Eni closed the third quarter of the year with results “better than expected”despite a difficult context characterized by the weakening of oil prices, the strengthening of the euro and the decline in refining and chemical product margins.
“In Q3 we once again demonstrated the solidity of our business model thanks to a portfolio of businesses characterized by growing competitive advantages, the rigorous discipline adopted in costs and investments, and the continuous progress in the execution of our growth and value creation strategy, achieving better results than expected”, he commented Eni CEO Claudio Descalzi adding that “cash and profitability performance were excellent in a less favorable operating environment. The leverage ratio remained stable at 22%, while we accelerated the pace of execution of share repurchases.”
The Group has in fact the share buyback plan acceleratedthanks also to the good trend of divestments, and has the outlook for 2024 confirmed.
The quarterly accounts
In the third quarter of 2024, the hydrocarbon production increased by 2% to 1.661 million boe/d, while the installed capacity from renewable sources grew by 24% to 3.1 GW from 2.5 in the same period of 2023. The Group achieved a adjusted pro forma operating profit of 3.4 billion euroswhich compares with the 3.95 billion of the previous year, while the adjusted net profit stood at 1.3 billion euros (-30%).
The adjusted cash flow of the quarter was the result equal to 2.9 billionsupported by continuous progress in the implementation of the strategy, by the contribution of new projects, by the growth of businesses linked to the transition and by efficiency and financial discipline actions. In the nine months of 2024, adjusted operating cash flow before working capital amounted to 10.7 billion, well above the requirement for organic investments of 6.1 billion.
Organic free cash flow of 4.6 billion euros has financed the shareholder remuneration of 3.4 billion and, together with proceeds from divestment of 1.7 billion, made it possible to contain indebtedness net financial to 12 billionconsidering the acquisition of Neptune.
Results of the 9 months
In the nine months, the hydrocarbon production increased by 4% above 1.7 million boe/d. Adjusted pro forma operating profit of the 9 months stood at 11.6 billion euros, down 17%, while the net profit adjusted for the period fell to 4.3 billion euros (-34%).
The 2024 outlook confirmed
As for the forecasts for 2024, Eni confirms adjusted pro forma EBITDA of approximately 1 billion for each segmentdespite an unfavorable market. The installed renewable capacity is expected to reach 4 GW at the end of the year (+30% compared to the previous year). Expectations on the Group’s consolidated results are reconfirmed, net of scenario effects (Brent price, dollar, etc.), which include a Pro forma adjusted EBIT of Group equal to 14 billion of euros and one organic free cash flow adjusted before change in working capital a 13.5 billion.
Organic investments expected at a value less than 9 billionwhile investments net of divestments are confirmed at a value of less than 6 billion on a pro forma basis.
The divestment plan is progressing rapidly and with excellent visibility on the timing of realization of the majority of the 8 billion in net proceeds expected in the four-year plan. Considering that the divestment plan is progressing “better than initial expectations”Eni confirms the increase in the 2024 buyback planwhich is now expected to be even to 2 billion, +25% compared to the previous guidance of 1.6 billion and +80% compared to the original annual plan. This will increase the total cash return to shareholders to approximately 38% of CFFO.
The dividend
Following the approval of the latest Shareholders’ Meeting of a dividend of 1 euro per share for the 2024 financial year, which represents an increase of 6% compared to 2023, the second quarterly instalment of 2024 by 0.25 euros per share will be paid on November 20, 2024 with ex-dividend date on November 18, 2024.
