Eni Versalis Q1 Report 2024
Eni CEO Claudio Descalzi said:
“In the first quarter 2024, we have accelerated in executing the transformation of our portfolio through different high value platforms of growth in both the legacy and transition businesses. With the closing of the acquisition of Neptune Energy and the announced UK focused combination with Ithaca Energy in the Upstream, we will reinforce our exposure to gas and to OECD countries, while the EIP investment into Plenitude at an enterprise value in excess of €10 bln confirms the material potential of our renewable and retail segment. Operationally, we continue to leverage our exploration and development skills: a new giant discovery in Côte d’Ivoire will expand our optionality in the long term both in term of resources and potential dilution; fast tracking development has ensured the start-up of the first LNG in Congo, just one year after the Final Investment Decision. The quarterly performance was excellent, with a strong result from E&P, supported by production up 5% versus last year, and continuing growth at Plenitude and Enilive.
Highlights
- The trading environment of Q1 ’24 featured a decline in natural gas prices (down almost 50% y-o-y at the main European hubs), affecting the results of our gas value chain, while crude oil prices were almost flat with the Brent benchmark averaging 83 $/bbl. Refining margins recovered from Q4 ’23 but were still down y-o-y. Against this scenario, the Group reported excellent results with proforma adjusted EBIT of €4.12 bln, net profit of €1.58 bln and adjusted cash flow before working capital changes of €3.9 bln, signalling the strong underlying performance supported by our operational execution, growth, valuable assets and financial discipline.
- In Q1 ’24 E&P delivered €3.32 bln of proforma adjusted EBIT fueled by production growth of 5% y-o-y to 1.74 mln boe/d thanks to continuing project ramp-ups and the Neptune Energy business acquisition. This growth added to the focus on efficiency yielded resilient outcome (down just by 13% versus last year), despite the impact of lower natural gas prices realizations.
- Q1 ’24 GGP proforma adjusted EBIT was €0.33 bln in line with management’s expectations anticipating lower trading opportunities due to both reduced prices and volatility versus last year.
- In Q1 ’24, the new reporting segment Enilive and Plenitude contributed strongly to Group results with €0.42 bln of proforma adjusted EBIT, up by almost 60% from the Q1 ’23. Enilive earned €0.18 bln, up by 30%, driven by higher biorefinery throughputs and positive marketing performance. Plenitude earned €0.24 bln, 80% above last year, driven by higher retail commodity margins, supported by lower scenario volatility and the improved performance in international retail markets, as well as the ramp-up in renewable installed capacity and related production volumes.
- Enilive proforma adjusted EBITDA in the Q1 ’24 at €0.25 bln, up by 27% and Plenitude proforma adjusted EBITDA at €0.35 bln, up by approximately 50% were both in line with the Company’s guidance.
- In Q1 ’24, the Refining business performance was robust with €0.2 bln of proforma adjusted EBIT thanks to good refining margins and European plant reliability. The Chemical business managed by Versalis reported a loss of €0.17 bln in Q1 ’24 driven by continuing macro headwinds and energy cost disadvantages of European plants vs. other areas. However, a continuous focus on cost optimization ensured an improvement of around €70 mln vs. Q4 ’23.
- Q1 ’24 adjusted net profit attributable to Eni shareholders was €1.58 bln, with a Group tax rate of about 49%.
