|Property, plant and equipment
|Inventories – Compulsory stock
|Equity-accounted investments and other investments
|Receivables and securities held for operating purposes
|Net payables related to capital expenditure
|Net working capital
|Tax payables and provisions for net deferred tax liabilities
|Other current assets and liabilities
|Provisions for employee post-retirement benefits
|Assets held for sale including related liabilities
|CAPITAL EMPLOYED, NET
|Eni shareholders’ equity
|TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
The Group’s Balance Sheet as of December 31, 2012 was impacted by the appreciation of the euro against the US dollar, which was up by 2% from December 31, 2011 (from 1.294 to 1.319 dollars per euro as of December 31, 2012). This trend decreased net capital employed and net equity by €709 million and €717 million, respectively, as well as increased net borrowings by €8 million, as a result of exchange rate differences.
At December 31, 2012, net capital employed totaled €78,224 million, representing a decrease of €10,201 million from December 31, 2011 reflecting the deconsolidation of Snam and its subsidiaries’ assets, following loss of control as part of the transaction with Cassa Depositi e Prestiti.
Fixed assets amounted to €80,156 million, representing a decrease of €13,211 million from December 31, 2011, reflecting the deconsolidation of Snam and its subsidiaries’ assets and depreciation, depletion, amortization and impairment charges (€13,561 million), partly offset by capital expenditure incurred by continuing operations (€12,761 million).
The item “Equity-accounted investments and other investments” increased by €3,108 million due to the increased book value of Eni’s residual interests in Snam and Galp which were reclassified as available-for-sale financial assets and initially measured at market fair value through profit at the date of loss of control and of the significant influence in the investees, and then re-measured at market fair value at the balance sheet date. At the balance sheet date, the residual interest of 20.2% in Snam was substantially unchanged from the initial recognition value equal to €2,408 million. Furthermore, the residual stake in Galp (an interest of 24.34%) was valued at €2,374 million, and included: (i) Eni’s share of the gain on the capital increase made by Galp’s subsidiary Petrogal whereby a new shareholder, Sinopec subscribed for its share of the capital increase by contributing a cash amount which was in excess of the net book value of the interest acquired (€835 million); (ii) the market fair value evaluation at the date of loss of significant influence (€865 million) and the re-measurement at market fair value at the balance sheet date (€198 million), net of the 5% interest sold to Amorim BV and the 4% interest sold through an accelerated book-building procedure, for a total amount of €652 million.
Net payables related to investing activities decreased following recognition of a receivable relating to the divestment of a 10% interest in the Karachaganak project to the Kazakh partner KazMunaiGas, amounting to €212 million as at the balance sheet date, as the first tranches were reimbursed as part of the settlement agreement.
Net working capital
Net working capital amounted to a negative €1,105 million, representing an increase of €3,004 million mainly due to:
- increased “Other current assets, net” (up by €2,006 million) referring mainly to: i) the deconsolidation of Snam; ii) the payment of payables due to the Company’s gas suppliers which were recorded on the take-or-pay position accrued in 2012 including payment of outstanding receivables at the beginning of the year (approximately €500 million);
- increasing oil, gas and petroleum products inventories, in particular contracts work in progress (up €921 million);
- increasing the balance between trade receivables and payables (up € 700 million), in particular in the Gas & Power Division.
Those increases were partly absorbed by higher risk provisions mainly accrued in connection with the price revision at certain gas contracts and estimate revisions caused by a reduction in interest rates used to discount the liabilities.
Net assets held for sale including related liabilities
(€155 million) mainly related to non-strategic assets of the Exploration & Production Division and the company Super Octanos in the Refining & Marketing Division.