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Bloomberg
Eni SpA posted a record annual profit due to high oil and gas prices, despite its fourth quarter missing estimates.
The Italian energy giant followed its peers with stellar earnings for 2022, after Russia’s invasion of Ukraine sent the value of key commodities soaring.
Eni’s fourth-quarter adjusted net income was €2.5 billion ($2.6 billion), missing the average analyst estimate of €2.6 billion. For the full year the figure was €13.3 billion, a record.
The company’s response to the energy crisis was an “important driver†of the performance of Eni’s gas business, Chief Executive Officer Claudio Descalzi said in a statement on Thursday.
The gas business earned €2.1 billion before interest and taxes during the year as Eni replaced Russian flows with supplies from elsewhere. The performance of the gas business was the largest positive surprise, while corporate costs were also lower than expected, Gianmarco Bonacina, an analyst at Equita, said in a note.
Eni has committed to improving Italy’s energy security by securing gas supplies from Africa to replace Russian imports over the next couple of years. The company’s oil and gas production for the year was 1.610 million barrel of oil equivalent a day, below the target of 1.7 million because of unplanned outages, the company said.
“Eni has room to raise average capital spending, and either way, we see room for cash returns upside,†Jason Kenney, an analyst at Santander CIB, said in a note.