FX.co ★ ENI Q2 Profit Climbs On Production Growth; Sees FY24 Production At Top End Of View

On Friday, Italian energy giant Eni S.p.A. (E) announced a significant jump in its second-quarter net profit, reaching 661 million euros, compared to 294 million euros for the same period last year.

However, adjusted net profit saw a decline, recorded at 1.52 billion euros, down from 1.94 billion euros a year earlier. The Group proforma adjusted EBIT (Earnings Before Interest and Taxes) also decreased by 3 percent, arriving at 4.11 billion euros, as opposed to last year's 4.23 billion euros.

The company experienced a surge in total revenues to 23.06 billion euros, up from the previous year's 19.81 billion euros.

Notably, hydrocarbon production increased by 6 percent, reaching 1,712 kboe/d (thousand barrels of oil equivalent per day), compared to 1,616 kboe/d the previous year. This growth was primarily driven by the ongoing ramp-up of flagship projects in Cote d'Ivoire and Congo Floating LNG.

For the fiscal year 2024, Eni has revised its hydrocarbon production forecast towards the higher end of the anticipated range, now expected between 1.69 - 1.71 million boe/d (barrels of oil equivalent per day).

The company has also adjusted its Group proforma adjusted EBIT guidance upwards to approximately 15 billion euros.

Additionally, adjusted CFFO (Cash Flow from Operations) before working capital changes is projected to exceed 14 billion euros for the entire year.

Following shareholders' approval of a dividend increase to 1 euro per share for fiscal year 2024—a 6% rise from 2023—the first quarterly installment of 0.25 euros per share is scheduled for payment on September 25.

Eni has also reaffirmed its plan for a share buyback of 1.6 billion euros in 2024.