Eni ended 2013 with a net income up 24% on an annual basis, to 5,196 billion. The BoD intends to propose to the shareholders' meeting the distribution of a dividend of 1,12 euros per share (from 1,08 euros in 2012), of which 0,55 euros already distributed with the September interim payment. The balance will be paid starting from May 22nd, with coupon detachment on May 19th. In the wake of these data, today in the mid-morning the six-legged dog shares are traveling against the trend on the Ftse Mib, registering an increase of 0,65%.
In the fourth quarter of last year alone, the group recorded a adjusted net profit (excluding extraordinary items) of 1,3 billion euro, down 14% compared to the same period of 2012. For the whole of 2013, adjusted net profit amounted to 4,43 billion, down 35%. L'adjusted operating profit in the fourth quarter it recorded a drop of 29% to 3,52 billion, while for the whole of 2013 the contraction was 34%, to 12,62 billion. Slightly flexed net financial debt of the group, equal to 15,428 billion euros at the end of 2013, against 15,511 billion at the end of 2012.
“We have achieved solid results in a particularly difficult market – comments the CEO of Eni, Paolo scaroni –. Despite the problems in Libya and Nigeria, our E&P division has confirmed its ability to generate high profits thanks to cost leadership and extraordinary exploration successes. The mid and downstream businesses, penalized by the Italian and European crisis, strengthened the restructuring actions achieving a significant improvement in cash generation. Finally, the rationalization of the portfolio, made possible by the new discoveries, has allowed an early monetization of results and cash. The overall effect of what we achieved in a difficult year has allowed us to record an increasing net profit compared to 2012, to pay a generous dividend, to launch the treasury share buyback programme, maintaining constant debt”.
as to hydrocarbon production, settled last year at 1,619 million barrels per day on an annual average level, with a drop of 4,8% on 2012 "mainly due to geopolitical factors", writes Eni. The preliminary estimate of proved reserves at the end of the year is 6,54 billion barrels, with an organic reserve replacement ratio of 105%. For 2014, the group expects hydrocarbon production to be "substantially in line" with that of 2013, net of the sale of the stake in the Artic Russia joint venture. On the other hand, gas sales are expected to be "slightly down" compared to 2013.
THEoutlook 2014, according to Eni, “is characterized by a moderate strengthening of the global economic recovery which, however, is weighed down by the uncertainties due to weak growth in Europe and the risks of emerging economies. The price of oil is expected to remain at sustained values due to the effect of geopolitical risks and the consequent production problems in some important countries, within a framework of balancing supply and demand for crude oil".
The competitive scenario “will remain challenging – continues the company – due to the persistence of weak fundamentals in the European gas, refining and chemical industries”. In these sectors, Eni's management does not foresee any appreciable recovery in demand, while competition and excess supply/capacity will exert strong pressure on margins”. On the basis of this outlook, management "confirms the strategies aimed at progressive economic and financial rebalancing in the G&P, R&M and Chemical sectors thanks to cost containment, the renegotiation of long-term gas contracts, the restructuring/conversion of capacity and the commercial and product innovation”.
Finally, the Eni group communicates that it has obtained “a new exploratory success in the Marine XII block, of which the company is the operator, located in the Congolese offshore about 17 kilometers from the coast". The Nene Marine 3 exploration well, which led to the important result, the press release explains, was drilled in 28 meters of water depth and encountered "a significant accumulation of gas and light oil in the pre-saline clastic geological sequence outlining a westward extension of the reservoir and proving its hydraulic continuity”. Nene Marine 3 is located 2 kilometers from the Nene Marine 1 discovery well and 4 kilometers from Nene Marine 2. During the production test, performed in the oil bearing range, the well delivered over 5 barrels of oil per day.
