Eni, net profit at 1.3 billion in Q3. Descalzi: 'Sound business model'

Enilive achieved pro forma adjusted operating profit of 180 million supported by marketing performance, partially offset by lower biofuel margins. In the third quarter, Plenitude achieved pro forma adjusted operating profit of 130 million, down slightly from the 2023 quarter, due to the more pronounced seasonality of the business and lower gas sales reflecting the demand trend.

Refining's adjusted pro forma operating profit amounted to EUR 30m, down both in comparison with the previous quarter and on a sequential basis, due to the significant deterioration in the scenario (SERM margin down by more than 80% in the quarter). Chemicals posted further losses (EUR 0.2bn) as a result of the industry's ongoing contraction due to weak demand, competitive pressure and higher energy costs in Europe compared to other geographies. But the group is counting on relaunching Versalis thanks to the transformation plan with investments of €2 billion announced on Thursday.

For the nine months 2024, adjusted operating cash flow before working capital was EUR 10.7bn, well above the organic capital expenditure requirement of EUR 6.1bn Organic free cash flow of EUR 4.6bn financed shareholder remuneration of EUR 3.4bn and together with proceeds from divestments of EUR 1.7bn helped contain net debt to EUR 12bn considering the Neptune acquisition. The leverage ratio of 0.22 was in line with the second quarter, placing it in the target range of 0.15-0.25 in the 2024-27 plan.

In light of the results, Eni confirms the production target and revises upwards the result of the GGP division. Moreover, as Descalzi also points out, the group is aiming to accelerate the buyback plan (share buyback) and divestments, which are proceeding at a steady pace. "In addition to financial and project targets, we are focused on improving the quality of our portfolio, unlocking the unexpressed value of the businesses, and maintaining a strong financial position. In the upstream, we continue our divestment programme and are in the final stages of evaluating various monetisation options for our recent exploration successes in application of our 'dual exploration model'. We are committed to offering competitive remuneration to our shareholders and, based on our achievements, the strategic progress we have made, and considering the forecast of a significant reduction in our leverage ratio, we are announcing a further increase in the 2024 buyback plan to EUR 2bn (up 25% from the previous guidance of EUR 1.6bn, ed.).

Shortly before the release of the accounts, the group then announced an agreement with Seri Industrial, a company active in the energy storage sector, for the potential development of the industrial chain of lithium-iron-phosphate electrochemical batteries for storage applications (ESS) and for industrial and commercial electric mobility. The agreement explores the possibility of setting up a joint venture to build a stationary energy storage production plant at the Eni site in Brindisi, a line for the production of active material, input to the production process, and for the recycling of batteries, which will flank a similar plant being built by FIB, a subsidiary of SERI Industrial, in the province of Caserta.