Italian hydrocarbon giant Eni announced on Thursday that it had more than doubled its net profit in 2022 to 13.8 billion euros (13.6 billion francs), thanks to soaring energy prices in the wake of the invasion of Ukraine by Russia.
However, this result is slightly below the consensus of analysts from the financial information provider Factset Estimates, which expected a profit of 14.02 billion euros.
Eni benefited last year, like all the oil groups, from the surge in the price of hydrocarbons, which however settled down in the last quarter.
Adjusted net profit – an indicator closely scrutinized by the markets because it excludes exceptional items – tripled to 13.3 billion euros.
In the fourth quarter, the group suffered an 84% drop in net profit to 550 million euros, remaining well below analysts’ expectations, which had forecast 2.46 billion euros.
Quarterly profit was weighed down by asset write-downs of €0.9bn and a €0.7bn contribution under Italy’s tax on energy giants’ ‘excess profits’ to support families and businesses in the face of soaring prices.
Eni recorded ‘excellent financial results’ and contributed ‘to the stability of the energy supply of Italy and Europe’ by diversifying suppliers, commented the CEO of Eni, Claudio Descalzi, quoted in the press release.
Eni’s turnover jumped 73% to 132.2 billion euros in 2022, a result well above analysts’ expectations, which had forecast 117.7 billion euros.
Eni’s results come in the midst of a debate on the record profits of the oil majors, released in the midst of the climate emergency and the crisis in household purchasing power.
The only downside, Eni’s hydrocarbon production fell by 4% to 1.61 million barrels per day (mbd) in 2022, when it was expected at 1.63 mbd.
The price of a barrel of Brent from the North Sea averaged $101.19 in 2022, up 43%, the group said.
/ATS
