Italy’s leading energy company Eni has reported better-than-expected earnings for the third quarter of the year, despite facing lower commodity prices compared to the same period in 2022. The company’s adjusted net profit for Q3 reached $1.9 billion, surpassing consensus estimates. The decline in profit compared to last year was attributed to the surge in oil and natural gas prices following the Russian invasion of Ukraine. However, Eni’s strong upstream performance helped offset the impact of weaker hydrocarbon prices.
Eni’s exploration and production (E&P) division saw a 39% year-over-year decrease in adjusted earnings before interest and tax (EBIT) due to lower realized oil and gas prices. However, the division’s EBIT was nearly 30% higher than the previous quarter, indicating a positive trend. The company’s oil and gas production for the quarter increased by 4% compared to the previous year.
Eni’s CEO, Claudio Descalzi, emphasized the company’s focus on boosting equity gas and LNG production as part of its decarbonization goals. He also highlighted the recent Geng North-1 exploration discovery, characterized as the largest in the industry this year. Eni’s acquisition of Neptune and Chevron’s interests in Indonesia further supports the company’s plans to exploit offshore resources in the Kutei basin.
In addition to these developments, Eni successfully commenced oil and gas production from the Baleine oilfield in Cote d’Ivoire. This achievement underlines the company’s commitment to value accretive fast-track development and decarbonization efforts in Africa.
Eni’s ability to outperform earnings estimates in a challenging market environment showcases its resilient business strategy and focus on diversifying its energy portfolio. Despite the impact of lower commodity prices, Eni continues to seek opportunities for growth and decarbonization to ensure sustainable long-term success.
FAQs
- What is Eni? Eni is an Italian energy company engaged in the exploration, production, refining, and sale of oil and gas products.
- Why did Eni’s profit fall in the third quarter? Eni’s profit declined in Q3 due to lower oil and gas prices compared to the same period in the previous year.
- How did Eni offset the impact of lower hydrocarbon prices? Eni’s strong upstream performance helped offset the impact of lower hydrocarbon prices, contributing to better-than-expected earnings.
- What are Eni’s decarbonization goals? Eni aims to boost equity gas and LNG production while pursuing its decarbonization goals to ensure a reliable energy supply and reduce its carbon footprint.