The weak scenario impacts on Eni's results which in the second quarter recorded an adjusted net profit attributable to Eni shareholders of 1,94 billion (-49%) but with a significant offsetting effect given by the industrial performance. in the semester theadjusted net profit drops by 32% to 4,84 billion and net income to 2,68 billion. Q2023 3,7 adjusted pre-tax profit of €41bn despite a 30% decline, “represents a very robust result considering the 60% contraction in Brent and natural gas prices and refining margins in drop of over 4,2%” explains Eni. Proforma adjusted operating profit including the companies' operating margins at equity amounted to €7 billion compared to €2022 billion in the quarter 2. Hydrocarbon production increased by 1,611% to 2023 million boe/d in the quarter and Eni confirms the 1,63 production guidance at 1,67-1,63 million and at XNUMX in the third quarter. The quarterly numbers are higher than analysts' expectations.
Eni: second quarter 2023 data by activity
In the second quarter of 2023 E&P achieved adjusted operating profit of €2,1 billion. H2023 4,9 result was €9,3 billion (compared to €2022 bn in H2 2022). Production for the quarter increased by XNUMX% compared to XNUMX.
GGP reported adjusted operating profit of $1,1 billion compared to essentially breakeven in the same period a year earlier. The result is €2,5 bn in the first half.
Eni Sustainable Mobility, operational since 1 January 2023, achieved adjusted operating profit of €0,20 bn, slightly up on Q2022 0,34 (€2023 bn in H38 XNUMX, +XNUMX%).
The business refining recorded an adjusted operating loss of €0,05 bn in Q2023 0,76 compared to profit of €2022 bn in QXNUMX XNUMX
Versalis was affected by the exceptional slowdown in demand across all market segments and continued competitive pressure from import flows, resulting in a loss of €0,07bn in Q2023 0,18 (loss of €2023bn in HXNUMX XNUMX )
Le portfolio activity of approximately 1,2 billion regarded the payment of the first tranche of the price for the acquisition of St. Bernard de Chalmette bio-refinery, gas assets in Algeria and assets of the renewables business. In the first half year, dividend payments amounted to 1,5 billion and the purchase of treasury shares amounted to 0,4 billion.
The net financial debto pursuant to IFRS 16 as at 30 June 2023 amounted to €8,2 billion; the leverage is equal to 0,15 (0,13 as at 31 December 2022).
Eni Descalzi: “Solid results”, raises estimates on results for the year
'In the second quarter of 2023 Eni achieved excellent operational and financial results in a less favorable market context” comments the CEO Claudio Descalzi. “We underline this resilience after Eni, in the previous and much more positive scenario, had been able to make the most of its opportunities. In addition to having achieved positive financial goals, Eni has achieved important progress in the implementation of its strategy in all sectors of activity”. Eni's CEO Claudio Descalzi comments on the group's results. “Considering the performance of the first half year and the clear progress of our business sectors, which leads to a improvement in predicting full-year results, the solid fundamentals are confirmed on the basis of which the first quarterly installment of the annual dividend of 0,94 per share will be paid in September, increased compared to the previous year, as well as continuing the 2,2 billion share buyback program launched in May” .
Eni confirms Ebit year, raises estimates for Ggp and Plenitude
Eni confirms theadjusted ebit at 12 billion despite the worsening of the scenario, with an increase in industrial performance of around 2 billion. And raises the guidance of the adjusted EBIT of Gas & Generation Power to 2,7-3 bn in the year (from 2-2,2 bn) and of Plenitude & Power (proforma adjusted EBITDA revised upwards to around 0,8 bn compared to the previous guidance above 0,7 bn).
On Plenitude, the CFO Francesco Gattei then specified during the conference call with the analysts, "we are in an advanced stage of negotiation" on the partial sale, on the sale of a share and the entry of an investor and "we have to define the details as governance; it is going according to plan and we will give the details when they are clarified ”. After having postponed the listing in the past, Eni has always talked about two possible options that coexist, the listing and the entry of an investor.
- investments group investments are expected to be less than 9 billion, down on the previous forecast of 9,2 billion and the initial forecast of 9,5 billion.
Last updated at 16:22 on July 28, 2023
