Eni Announce results for the third quarter and nine months of 2024
London, October 25, 2024, (Oilandgaspress) –––Eni’s Board of Directors, chaired by Giuseppe Zafarana, yesterday approved the unaudited consolidated results for the third quarter and nine months of 2024.
Strategic and financial highlights
Continued delivery of our strategy of valuable growth and portfolio upgrading. Several important milestones achieved to unlock future growth.
Started in Italy, off Sicily, the Argo-Cassiopea gas development, the largest in years, expected to reach a peak production of 1.5 bcm and featuring net zero scope 1&2 emissions.
Approval by Indonesian authorities of the PoD for the Northern Hub development that includes the Geng North discovery, and the Ganal PSC fields development that materially extends the production plateau of Jangkrik, the Southern hub.
With the launch of two new floating vessels, the Baleine Phase 2 project offshore Cote d’Ivoire is on track to commence operations by end ‘24 as scheduled, in line with our fast-track approach, and complementing the success of Phase 1.
Closed the divestiture of Nigerian onshore assets.
Finalized the combination of our UK oil&gas assets with Ithaca Energy to create a new geographically-focused satellite in line with the successes of Vår Energi in Norway and Azule in Angola.
FID taken to build a biorefinery in Malaysia with our joint venture partners Petronas and Euglena, with 650 ktons/y of advanced processing capacity. Works for converting Livorno into a biorefinery expected to begin shortly.
Eni finalized its transformation, decarbonization and relaunch plan for its chemicals business first announced in March. Eni will invest in the development of new chemicals platforms in high value downstream activities such as renewables, circular and specialized products while reducing exposure to basic chemicals, thereby recovering profitability and supporting a positive impact on employment.
First CO2 injection at our flagship Ravenna CCS project offshore Italy. UK Government Funding secured for the Liverpool Bay Transport and Storage Project, a key milestone in the development of the HyNet CCS project.
A new organizational set-up focused on 3 new business structures has been set-up to unlock the value of Eni’s satellites and complete Eni’s transformation leveraging our operational excellence and high-quality assets[1]: i) “Chief Transition & Financial Officer” focused on maximizing the value of our transition-related businesses; ii) “Global Natural Resources” designated to fully capture the value across the oil & gas value chain and to monetize our traditional assets; iii) “Industrial Transformation” designated to accelerate the restructuring of our chemicals and downstream businesses.
Disciplined capital management to support deleveraging. Commitment to delivering competitive shareholder returns with buyback increased in 2024.
Confirming investment by KKR into Enilive for a total €2.9 bln.
Continued exploration success has created a number of material options for early monetization and realization of value.
Better than expected progress in portfolio enabled the acceleration of the share buyback program in Q3 ‘24, raising the ’24 buyback to €2 bln from €1.6 bln in Q2 ‘24 to reflect the prospect of significantly lower balance sheet leverage.
Resilient results driven by effective strategy execution and financial discipline despite lower Brent prices, EUR strength, and weaker margins for refining and chemical products.
In Q3 ’24 delivered Group proforma adjusted EBIT of €3.4 bln and adjusted net profit of €1.3 bln. In Q3 ’24 adjusted cash flow of €2.9 bln was underpinned by continuing progress in implementing our strategy, new project contributions, growth at the businesses related to the transition, and a focus on costs and financial discipline.
Q3 ’24 E&P proforma adjusted EBIT of €3.2 bln was helped by the ramp-up of higher value barrels at new projects, strong execution, and cost control. It came despite weaker Brent prices and Euro appreciation impacting both y-o-y and sequential comparisons (down 5% and 9%, respectively). Q3 production was resilient (up 2% y-o-y) notwithstanding a sequential decline (down 3% q-o-q) due to the impact of maintenance on a larger North Sea base, hurricane effects in the GoM, divestments and lower activity in Libya.
Q3 ’24 GGP proforma adjusted EBIT of €0.25 bln was up 65% y-o-y, optimizing the gas and LNG portfolio.
Enilive proforma adjusted EBIT of €0.18 bln was helped by the marketing performance and partly offset by lower biofuels margins. In Q3 ’24 Plenitude earned a proforma adjusted EBIT of €0.13 bln, slightly down y-o-y, reflecting a typical return to normal seasonality and the decrease in gas sales as per market demand dynamics.
Refining proforma adjusted EBIT was €0.03 bln, down both y-o-y and sequentially as the scenario deteriorated markedly (the SERM was down by over 80% in the quarter). The Chemicals again incurred a loss (€0.2 bln) due to continued industry headwinds: subdued demand, competitive pressure and the comparatively higher energy costs of operating in Europe.
€10.7 bln of operating cash flow delivered in the nine months, largely covering the organic capex funding needs of €6.1 bln. Organic free funds “FCF” of €4.6 bln have been used to fuel shareholders cash returns of €3.4 bln and together with around €1.7 bln of disposals enabled the Company to maintain net borrowings to €12 bln, including the Neptune acquisition. This left Group leverage at 0.22, in line with Q2 ‘24 and well within the 0.15-0.25 guided range for 2024-27.
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