Italian oil and gas giant Eni almost quintupled its third-quarter net profit to 5.86 billion euros, driven by soaring oil and gas prices in the wake of the war in Ukraine.
This result, published on Friday, is well above the consensus of Factset analysts, who were expecting a profit of 2.15 billion euros.
Eni has already earned in nine months 13.26 billion euros in net profit, significantly more than in the whole of last year (6.12 billion euros).
Its revenues doubled to 37.3 billion euros, again well above analysts’ expectations.
The net profit was inflated by a one-time gain of 2.45 billion euros, due to the contribution of Eni’s Angolan subsidiaries in exchange for a 50% stake in a joint venture in Angola, Azule Energy, the group explained in a statement.
Adjusted net profit – an indicator closely scrutinized by the markets because it excludes exceptional items – rose by 161% to 3.73 billion euros.
Like its competitors, Eni has benefited from the surge in hydrocarbon prices, triggered by the resumption of economic activity after the lifting of restrictions linked to the coronavirus pandemic and then fuelled by Russia’s invasion of Ukraine.
The only downside is that Eni’s hydrocarbon production fell by 7% to 1.57 million barrels per day (mbd) in the third quarter.
The group has started to balance its portfolio with the increased development of renewable energy activities.
Eni has committed to reducing the net greenhouse gas emissions of its energy products by 80% by 2050.
In the wake of Russia’s invasion of Ukraine, Eni announced in early March that it would sell its 50% stake in the Blue Stream pipeline, which it controls equally with the Russian giant Gazprom, but no deal has yet been concluded.
Russia announced in early October that it would resume gas deliveries to Italy after suspending them due to a “problem” in Austria, the country through which the Russian gas passes.
Eni had previously said it was ready to pay 20 million euros in guarantees to unblock the suspension of Russian gas deliveries.
