Eni closed the first quarter of 2015 with a adjusted net profit down 46% compared to the same period a year ago to 650 million euros and with a net result of 700 million. The sharp decline was expected as it reflects the collapse in oil prices and yet is better than the consensus gathered among analysts in recent days. The data is listed in quarterly Eni, approved yesterday by the board of directors and released this morning. Adjusted operating profit fell 55% to $1,57 billion compared to the first quarter of 2014 but is positive in all business sectors and this is a first positive factor after the strong turnaround impressed by the new CEO Claudio Descalzi aimed at making the individual divisions walk on their own legs, as he has said several times. The other positive figure of the quarterly is the increase in production up 7,2% compared to the first three months of 2014 to 1,697 million barrels per day (+3,7% excluding the positive impact of the price effect in production sharing contracts and portfolio transactions). Operating cash flow stood at 2,3 billion. The stock, at 10,39, travels up modestly 17,42 to EUR
“I am particularly satisfied with the results achieved which, in line with the strategy announced last March,recover over 600 million euro from the negative scenario effect caused by the collapse in the price of Brent. Upstream productions - states in the press release the CEO who will have a conference call with analysts this afternoon - are growing, the development plans to support new 2015-2016 productions continue according to forecasts, while all mid-downstream businesses, also taking advantage of a favorable scenario, they returned to profit highlighting the fruits of the transformation actions undertaken. These results, together with the maximum attention to efficiency and optimization of working capital, have contributed to keep the leverage unchanged (0,22, ed) compared to December 2014 despite the halving of the Brent price.”
In 2015, Eni expects hydrocarbon production to grow thanks to the start-up of new fields and the increase in those opened last year in particular in Angola, Congo, Egypt, Venezuela, the United States and Norway and the higher volumes expected in Libya (300.000 barrels/day currently), while sales of gases are expected to be stable.
Lastly, Eni announced that it has started production at the Cinguvu oil field of the West Hub Development Project, in Block 15/06 in the deep waters of Angola, about 350 kilometers northwest of Luanda and 130 kilometers west of Soyo. The start of production follows the achievement of first oil in the West Hub with the Sangos field, in November 2014.
