VENTURES AFRICA – Oil and gas producer Eni reports strong results for the third quarter, attributable to an improved performance in Libya.
The Italian company on Tuesday announced that adjusted operating profits for the third quarter were up by 2.2 per cent at 4.36 billion Euros ($5.67 billion), while the figures for the first nine months of the year show a 13.9 percent rise reaching 14.80 billion euros ($ 19.25 billion).
Adjusted net profits for the quarter ended September 30th are up 3.1 percent at 1.78 billion Euros ($ 2.3 billion), taking the total adjusted net profit for the nine month period to 5.61 billion euros ($7.29 billion) – a 4.6 percent rise.
The company’s cash flow was also satisfactory, reaching 1.82 billion Euros ($ 2.36 billion) in the third quarter, totalling 10.25 billion euros ($13.3 billion) for the first nine months of the year.
The strong profit figures for the quarter and nine months to September corresponded with an increased output, the company reported production of 1.718 million barrels of oil equivalent (boe) per day in the third quarter. This represents a 16 percent rise on figures from last year.
Chief Executive Officer Paolo Scaroni was pleased with the results reported, and made particular note of the company’s growing assets in Libya, saying: “In the third quarter, Eni delivered strong results with production growth supported by the continued improvement of the Libyan output.”
Gas-related figures were also stable in the third quarter, with Eni reporting gas sales of 19.48 (bcm) for the quarter, up 8.5 percent on last year’s corresponding period despite fears of a reduction in demand. The company pointed to increased demand, in fact, in particular from European customers, although home demand in Italy was down, as were results for the nine month period.
Scaroni noted in relation to the gas results, that the company has: “contained the impact of a difficult European scenario.”
Eni confirmed the details of the sale of a 30 per cent stake in Snam on October 15th of this year, to Cassa Depositi e Prestiti SpA for a sale price of 3.517 billion euros ($4.57 billion), in a move to improve the company’s debt-to-equity ratio.
Net profits were also driven up by a 1.15 billion Euros ($1.49 billion) extraordinary gain pursuant to the sale of a 5 percent stake in Galp Energia SGPS SA.
“Eni’s financial structure has been strengthened as a result of the divestment of our stakes in Snam and Galp and this will bolster our excellent growth prospects, which will be further fuelled by our portfolio of development projects and our extraordinary success in exploration activities,” concluded Scaroni.