Eni archive the first semester with a Net income from 2,2 billion euros, more than double compared to the same period last year (+124%). The adjusted result on the other hand, it stands at 1,7 billion (+45%). On the other hand, adjusted operating profit more than doubled to 2,564 billion, however slightly below the estimates of analysts who had forecast it at approximately 2,580 billion (-1% vs consensus), a level slightly lower than the estimates of analysts and on the stock exchange the first reaction is negative: -0,7% while it is expected the conference call of CEO Claudio Descalzi at the end of the morning to explain the results.
The group communicated the results shortly before the start of negotiations, underlining the "strong increase in profitability", with the adjusted operating profit growing by 152% in the quarter thanks above all to exploration and production, a sector that tripled its contribution.
All this “compared to a 38% growth in Brent in Euros – comments the managing director, Claudio Descalzi – Consolidated cash generation also grew sharply, driven by the Brent price and higher production with a contribution per barrel rising to $20, allowing us to confirm the reduction to $55 per barrel of our cash neutrality for 2018” . For Descalzi, "the result of the gas & power business was also excellent".
Il net debt fell below 10 billion, the lowest level recorded in the last 11 years. The proposal of a is therefore confirmed interim dividend of 0,42 euro.
It also affected the results the increase in the production of hydrocarbons, driven by the global recovery and only partially impacted by the appreciation of the euro. Six-legged dog production is expanding to 1,86 million barrels per day, +5,2% in the second quarter and +4,6% in the first half.
As for the target, for 2018 Eni expects a growth of 4% compared to 2017 at a budget scenario of 60 dollars per barrel, corresponding to a level of approximately 1,9 million barrels per day.
During the conference call with analysts, Descalzi announced that at the maxi Zohr field, off the coast of Egypt, Eni will increase "production from the current 1,2 billion cubic feet per day to 2 billion cubic feet by September 2018" . In 2019, the CEO specified again, the maximum will be reached through the start-up of the last 3 production units.
