Eni unveils strong fall in Q1 profit despite exceeding analysts' estimates
Date
4/24/2024 8:51:45 AM
(MENAFN) Italian energy giant Eni disclosed a significant drop in profits for the first quarter of this year, despite surpassing analysts' expectations. According to Eni's statement released on Wednesday, the company's adjusted net income for the three-month period ending March 31 amounted to 1.58 billion euros, a notable decrease from the previous year's figure of 2.91 billion euros, marking a decline of 45.7 percent. However, this figure slightly exceeded the average estimate of analysts, which stood at USD1.68 billion.
Eni attributed the decline in adjusted operating profit within its gas business, which fell to 325 million euros from 1.42 billion euros a year earlier, to lower prices and reduced business opportunities. Conversely, profits from the exploration and production division remained stable at 3.32 billion euros. Notably, the company reported a 5 percent increase in oil and gas production, reaching 1.74 million barrels of oil equivalent per day during the quarter.
Eni's renewable energy unit, Plenitude, recorded a significant uptick in preliminary adjusted earnings before interest and taxes (EBIT), rising by 48 percent to 346 million euros. This growth was attributed to increased production and enhanced performance in retail markets. However, profits from the company's natural gas business experienced a substantial decline compared to the previous year.
In response to the financial results, Eni's CEO Claudio Descalzi expressed confidence in the company's trajectory, emphasizing its commitment to exceeding full-year earnings targets, particularly through the efficient growth of its upstream business. Additionally, Eni announced plans to repurchase its shares this year for 1.6 billion euros, a move aimed at enhancing shareholder value.
Following the announcement, Eni's shares experienced a modest uptick, rising by 0.2 percent to 15.55 euros per share as of 9:06 AM in Milan. The company's strategic initiatives and commitment to shareholder returns reflect its proactive approach to navigating challenging market conditions while positioning itself for long-term growth and profitability.
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