | 112,028 | ||||||||||||||||||||||||||||||||
| Unallocated assets | 26,973 | |||||||||||||||||||||||||||||||||||||||
| Equity-accounted investments | 1,884 | 690 | 243 | 134 | 36 | 2,987 | (134 | ) | 2,853 | |||||||||||||||||||||||||||||||
| Identifiable liabilities(c) | 17,742 | 9,313 | 3,657 | 5,861 | 3,824 | (199 | ) | 40,198 | ||||||||||||||||||||||||||||||||
| Unallocated liabilities | 41,394 | |||||||||||||||||||||||||||||||||||||||
| Capital expenditure | 9,980 | 154 | 628 | 561 | 64 | (85 | ) | 11,302 | ||||||||||||||||||||||||||||||||
| ____________ |
| (a) | Before elimination of intersegment sales. |
| (b) | Includes assets directly associated with the generation of operating profit. |
| (c) | Includes liabilities directly associated with the generation of operating profit. |
Financial information by geographical area
Identifiable assets and investments by geographical area of origin
| (€ million) | Italy |
Other European Union |
Rest of Europe |
Americas | Asia | Africa |
Other areas |
Total | ||||||||||||||||||||||||
| 2017 | ||||||||||||||||||||||||||||||||
| Identifiable assets(a) | 18,449 | 7,706 | 6,160 | 4,406 | 16,527 | 35,385 | 1,183 | 89,816 | ||||||||||||||||||||||||
| Capital expenditure in tangible and intangible assets | 1,090 | 316 | 387 | 278 | 898 | 5,699 | 13 | 8,681 | ||||||||||||||||||||||||
| 2016 | ||||||||||||||||||||||||||||||||
| Identifiable assets(a) | 18,769 | 7,370 | 6,960 | 5,397 | 19,471 | 39,812 | 1,289 | 99,068 | ||||||||||||||||||||||||
| Capital expenditure in tangible and intangible assets | 1,163 | 331 | 460 | 233 | 1,978 | 5,004 | 11 | 9,180 | ||||||||||||||||||||||||
| 2015 | ||||||||||||||||||||||||||||||||
| Identifiable assets(a) | 21,360 | 12,370 | 7,937 | 7,442 | 22,359 | 38,927 | 1,633 | 112,028 | ||||||||||||||||||||||||
| Capital expenditure in tangible and intangible assets | 1,320 | 708 | 1,151 | 727 | 2,326 | 5,020 | 50 | 11,302 | ||||||||||||||||||||||||
____________
| (a) | Includes assets directly associated with the generation of operating profit. |
Sales from operations by geographical area of destination
| (€ million) | 2017 | 2016 | 2015 | |||||||||
| Italy | 21,925 | 21,280 | 24,405 | |||||||||
| Other European Union | 19,791 | 15,808 | 20,730 | |||||||||
| Rest of Europe | 5,911 | 4,804 | 7,125 | |||||||||
| Americas | 5,154 | 3,212 | 4,217 | |||||||||
| Asia | 7,523 | 5,619 | 9,086 | |||||||||
| Africa | 6,428 | 4,865 | 6,482 | |||||||||
| Other areas | 187 | 174 | 241 | |||||||||
| 66,919 | 55,762 | 72,286 | ||||||||||