Eni Earnings Fall on Lower Energy Prices — Update

By David Sachs

Eni's net profit and operating profit fell in the fourth quarter, dragged by lower oil and natural-gas prices.

The Italian oil-and-gas company said Friday that its net profit fell to 149 million euros ($160.5 million) from EUR627 million in the fourth quarter of 2022. Adjusted net profit slumped to EUR1.64 billion from EUR2.49 billion while adjusted operating profit fell 23% to EUR2.77 billion, Eni said. Adjusted operating profit before taxes totaled EUR3.17 billion, down 27%.

A reduction in crude-oil and natural-gas prices, as well as slowing demand in the chemicals business, dragged on the results, the company said. Results from joint-venture partnerships also weighed on the bottom line, Eni said.

Sales from operations on the quarter totaled EUR24.62 billion, down 22% from the previous fourth quarter, Eni said. Analysts had forecast fourth quarter sales of EUR26.78 billion, according to Visible Alpha consensus.

Adjusted earnings before interest and taxes finished the quarter at EUR3.755 billion, down 27% on year, but above an estimate of EUR2.68 billion, taken from a FactSet poll of six analysts.

The result was driven by what the company called a steady performance in the exploration and production division, a record-breaking quarter for gas-gathering, and a positive contribution from renewable energy business Plenitude.

Hydrocarbon production rose 6% to 1.7 million of barrels of oil equivalent per day.

Eni is due to release 2024 targets on March 14.

Write to David Sachs at david.sachs@wsj.com

(END) Dow Jones Newswires

February 16, 2024 03:26 ET (08:26 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.