THEEni's adjusted net profit rose by 31% to 978 million euros in the first three months of 2018 compared to the same quarter of the previous year, benefiting from the progress made by oil on the hydrocarbon price and production front.
L'Net income instead recorded a slight decrease (-2%) from 965 to 946 million euro, while theadjusted operating profit increased by 30% to 2,38 billion driven by the performance of E&P which recorded an increase of 47% (+0,67 billion). Compared with the Bloomberg consensus, which expected adjusted operating income of €2,66 billion and adjusted net income of €1,14 billion, the results are slightly lower. For this reason, the stock is falling on the stock market and shares down 1,24% as of 10:17 on Friday morning.
Up to 3,17 billion (+22%) la cash generation, in flexion net investments, down from 2,46 billion to 1,78 billion. In terms of assets, down net borrowing, amounting to 11,28 billion.
The rthe cables core business decreased slightly by 0,6% to 17,9 billion. In the period January-March the operating cash generation amounted to 2,19 billion euros, an increase of 13% compared to the first quarter of 2017.
Good news comes about the hydrocarbon production which in the first quarter of 2018 recorded a growth of 4% to 1,87 million boe/day, in line with the guidance communicated to the market for the year 2018. Net of the price effect in the PSAs, according to the press release of Eni, the growth is 4,4% with a contribution from start-ups and ramp-ups equal to 238 kboe/d.
By virtue of the results achieved, Eni confirms the upward revision of the 2018 growth forecast to +4%, corresponding to a level of approximately 1,9 million boe/day. Based on what was explained by the Italian energy giant, the increase will be supported by the ramp-up of 2017 start-ups in particular in Egypt, Indonesia and Kashagan, by the start-up of new projects in particular in Angola and Ghana, by the stabilization of Goliat ( Norway) and by the contribution of the initiative in the United Arab Emirates, partly compensated mainly by the declines of mature productions.
“Eni's economic and financial results were excellent in the first quarter, improving more than proportionally compared to the oil scenario. Compared to the first quarter of 2017, with an 8% increase in the Brent price in euro, the Group's adjusted operating profit increased by 30%, while cash generation from results grew by 22 percent”. commented the group CEO, Claudio Descalzi.
“Based on these results and the strategy announced with the 2018-2021 Plan, I confirm for 2018 the objective of cash neutrality at a Brent price of $55 a barrel" continued the ad.
These results were obtained mainly thanks to the higher production of hydrocarbons, which drove the E&P operating result with an increase of 47%. "In the first quarter, the optimization actions of our asset portfolio also continued with the entry into the United Arab Emirates, one of the most productive areas in the world, and the sale of a further 10% of the Zohr field in Egypt", he underlined Descalzi.
The Mid Downstream businesses also achieved important results in the quarter, despite a less favorable scenario for them than in 2017, benefiting from the strengthening and development actions implemented in the last 3 years. In particular, LNG has achieved significant results, the result of increased integration with other Group activities.
