Eni’s Profits Soar On “Excellent” Gas Business

Eni’s Profits Soar On “Excellent” Gas Business

Eni (NYSE: E) reported on Friday third-quarter core earnings and net profit beating analyst expectations amid what the Italian energy group described as an “excellent performance” of its Global Gas & LNG Portfolio.

Eni’s adjusted net profit for the third quarter came in at $3.7 billion (3.73 billion euros), more than double compared to the same period of 2021, and above the consensus estimate.  

The Global Gas & LNG Portfolio (GGP) “registered an excellent performance in the third quarter of 2022, after breaking even in the second quarter. While gas prices were high, the market continued to be very challenging in terms of physical flows and volatility,” Eni said in a statement.

The division delivered earnings before interest and tax (EBIT) of $1.07 billion (1.08 billion euros), “thanks to a relentless asset optimization and contract renegotiations, leveraging the diversity and flexibility of our overall gas and LNG portfolio,” Eni added.

“In the third quarter of 2022, despite a decline in crude oil prices and a rapid fall in refining margins, we have continued to deliver positive results, mainly thanks to the robust performance of our international businesses,” chief executive Claudio Descalzi said.

This winter, Eni plans to replace at least 50% of Russian gas flows, through its broad and diversified reserve base, long-standing relationships with producing countries, and growing presence in LNG, Descalzi noted.

Eni’s strong results follow similarly strong earnings from the other European majors.

Norway’s Equinor raised its extraordinary dividend after reporting on Friday record earnings for the third quarter due to surging natural gas prices in Europe. Shell will lift its dividend and is launching a new share buyback program after reporting its second-highest quarterly earnings for Q3, second only to the record profit for the previous quarter. TotalEnergies posted a record profit for the third quarter, driven by high energy prices and soaring prices of LNG as Europe scrambles to procure gas ahead of the winter.

Yet another very profitable and record-breaking quarter for Big Oil is intensifying calls for windfall taxes on energy firms and renewed criticism from U.S. President Joe Biden, who on Thursday called on oil companies – again – to lower the prices at the pump.

By Tsvetana Paraskova for Oilprice.com

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