Eni has reported its unaudited results for Q2 and H1 2018.
- Significant progress has been made towards the final investment decision of the Rovuma LNG project to monetise the gas reserves of Area 4 in Mozambique. The development plan of the first phase of the project has been submitted to the Mozambique government. Under negotiation Rovuma LNG sales and purchase agreements. The final investment decision is expected in 2019.
- Robust recovery in profitability due to the restructuring of the portfolio of long-term gas contracts, a growing LNG business and optimisations in power and logistics: In Q2, adjusted operating profit of €0.11 billion, compared to a loss of €0.15 billion in Q2 2017; more than doubling at €0.43 billion in H1 2018 (€0.19 billion in H1 2017).
- LNG sales: up by 54% to 5.40 billion m3 in H1 2018, more than half sold on the Asian markets leveraging on supplies of upstream equity gas in Indonesia, as result of the improved integration across businesses.
- Gas sales expected to decline in line with an expected reduction in long-term contractual commitments both to procure and to supply gas.
- An increase in nearly 9 million tons of LNG contracted volumes is expected by the end of 2018.
Claudio Descalzi (CEO of Eni)’s comments:
"Eni recorded another period of strong profitability in [Q2]. In the context of a 38% rise in the price of Brent, Eni reported a 152% increase in operating profit, driven by the performance of the Exploration & Production business, which more than tripled its contribution. Our cash generation also grew significantly, driven by the price of Brent and increased production levels, contributing to US$20 per barrel, allowing us to confirm the lowering of our cash neutrality to US$55 per barrel for 2018. The Gas & Power segment also reported excellent results, thanks to the strong integration of the LNG business with upstream activities and the positive impact of the restructuring carried out over the last years. A deterioration in Refining and Chemicals environment – which runs counter-cyclically to the price of Brent – meant a reduction in the contribution of these businesses, albeit remaining positive thanks to recent restructuring. There was significant progress in our portfolio management this quarter with the creation of Vår Energi in Norway as well as the funds received for the sale of Eni’s 10% stake in the Zohr field to Mubadala. As a result, net debt fell below €10 billion – the lowest level in 11 years. Consequently I will propose an interim dividend of €0.42 per share at the Board meeting on 13 September.”
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/27072018/eni-q2-and-h1-results-released/
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