Eni confirms the public offer of shares of the subsidiary Plenitude and the listing on the Milan stock exchange through an IPO by 2022
Eni closes the first quarter of the year with strong growth results driven by the solid results ofExploration & Production. L’Net income for the quarter jumped to 3.58 billion from 856 million in the first quarter of 2021 and adjusted net profit to 3.27 billion from 270 million. Adjusted EBIT consolidated for the period rose to 5.19 billion, up 300% compared to the same period of 2021.
Performance, he points out Eniwas driven by strong E&P results with a Adjusted EBIT of 4.38 billion, an increase of 3 billion compared to the first quarter of 2021 due to the ability to capture the significant increase in the realization prices of equity production (+ 70% on average). Hydrocarbon production in the quarter was 1.65 million boe / d, down 3%, a level consistent with the year’s guidance, the group underlines. At Piazza Affari the title “strong” and “positive” part up by 0.75% to 13.256 euros.
In the first quarter “ours performance demonstrated solidity and resilience in a context of extreme price volatility and uncertainty due to the ongoing war and international tensions “and” it was a quarter of clear progress in implementing our strategy to ensure the safety and sustainability of the energy system, maintaining our strong commitment to a just energy transition and to creating value for our stakeholders, “he commented Claudio Descalzimanaging director of Eni.
Highlighting “the significant strategic developments for Eni. We reacted quickly to the changed conditions of the energy market leveraging the global dimension of our upstream sector and the consolidated relationships with producing countries to identify new supply opportunities for Europe, incremental and alternatives to the existing ones “.
“We have concluded important agreements with Algeria, Egypt and Congoand yet another in Angola, which further strengthen joint activities with local state companies with the aim of promoting greater export flows of natural gas to the benefit of Italy and Europe in the context of the transition to a decarbonised economy “, he then recalled Descalzi.
“During the quarter we successfully completed the listing process of our Norwegian upstream subsidiary, VarEnergiof which we now hold 64%, and we have launched the integration transaction of their respective relevant upstream portfolios in Angola with BP. Plenitudeour subsidiary that integrates renewable energy with retail gas & power, is moving towards listing by 2022 subject to market conditions and we have announced the forthcoming constitution of a company for Sustainable Mobility that will combine our biorefineries, our network of multi-product, multi-service outlets and their customers, “he stressed Descalzi.
“Thanks to Plenitude and Sustainable Mobility, we aim to offer our customers distinctive decarbonised products and sustainable services”. And he continued: “We have successfully completed the initial subscription offer on the London stock list of NEOA, a vehicle that will identify acquisition opportunities in the decarbonisation and energy transition “.
As for the results, the number of Eni he underlined: “We achieved an adj. Group Ebit of 5.2 billion, an increase of 3.9 billion compared to the first quarter of 2021 due to the robust performance of E&P thanks to the strong price scenario, and of GGP supported by the growth of international LNG business and the flexibility of our procurement portfolio. We made a net profit of 3.3 billion. It was crucial that in a market characterized by such volatility, we remained financially disciplined and thereby generated organic free cash flow of 1.8 billion, despite the greater needs of working capital connected to the seasonality of gas sales made even more accentuated by the increase in the prices of raw materials “.
Eni has revised upwards the guidance of operating profit adjusted by GGP (Global Gas & Lng Portfolio), expected to be around 1.2 billion euros compared to the previous target of 0.9 billion considering the expected evolution of the market. It is read in the 2022 outlook in which Eni specifies that the Group has defined the operational and financial forecasts for the year 2022 on the basis of the information currently available, of the management’s estimates relating to possible risks and uncertainties associated with the current financial situation. war in Ukraine and assuming no significant disruption in gas flows from Russia
Furthermore, the public offer of shares in the subsidiary is confirmed Plenitude and the listing on the Milan stock exchange through an IPO by 2022, subject to market conditions. Eni writes this in the 2022 outloook, indicating that Plenitude’s EBITDA is expected to exceed 0.6 billion, in line with guidance. The guidance of over 2 GW of installed capacity from renewable sources at the end of 2022 has been confirmed (at 100%).
The GGP segment (Global Gas & Lng Portfolio), indicates Eni, recorded an adjusted ebit of 0.93 billion, compared to the breakeven of the first quarter of 2021, supported by sales growth, the best results of the international LNG business in the context of a robust price scenario, and the optimization of margins by exploiting flexibility ‘of the gas supply portfolio. The R&M business achieved a positive result (€ 24 million), a significant improvement compared to the loss of € 159 million in the first quarter of 2021.
This increase is linked to optimization of plant structures, which made it possible to reduce the use of natural gas and the costs of utilities, as well as the significant recovery of the refining margin from the second half of March, driven by the strengthening of diesel, due to a lack of availability on the market . The chemical business managed by Versalis showed a weak trend with a worsening of -154 million compared to the comparative period, penalized by the increase in the prices of the oil feed and by the higher costs of industrial utilities. The retail, renewable & electric mobility business managed by Plenitude is well positioned to achieve the adjusted annual EBITDA guidance (over 0.6 billion) despite the volatility of the scenario.
The net cash flow adjusted ante working capital at replacement cost in the first quarter of 2022 amounted to € 5.61 billion supported by the solid performance of the core businesses (+ 186% compared to the first quarter of 2021). After the funding of organic capex of 1.62 billion, a slight increase compared to the first quarter of 2021, and the need for net working capital, the Group obtained an organic FCF of 1.8 billion.
Cash flow for the quarter benefited from the finalization of the investee’s share placement Var Energi with income for Eni of approximately 0.4 billion. Non-organic cash requirements of 1.25 billion refer to the Plenitude acquisitions (0.8 billion) and the capital payment to Saipem (0.46 billion) as part of the financial restructuring of the investee.
Net financial debt before IFRS 16 as at March 31, 2022 it is equal to 8.62 billion; leverage continues to strengthen with a value of 0.18 vs 0.20 as of December 31, 2021. Eni recalls that, leveraging on consolidated relations with the countries of North and West Africa, important framework agreements have been defined with Algeria, Egypt and Congo on 11, 13 and 21 April respectively, aimed at strengthening joint operations in the upstream sector in the three countries with business developments with the aim of increasing natural gas export flows to Europe. Further supplies from Angola are planned.
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