Eni's Profits Plunge

By Mauro Orru

Eni, the Italian oil-and-gas major, has experienced a significant drop in profits during the second quarter of the year. This decline can be attributed to the ongoing decrease in benchmark crude oil and natural gas prices.

Financial Results:

• Quarterly net profit plummeted to 294 million euros ($322.8 million), a significant decrease from last year's second-quarter figure of EUR3.82 billion.
• Adjusted net profit also saw a decline of 49% to EUR1.94 billion.
• Adjusted operating profit, which is closely monitored by analysts and investors, fell by 42% to EUR3.38 billion.
• Sales decreased by 38% to EUR19.59 billion.

Hydrocarbon Production:

• Eni saw a 2% increase in hydrocarbon production compared to the previous year, reaching 1.61 million barrels of oil equivalent per day.
• The forecast for the current quarter is about 1.63 million barrels of oil equivalent per day.
• For the entire year, Eni anticipates hydrocarbon production between 1.63 million and 1.67 million barrels of oil equivalent per day.

Capital Expenditure and Financial Expectations:

• The company's capital expenditure is expected to be under EUR9 billion, lower than the previously guided amount of around EUR9.2 billion.
• Eni aims for an adjusted operating profit of EUR12 billion.
• Cash flow from operations before working capital should range between EUR15.5 billion and EUR16 billion, slightly lower than the initial prediction of more than EUR16 billion.

These developments reflect the challenging market conditions faced by Eni due to the current state of the oil and gas industry.