Eni closed the first quarter of 2014 with net profits of 1,30 billion, down by -15,6% on an annual basis. Adjusted operating profit reached 3,49 billion, for a reduction of 6,8% compared to the first quarter of 2013, due to the Exploration & Production divisions (-13,7%), due to the decline in oil prices ( -3,9% for the Brent benchmark) and the appreciation of the euro against the dollar (+3,7%), and Refining & Marketing (-66,4%) penalized by the continued deterioration of the refining scenario and demand of fuels. Adjusted net profit was €1,19 billion, down 14,3%.
In the first quarter of 2014, hydrocarbon production was 1,583 million boe/day. Comparison with the first quarter of 2013 on a like-for-like basis, excluding the effect of the divestment of assets in Siberia (26 kboe/d), shows an increase of 0,6%, benefiting from the entry into full capacity of fields in the United Kingdom and Algeria, which more than compensated for the reductions due to the persistence of the conditions of political instability in Libya and the declines in mature productions.
“In the first quarter of 2014 Eni achieved solid results in a still difficult market, thanks to the good performance of E&P and the progress made in the mid and downstream businesses, in particular with the renegotiation of the gas supply contract with Statoil – commented the outgoing managing director of Eni, Paolo Scaroni -. The outlook for 2014 is in line with expectations, benefiting from the ramp-up of new projects and restructuring actions in G&P, R&M and chemicals in a context of ongoing volatility in Libya and weak European demand”.
Technical investments of 2,54 billion mainly concerned the development of hydrocarbon fields and exploration research projects. Net financial debt at March 31, 2014 amounted to 13,8 billion, down by 1,16 billion compared to the end of 2013, a drop that reflects the net cash flow from operating activities of 2,15 billion and receipts from disposal of 2,18 billion relating mainly to the investment in Artic Russia.
In the first quarter of 2014, natural gas sales amounted to 26,76 billion cubic meters with a decrease of 3,41 billion cubic meters compared to the first quarter of 2013 (-11,3%) in a context of persistently weak demand , competitive pressure and excess supply, to which the climate effect has been added. Italian sales (11,18 billion cubic meters) decreased by 10,8% in almost all segments. Sales in European markets (12,13 bcm) show a drop of 12,9%, mainly in Germany/Austria, Benelux and France.
