2021 was the year of recovery for the Eni group, after the dark months of 2020, hit by the pandemic. The energy group recorded last year the best result since 2012 and in the fourth quarter profits better than expected, supported by the economic recovery and by the increase in gas and oil prices. The 2022 dividend proposal has been confirmed.
Fourth quarter consolidated net profit at $2,1 billion
I consolidated net profits of were 2,11 billion euros in the quarter ended in December against 50 million a year earlier, even exceeding the consensus which saw them limited to 1,94 billion, and with an increase of 47% compared to the third quarter of 2021, thanks also to a growth in production by 1% to 1,737 million barrels per day.
The comparison with the corresponding 2020 reporting period - when the pandemic had led to a collapse in energy demand and prices - highlights recoveries of large proportions: +2,1 billion and +5,5 billion respectively compared to the fourth quarter and full year 2020, says Eni.
“2021 was a year of confirmation of the effectiveness of the strategy that we launched from the beginning of the pandemic, and which allowed us in just a few months to bring the capital structure back to pre-crisis levels and, at the same time, to strengthen our transition plan,” he said Claudio Descalzi, CEO of Eni in the press release issued to present the balance sheet data.
2021 adjusted net profit at $4,74 billion, the highest since 2012
In the whole year Eni recorded a adjusted net profit of 4,74 billion, the highest since 2012, when Brent exceeded 110 dollars a barrel, a sharp increase compared to the losses of 758 million recorded in 2020, "due to the operating performance, the better results of equity participations and for the significant recovery of the upstream scenario”, specifies the press release.
Thanks to the strong economic recovery, consolidated EBIT amounted to 9,7 billion, 7,8 billion higher than in 2020 (+400%).
Eni financial statements 2021: cash flow reduces debt
During 2021 Eni has created a cash flow of 12,7 billion which made it possible to have available 7,6 billion of organic free cash flow, with which the group covered the payment of dividends and the buy-back already returned to pre-pandemic levels (2,8 billion in total), the portfolio maneuver to support transition businesses (2,1 billion) and made it possible to reduce net debt of 2,6 billion compared to 31 December 2020, bringing it to 9 billion, so that the debt ratio drops to 20%, compared to 31% in the previous year.
The program ended in December buyback of own shares for 400 million, launched in August with the total purchase of 34,11 million shares. It has also been confirmed dividend proposal 2021 already announced to the market of €0,86 per share, of which €0,43 paid as an interim payment in September 2021.
Future strengths: Plenitude, Var Energi and joint venture with BP in Angola
In Eni's strategy – underlined in the press release – there are the transformation of the portfolio to extract value from the business, the optimization of the cost of capital and the maximization of growth. “The listing of Plenitude, which integrates renewables, customers and e-mobility, will allow us to achieve the scope 3 emissions reduction objectives of our domestic customers. Even the upstream portfolio remains an important lever of value creation for the energy transition, as demonstrated by the success of Vår Energi quotation on the Norwegian stock exchange, the largest IPO of an oil and gas company in more than a decade, and the forthcoming creation together with BP of a strategic vehicle in Angola that will combine the operations of the two partners”.
