Eni closed the first three months of 2023 with adjusted (adjusted) operating profit at 4.6 billion euro compared to 5.1 in the same period of 2022 and with adjusted net profit at 2.9 billion compared to 3 ,2 in the first quarter of last year, while the adjusted net profit before tax amounted to 5 billion, down 5% on the figure for the first quarter of 2022 despite the significant contraction in the prices of energy raw materials (oil -20% and gas -42%). The results, approved by the board of directors which met under the chairmanship of Lucia Calvosa, were communicated by the energy company led by Claudio Descalzi, recently reconfirmed at the helm of the group for a fourth term by the Meloni government.
Descalzi: achieved excellent operational and financial results
«Eni has achieved excellent operating and financial results despite the weakening of the scenario, thanks to the solidity of the E&P sector which shows the recovery of hydrocarbon production, and to the absolutely significant result of the Gas/Lng sector», commented Descalzi, confirming « forecasts for 2023, and thanks to the solid financial position and our operational flexibility», and «at the next Annual Shareholders’ Meeting in May, the previously announced plan to increase the 2023 dividend to €0.94 per share and the launch of the buy-back of 2.2 billion”.
The trend of the sectors
As for the performance of the sectors, the group’s accounts were driven by the Global Gas & Lng Portfolio sector which recorded an adjusted operating profit of 1.37 billion, up 47% on the figure for the first quarter of 2022 thanks to optimization activities of trading. For Exploration & Production, the adjusted operating profit bar stood at 2.78 billion, down by 36% on the same period of 2022 mainly due to the decline in oil prices in dollars (the Brent reference is down by 20% in the quarter) and the fall in gas prices. Eni Sustainable Mobility, operational since January, achieved an adjusted EBIT of €0.14 billion, up by €0.07 billion compared to the first quarter of 2022. The Refining business instead recorded an adjusted EBIT of €0.13 billion compared to the loss of €0.04 billion in Q1 2022 due to higher refining margins, while Versalis reported an adjusted operating loss of €109 million (-€115 million in Q1 2022) reflecting lower demand and uncertainties of the market. The Plenitude & Power segment achieved an adjusted EBIT of €0.19 billion (unchanged from the first quarter of 2022).
The CEO: the cornerstone of the action is financial discipline
Commenting on the results, Descalzi also emphasized the adjusted cash flow before the absorption of working capital «which was 5.3 billion euros, well above the requirement for organic investments equal to 2.2 billion and to the payment of dividends. The fixed point of our action – the top manager clarified again – is financial discipline, an essential condition for facing the challenges of the energy market and creating value for our shareholders at the same time”.
Coupon increase plan and buyback confirmed
Based on the first quarter numbers, the CEO specified, «we confirm the forecasts for 2023, and thanks to the solid financial position and our operational flexibility, we are in a position to be able to confirm at the next annual shareholders’ meeting in May the already announced plan to increase of the 2023 dividend to 0.94 euro per share and the launch of the 2.2 billion euro buy-back programme”.