Eni returns to profit and runs on the Stock Exchange. The three-legged dog closed 2017 with a net profit of 3,43 billion euros against losses which in 2016 amounted to 1,464 billion euros. In the fourth quarter alone, profit rose to 2,10 billion.
Growing strongly too adjusted net profit, which in 2017 settled at 2,41 billion compared to the 340 million losses of the previous year. The figure is higher than the expectations of the Bloomberg and Factset consensus, equal to 2,036 billion euros. In the months of October, November and December, adjusted net profit more than doubled, reaching 0,98 billion. Up there tooadjusted operating profit: +55% in the fourth quarter to 1,99 billion which becomes 5,79 billion on an annual basis.
Given these results, Eni's board of directors has decided to propose to the shareholders' meeting on 10 May the distribution of a dividend of €0,80 per share (unchanged compared to 2016), of which €0,40 detached in September 2017 as an advance. The balance dividend of 0,40 euro per share will be paid on 23 May.
The strongly positive data communicated by the company led by Claudio Descalzi also seem to have met with the favor of investors from Piazza Affari. At 10.00 iEni stock gains 1,66% at 13,728 euros.
Returning to the accounts, 2017 was archived with a boom in hydrocarbon production which reached its maximum in December 2017 reaching the absolute record of the group at 1,92 million barrels per day. In the fourth quarter, 1,89 million barrels per day were achieved, the highest quarterly level in the last seven years (+1,9%) while the annual average for 2017 was 1,82 million barrels per day (+3,2. 3,7%) is the highest ever. Net of the price effect in the Production sharing agreements and OPEC cuts, growth was +5,3% in the quarter and +XNUMX% in the year.
Eni expects hydrocarbon production to rise by 3% thanks to the ramp-up of 2017 start-ups, particularly in Egypt, Angola and Indonesia, and the start-up of satellite phases of large producing fields (Libya, Angola and Ghana).
In 2017 the net investments they dropped to 7,6 billion (-18% compared to 2016), while the organic coverage is 130%. For 2018, the group has planned investments of 8 billion euros.
Sharp decline for net financial debt, settled at 10,92 billion from 15,3 billion at the end of September 2017 Also in this case, the figure presented by the oil group beat the consensus.
“We close 2017 with excellent results that demonstrate how the process of profound change started in 2014 has transformed Eni into a company capable of growing and creating value even in very difficult market conditions”. This is the comment ofCEO of Eni, Claudio Descalzi.
“In the Upstream – continued the manager – we have reached the historical maximum of our production while reducing development investments by 40% compared to the 2014 baseline, continued to record excellent exploration results and put our most important projects into production in record time, with Zohr spearheading it. In MidDownstream, we brought G&P back to structural profit a year early, achieved an 8-year record operating result in R&M and achieved our best-ever operating performance in chemicals. All this made it possible to grow cash generation by 50%, against a 22% increase in Brent, to reduce our cash neutrality to 57 dollars/barrel and to further strengthen our capital structure, also thanks to the disposals made in the year".
"For the future growth prospects are excellent in all businesses and will be pursued with financial discipline and great attention to their sustainability in the presence of even the most difficult scenarios. Which will mean that, on the contrary, if market conditions are more favourable, we will be in a position to generate enormous extra value for our shareholders. On the basis of these results, I will propose to the Board on 15 March the payment of 0,80 euro per share as a dividend on the 2017 result", concluded Descalzi.
