BAKU, Azerbaijan, February 28. Eni's adjusted operating profit from its exploration and production segment in 4Q2023 amounted to 2.431 billion euros, Trend reports.
According to the company's latest financial statement, this marked a decline of 17-percent year-on-year (2.923 billion euros in 4Q2022).
This dip was primarily due to lower crude oil prices in USD (with Brent down by 5 percent in the quarter) and reduced benchmark gas prices globally, negatively impacting realized prices for equity production, especially in Europe, the company explained.
Additionally, the EUR/USD exchange rate appreciation by 5 percent added to the challenges. However, as Eni noted, these negative factors were partially offset by positive effects from volumes and mix.
At the same time, for the fiscal year '23, the adjusted operating profit was 9.934 billion euros, marking a 40-percent decrease from FY '22 (16.469 billion euros).
The same drivers as in Q4 contributed to this decline, along with higher expensed exploration costs, the company said. Furthermore, the absence of the operating profit contribution from the former Angolan subsidiaries, which were part of the Azule joint-venture in Q3 '22, played a role, and their results are now recognized below the EBIT line.