Commodities News

Eni Q1 profits soar on high oil prices

MILAN (Reuters) -Italian energy group Eni said profits in the first quarter soared above expectations on the back of booming oil and gas prices stoked by Russia’s invasion of Ukraine.

Adjusted net profit came in at 3.27 billion euros ($3.4 billion) from 0.27 billion euros a year ago to beat a 2.47 billion euro consensus.

“A quarter of clear progress in executing our strategy of delivering security and sustainability of the energy system,” Chief Executive Claudio Descalzi said.

Like peers, Eni is overhauling its oil and gas businesses and shifting to renewables and low-carbon energy which in the future will form the backbone of the company.

But it is ramping up gas imports to Italy to help replace Russian flows as the conflict in Ukraine raises the risk of energy supply disruption.

Earlier this year it said it could provide more than 14 trillion cubic feet of additional gas resources in the short to medium term.

The group, which produced 1.654 million barrels of oil equivalent per day in the quarter, said it expected output for the year to be 1.7 mboed.

It raised guidance for its adjusted cash flow before working capital at replacement cost to 16 billion euros from a previous forecast of more than 15 billion euros.

($1 = 0.9492 euros)

Source : Reuters

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