Soaring gas prices in Q3 2021, has contributed broadly to Eni’s strong economic and financial performance, as the company posted €2.5 billion EBIT and a €1.4 billion adjusted net profit.
During the quarter, Brent crude oil benchmark averaged US$73.5/bbl, up by 7 per cent compared to Q2 2021, reaching all-time highs in Europe. The behaviour of the oil market reflected an increasingly tight market due to lower global supplies, lower storage levels than historical averages, and a strong rebound in economic activity.
Similarly, the results reflect a recovery of upstream production from maintenance, registering a growth of 1.69 million boepd. This represents a 6 per cent increase in output growth. Additionally, Eni solidified its leading position in exploration and developing discovered resources.
In the first nine months of the year, the company made strong cash generation amid better management of costs. Overall, this created more than €4 billion of free cash flow, which more than covers the overall 2021 dividend and buy back.
The results reflect a slowdown in chemical margins from the record values obtained in the previous quarter. Particularly, the polyethylene spread at approximately €450/tonne on average in Q3 almost halved compared to Q2 2021.
Eni’s Chief Executive Officer, Claudio Descalzi, commented:
“The excellent results this quarter demonstrate our continued strong economic and financial performance. The company is fast tracking execution of the Baleine Prospect in Ivory Coast to supply gas to the domestic market- designing for the first time an upstream project with net zero operational emissions since the beginning.
“In an increasingly solid business context, we are accelerating our transition plan: the listing of our Retail & Renewables company will allow us to generate further value from a unique business model…”
Claudio Descalzi, CEO, Eni
Eni’s Decarbonisation strategies for the first nine months of the year
Regarding its Gas and LNG business, the company optimized its portfolio and engaged in a number of negotiations which are expected to add to its full year results.
Eni’s decarbonisation strategies have placed it at the top among its peers in the oil and gas sector. By deepening its decarbonisation efforts, Eni has begun the process of launching an Initial Public Offering (IPO) to list the shares of its newly formed business comprising retail, renewable energy production and Electric vehicle charging division.
As the largest shareholder of the Commonwealth Fusion Systems (CFS), its latest research on the magnetic confinement fusion promises to be a game changer for decarbonisation technologies. This will make it possible to potentially produce large amounts of virtually infinite energy in a safe and suitable manner, with no resulting greenhouse gas emissions.
Eni has launched its first Energy Compact, a public commitment recognised by the United Nations, and aimed at accelerating progress towards SDG goal 7, relating to accessible and clean energy and the targets of the Paris Agreement.
Recently, Eni ranked among the top ten best companies of the newly launched Environment, Social and Governance (ESG) MIB index of Euronext, with the company’s leadership also recognized in the main ESG ratings.
The company has stated it will remain focused on capital discipline to speed up the deployment of new technologies towards its decarbonisation plans.
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