BAKU, Azerbaijan, May 2. Eni’s adjusted operating profit was down by 11 percent in the first three months of 2023, as compared to the same period in 2022, Trend reports with reference to the company.
The company’s adjusted operating profit stood at €4,641 mln in the reporting period. The decrease was primarily due to poor performance in the exploration and production segment with a 36 percent decrease (€2,789 mln).
The E&P sphere was negatively impacted by the reclassification of Angolan subsidiaries to equity accounted entities as the Azule joint-venture became operational in Q3 ‘22, and lower realized prices of equity production due to declining benchmark crude oil and natural gas prices.
“Results were supported by a strong GGP performance with €1,372 mln of adjusted operating profit (up 47%) driven by optimization and trading activities, and by the trend in the results of the Sustainable Mobility and Refining businesses (up by €239 mln). In Q1 ’23 adjusted net profit attributable to Eni shareholders was €2,907 mln, €363 mln lower than the Q1 ’22, or 11 percent, due to a decline in the energy scenario partly offset by a better underlying performance,” reads the latest report released by Eni.
Net cash provided by operating activities in Q1 ’23 reached €2,982 mln and included €560 mln of dividends distributed from investments, mainly Azule Energy and Vår Energi. Cash flow from operating activities before changes in working capital at replacement cost was €5,291 mln in Q1 ’23 and was net of the following items: inventory holding gains or losses relating to oil and products, the reversing timing difference between gas inventories accounted at weighted average cost and management’s own measure of performance leveraging inventories to optimize margin, and the fair value of commodity derivatives lacking the formal criteria to be designated as hedges or prorated on an accrual basis.
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