Rising gas prices lift Eni profits back to pre-COVID levels By Reuters

© Reuters. FILE PHOTO: Eni’s brand is seen in entrance of its headquarters in San Donato Milanese, close to Milan, Italy, April 27, 2016. REUTERS/Stefano Rellandini

By Stephen Jewkes

MILAN (Reuters) -Italian vitality group Eni beat expectations with third-quarter revenue which jumped again to pre-COVID ranges, boosted by greater gasoline costs that might give an extra carry to earnings in coming months.

The group, which lifted working money steerage for the yr, stated on Friday it swung to an adjusted web revenue of 1.43 billion euros ($1.7 billion) from a 153 million euro loss a yr earlier, beating a 1.08 billion euro consensus forecast.

Fuel costs have surged in current months as tight provides met with robust demand in economies recovering from the pandemic, boosting the underside strains of many vitality corporations.

Eni stated adjusted working revenue for its World Fuel & LNG Portfolio (GGP) doubled within the third quarter from the second to 50 million euros, including it anticipated to succeed in 500 million euros for the yr.

This steerage could possibly be probably revised upward underneath sustained risky and tight market circumstances, it stated.

“We consider the higher than anticipated outcomes and improved outlook have optimistic implications for estimates and the inventory,” Milan-based dealer Equita stated.

At 1035 GMT Eni shares have been up 1.90% whereas the European oil and gasoline index was up 0.08%.

Money movement from operations, earlier than adjustments in working capital at substitute value, jumped 88% to three.3 billion euros, permitting the corporate to boost steerage to greater than 12 billion euros for the yr, from a earlier estimate of greater than 10 billion.

Money technology within the first 9 months, along with value administration, “greater than covers the general 2021 dividend and buyback,” CEO Claudio Descalzi stated.

Eni additionally painted an upbeat outlook for the upstream enterprise this yr.

Oil and gasoline manufacturing grew 6% on the second quarter to 1.688 million barrels of oil equal per day (mboe/d), with 1.76 mboe/d anticipated within the remaining three months.

Eni has launched one of many trade’s most formidable clean-up methods, pledging carbon neutrality by 2050 and shifting into clear vitality because it phases out oil manufacturing as of 2025.

It lately created a brand new division comprising renewable vitality and retail and plans to checklist a minority stake within the firm to assist fund its inexperienced drive.

On Friday it stated it anticipated to have 2 gigawatts of renewable vitality capability put in or underneath building by the tip of this yr in contrast with lower than 1 GW final yr.

The corporate is focusing on renewable capability of 15 GW in 2030.

($1 = 0.8572 euros)

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