Oil Price
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Eni SpA (NYSE: E) raised its oil and gas production guidance and said it would accelerate the pace of share buybacks after reporting on Friday better-than-expected earnings for the second quarter, driven by its upstream division.
The Italian energy major booked an adjusted net profit of $1.63 billion (1.5 billion euros) for the second quarter of 2024, down by 21% year-over-year but ahead of the analyst consensus estimate of $1.54 billion (1.42 billion euros).
Oil and gas production rose by 6% from a year earlier, to 1.71 million barrels of oil equivalent per day (boe/d), driven by ongoing ramp-up at projects in Cote d’Ivoire and Congo Floating LNG, higher contribution from Libya, and by the full integration of Neptune.
As part of the effort to upgrade the E&P portfolio and divest non-strategic assets, Eni has recently agreed to the sale of its Alaska assets and is completing the divestment of its onshore Nigeria activities of NAOC.
Overall, Eni touted “excellent results despite the mixed market environment with good crude oil realizations, and stable gas prices, higher refining margins albeit down sequentially, and weaker margins of chemical products.”
The chemicals and refining business has been a drag on all earnings for the second quarter which major international energy firms have announced so far.
But Eni’s earnings benefited from higher oil and gas production, and the company raised its guidance for the full year, expecting now full-year hydrocarbon production towards the top of the anticipated range of 1.69 – 1.71 million boe/d at the forecast Brent price of $86 per barrel.
Eni is also increasing the pace in the 2024 buyback program, with “a quicker pace in stock repurchases compared with the previous assumptions.”
“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,” Eni CEO Claudio Descalzi said.
By Tsvetana Paraskova for Oilprice.com
Lead image (Credit: Reuters)
