Eni Swings to 1Q Profit

By Giulia Petroni

Eni SpA said Friday that it swung to a profit in the first quarter with improving results driven by exploration and production as well as chemicals.

The Italian oil-and-gas major said it registered a net profit of 856 million euros ($1.04 billion) from a loss of EUR2.93 billion in the year-earlier period. On an adjusted basis, profit was EUR270 million.

Sales rose to EUR14.49 billion from EUR13.87 billion the previous year.

Eni said hydrocarbon production in the quarter ticked lower to 1.70 million barrels of oil equivalent a day compared with 1.79 million boe/d the year prior, mainly due to a slowdown in expenditures for reserves development.

The company reaffirmed its guidance for hydrocarbon production at around 1.7 million boe/d in the full year assuming OPEC cuts of around 35 kboe/d on average through the year. Free cash-flow generation is seen above EUR3 billion in 2021 under a Brent crude scenario of $60 a barrel.

The outlook for oil prices will be reassessed in July to establish a variable dividend, which will complement the floor dividend set at EUR0.36 a share, and the possible resumption of a share buyback program.

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

April 30, 2021 02:36 ET (06:36 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.