Eni Announce first quarter 2022 results
Group’s results of operations in Q1 ‘22
- In Q1 ’22, the Group reported an adjusted EBIT of €5.19 billion, up by 300% from Q1 ’21.
- This performance was driven by the robust results of the E&P segment that reported a €3 billion increase in adjusted Ebit capturing the higher realized prices in equity production (up by 70% on average). Hydrocarbons production for the quarter was 1.65 million boe/d, consistent with the full year guidance.
- The GGP segment reported an adjusted Ebit of €0.93 billion, compared to breakeven in Q1 ’21 due to higher gas sales, better results of the international LNG business amid a strong pricing environment, and margin optimization leveraging the flexibility of the natural gas supply portfolio.
- The R&M business achieved a positive result of €24 million, a significant improvement from the €159 million loss of Q1 ’21. This trend was driven by plant optimizations allowing to reduce the use of gas and utilities expenses, as well as a strong rebound of refining margins in the second half of March ’22 benefitting from a tight market for refined products, particularly of gasoil.
- The chemical business managed by Versalis has weakened due to the rise in oil-based feedstock costs and higher plant utilities expenses. The business reported lower results of €154 million year-on-year.
- The retail, renewable & electric mobility businesses managed by Plenitude are well positioned to achieve the full-year guidance of adjusted EBITDA (over €0.6 billion), notwithstanding the high volatility of the scenario, confirming the resilience of our integrated business model.
- The Group adjusted net profit in Q1 ’22 was about €3.27 billion, increasing by €3 billion from Q1 ’21, supported by improved results from our equity accounted entities and a lower tax rate resulting from geographical mix effects and higher prices in E&P and positive business contribution from GGP and R&M in the overall results.
- The Group adjusted cash flow before working capital at replacement cost came in at €5.61 billion supported by the strong base business performance (up by 186% compared to Q1 ’21).
- After funding organic capex of €1.62 billion, slightly higher versus last year, and working capital needs, the Group earned an organic FCF of €1.8 billion. Seasonal factors that typically shape working capital requirements in the first quarter, drove a cash absorption of about €1.96 billion that reflected the higher nominal value of trade receivables.
- The cash flow of the quarter was boosted by the closing of the share offering in Vår Energi with proceeds for Eni of about €0.4 billion.
- Non-organic cash outflows of €1.25 billion relate to Plenitude acquisitions (€0.8 billion) and a capital contribution to the Saipem JV (€0.46 billion) as part of the financial restructuring of the investee.
- Net borrowing as of March 31, 2022, before the IFRS 16 effect stood at €8.62 billion, and the leverage continued to improve at 0.18 versus 0.20 as of December 31, 2021.
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Energy, Climate, Renewable, Wind, Biomass, Sustainability, Oil Price, LPG, Solar, Commodity, Coal, Electric Power, Energy Transition, LNG, Natural Gas, Oil,