Eni SpA E reported fourth-quarter 2023 diluted earnings per share of 5 cents, which declined from the year-ago quarter’s 21 cents.

Total quarterly revenues of €25 billion declined from the €31.8 billion recorded a year ago.

Quarterly earnings resulted from lower average realized commodity prices.

Eni SpA Price, Consensus and EPS Surprise

 

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Operational Performance

The company operates through four business segments — Exploration & Production, Global Gas & LNG Portfolio, Enilive Refining and Chemicals, and Plenitude & Power.

Exploration & Production

The total oil and gas production in the fourth quarter was 1,708 thousand barrels of oil equivalent per day (MBoe/d), up 6% from the 1,617 recorded in the prior-year quarter.

Liquids production totaled 781 thousand barrels per day (MBbl/d), up 1% from the year-ago quarter’s 776 MBbl/d. Natural gas production increased to 4,851 million cubic feet per day from the 4,426 recorded a year ago.

The average realized price of liquids was $77.53 per barrel, marginally down from the $77.60 reported a year ago. The realized natural gas price was $7.21 per thousand cubic feet, down 17% from the $8.72 registered in the year-ago period.

Lower liquid and natural gas price realization hurt the company’s Exploration & Production segment. The segment reported a profit of €2.4 billion, down from the €2.9 billion recorded in the December-end quarter of 2022.

Global Gas & LNG Portfolio

Eni’s worldwide natural gas sales in the reported quarter totaled 13.61 billion cubic meters (bcm), down 12% year over year.

The integrated energy major’s Global Gas & LNG Portfolio business segment reported an adjusted operating profit of €677 million, marking a significant increase from the year-ago quarter’s €63 million. This increase was primarily due to a positive outcome of an arbitration procedure. The regular business performance, excluding one-time events, was largely as expected, considering the current market conditions with less fluctuation in gas prices and spreads.

Enilive, Refining and Chemicals

For the fourth quarter, total refinery throughputs were 6.92 million tons (mmtons) compared with 6.59 in the corresponding period of 2022. Petrochemical product sales declined 3% year over year to 0.80 mmtons.

For the quarter under review, the segment reported an adjusted operating loss of €87 million, turning around from a profit of €379 million reported in the year-ago quarter. This was primarily due to lower demand across all parts of the Chemicals business. This was because of a slower overall economy and higher costs for energy supplies in Europe, which made Versalis productions less competitive than companies in the United States and Asia. The market had a surplus supply, which further impacted the situation.