Eni has released its second quarter (Q2) of 2024 results , reporting a 66 % increase in profit driven by higher oil prices and production.
Between April and June adjusted net profit came in at £1.52 billion euros ($1.65 billion), down 21% from a year ago, but above an analyst consensus of £1.42 billion.
Moreover, cash flow from operations rose 12% to £3 billion.
“In the second quarter 2024, we have delivered results ahead of expectations, demonstrating the significant progress Eni has made in multiple areas of our strategy and against the Plan set out to investors in March,” said Eni’s CEO Claudio Descalzi.
Eni’s oil and gas production increased by 6% year-on-year, driven by growth in Cote d’Ivoire, Congo Floating LNG, Libya, and the integration of Neptune.
The company also made a new discovery in the Sureste Basin offshore Mexico, adding close to 1 billion barrels of oil equivalent (Boe) of new resources in the first half of the year.
During 2023 and the first quarter of 2024, Eni made notable progress in its portfolio activities, including the divestment of non-core assets.
“We are upgrading our Upstream portfolio, having recently announced the divestment of our non-core assets in Alaska, the ongoing completion of the sale of onshore Nigeria, and agreed a combination with Ithaca Energy for our UK assets. Notably, Enilive announced an exclusivity agreement with KKR for an investment similar to the transaction concluded earlier in the year at Plenitude,” said Descalzi.
“These actions serve to both help fund growth and confirm the value we are creating in our transition businesses. Even in the absence of significant portfolio, activity net debt reduced over the quarter. With the progress now being made on divestments, we expect leverage to be significantly below 0.2 by year end, better than our original expectation. This will enable us to speed up the execution of our €1.6 bln,” Descalzi continued.
Notably, the company has accelerated its share buyback program, purchasing €300 million worth of shares as on July 19, 2024. Eni has also raised its interim dividend by 6%, with the next quarterly instalment due on September 25, 2024.
