Eni Q1 net profit surges to $3.4 billion on high energy prices

Italian energy giant Eni said on Friday its adjusted net income soared to $3.4 billion (3.27 billion euros) for the first quarter of 2022, beating market expectations and driving the company’s bottomline up from 270 million euros in profit a year ago.

For the first quarter, Eni’s earnings before interest and taxes (EBIT) jumped 300 percent to 5.19 billion euros, when compared to the same period last year.

The company said the performance was driven by the robust results of the exploration and production segment that reported a 3-billion-euro increase in adjusted EBIT due to higher oil and gas prices that were up by 70 percent on average. Hydrocarbon production for the quarter was 1.65 million boe/d, Eni said in a statement.

Overall, the first quarter results were supported by improved results from its equity account entities, a lower tax rate and positive contributions from its Global Gas and LNG portfolio as well as the Refining & Marketing division.

“Our performance exhibited strength and resilience against a backdrop of high market volatility and uncertainty linked to the ongoing war and international tensions,” Eni CEO Claudio Descalzi said in a statement.

Earlier this year, Eni said it would look to ramp up gas resources and could provide more than 14 trillion cubic feet of additional gas in the medium term, against the backdrop of the Ukraine crisis. The company has already increased gas imports to Italy to help replace Russian supplies.

“This quarter has been one of major strategic developments for Eni. We rapidly reacted to the ongoing challenges of the energy market by leveraging our global upstream and partnerships with producing countries to find alternative and additional supply opportunities for Europe,” Descalzi said.

During the quarter, Eni signed several agreements in Algeria, Egypt, the Republic of Congo and Angola, promoting increased gas exports to Italy and Europe to help transition to a low carbon economy.

The company has also been increasingly focusing on renewables and low-carbon energy.

In February, it signed an agreement with Edison and Ansaldo Energia to study the production of green or blue hydrogen, with the aim to replace a portion of natural gas as fuel for the new Edison plant in Porto Marghera.

In March, Eni successfully completed the IPO of New Energy One Acquisition Corporation Plc on the London Stock Exchange, raising 175-million-euro worth of equity funds.