(Alliance News) - Eni Spa reported Wednesday that in the first quarter of the year it posted adjusted net income of EUR1.60 billion from EUR2.92 billion in the same period a year earlier.

Adjusted pro-forma operating profit fell to EUR4.12 billion from EUR5.87 billion in the first quarter of 2023 as a result of the lower result achieved by GGP, Global Gas & LNG Portfolio, - down 77 percent to EUR325 million - due to the extraordinary market conditions in the comparative quarter, and the result of the E&P business, Exploration & Production, - down 13 percent to EUR3.32 billion - due to the decline in natural gas prices.

The results were also affected by the lower profit of the Refining, Chemicals and Power business, down EUR179 million, caused by lower refining margins internationally and the decline in petrochemicals margins.

These negative impacts, the statement says, "were partly offset by the performance of Enilive and Plenitude, up 56 percent to EUR420 million, as a result of the positive performance in the retail fuel and power markets, the coming on stream of new renewable capacity and related production volumes."

Revenues from ordinary operations amounted to EUR22.94 billion from EUR27.19 billion in Q1 2023.

Net debt ex-IFRS 16 as of March 31, 2024 is EUR12.88 billion from EUR9.56 billion as of January 1, 2024.

The increase in debt of about EUR3.3 billion, the company explains, is due to net cash flow from operating activities

adjusted of EUR3.9 billion, capital expenditures of EUR2 billion, working capital requirements of about EUR2 billion, dividend payments to Eni shareholders and the purchase of treasury shares of EUR1.2 billion, the net effect of acquisitions/disinvestments of EUR1.7 billion as well as the payment of lease instalments and hybrid bond coupons of EUR300 million.

As for the future, the group revised its annual forecasts for adjusted pro forma Ebit and adjusted cash flow before change in working capital, which are revised upward to over EUR14 billion.

Confirmed, on the other hand, annual hydrocarbon production for E&P in a range of 1.69 -1.71 million boe/d assuming a revised Brent price at USD86 per barrel and pro forma adjusted Ebit forecast at EUR800 million for GGP.

For Enilive and Plenitude, the company confirms pro forma adjusted Ebitda forecast of EUR1 billion for each business; renewable energy installed capacity expected at 4 GW at the end of 2024, plus about 2 GW of organic projects under construction.

Organic investments are expected at around EUR9 billion in line with the original forecast while in terms of shareholder remuneration, the share buyback plan is now expected to rise to EUR1.6 billion with a 45 percent increase from EUR1.1 billion disclosed in the Capital Market Update in March.

Eni's stock closed Tuesday up 1.2 percent at EUR15.52 per share.

By Chiara Bruschi, Alliance News reporter

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