THEEni revises profits and quadruples operating profit. The group closes the third quarter of the year and the first 9 months with results in profit against the losses recorded a year ago. In detail, quarterly net income stands at 344 million euros (against the loss of 562 million in the same period last year) and adjusted profit to 229 million (from -484 million). The oil company communicates it. In the first nine months, on the other hand, net profit reached 1,327 billion (from a loss of 1,39 billion) and the adjusted one at 1,436 billion. L'adjusted operating profit it almost quadrupled to 950 million in the third quarter and 3,8 billion in 9 months.
According to the CEO, Claudio Descalzi, these results “were achieved thanks to the progress made in implementing the strategy. In the Upstream, hydrocarbon production grew by 7% net of the cuts imposed by OPEC and the price effect. The Downstream refining and chemicals businesses, doubling the result, exceed expectations benefiting from the new optimized industrial set-up capable of seizing market growth opportunities. In G&P we have reached structural equilibrium and we expect a positive result for the whole year”.
La hydrocarbon production Eni's oil volume grew strongly in the third quarter, reaching 1,8 million boe/d, an increase of 5,4% (+3,7% in the nine months). This was announced by the group, specifying that net of the price effect in the PSAs and the OPEC cuts, growth of 7% was recorded (+6% in the nine months). The results are due to the contribution from start-ups and ramp-ups in the nine months of 224 kboe/d thanks to the optimization of the time-to-market of the large projects that entered production in 2017. A further production ramp-up is expected in fourth quarter with target of 1,9 million boe/d; on average in the period, the highest level in the last 7 years, with the contribution of high cash flow productions.
As for the objectives, Eni also confirms the 2017 target of new exploration resources of 0,8 billion boe at a unit cost of approximately 1/barrel and 2017 hydrocarbon production. Average production is projected to be 1,815 million boe/day, replicating the 2010 historical record. This level, Eni specifies in the note, taking into account the effects of the PSA and the OPEC cuts, it is equal to a growth of 5% compared to 2016.
The main drivers are the start-up of new projects (Indonesia, Angola and Ghana), the ramp-up of fields started up in 2016, mainly in Kazakhstan, Egypt and Norway, as well as the restart of some Libyan fields. The contingent factors, including in particular the interruption of the activity in Val d'Agri which lasted for almost the entire second quarter, the effects of the Opec cuts and some contractual one-offs in 2016, continues Eni, will be offset by the additional production optimization initiatives implemented and the early start of major projects in Angola, Indonesia and Ghana.
