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(Il Sole 24 Ore Radiocor) – Eni moves higher in a cautious market after better-than-expected quarterly results. When the FTSE MIB is weak, Eni shares rise. Before the opening of the markets, Eni announced that it closed the second quarter of the year with an adjusted net profit attributable to Eni shareholders of 1.94 billion (-49%) but with a significant offsetting effect given by the industrial performance. In the first half, adjusted net profit fell by 32% to 4.84 billion and net profit to 2.68 billion. Hydrocarbon production rose by 2% to 1.611 million boe/d in the quarter and Eni confirmed its 2023 production guidance at 1.63-1.67 million and at 1.63 in the third quarter. Adjusted operating profit in the first six months of 2023 fell 27% to $8.02 billion while in the second quarter of this year it fell 42% to $3.38 billion.
For analysts, quarterly accounts above forecasts
Eni’s results were “better than market expectations”, as indicated by Intermonte analysts, who have a “neutral” opinion on the stock with a price target of 15 euros. For Equita – which has a “buy” opinion on Eni and a target price of 19.5 euros – the accounts are “significantly higher than expected thanks to the GGP (Global Gas & LNG Portfolio) division”. In detail, the experts of the Milanese SIM indicate that «the results are significantly better than our expectations and those of the consensus; the 2023 outlook on operating cash flow (Cffo) is better than our expectations with scenario assumptions in line (the negative effect of the scenario change would have been 1 billion on Ebit/Cffo); earnings quality is good given the performance of cash generation better than earnings; the implied free cash flow is practically unchanged with 5 dollars/bbl of Brent less in the scenario; the remuneration is confirmed: dividend of 0.94 euro per share, buyback 2.2 billion which represents approximately 33% of operating cash flow (just above Eni’s target range of 25%-30%).
Descalzi: «Excellent operational and financial results»
«In the second quarter of 2023, Eni achieved excellent operational and financial results in a less favorable market context. We underline this resilience after Eni, in the previous and much more positive scenario, had been able to make the most of its opportunities. In addition to having achieved positive financial goals, Eni has made important progress in implementing its strategy in all sectors of activity», commented Eni’s CEO, Claudio Descalzi. «Considering the performance of the first half-year and the clear progress of our business sectors, which leads to an improvement in the forecast of full-year results, the solid fundamentals are confirmed on the basis of which the first quarterly installment of the annual dividend will be paid in September 0.94 per share, increased compared to the previous year, as well as continuing the 2.2 billion share buyback program launched in May», added Descalzi, confirming the adjusted EBIT at 12 billion despite the worsening scenario.