The season of quarterly reports in Piazza Affari continues in full force, dragging our reference index, the Ftse Mib downwards. Despite today’s performance, the Ftse Mib is about to end a splendid week of increases, reaching above the threshold of 29,500 points. Two of the great protagonists of the energy sector travel in opposite directions, Erg stock market crash-5% a 26 euro) after the second quarter accounts, while Eni marks a moderate decline of 0.3% a 13 euro for action.
The numbers of Erg
The Genoese group Erg today published accounts for the first six months of the year. In the first half the group recorded revenues per 370 million euroswith a net operating margin equal to 156 million while il Net income from continuous activity has reached i 116 million. The numbers are “calculated on the basis of the financial statement formats and include the special items and related theoretical taxes”.
“The first half is characterized by market prices significantly lower than the particularly high ones of 2022, which only marginally affected the results as the Group adopts a hedging policy which provides for sales through fixed tariffs, PPA contracts with pre-established conditions and contracts financial.
It should be noted that the adjusted EBITDA amounted to €263 million in the first half of 2023 (€272 million in the first half of 2022),” reads the press release.
As for the second quarter, Erg recorded revenues of 157 million euros in line with the numbers of the same period of the previous year. Gross operating margin Of 103 million of euros compared to 108 dell’last year. And result net operating Of 50 million down from 54 million from the same period a year ago.
The company attributes the contraction in EBITDA (-3% compared to the first six months of 2022) to “very unfavorable wind conditions in the second quarter”.
Operating margin revised down for 2023
Management “notes declining operating performance due to less wind and in a price environment significantly decreasing”. For these reasons the management revises the gross operating margin downwardsnow estimated in the range 480-520 millioni euros for the whole of 2023 compared to the previous forecast in the range of 500-55 million euros.”
The allocation to investments remains constant, forecast for the year at 500-600 million and the amount of debt, in the range 1,400-1,500 million “thanks to an expected cash flow in line with previous estimates, thanks to the offsetting of interest on cash compared to financial charges.”
Eni, profit down but above expectations
The energy giant Eni beats expectations and closes the first six months of the year with an adjusted net income of 4.84 billion down by 32% compared to the same period of 2022. As regards the second quarter of 2023, however, it recorded revenues equal to 1.93 billion down 49% from the same period a year ago. Operating profit adjusted in the first six months of the year fell by 27% to 8.02 billion. As for the second quarter of this year, however, it is an even more marked decline of 42% a 3.38 billion.
The CEO Claudio Descalzi commented the results like this. “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 business sectors.”
Descalzi highlighted “lsecond quarter adjusted operating profit, you seem to 3.4 billion euroswhich rises to 4.2 billion euros including the contribution of the JVs/affiliates”.
The profit, explained the CEO of Eni, “was driven by the solid results of a growing E&P (exploration, development and production) and by another excellent performance of GGP (gas and liquefied natural gas). While the market environment has impacted Refining and Chemicals, Sustainable Mobility and Plenitude continue to post earnings and capacity growth in line with plan and despite volatile external conditions.”
“Adjusted free cash flow was substantial at €4.2bn, well in excess of capital expenditure financing needs of €2.6bn. In the first half of 2023, even discounting the working capital requirement, we obtained approximately €3 bn of discretionary cash flow, able to cover almost the entire disbursement for the 2023 dividend”.
Descalzi confirms the dividend at 0.94 euros
The managing director Descalzi also underlined that, “considering the trend of the first half-year and the clear progress of our business sectors, which leads to an improvement in the forecast of results for the full year, the solid fundamentals are confirmed, on the basis of which correspond to September the first quarterly installment of the annual dividend of €0.94 per share, increased compared to the previous year. But also the continuation of the treasury share buyback program from €2,2 mld started in May”.