Warm welcome from the market to ENI’s accounts. The stock scores over + 3% this morning in the 11.44 euro area. The numbers for the quarter benefited from the bazlo in energy prices, with Brent oil prices at $ 114 in Q2 compared to $ 69 in Q2 2021.
“We believe that the new information set has positive implications for the stock thanks to significantly better than expected results (10% at EBIT level, 12% at NI adj level), the cash generation outlook implicitly improved by € 1 bn over the change in the Brent (+ $ 15 / bbl) and FX scenario; € 2.4 billion buyback ”, argue Equita analysts. The new remuneration for shareholders is 13.5% on the market cap (dividend yield of 7.5% + Buyback yield 6%).
The numbers of the quarter
The adjusted net profit of the ENI group in the second quarter was 3.81 billion (€ 7.08 billion in the first half of 2022), an improvement of 2.9 billion compared to the second quarter of 2021 (+ € 5.9 billion in the first half) sustained by the robust operating profit to which is added the positive performance of equity investments valued at equity and the reduction in the tax rate (substantially unchanged in comparison with the first quarter of 2022). The Bloomberg consensus indicated an adj net profit of 3.14 billion.
The giant of the six-legged dog reports group adjusted EBIT in the second quarter of 2022 of € 5.84 billion, up 13% compared to the previous quarter and more than doubled compared to the second quarter of 2021, driven by the favorable trend in the price scenario commodities, strong refining margins and constant attention to cost control and business operating performance.
The E&P segment achieved an adjusted Ebit of € 4.87 billion in the second quarter of 2022, up 11% sequentially and more than doubled compared to the second quarter of 2021.
The adjusted cash flow is € 10.8 billion “The solid results achieved and the updating of our forecasts
on the reference market, they allow us to improve the remuneration of shareholders by increasing the 2022 program for the purchase of treasury shares to € 2.4 billion ”, remarks the CEO Claudio Descalzi.
Descalzi: the utmost commitment was made to guarantee the safety of energy supplies
“In a context of uncertainty and market volatility, we took rapid action to ensure new supply flows. After the agreements on gas supplies with our partners in Algeria, Congo and Egypt in the first part of the year, in June Eni entered the North Field East project in Qatar, the largest LNG development in the world. In East Africa, we started the gas production of the Coral South FLNG project operated by Eni, the first to exploit the great potential of Mozambique ”. Thus Claudio Descalzi, CEO of Eni, in commenting on the accounts of the first six months of 2022.
“In Italy – continues Descalzi – we are proactively committed to the reconstitution of gas stocks in anticipation of the next winter season and our refineries have significantly increased processing rates to ensure an adequate flow of petroleum products to meet market demand.
We have made the utmost commitment to guaranteeing the security of energy supplies, continuing in the meantime to implement our decarbonisation strategy ”.
Plenitude’s IPO remains in the plans
In Plenitude, the program to expand the generation capacity from renewable sources continues towards the goal of exceeding 2 GW by the end of the year; due to market conditions, the IPO has been postponed but remains in our plans. “Eni’s sustainable mobility business will increase the value of our biorefineries, leveraging vertical integration with our innovative agri-business and portfolio of decarbonised solutions. Breakthrough technologies are the engine of our development as evidenced by the ongoing construction of the magnetic fusion demonstration plant that aims to produce net fusion energy in 2025.