- FINANCE, STRATEGY AND REPORTING
- ● PRICE SENSITIVE
San Donato Milanese, April 24, 2024 - Eni's Board of Directors, chaired by Giuseppe Zafarana, yesterday approved the unaudited consolidated results for the first quarter of 2024. Eni CEO Claudio Descalzi said:
“In the first quarter 2024, we have accelerated in executing the transformation of our portfolio through different high value platforms of growth in both the legacy and transition businesses. With the closing of the acquisition of Neptune Energy and the announced UK focused combination with Ithaca Energy in the Upstream, we will reinforce our exposure to gas and to OECD countries, while the EIP investment into Plenitude at an enterprise value in excess of €10 bln confirms the material potential of our renewable and retail segment. Operationally, we continue to leverage our exploration and development skills: a new giant discovery in Côte d'Ivoire will expand our optionality in the long term both in term of resources and potential dilution; fast tracking development has ensured the start-up of the first LNG in Congo, just one year after the Final Investment Decision. The quarterly performance was excellent, with a strong result from E&P, supported by production up 5% versus last year, and continuing growth at Plenitude and Enilive. This drove €4.1 bln of proforma adjusted Ebit leading to €1.6 bln of adjusted net profit. Operating cash flow, net of working capital adjustments, was €3.9 bln, twofold our capex, thus enabling us to report a leverage of 0.23 well within our planned range despite the disbursement for the Neptune Energy acquisition. The results put the Company firmly on track to exceed the full-year earnings and cash flow guidance as we work to efficiently grow the upstream, profitably develop the businesses tied to the energy transition, and work to fully capture the market scenario. Based on our updated scenario, we expect full year CFFO to be above €14 bln and, in line with our distribution commitment, we are raising the planned 2024 share buy-back by 45% to €1.6 bln”.
From Q1 ’24 Eni’s results are reported in a way that fits with the underlying performance and strategic transformation of the Company. Emphasis is now given to segmental proforma adjusted EBIT[1] to incorporate the contribution of our main Joint Venture/Associates. Enilive and Plenitude, our key business dedicated to the decarbonization of the retail demand, are grouped together for segmental reporting purposes also in order to highlight their growing importance.
Exploration & Production
Enilive and Plenitude
Refining, Chemicals and Power
Decarbonization, Sustainability and Technology
The Company is providing the following updated operational and financial guidance for 2024:
The above-described outlook is a forward-looking statement based on information to date and management’s judgement and is subject to the potential risks and uncertainties of the scenario (see our disclaimer on page 19).
[1] For a reconciliation of Group proforma adjusted EBIT and segment breakdown see pages 20 and subsequent. The list of the main JV/associates is included on page 25.
[2] Updated 2024 Scenario is: Brent 86 $/bbl (previously $80/bbl); SERM 6.8 $/bbl from 6.6 $/bbl; PSV 33 €/MWh (vs 31 €/MWh) and average EUR/USD exchange rate at 1.075 (vs 1.08).
[3] On an adjusted basis, before working capital changes.
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