Eni has bucked a run of disappointing numbers from large oil and gas companies with a solid set of financial results for the second quarter, and news of yet another gas find off the coast of Mozambique.
On an adjusted basis, the industry bench mark which strips out inventory provisions, net profit rose to €3.94 billion for the first half (up 8%) and €1.46 billion for the quarter (up 2%)
Including the cost of inventory values, net profit for the three months to June 30 fell to 227 million euros ($279.2 million), 82% lower than the EUR1.25 billion earned a year earlier.
Net revenue from operations increased 25% to EUR30.06 billion over the period as oil and gas production grew by 10.6% to 1.647 mmboe/d in the second quarter (up 4.7% in the first half).
The exploration and production segment saw operating income rise 17.3% to €9.3 billion, offsetting losses in refining, marketing and chemicals.
The results saw Eni’s share price rise 0.6% in early trading in Milan to EUR 16.92.
Investors have been reassured about Eni’s longer terms exploration program by the company’s massive gas find offshore Mozambique last year. Today Eni boosted the discovery at the Mamba field, announcing a hit at the Mamba North East 2 exploration prospect which adds 10 trillion cubic feet to the potential of Area 4.
The discovery confirms at least 62 trillion cubic feet already discovered and brings the total potential Area 4 discoveries to 70 trillion cubic feet of gas, Eni said.
Eni is looking to sell a 35% stake in Italian gas grid firm Snam, a move which could cut the company’s debt pile in half.
The interim dividend rose to EUR0.54 a share from EUR0.52 previously.
“In the first half of 2012, Eni delivered excellent results with strong production growth, supported by the recovery in Libyan output,” said CEO Paolo Scaroni. “We have achieved unprecedented exploration success with major new discoveries and secured promising opportunities in high potential areas. Gas & Power and Refining & Marketing have contained the impact of widespread market weakness. Through the divestment of our stakes in Snam and Galp our balance sheet will be transformed, securing our capacity to finance robust long-term growth in any market environment. Our confidence in Eni’s outlook underpins my proposal of an interim dividend of €0.54 per share to Eni’s Board on September 20.”
