Oil price recovery brings Eni back to profit
- Business & Finance
Italian oil company Eni returned to profit during the first quarter of 2017, versus a loss in the year-before quarter, owing to the upward trend in crude oil prices.
The oil company on Wednesday posted a net profit of €965 million, versus a loss of €383 million. According to Eni, this performance was driven by a recovery in crude oil prices with the Brent benchmark up by 59%, as well as an increase in production.
Commenting on the results, Claudio Descalzi, CEO of Eni, remarked: “Eni has markedly improved its financial and operational performance in the first quarter of 2017.
“The Group has delivered a 60% increase in adjusted net profit to €750 million, compared with €460 million in the fourth quarter of 2016 when oil prices had already recovered to levels close to those experienced in this quarter. The operating growth is even bigger if compared with the first quarter 2016, when oil prices were at their lowest.”
During the quarter, the oil company’s hydrocarbon production was up by 2.3% to 1,795 kboe/d, versus 1,754 kboe/d in the corresponding period of 2016. The increase was driven by new project start-ups and the ramp-up at fields started up in 2016, mainly in Egypt, Kazakhstan, Norway and Angola, for an overall contribution of 110 kboe/d, partly offset by planned and unplanned facilities downtime.
The company’s capex was €2.83 billion , in line with strategy to bring cash generative projects on stream in 2017. At the end of the quarter, Eni’s net debt totaled €14.9 billion, in line with the end of 2016.
The Italian company also confirmed the target of 18% reduction in capex year on year on a pro-forma basis, i.e. net of the capex which will be reimbursed in connection with asset disposals.
Offshore Energy Today Staff