Guido Brusco: More than doubling our production from Indonesia. As you know, the southern area hub asset, Jangkrik, has a capacity, is producing 700 million standard cubic feet per day currently. And with the other asset discovered, which we will tie in as soon as the other asset would decline we will maintain for longer this plateau. Yes, so we are almost more than doubling the production.
Alessandro Pozzi: Very interesting, Thank you. And I guess FID probably sometime next year?
Guido Brusco: Yeah, this is the plan, of course. Many moving parts, stakeholder engagement, final assessment, appraising of the discovery, but this is the target.
Alessandro Pozzi: All right. Thank you very much.
Operator: The next question comes from Irene Himona of Societe Generale.
Irene Himona: Thank you very much. My first question also on Indonesia, please, and congratulations on this substantial find. If you could perhaps give us a sense with the knowledge that you have now, a sense of timing for this start-up, and then is there enough uncommitted CapEx in the four-year plan to develop it with unchanged CapEx? That’s the first question. The second one on Venezuela. What does it mean for Eni exactly that the US have lifted sanctions at least for a few months? Thank you.
Francesco Gattei: In terms of CapEx, clearly we are working on the four-year plan with all the changes that we are discussing, the sanctioning, the evolution of the portfolio, the new discovery that is clearly has an high rating or ranking in our plan because of the clear advantage of these volumes in terms of value, in terms of cost. So I think that you shouldn’t expect major increases. There is flexibility, as you mentioned. The commitments generally are clearly more focused on the first year than there are a declining firm commitment in CapEx along the plan so there is space room for accommodating new initiatives. On Venezuela, Venezuela clearly is now an opportunity. Clearly we are still evaluating which are the options in terms of creating an additional stream for recovering our exposure.
So far this year we can say we are relatively satisfied with the capability to keep our exposure under control. Obviously the opportunity of having more volumes and higher production from the country should help to increase also the number of lifting. I don’t know if Guido would add something more on the Indonesia start-up and Venezuela activity.
Guido Brusco: No, no. Indonesia, I think I’ve said which is the target for the FID. Of course our approach on CapEx is to be disciplined and we constantly rank our project when there are assets which are more attractive than others, we reshuffle and we continue to reshuffle our activity plan.
Irene Himona: Thank you very much.
Operator: The next question comes from Michele Della Vigna of Goldman Sachs.
Michele Della Vigna: Thank you and congratulations on the strong results. I have two questions. The first one comes back to Egypt. I was wondering if you could quantify the impact of potentially not getting any more supplies from Israel if the current interruptions continue and how that affects your GGP guidance. And secondly, going back to your balance sheet, especially in an age of higher interest rates, I was wondering if you could clarify a little bit some of the moving parts between variable and fixed debt and how much benefit you can actually get from the abundant cash that you have in the balance sheet? Thank you.
Francesco Gattei: I leave to Cristian the first answer and then I will give the second one.
Cristian Signoretto: Yeah sure so the current shut off of the Tamar field clearly has an impact on the balance of the overall region because, as you know, I’m in Egypt, and it’s still importing gas from Israel, and this has reduced the amount of gas available for export. On the other extent, though, now consumption in the country is decreasing substantially due to the normal seasonal effect. So I think I mean we will see export resuming once this effect will be notable. When it comes to the impact on GGP, the range that we gave for the guidance actually includes already the uncertainty on the supply from Egypt. So I would say the guidance is resilient to that impact.
Francesco Gattei: About debt I think that we are in a very favorable position as 80% of our debt is fixed rate and clearly we benefit from instead from the increase of rates and returns related to our larger liquidity. Just to give you a figure that I think is quite interesting, Last year the net cost of our debt, so including the financial cost and the cash or the benefit from our financial asset was 2.3%. This year is 0.8%. So the increase of the interest rate is benefiting more proportionally our balance sheet and therefore we are exposed to this trend clearly that will reduce at the end our overall net cost.
Michele Della Vigna: Thank you.
Operator: The next question is from Henri Patricot of UBS.
Henri Patricot: Yes, everyone. Thank you for the presentation. I have two questions, please. The first one on the guidance for 2023 for EBIT raised to EUR14 billion for the year. I mean, If I look at the implied EBIT for the fourth quarter, it looks pretty close to the EBIT you generated in the third quarter, despite what seems to be more positive macro assumptions for the rest of this year. So I was wondering whether there are other factors that would be negative for EBIT and offset this better macro environment in the fourth quarter. And secondly, I want to come back to Enilive and the performance. So consider the guidance going up for the year. Looking just on the third quarter year-on-year there’s a bit of a decline here. So I was hoping you could expand on the moving part that you see in this business whether you’re seeing the performance on the both sides whether there is more pressure on the marketing business. Interesting any details here? Thank you.
Francesco Gattei: I have missed the second question. On the first one, you have to consider that our business are not let’s say are subject to seasonal fluctuations, so therefore you cannot extrapolate a linearity between the various segments. So there could be clearly more linear performance in the upstream, but GGP, retail, marketing are all clearly following the different seasons. The difference or the main let’s say variable part between the third and fourth quarter is that you have a lower contribution from the refining and from the marketing, downstream marketing. There is clearly, as we mentioned, a relatively mild change in the GGP. All the rest are relatively steady. In terms of the market of biofuel, I leave the question the floor to Stefano Ballista.
Stefano Ballista: Yes, the third quarter results for Enilive have been robust. We got to EUR271 million. There is a reduction compared to last year third quarter. It’s related to the marketing business. And the reason is twofold. Last year we experienced one of the highest historical margin on retail. This year, year-on-year, we are experiencing on marketing retail a competitive pressure that actually rose together with the rising of the oil prices. On the other side, we got extra result on wholesale activities, wholesale business, still on marketing. And this is thanks to a new strategy focused on overall optimal trade-off between volume and margin. This is started beginning of the year. And if we look at the global figures of the first nine months we are getting to a plus 9% compared to the nine months of last year.
