Eni’s fourth-quarter profit matched estimates as its natural gas business helped to offset weakness in refining and chemicals.
The Italian giant echoed the performance of peers like Shell and TotalEnergies, where the ability to optimize the global trade in liquefied natural gas partly compensated for broadly lower energy prices and lackluster demand for chemicals.
Adjusted net income in the period was €1.64 billion ($1.8 billion), in line with the average analyst estimate of €1.63 billion and a drop of 34% from a year earlier.
“Our financial results were excellent,” Chief Executive Officer Claudio Descalzi said in a statement on Friday. “Cash flow generation at €16.5 billion before working capital movements gave us a significant headroom over the substantial cash returns to shareholders of €4.8 billion.”
Dividend plans and the company’s outlook for 2024 will be disclosed in a capital markets day planned on March 14, according to the statement.
Eni’s (MIL:ENI) refining and chemicals unit posted an adjusted operating loss of €87 million, compared with the average analyst estimate for a profit of €182.8 million. “Negative trends” in the sector reduced margins by about 40% from a year earlier, the company said.
Eni’s natural gas business posted a quarterly profit of €677 million, well ahead of the average analyst estimate of €477.2 million, “driven by an optimized natural gas and LNG portfolio and contract renegotiation benefits,” according to the statement.
Renewables unit Plenitude’s adjusted operating profit of €111 million was below estimates, as lower margins from power sales offset an expansion in renewable generation capacity to 3 gigawatts.
The state-controlled energy company is nearing the completion of a €2.2 billion share-buyback plan. The move could pave the way for the Italian Finance Ministry to sell as much as a 4% stake in the company, to help reduce the country’s debt pile and fund electoral promises. Italy aims to raise €2 billion euros from the sale, people familiar with the deal have said.
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