Eni’s profit soars as oil prices recover

Italian energy giant Eni has reported a net profit of 1.25 billion euro ($1.45 billion) in the second quarter and 2.2 billion euro ($2.5 billion) for the first half of the year, rocketing up compared to the corresponding periods last year.

This performance was driven by a robust operating performance of the E&P segment due to strengthening crude oil prices on the back of a global economic recovery and production growth, the company said in its quarterly report.

Eni’s hydrocarbon production reached 1.86 million boe/d up by 5.2 percent compared to the corresponding quarter in 2017, and 4.6 percent up on the first half.

Eni noted in its quarterly report that its adjusted reached 2.56 billion euros, more than doubling over the corresponding period in 2017.

Speaking of the results, Eni’s CEO Claudio Descalzi said, “In the context of a 38% rise in the price of Brent, Eni reported a 152% increase in operating profit, driven by the performance of the Exploration & Production business, which more than tripled its contribution.”

He added that the Gas & Power segment also reported excellent results, thanks to the strong integration of the LNG business with upstream activities and the positive impact of the restructuring carried out over the last years.

Liquefied natural gas sales were up 54 percent to 5.4 bcm in the first half of the year with more than half of the volumes sold on the Asian markets, Eni said.

The company still expects gas sales to decline in line with an expected reduction in long-term contractual commitments both to procure and to supply gas.

However, Eni expects an increase in nearly 9 million tons of LNG contracted volumes by the end of the year 2018.

The company’s cash generation also grew significantly, driven by the price of Brent and increased production levels, contributing to $20 per barrel, allowing Eni to confirm the lowering its cash
neutrality to $55 per barrel for 2018, Descalzi said.