Eni's accounts published this morning were not brilliant, and in fact the six-legged dog stock opens the stock market session in negative territory, ranking among the worst stocks of the Ftse Mib with a loss that shortly after the opening is worth -0,8 %, in the 14 euro per share area. In fact, the energy company closes the first 9 months of the year with a net profit down 45% to 2,04 billion, while in the third quarter alone the net profit was 0,52 billion, down 66%. Adjusted net profit was instead equal to 0,78 billion in the quarter (-44%) and 2,33 billion in the nine months (-26%): the Bloomberg consensus was expecting an even greater drop, to 2 billion.
If we then exclude - for homogeneity - the result of Eni Norge for 2018, the change is recalculated as -1% in the quarter and +4% in the nine months, explains the group. “The results achieved by Eni – he was keen to clarify the managing director Claudio Descalzi – have been very solid, while portfolio transactions such as the purchase of Exxon's assets in Norway and 20% of the Ruwais refinery in the Emirates are destined to give a further boost in terms of development and stability. In particular we have significant growth in production was achieved in the quarter, equal to 6%, thanks to contributions from Egypt, Kazakhstan, Ghana and the first production from Mexico, obtained just eleven months after the final investment decision”.
Cash flow from operating activities fell from 9,32 billion in the first 9 months of 2018 to 8,66 billion now, and net financial debt, according to the new IfSR 16 regulations, also rose to over 18 billion. As regards the 2019 guidance, Eni expects an average hydrocarbon production level of 1,87 – 1,88 million boe/day at the budget scenario of 62 dollars/barrel. The range, explains the group, reflects the volatility of Asian lng demand and venezuela productions. The breakeven refining margin is revised to approximately 5,2 $/barrel in 2019 due to the worsening of the differential between light and heavy crudes and the incomplete operation of the industrial system. At the budget scenario and with full operations, 3,5 $/barrel at the end of 2019. The capex guidance of 8 billion for 2019 has been slightly reduced.
