Eni, quarterly accounts above expectations. UK government green light for Hynet project funds
CEO Descalzi flies to London to seal the financial closure of the UK agreements. Quarterly profit at EUR 1.4bn: mitigation actions of EUR 2bn prepared in response to macroeconomic risks and uncertainties over duties
6' min read
Key points
- Miliband: today we fulfil promise to launch clean energy industry
- Descalzi: strategic agreement paves the way for Ccs development on an industrial scale
- Quarterly accounts
- Quarter profit at 1.4 billion
- Descalzi: solid first-quarter results
- The E&P push
- Refining and Chemical Losses
- Debt Drop
- The mitigation plan
- Cash flow and production estimates
- Expected business development
- Dividend confirmation
6' min read
On the day of the quarterly results, closed by Eni with numbers above analysts' expectations despite the still very complex economic situation, the group led by Claudio Descalzi has achieved a fundamental milestone on one of the central planks of the business, namely the development of carbon capture and storage (CCS). In fact, the CEO flew to London to announce, during the 'Summit on the future energy security', co-organised by the British government and the Iea (the International Energy Agency), together with the Secretary of State for Energy Security and Net Zero, Ed Miliband, the financial closure of the Liverpool Bay Ccs project, through which the company operates CO2 transport and storage activities within the Hynet Industrial Consortium. Thanks to the agreement, the project now enters the executive phase of realisation and will benefit from a slice of the £21.7 billion allocated by the London government for the country's first two Ccs clusters, one of which is represented by Hynet.
Miliband: today we fulfil promise to launch clean energy industry
"Today we deliver on our promise to launch a completely new clean energy industry in our country," Miliband commented, "focused on CO2 capture and storage, with the goal of creating thousands of highly skilled jobs and revitalising our industrial communities.
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Descalzi: strategic agreement paves the way for Ccs development on an industrial scale
For Eni's CEO Claudio Descalzi, 'the strategic agreement reached with the UK government paves the way for the development of CCS on an industrial scale, a sector in which the UK confirms its leadership by promoting a regulatory environment that aims to strengthen its development and make it fully competitive in the market'.
Quarterly accounts
.The closure of the circle for Hynet came, as mentioned, immediately after the release of the quarter's results, which confirmed the group's "solidity", as stated in the press release issued after the board meeting, and which benefited from the significant performance of the E&P (exploration and production) and the growth of both the GP (global gas & amp; LNG portfolio) and the satellite model capable of enhancing the value of activities linked to the energy transition (from Plenitude to Enilive). In a context that remains, therefore, very complex, the group is showing itself to be resilient and capable of reacting to the possible implications of geopolitical risks and uncertainties arising from duties by exploiting the flexibility of its assets. It does so, as the note points out, by putting in place a series of countermeasures with compensatory actions of more than EUR 2 billion in 2025 that allow it to confirm its dividend policy for the current year.
Earnings at 1.4 billion
The quarter therefore ended with adjusted net profit (i.e. adjusted for extraordinary items) at €1.41 billion, down 11% compared to the same period in 2024, while the reported figure was €1.17 billion (-3%). Adjusted pro-forma operating profit was €3.68 billion, also down 11%, but Eni points out that, in a similar reference scenario, the bar was raised by 36% on a sequential basis. Hydrocarbon production was down 5% in the quarter to 1.64 million barrels per day.
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