Italian oil and gas company, Eni, announced a decrease in net profit and operating profit for the fourth quarter of 2022, primarily caused by lower oil and natural gas prices. In comparison to the previous year, net profit dropped to €149 million ($160.5 million) from €627 million. Adjusted net profit also declined to €1.64 billion from €2.49 billion, while adjusted operating profit decreased by 23% to €2.77 billion. Adjusted operating profit before taxes amounted to €3.17 billion, marking a 27% decrease.
Eni attributed the decline in profits to the reduced prices of crude oil and natural gas, as well as a slowdown in demand within the chemicals sector. Additionally, results from joint-venture partnerships had a negative impact on the company’s financial performance.
Sales from operations during the quarter totaled €24.62 billion, reflecting a 22% decrease compared to the previous fourth quarter. Analysts had anticipated sales of €26.78 billion for the fourth quarter, according to Visible Alpha consensus.
Adjusted earnings before interest and taxes reached €3.755 billion in the quarter, a 27% reduction compared to the previous year. However, this figure surpassed the estimate of €2.68 billion from a FactSet poll of six analysts.
Eni highlighted that its performance in the exploration and production division remained steady, and it achieved a record-breaking quarter for gas-gathering. Additionally, the company’s renewable energy business, Plenitude, made a positive contribution.
Hydrocarbon production also saw an increase of 6%, reaching 1.7 million barrels of oil equivalent per day.
Eni is scheduled to release its 2024 targets on March 14.
–David Sachs