Eni Quarterly: shares falling on the Italian Stock Exchange after the results. The company led by CEO Claudio Descalzi confirmed the production growth targets for the current year. All data for the first quarter of 2019
The first quarterly 2019 of ENI reported the corporate shares in the spotlight of Borsa Italiana.
The accounts of the listed company have been archived with economic results below market expectations. This brought Eni’s shares back into the spotlight of investors. Immediately after the publication of the accounts, Eni’s quotations expanded the liabilities to Piazza Affari. At the time of writing, they mark a price of 15.60 euros, down about 1.4 points on yesterday’s close.
Eni shares: the first quarter of 2019 accounts
Eni ‘s first quarter 2019 results can be summarized as follows:
- Adjusted operating profit: 2.35 billion
- Adjusted net profit: 0.992 billion in the quarter
- Net profit: 1.09 billion.
- Operating cash generation: 2.1 billion.
Eni closed the first quarter of the year with an adjusted net profit down 1.4% to 992 million euros, below estimates that were 1.05 billion. Production decreased by 1.9% to 1,832 kboe / d (1,851 kboe / d the consensus).
Going up the income statement, a decline also emerged in the operating aggregates: the adjusted operating profit fell by 1.1% to 2.354 billion, compared to the 2.53 billion expected by the consensus prepared by Bloomberg. The company points out in a note that “the 2019 operating profit reflects the reversal of a profit for internal profits produced but not yet realized with third parties for 134 million (+58 million in the first quarter 2018)”.
Eni ‘s cash flow generation in the January-March period produced 2.1 billion euros. Eni states that this figure includes an extraordinary payment for the definition of arbitration (330 million). “Excluding from the 2019 value this payment and the benefit provided by IFRS 16, result in line with the first quarter of 2018”, reads the release.
Net financial debt amounted to € 14.5 billion, of which about € 2 billion related to the lease liability of the partners in upstream joint operations operated by Eni. “Excluding the full effect of the application of IFRS 16, the net debt is redefined to 8.68 billion euros,” the company explained.
Details of Eni’s business units
In detail, the Exploration & Production division recorded a + 10.7% to 2,308 million (2,350 million for the consensus), while the Gas & Power divisionrecorded a + 15.5% to 372 million (270 million).
Negative results for the Refining & Marketing and Chemistry activities, respectively for 9 million (+18 million in the first quarter of 2018) and for 46 million (+59 million in the first quarter of 2018).
Eni confirms the production growth targets
The group led by CEO Claudio Descalzi confirmed the production growth targets in 2019: according to the projections provided by Eni, hydrocarbon production this year will grow by 2.5% with the Brent at 62 dollars a barrel and net of portfolio transactions.
Descalzi (Ad Eni): quality and robustness of the order book
For the ‘ Eni CEO Claudio Descalzi the results released today confirm the quality and robustness of the orders portfolio of the company, “capable of covering in 2019 costs, investments and dividends at a Brent price of $ 55 and generate, in case of higher prices as at the present time, excess cash “.
“I am very satisfied with the excellent industrial and financial performance achieved by Eni in the first quarter of 2019,” the company said, emphasizing that the management of the first quarter generated “a cash flow of € 3.42 billion, up 8% and more than 1.5 billion from investments for the period, which amounted to about 1.9 billion, in line with expectations of a value of 8 billion a whole year ».