BAKU, Azerbaijan, October 31. Eni Group has revised its adjusted Earnings Before Interest and Taxes (EBIT) guidance upwards, now targeting approximately 14 billion euros, Trend reports.
This adjustment surpasses the mid-year guidance of 12 billion euros, showcasing the Group's adaptability to improved market conditions.
An underlying performance of about 2.6 billion euros, which is 0.6 billion euros higher than the mid-year estimate, plays a pivotal role in this upward revision.
Alongside the boost in adjusted EBIT guidance, projections for cash flow from operations before working capital are being revised upwards. Eni Group is now aiming to reach around 16.5 billion euros, compared to the previous range of 15.5-16 billion euros.
Meanwhile, as of September 30, 2023, the Group has already achieved approximately 80 percent of its revised yearly guidance for adjusted EBIT and cash flow.
The projections, though promising, are not immune to the inherent volatility of hydrocarbon prices. Management has assessed the potential impact, estimating approximately 130 million euros on cash flow for each one-dollar change in Brent crude oil prices on a yearly basis.
In another commendable feat, the Group's estimated capital expenditure (Capex) for the fiscal year is approximately 9 billion euros. This figure represents a 6-percent reduction from the original plans, thanks to ongoing optimization and efficiency measures.
Moreover, Eni has also revised up its forecast for exploration and production (E&P) for 2023. As such, initial E&P estimates had ranged between 1.63 to 1.67 million barrels of oil equivalent per day (boe/d). However, the most recent update narrows this range to 1.64 to 1.66 million boe/d.