Italian oil company Eni recorded a significant increase in its quarterly profit owing to higher oil prices and record production levels.
The Italian company on Friday posted a net profit of €2.1 billion ($2.6B) for the fourth quarter 2017, an increase from a profit of €340 million ($426.1m) in the corresponding period of 2016.
The company’s full year 2017 profit totaled €3.43 billion compared to a loss of €1.5 billion in 2016.
E&P adjusted operating profit in the fourth quarter of 2017 was €1.86 billion, an increase of 33% from the fourth quarter of 2016.
According to Eni, the improvement was driven by an excellent performance of the E&P segment due to an ongoing recovery in crude oil prices and production growth.
Eni’s total revenues for the fourth quarter 2017 were €20.9 billion, an increase compared to revenues of €16.2 billion in the prior-year quarter.
Commenting on the results, Eni CEO Claudio Descalzi, said: “In Upstream we beat our historical record of production having even reduced our development capex by 40% vs. the 2014 baseline, continued to record outstanding results from our exploration program and started our most significant projects in record time, in particular the jewel in our crown, Zohr.”
Descalzi also said: “Looking to the future, we see excellent growth prospects for all of our businesses. However, growth must be sustainable and we will pursue it in a disciplined way with great respect for the possibility of the most difficult operating conditions.”
In the fourth quarter of 2017, Eni’s oil and natural gas production averaged 1,892 kboe/d, up by 1.9% from the same period a year ago, the highest level achieved in the last seven years.
Eni said it expects a 3% growth rate in 2018 FY production. This will be driven by ramp-ups of fields entered into operation in 2017, mainly in Egypt, Angola and Indonesia and start-up of a number of satellites phases at giant producing fields (Libya, Angola and Ghana).
Eni’s 2018 FY capex is projected at approximately €8 billion.
Offshore Energy Today Staff