Eni reported significantly weaker financial results for the third quarter on Friday, although they exceeded the company's own expectations, and noted progress in renewable energy production and strategic investments.
Eni earnings drop but less than expected
The Rome-based energy firm stated that net profit fell 72% to EUR544 million for the quarter ending September 30, down from EUR1.94 billion a year earlier. Adjusted net profit declined 30% to EUR1.27 billion from EUR1.82 billion, while total revenue decreased 7.2% to EUR21.02 billion from EUR22.65 billion.
Hydrocarbon production rose 1.6% to 1.7 million barrels of oil equivalent per day, and installed renewable capacity increased 24% to 3.1 gigawatts from 2.5 gigawatts. Diluted earnings per share fell to EUR0.16 from EUR0.57.
Eni attributed the weaker results to lower Brent prices, a stronger euro, and reduced refining and chemical margins. The average price for liquids and natural gas was USD55.95 per barrel of oil equivalent, down 2.2% from USD57.20 a year ago.
CEO comment
CEO Claudio Descalzi commented on the company’s performance, stating it demonstrated resilience amid a challenging trading environment, with strong cash flow and profitability. Organic capital expenditure rose 4.1% to EUR2.00 billion from EUR1.92 billion last year.
Eni also announced a new partnership with Seri Industrial Spa to explore developing lithium-iron-phosphate electrochemical batteries for energy storage and electric mobility. This collaboration may lead to a joint venture to establish a stationary energy storage production facility at Eni's Brindisi site.
Additionally, Eni confirmed plans to increase its 2024 share buyback program by 25% to EUR2 billion from EUR1.6 billion, significantly higher than the original target.
