In a recent earnings call, Eni's Chief Financial Officer, Francesco Gattei, discussed the company's robust third-quarter and nine-month results for 2023. Despite challenging conditions, the company reported higher-than-expected earnings and is on track to deliver its original targets. Gattei underscored Eni's strategic accomplishments, including exceeding its full-year target of 700 million BOE of discovered resources, and solidifying its core businesses while building new relevant ones.
Key takeaways from the call include:
- Eni's group EBIT for Q3 stood at EUR3 billion, with a net income of EUR1.8 billion.
- The company repurchased over 2% of its shares year-to-date in September.
- Eni has revised its full-year guidance for oil and gas production and raised its downstream EBIT and EBITDA guidance.
- The dividend for 2023 is set at EUR0.94 per share, equivalent to 33% of expected cash flow.
- The company expects CapEx to be around 9 billion, 5% lower than initial plans.
- Eni's recent discovery in Indonesia has significant exploration upside, and the company plans to utilize the capacity of the Bontang LNG plant.
Eni (NYSE: ENI (BIT:ENI)) has made significant strides in both the upstream and downstream sectors, through important acquisitions and agreements. The company's focus on delivering strong financial results, reinvesting in the business, and developing new lines of business was evident throughout the call.
In terms of exploration, Eni plans to focus on further drilling in the Kutei Basin area and has acquired acreage in the Peri Mahakam block. The company expressed confidence in achieving its production growth target of 3% to 4%.
Eni also addressed the performance of its various business segments. Despite a decline in the marketing business due to competitive pressure and rising oil prices, there was an increase in the wholesale business and a strong performance in the bio business.
The company also discussed its performance in Egypt and Venezuela, mentioning the flexibility in its CapEx plan and its ongoing evaluation of options in Venezuela. Eni addressed the performance of Enilive, noting a decline in the marketing business due to competitive pressures, but also highlighting positive results in wholesale activities and the bio business.
Eni's CFO also highlighted the company's favorable debt structure and the benefit of higher interest rates on its balance sheet. The company expects to complete its Final Investment Decision (FID) for the North Geng project next year.
The company's share buyback program will be accelerated, and it expects to maintain a resilient financial position. The company also mentioned an arbitration related to GGP, which is expected to be within the range of guidance.
In terms of Versalis and the Novamont acquisition, Eni aims to improve profitability but provides no specific details on future margins or plans. The company also discussed its plans for acquiring new clients and its strategy for LNG, stating that they have a strategy of allocating its LNG supply portfolio to different lines of business, with a focus on the spot market and securing an outlet for the long-term, particularly in the east part of the world.
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