The drop in oil prices impacts Eni's quarterly accounts but the group recovers on the tax rate front. And so, reported net profit fell by 57,1% to 1,71 billion and in the nine months recorded a fall of 36,7% to 3,68 billion. A figure that discounts the capital gain relating to the sale of 20% of the discovery in the maxi-field in Mozambique which took place just last year.
Without this extra mail, ladjusted net profit (excluding extraordinary items) stands at 1,17 billion, up by 2,5% and reaches 3,24 billion (+3,2%) in the nine months. THEoperating profit is down by 11,08% to 3,30 billion due to the drop in prices which lead to a contraction of 828 million (equal to -21,1%) in Exploration and production but the worsening of operating performance is more than offset by the decline in the consolidated tax rate. Furthermore, the operating cash flow for the quarter rose to 3,98 billion, “the highest level among similar periods in the last 5 years” underlines the group's managing director Claudio Descalzi.
These are the most significant aspects announced by Eni in the early morning in anticipation of the conference call with analysts that the CEO will hold today in the early afternoon. These are data above the consensus and the title in MY BAG it appreciates by about 2%, resulting among the best at the start of the session but then suffers from the general decline in the price list. Hydrocarbon production remains stable at 1,58 million boe/day while exploration benefits from discoveries in Congo and Indonesia “which add up – observes the Eni press release – to recent near field discoveries in Angola, Congo, Norway and Indonesia. For all of them, the expectation of a very rapid start of production is valid”.
The value of proven exploration in the first nine months reaches 700 million boe at a cost per unit of $1,9. Lastly, development activities continue mainly in Angola, Congo, Norway and Indonesia, with a significant impact - states Eni - on production growth over the next four years.
“I am particularly satisfied with the excellent cash management results – commented the CEO Claudio Descalzi – record for the last 5 years despite an unfavorable scenario. This makes the cash generation growth target declared to the market last July even more credible. I am convinced that this strategy and the resulting results are the best guarantee of profitability and solidity for Eni in a context of decreasing prices"
Eni also announced a new important oil discovery offshore Congo, in the Minsala Marine exploration prospect, located in the MaSrine XII Block, approximately 35 kilometers from the coast and 12 kilometers from the recent Nené Marine discovery.
