Information on net borrowings

12 Months Ended

Dec. 31, 2018

Disclosure of Information on net borrowings [Abstract]

19 Information on net borrowings

In assessing its capital structure, Eni uses net borrowings, which is a non-GAAP financial measure. Eni calculates net borrowings as total finance debt (short-term and long-term debt) derived from its Consolidated Financial Statements prepared in accordance with IFRS less: cash and cash equivalents, held-for-trading securities and certain highly-liquid investments not related to operations including, among others, non-operating financing receivables. Held-for-trading securities are part of a strategic reserve of liquidity that management has established by reinvesting proceeds from the Group disposal plans and is intended to provide a certain degree of financial flexibility in case of a prolonged price downturn, tight financial markets or in view of other Company’s purposes. Non-operating financing receivables consist mainly of deposits with banks and other financing institutions and deposits in escrow. These assets are generally intended to absorb temporary surpluses of cash as part of the Company’s ordinary management of financing activities.

Management believes that net borrowings is a useful measure of Eni’s financial condition as it provides insight about the soundness of Eni’s capital structure and the ways by which Eni’s operating assets are financed.

	December 31, 2018							December 31, 2017
(€ million)	Current			Non-current		Total		Current			Non-current		Total
A. Cash and cash equivalents		10,836					10,836		7,363					7,363
B. Held-for-trading financial assets		6,552					6,552		6,012					6,012
C. Available-for-sale financial assets									207					207
D. Liquidity (A+B+C)		17,388					17,388		13,582					13,582
E. Financing receivables		188					188		209					209
F. Short-term debt towards banks		383					383		201					201
G. Long-term debt towards banks		768			2,710		3,478		801			3,200		4,001
H. Bonds		2,781			17,313		20,094		1,445			16,907		18,352
I. Short-term debt towards related parties		661					661		164					164
L. Other short-term liabilities		1,138					1,138		1,877					1,877
M. Other long-term liabilities		52			59		111		40			72		112
N. Total borrowings (F+G+H+I+L+M)		5,783			20,082		25,865		4,528			20,179		24,707
O. Net borrowings (N-D-E)		(11,793	)		20,082		8,289		(9,263	)		20,179		10,916

Financial assets held for trading are disclosed in note 6 — Financial assets held for trading.

Current financing receivables are disclosed in note 15 — Other financial assets.