Oil price recovery brings Eni back to profit

Italian oil company Eni returned to profit during the first quarter of 2017, versus a loss in the year-before quarter, owing to the upward trend in crude oil prices. 

The oil company on Wednesday posted a net profit of €965 million, versus a loss of €383 million. According to Eni, this performance was driven by a recovery in crude oil prices with the Brent benchmark up by 59%, as well as an increase in production.

Commenting on the results, Claudio Descalzi, CEO of Eni, remarked: “Eni has markedly improved its financial and operational performance in the first quarter of 2017.

“The Group has delivered a 60% increase in adjusted net profit to €750 million, compared with €460 million in the fourth quarter of 2016 when oil prices had already recovered to levels close to those experienced in this quarter. The operating growth is even bigger if compared with the first quarter 2016, when oil prices were at their lowest.”

During the quarter, the oil company’s hydrocarbon production was up by 2.3% to 1,795 kboe/d, versus 1,754 kboe/d in the corresponding period of 2016. The increase was driven by new project start-ups and the ramp-up at fields started up in 2016, mainly in Egypt, Kazakhstan, Norway and Angola, for an overall contribution of 110 kboe/d, partly offset by planned and unplanned facilities downtime.

The company’s capex was €2.83 billion , in line with strategy to bring cash generative projects on stream in 2017. At the end of the quarter, Eni’s net debt totaled €14.9 billion, in line with the end of 2016.

The Italian company also confirmed the target of 18% reduction in capex year on year on a pro-forma basis, i.e. net of the capex which will be reimbursed in connection with asset disposals.

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Posted on May 10, 2017 with tags , .

Events>

<< Dec 2019 >>
MTWTFSS
25 26 27 28 29 30 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 31 1 2 3 4 5

Africa Oil Week 2020

For over 25 years Africa Oil Week has been the meeting place for Africa’s most senior E&P stakeholders.

read more >

CERAWeek 2020

 Each year, CERA clients gathered for a few days in Houston…

read more >

Offshore Technology Conference (OTC) 2020

The Offshore Technology Conference (OTC) showcases leading-edge technology for offshore drilling, exploration…

read more >

2020 EXPLORATION AND PRODUCTION STANDARDS CONFERENCE ON OILFIELD EQUIPMENT AND MATERIALS

The development of consensus standards is one of API’s oldest and most successful programs.

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply