Eni closes the third quarter with more than doubled profits and prepares a retail bond issue up to a maximum of 2 billion. The payment of the second of the four tranches of dividend to the shareholders is also triggered. This was decided by the board of directors who met on Thursday to approve the accounts for the quarter and the first nine months of 2022. The results pass the examination of the Stock Exchange where Eni shares are up by 0,85% when, around 9 on Friday morning, the Ftse Mib is down by 1,04%.
Eni: a record quarter in a critical geopolitical situation
The third quarter Eni closed with adjusted operating profit to 5,7 billion (+132% on 2021) in the third quarter and to 16,8 billion in the first nine months, almost tripling last year's result (+187%). The figure is slightly down on the 2nd quarter (5,8 billion). It is E&P with an Ebit of €4,27 billion (down 12%) which was affected by lower hydrocarbon realization prices and the deconsolidation of assets transferred to Azule Energy.
THENet income it closes at 3,7 billion (+161%) and rises to 10,8 billion in the nine months, more than tripling (311%). “Compared to the consolidated net profit for the nine months of 2022 of €13,26 billion, the Italian businesses recorded a net loss of approximately €1 billion which mainly takes into account the allocation of the extraordinary contribution for the energy sector”, i.e. the so-called tax on extra profits, specifies the press release released by ENI.
Il cash flow net from operating activities rises to 5,46 billion in the quarter (+64%) and exceeds 12,8 billion in the nine months (+101%).
Investments (technical and equity investments) rose from 1,1 to 2,02 billion in the quarter and in the nine months, going from 4 to 5,4 billion (+35%).
THEdebt it halved from 11,3 to 6,4 (-43%) and dropped from 11,3 to 6,4 billion in the nine months (43%).
Results that remain record despite the great volatility of hydrocarbon prices on international markets, and which are based on a barrel of Brent that went from $73,4 in 2021 to $100,8 in the quarter of 2022; from 67,73 dollars to 105,35 dollars compared to the nine months of 2021 and 2022. The price of gas at the trading point in Italy tripled, from 491 to 2.082 euros per thousand cubic metres. Hydrocarbon production is substantially unchanged at 1,578 million barrels in the quarter against 1,688 million in the third quarter of 2021. Figures that compare with a euro-dollar exchange rate that fell from 1,179 to 1,007.
Quarterly Eni: the comment of the CEO Claudio Descalzi
“In a context of high market volatility and uncertainty, Eni has continued to ensure crucial energy supplies for our economies, while continuing the decarbonisation process. Already from next winter we will be able to rreplace 50% of Russian gas flows leveraging our large and diversified reserve portfolio, long-term partnerships with producing countries and our growing presence in the LNG business. During the quarter, we further strengthened our position in the gas value chain through exploration and gas acquisition deals BP's gas assets in Algeria and, in the midstream phase, of the Tango FLNG liquefaction vessel for the valorisation of the gas project in Congo".
In the note, Descalzi specifies that the installed renewable capacity of the subsidiary Plenitude “will be doubled, exceeding 2 GW. Our Sustainable Mobility business grows in scale and size by leveraging an innovative model of vertical integration with the nascent agri-business for the supply of sustainable raw materials to our biorefineries".
In E&P Descalzi highlights the birth of Azule, the newly established JV with bp for the valorisation of Angolan assets. “In the nine months – concludes the CEO in the note – we fully covered the investments and cash returns to shareholders with self-financing and we were able to reduce the leverage to the level of 0,11, almost halving it compared to the end of last year. year."
Eni: Sustainability Linked Bond arrives for the retail public
Eni's board of directors approved the possible issue, by 31 December 2023, of one or more bonds to be placed with the general public in Italy and to be listed on one or more regulated markets, including the Electronic Bond Market (MOT).
The total amount will not exceed 2 billion euros.
The bonds will be issued in the form of sustainability-linked bond and will pursue the objective of financing any future needs, maintaining a balanced financial structure and further diversifying financial sources, reads a note.
Eni: second tranche of dividend to be paid in November
Eni's Board of Directors has resolved to distribute to shareholders the second of the four tranches of the 2022 dividend, out of available reserves, of 0,22 euro (compared to a total annual dividend of 0,88 euro) for each share outstanding on the date detachment date of 21 November 2022, with payment on 23 November 20223.
To holders of ADRs registered by November 22, 2022, listed on the New York Stock Exchange and each representing two Eni shares, the second tranche of dividend distributed will be 0,44 euro per ADR, payable on December 7, 2022.
