BAKU, Azerbaijan, May 2. In the first quarter of 2022, Eni’s capital expenditure amounted to €1,373 million (€1,139 million in the first quarter of 2021), increasing by 21 percent y-o-y, Trend reports with reference to the company.
The increase in capex is mainly related to oil and gas development activities (€870 million) mainly in Egypt, Angola, the United States, Mexico, the United Arab Emirates, Kazakhstan, Italy, and Congo; refining activity in Italy and outside Italy (€58 million) mainly relating to the activities to maintain plants’ integrity and stay-in-business, as well as HSE initiatives; marketing activity (€10 million) for regulation compliance and stay-in-business initiatives in the retail network in Italy and in the rest of Europe; Plenitude (€116 million) mainly relating marketing initiatives, acquisition of new customers and development activities in the renewable business.
Net working capital (-€14.9 billion) was substantially unchanged compared to December 31, 2021: the increased value of oil and product inventories due to the weighted-average cost method of accounting in an environment of rising prices (up by €0.9 billion) and a higher balance between trade receivables and payables (up by €2 billion, net) due to seasonal factors and the impact of higher prices were offset by the accrual of income taxes for the period of €1.4 billion (net of payments made) and by an increase in the other current assets and liabilities due to fair value changes of derivative instruments (€1.3 billion).
As of March 31, 2022, fixed assets of €77 billion increased by €2.8 billion from December 31, 2021: capital expenditures and acquisitions for the quarter and the positive impact of exchange rate differences were partly offset by DD&A (the period-end exchange rate of EUR vs. USD was 1.110, down 2 percent compared to 1.133 in December 31, 2021).
---
Follow the author on Twitter: @Lyaman_Zeyn