The company says it is continuing to expand its oil and gas projects in the Republic of Congo and Ivory Coast.
ADVERTISEMENTItalian oil and gas giant Eni has announced its oil and gas expansion plans and reported its second quarter earnings, posting adjusted net profit of €1,519m for the second quarter (Q2) of 2024, a 21% drop from €1,935m in the corresponding quarter last year.
Although this was a decline compared with last year, the company still exceeded analyst expectations of €1.42bn, because of its gas and liquefied natural gas (LNG) departments doing exceptionally well.
Adjusted net profit for H1 2024 was €3,101m, a 36% drop from the €4,842m seen in the first half of 2023.
The company's net cash from operations came up to €4,571m in the second quarter of 2024, up from €4,443m. For the first half of the year, Eni saw net cash from operations at €6,475m, down 13% on the corresponding period last year.
Eni also recorded a group pro-forma adjusted earnings before interest and tax (EBIT) of €4.1bn for the second quarter of the year, as well as an adjusted cash flow before working capital of €3.9bn for the same period.
The figures were helped by more stable gas prices, robust crude oil realisations and better refining margins, which helped offset lagging chemical chemical products' margins.
Eni chief executive officer (CEO) Claudio Descalzi, said in the earnings report: "In the second quarter 2024, we have delivered results ahead of expectations, demonstrating the significant progress Eni has made in multiple areas of our strategy and against the plan set out to investors in March.
"We have a clear objective to grow our business lines where we have a competitive advantage: oil and gas production, bio-refining and renewables generating capacity and have delivered impressive growth in each. We are upgrading our Upstream portfolio, having recently announced the divestment of our non-core assets in Alaska, the ongoing completion of sale of onshore Nigeria, and agreed a combination with Ithaca Energy for our UK assets."
The company also revealed that these divestments would considerably help leverage levels to come down well below 0.2 by the end of 2024, which would be better than expected. Eni is also doing a €1.6bn share buyback program this year.
Eni reports strong oil and gas outputs in Ivory Coast and Congo
Eni revealed that its oil and gas production had increased 6% year-on-year, boosted mainly by its continuing expansion of its production facilities in the Republic of Congo and Ivory Coast, as well as increases in Libyan production. The company has also made a significant new discovery in offshore Mexico, in the Sureste Basin.
The company is also currently in talks with private equity company KKR, in order for the latter to buy a 20% to 25% stake in Enilive, Eni's biofuels arm. Enilive is involved in biomethane production, biorefining and smart mobility solutions.
In a statement released by the company on its website, Eni said: "While a final transaction is subject to agreeing definitive documentation, both parties are committed to negotiating the terms of a potential transaction.
"This step represents another example of the development of Eni's satellite model strategy, attracting strategically aligned capital from valuable new partners at attractive multiples, funding our growth and confirming the value we are creating in these new businesses. The strong interest shown in this period by leading institutional financial investors could lead to the subsequent sale of a further stake of up to 10% of Enilive."
