Eni Delivers Exceptional Results

Eni delivered exceptional results in the second quarter of the year.

That’s what the company’s chief executive officer, Claudio Descalzi, said in Eni’s latest results statement, adding that the figures continue the upward trend of the last three quarters and beat market expectations across all of the company’s business segments.

“With an improved macro backdrop and energy market fundamentals, the group reported $2.3 billion (EUR 2 billion) of EBIT and $1.1 billion (EUR 0.93 billion) of net profit, a $1.9 billion (EUR 1.6 billion) increase compared to the second quarter of 2020,” Descalzi said in Eni’s 2Q and half year results, which were released Friday.

“Group results were driven by a robust performance from the E&P segment, which recorded $2.1 billion (EUR 1.84 billion) of EBIT, up by $3 billion (EUR 2.6 billion) from the same quarter last year,” he added. “The newly incorporated Eni gas e luce & Renewables division reported $83 million (EUR 70 million) of EBIT, an increase of $59 million (EUR 50 million) over the comparative period due to a growing customer base and higher revenue from value added services,” Descalzi continued.

The Eni CEO noted that strong performances across the business and a continued focus on capital discipline resulted in strong cash flow generation in the first half of 2021, with $2.1 billion (EUR 1.82 billion) of free cash flow after organic capital expenditure.

Descalzi said the results, the progress on delivering its strategy, the outlook, and a Brent reference scenario of $65 per barrel, have allowed the company to increase its dividend back to pre-Covid levels at $1.02 (EUR 0.86) per share, with 50 percent paid next September. The Eni CEO revealed that the business will also start a $475 million (EUR 400 million) share buy back program over the next six months.

On Thursday, Eni’s fellow energy major, Royal Dutch Shell Plc, revealed that it had raised its dividend by almost 40 percent and said it will buy back $2 billion of shares.

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