Eni boosts hydrocarbon production in Q3, reduces net profit

Italy's oil and gas company Eni SpA saw decrease in its net profit by 73% in the third quarter of 2024 and lowered its annual forecasts, but increased its share buyback program by 400 million euros, Report informs referring to Interfax.

In July-September, the company's net profit decreased to 522 million euros from 1.92 billion euros in the same period last year. Adjusted operating profit, one of the most important indicators, decreased by 14% to 3.4 billion euros. Adjusted net profit decreased by 30% to 1.27 billion euros.

Revenue fell to 20.66 billion euros compared to 22.32 billion euros in the third quarter of last year. Hydrocarbon production in July-September increased by 2% to 1.661 million barrels of oil equivalent per day. The average selling price of hydrocarbons meanwhile decreased by 2% to $55.95 per barrel of oil equivalent.

Eni lowered its forecast for adjusted operating profit for the current year to 14 billion euros from 15 billion euros, and free cash flow to 13.5 billion euros from more than 14 billion euros. The revision was due to a reduction in oil price forecast to $83 from $86 per barrel. The company expects production volume to be around 1.7 million boe/d in 2024.

Capital investment estimate remained at less than 9 billion euros. Eni increased annual dividends by 6% to 1 euro per share, to be paid in four tranches.

The first tranche was paid to shareholders in September, with second payments of 0.25 euros per share scheduled for November 20. The share buyback program was increased by 400 million euros to 2 billion euros.