Eni, Enel and Edison: it's a “hat-trick” of half-yearly reports today in energy. Il Cane a Sei Zampe closes the first six months with a sharp drop in net profit but with a record performance in production. So much so that he revises production growth estimates for this year upwards from +5 to +7 per cent. Enel closes an excellent six-month period with a 10,1% growth in the group's net result and confirmation of its guidance for this year. Edison confirms the difficulties, presents the market with a loss of 207 million and nevertheless confirms "the EBITDA target for the entire year of at least 1 billion euros, a value that takes into account the arbitration for the supply of gas from Libya ”. At Piazza Affari, the titles start at different speeds but at 10 Eni gains 0,32% at 15,89 euros, Enel advances by 0,24% at 4,262 euro e Edison leaves 0,32% on the field at 0,787 euro.
ENI
Adjusted net profit plunges 84% to 0,14 billion in the second quarter and by 62% to 0,79 billion in the half-year, paying the bill for the vertical drop in oil prices and influenced by the devaluations of Saipem. Excluding the subsidiary, the cut would have been practically halved: -46% in the quarter and -47% until June 30th. The operating cash flow stable at 3,37 billion in the quarter (€5,68 billion in the half year), "despite the sharp worsening of the scenario", observes the press release with which the group presented its accounts. The proposed interim dividend is 40 cents per share. And in fact the production of hydrocarbons has been recorded a jump of 10,7% in the quarter (9% in the half year) 1,754 million barrels/day e 1,726 million in the six months with “record organic growth in the 2000s”. Even excluding the positive price effect in production sharing contracts, the increase is significant and gives a measure of the potential triggered by the new strategy of CEO Claudio Descalzi. These results prompt the group to revise its full-year production guidance upwards from +5% to over 7%.
We are starting to see the concrete results of the exploration successes announced so far e field start-ups/ramp-ups they contributed - underlined the group - 105 boe/d to production in the half year mainly in Angola (West Hub and Kizomba Satellites phase 2), Congo (Nené Marine) and the USA (Hadrian South and Lucius).
"In the upstream sector, we have achieved record production growth – says CEO Descalzi – and we have significantly contained costs. Furthermore, the recent start-up of production at the Perla field in Venezuela and the soon-to-be start-up of Goliat in Norway will provide an important contribution in the second half of the year. The middownstream businesses have all achieved positive results, thanks to strong progress in restructuring our refining and petrochemical plants, successful gas contract renegotiations and further efficiency measures. These actions helped to limit the effects of the fall in hydrocarbon prices, both in economic and cash terms. Despite the halving of the price per barrel, we achieved €5,7 billion of cash flow”. Descalzi then added, during the call with analysts, that Eni's target is to "deconsolidate Saipem's debt and we are working on that. Confident that the company will recover soon ”. The Stock Exchange welcomed the optimism and Saipem moved into positive territory (+1,34% at 14pm).
ENEL
Group net result of 1,833 billion, up 10,1% compared to the same period last year. Net ordinary income was 1,604 billion euros (+3,4%), revenues rose to 37,63 billion (+4,2%). The increase, states the press release, “benefits from lower financial charges, partially offset by the higher incidence of minority interests in Endesa”. This was reported by a note from the electric group, which confirms the guidance, also adding that “active portfolio management envisages the disposal of additional non-strategic assets by the end of 2015”. As of June 30, Enel's net debt was equal to 39,849 billion, an increase of 2,466 billion, equal to +6,6%. The increase, explains the company, "is substantially connected to the investments for the period and the payment of dividends". At the same date, the ratio of net financial debt to total equity, the so-called debt to equity ratio, stood at 0,75 compared to 0,73 at the end of 2014.
"The process of corporate simplification continues in Latin America, according to plan, while strong growth is recorded in the entire renewable energy business", underlines CEO Francesco Starace. The Group reorganization started last year is already showing signs of improvement in cash flows. We therefore confirm our objectives for 2015 and continue to work intensely on this positive trajectory”. Starace specified that Enel “has no intention of selling Endesa or a portion of it“, responding to the analysts during the conference call at the end of the morning. With regard to divestments, he confirmed that "assets of around 2 billion have already been identified while 1 billion still remains to be identified". The sale of the Slovakian subsidiary, Slovewnske Electrarne, is “in the final stage. We have received – he concluded – two definitive binding offers and we expect to close by the end of the year”. The sale will take place in two phases: first the sale of a minority stake, then the rest after the completion of the works for the nuclear power plants", expected between 2017 and 2018.
EDISON
Edison closes the first half with a loss of 207 million euros (from a profit of 116) and revenues down to 5,62 billion from 6,11. Ebitda more than halved to 204 million. The energy group controlled by Edf however, it confirms “the EBITDA target for the full year of at least 1 billion euros, a value that takes into account the arbitration for the supply of gas from Libya”. The target will be achieved also thanks to the benefits deriving from the programs developed by the company to reduce operating costs, despite the fact that the energy market remains characterized by a sharp contraction in the price of oil and the weakness of electricity consumption, the press release adds.
