Italian oil giant, Eni, made an eye-watering €3.27 billion in profits for Q1 2022, reflecting a €3 billion increase from Q1 2021 figures supported by improved results from the company’s equity accounted entities and a lower tax rate.
This increase in the company’s profit, reflects a very positive picture for its operations in the full year 2022, across its various businesses. This was supported by the geographical mix effects and higher prices in exploration & production and positive business contribution from gas-to-power and retail & renewables in the overall results.
This performance was driven by the robust results of the exploration & production segment (€3 billion) in adjusted Ebit capturing realized prices in equity production (up 70% on average). Particularly, hydrocarbon’s production for the quarter was 1.65 million boe/d, consistent with the full year guidance.
The company’s gas-to-power segment reported an adjusted Earnings Before Interest and Taxes (EBIT) of €0.93 billion compared to breakeven in Q1 2021 due to higher gas sales. The company’s renewables business also registered a positive result of €24 million, signaling a significant improvement from the €159 million loss of Q1 2021.
Eni’s Cashflow Turns Positive
The Group adjusted cash flow before working capital at replacement cost came in at €5.61 billion supported by the strong base business performance (up by 186% compared to Q1 2021). The cash flow of the quarter was boosted by the closing of the share offering in Vaar Energi with proceeds for Eni of about €0.4 billion.
Eni, CEO Claudio Descalzi, said:
“This quarter has been one of major strategic developments for Eni. We rapidly reacted to the ongoing challenges of the energy market by leveraging our global upstream and partnerships with producing countries to find alternative and additional supply opportunities for Europe.
“We have signed important agreements in Algeria, Egypt and the Republic of Congo, while another one was reached in Angola, consolidating our joint operations in the countries and promoting increased gas exports to Italy and Europe in the interest of transitioning to a low carbon economy.”
Claudio Descalzi
Eni’s Retail Business growth positive
The retail, renewable & electric mobility businesses managed by Plenitude also came in positive, well positioned to achieve the full-year guidance of adjusted EBITDA (over €0.6 billion), notwithstanding the high volatility of the scenario, confirming the resilience of our integrated business model.
“Plenitude, our retail company integrating renewable and gas & power, is progressing towards the listing that is planned for 2022 subject to markets conditions… We have announced the set-up of a Sustainable Mobility entity, integrating bio-refineries, our network of multi-energy and multi-service outlets and their clients.
“In conclusion, a quarter of clear progress in executing our strategy of delivering security and sustainability of the energy system, while keeping sharp focus on a just energy transition and creating value for our stakeholders.”
Claudio Descalzi
For full year 2022, the company is issuing revised operational and financial guidance. Hydrocarbon production is expected at 1.7 million boe/d at the price of $80/bbl in 2022. The gas-to-power projects are also revised upward, at around €0.9 billion considering the expected evolution of the market. Adjusted cash flow before working capital at replacement cost is expected to be €16 billion at $90/bbl.
READ ALSO: Devise Mechanisms to tap into Diaspora Resources- Dr Opoku-Afari
