Eni announce second quarter and first half of 2014 results
Eni, the international oil and gas company, today announces its group results for the second quarter and first half of 2014 (unaudited).
* Adjusted operating profit: €2.73 billion for the quarter (up 39.3%); €6.22 billion for the first half (up 9%);
* Adjusted net profit: €0.87 billion for the quarter (up 50.7%); €2.06 billion for the first half (up 4.8%);
* Net profit: €0.66 billion for the quarter (up 139%); €1.96 billion for the first half (up 7.9%);
* Operating cash flow2 of the quarter at €3.59 billion marks the highest performance since the 2Q 2012; the cash flow of the first half was €5.74 billion;
* Leverage at 0.24 compared to 0.25 at December 31, 2013; and
* Dividend proposal of €0.56 per share.
* Oil and gas production: 1.58 mmboe/d, substantially unchanged from the second quarter of 2013 on a homogeneous basis3 and net of geopolitical factors;
* Renegotiations of long-term gas contracts: about 60% of contracted volumes aligned to market conditions and downsized take-or-pay exposure;
* New terms agreed for the development of the super-giant Perla gas discovery resources in Venezuela;
* Agreements signed to acquire new exploration licenses in Vietnam, South Africa, China, Algeria and Kazakhstan;
* Resource base increased by 420 million boe in the first half, mainly in Congo, Egypt and Nigeria;
* In July, achieved a new important discovery offshore Gabon with a potential in place of 500 million boe;
* Buyback program: 11.53 million shares repurchased for a total cost of €0.2 billion as of June 30, 2014.
Claudio Descalzi, Chief Executive Officer, commented:
“In 2014 the overall market environment has deteriorated compared to last year, in particular in the European refining sector where margins have collapsed owing to excess capacity, causing us to accelerate the restructuring of our plants. Despite this negative backdrop, Eni reported a significant increase in cash flow thanks to the renegotiation of long-term gas supply contracts, which will bring Gas & Power breakeven forwards to 2014. In upstream, exploration continues to deliver outstanding successes and, in the context of the complex geopolitical environment, our oil and gas production remains stable. We have launched a new, slimmed-down organisation to maximise synergies and speed of operation. In light of these actions, on 17 September I will propose to the Board of Directors an interim dividend per share of €0.56.‘
At the same time as reviewing this press release, the Board has approved the interim consolidated report as of June 30, 2014, which has been prepared in accordance to Italian listing standards as per article 154-ter of the Code for securities and exchanges (Testo Unico della Finanza). The document was immediately submitted to the Company’s external auditor. Publication of the interim consolidated report is scheduled within the first half of August 2014 alongside completion of the auditor’s review.