Eni produces a quarterly report above analysts’ expectations with adjusted profit and ebit at the highest levels of recent years that have made the stock fly on the stock market. In the third quarter the group achieved an adjusted net profit of 1.43 billion euros, an increase of 54% compared to the second quarter of 2021. In the first nine months, adjusted net profit amounted to € 2.63 billion, while net profit in the three months was € 1.2 billion and € 2.3 billion in the nine months.
The increase, explains the company, “it is due to the ability to capture the scenery and to the growth of production“.
The comparison with the corresponding reporting period 2020 characterized by the Covid crisis highlights recoveries of large proportions: +1.6 billion euros and +3.4 billion euros respectively compared to the third quarter and nine months of 2020 due to the “effect of the better operating performance, the better results of equity investments and the normalization of the tax rate (50% in the nine months of 2021) for the significant recovery of the upstream scenario and for the forecast of higher future income from green activities in Italy “.
Descalzi: “Excellent results confirm growth trend”
“The excellent results of this quarter confirm the continuous growth trend of our economic and financial performance”, underlines the CEO, Claudio Descalzi. “Upstream production is recovering from previous maintenance and has grown by 6% to 1.69 million barrels of oil equivalent per day and in line with guidance.
Eni confirms its leadership in the exploration and in the model for the enhancement and development of discoveries: in the Ivory Coast, through the discovery of Baleine, we will aim for the first time at an accelerated development conceived right from the start with zero net operational emissions for the supply of gas to the domestic market. In the gas and LNG business we have optimized our portfolio and carried out important negotiations with a considerable expected benefit on the results of the year “, he adds.
“Thanks to the performance of all our businesses – continues Descalzi – in the third quarter we generated 2.5 billion euros of adjusted EBIT and an adjusted net profit of 1.4 billion euros, the highest values in recent years. first nine months of the year, strong cash generation and careful cost management make over 4 billion euros of free cash flow available, more than enough to cover the entire 2021 dividend and buyback “.
Acceleration on the transition
The manager then highlighted how the group is “accelerating the transition plan: the listing of the company that includes Retail and Renewables will allow us to enhance a unique business model, essential for decarbonising the consumption of retail customers; in addition, we continue to invest to realize the CCS project in the UK at HyNet which is competing to receive funds from the British government “.
Installed capacity from renewables tripled
In this context, at 30 September 2021 the installed capacity from renewable sources was 834 MW, almost tripled compared to 31 December 2020 (307 MW). “At the end of the year – explains the company – with the completion of the announced deals, a renewable installed / under construction capacity of 2 GW is expected, a sharp increase compared to the previous forecast of about 1 GW, while the installed capacity figure alone passes from an initial estimate of 0.7 GW to 1.2 GW at the end of 2021 “.
Retail and renewable IPO completed in 2022
Regarding the listing of the business that integrates the retail gas & power activities, the production of energy from renewable sources and the network of recharging points for electric vehicles (conventionally called “Eni R&R”) the company explains that the goal is to “complete the transaction by 2022” and that further information on the initiative, including the name of the new company, will be communicated during the capital markets day scheduled for next November 22nd.
The operation, explains the group, “aims to maximize the enhancement and visibility of the single integrated model and is part of Eni’s broader commitment to create value through the energy transition and achieve net zero emissions”. The retail / business customer portfolio grew to 9.97 million supply points, an increase of approximately 270 thousand pdfs compared to the end of 2020 (+ 3%) thanks to the growth in Greece and the acquisition of the company Aldro Energia active in the retail market in Spain and Portugal.
Gas prices at record levels
All in a context of natural gas prices in Europe at an all-time high. With average increases for the main benchmarks TTF (North European continental hubs) and PSV (Italy spot market) respectively of + 500% and + 400% compared to the same period of the previous year (prices almost doubled compared to the second quarter of 2021) due to an increasingly short market due to lower global supply, storage levels below historical averages at the peak of the injection season and strong demand for economic recovery. THE
The stock flies to the stock exchange
The results give impetus to the title that flies on the stock market. The shares – in contrast to the Ftse Mib which sells 0.50% – gained over 2%, + 2.15% to 12.426 euros per share after hitting a daily high of 12.478 euros.