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Eni (E) Q3 Earnings Beat Estimates on Refinery Throughputs
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Eni SpA (E - Free Report) reported third-quarter 2021 adjusted earnings from continuing operations of 93 cents per American Depository Receipt (ADR), beating the Zacks Consensus Estimate of 81 cents. The bottom line turned around from the year-ago loss of 10 cents per ADR.
Total revenues in the quarter totaled $22,702 million, up from $12,296 million a year ago.
Strong quarterly results were attributed to higher realizations of average liquids and natural gas prices. Improved refinery throughputs also backed the outperformance
The company operates through four business segments — Exploration & Production, Global Gas & LNG Portfolio, Refining & Marketing and Chemicals and EGL, Power & Renewables.
Exploration & Production
Total oil and gas production for the third quarter was 1,688 thousand barrels of oil equivalent per day, down 1% year over year.
Liquids production was 805 thousand barrels per day (MBbl/d), down 1.5% from the year-ago level of 817 MBbl/d. Natural gas production dropped marginally year over year to 4,688 million cubic feet per day.
Average realized price of liquids was $68.44 per barrel, up 73% from $39.64 reported a year ago. Realized natural gas price was $6.95 per thousand cubic feet, up 102% from $3.44 a year ago.
Higher realizations of average liquids and natural gas prices aided the company’s Exploration & Production segment. The segment reported a profit of €2,444 million, which skyrocketed from €515 million recorded in the September quarter of 2020.
Global Gas & LNG Portfolio
Eni’s worldwide sales of natural gas for the September quarter were recorded at 17.14 billion cubic meters (bcm), up 7% year over year.
The integrated energy major’s Global Gas & LNG Portfolio business segment reported adjusted operating profit of €50 million, deteriorating from the year-ago profit of €64 million. The narrowing spread between Italian spot market and Northern European hub spot prices hurt the segment.
Refining & Marketing and Chemicals
For the September quarter, total refinery throughputs were recorded at 7.30 million tonnes (mmtonnes), up 19% year over year. Petrochemical product sales declined 7% year over year to 1.03 mmtonnes for the third quarter of 2021.
For the quarter under review, the segment reported adjusted profit of €186 million, improving from a profit of €21 million in the year-ago quarter owing to higher refinery throughputs.
EGL, Power & Renewables
Retail gas sales — managed by Eni gas e luce (EGL) — decreased 6% year over year to 63 bcm. EGL is an energy retail company that is controlled entirely by Eni. Power sales in the open market improved 18% year over year.
Overall, from EGL, Power and Renewables, the company reported a profit of €64 million, reflecting a 12% year-over-year improvement.
Financials
As of Sep 30, Eni had long-term debt of €21,369 million and cash and cash equivalents of €7,364 million. Its debt to capitalization was 39.3%.
For the reported quarter, net cash generated by operating activities amounted to €2,933 million. Capital expenditure totaled €1,232 million.
Outlook
The company projects its 2021 cash flow from operations, before changes in working capital at replacement cost, to grow to approximately €12 billion. The integrated energy player reaffirmed its hydrocarbon production target for 2021 at 1.7 million BoE/D. For the December quarter, the energy giant projects hydrocarbon production at 1.76 million BoE/D. The company continues to project organic capital expenditure for this year at €6 billion.
Zacks Rank & Other Stocks to Consider
The company sports a Zacks Rank #1 (Strong Buy). Other prospective stocks from the energy space include Whiting Petroleum Corporation , Comstock Resources, Inc. (CRK - Free Report) and APA Corporation (APA - Free Report) . All the stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Comstock is expected to witness earnings growth of 378.3% in 2021.
APA Corporation has seen upward earnings estimate revisions for 2021 in the past 30 days.
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Eni (E) Q3 Earnings Beat Estimates on Refinery Throughputs
Eni SpA (E - Free Report) reported third-quarter 2021 adjusted earnings from continuing operations of 93 cents per American Depository Receipt (ADR), beating the Zacks Consensus Estimate of 81 cents. The bottom line turned around from the year-ago loss of 10 cents per ADR.
Total revenues in the quarter totaled $22,702 million, up from $12,296 million a year ago.
Strong quarterly results were attributed to higher realizations of average liquids and natural gas prices. Improved refinery throughputs also backed the outperformance
Eni SpA Price, Consensus and EPS Surprise
Eni SpA price-consensus-eps-surprise-chart | Eni SpA Quote
Operational Performance
The company operates through four business segments — Exploration & Production, Global Gas & LNG Portfolio, Refining & Marketing and Chemicals and EGL, Power & Renewables.
Exploration & Production
Total oil and gas production for the third quarter was 1,688 thousand barrels of oil equivalent per day, down 1% year over year.
Liquids production was 805 thousand barrels per day (MBbl/d), down 1.5% from the year-ago level of 817 MBbl/d. Natural gas production dropped marginally year over year to 4,688 million cubic feet per day.
Average realized price of liquids was $68.44 per barrel, up 73% from $39.64 reported a year ago. Realized natural gas price was $6.95 per thousand cubic feet, up 102% from $3.44 a year ago.
Higher realizations of average liquids and natural gas prices aided the company’s Exploration & Production segment. The segment reported a profit of €2,444 million, which skyrocketed from €515 million recorded in the September quarter of 2020.
Global Gas & LNG Portfolio
Eni’s worldwide sales of natural gas for the September quarter were recorded at 17.14 billion cubic meters (bcm), up 7% year over year.
The integrated energy major’s Global Gas & LNG Portfolio business segment reported adjusted operating profit of €50 million, deteriorating from the year-ago profit of €64 million. The narrowing spread between Italian spot market and Northern European hub spot prices hurt the segment.
Refining & Marketing and Chemicals
For the September quarter, total refinery throughputs were recorded at 7.30 million tonnes (mmtonnes), up 19% year over year. Petrochemical product sales declined 7% year over year to 1.03 mmtonnes for the third quarter of 2021.
For the quarter under review, the segment reported adjusted profit of €186 million, improving from a profit of €21 million in the year-ago quarter owing to higher refinery throughputs.
EGL, Power & Renewables
Retail gas sales — managed by Eni gas e luce (EGL) — decreased 6% year over year to 63 bcm. EGL is an energy retail company that is controlled entirely by Eni. Power sales in the open market improved 18% year over year.
Overall, from EGL, Power and Renewables, the company reported a profit of €64 million, reflecting a 12% year-over-year improvement.
Financials
As of Sep 30, Eni had long-term debt of €21,369 million and cash and cash equivalents of €7,364 million. Its debt to capitalization was 39.3%.
For the reported quarter, net cash generated by operating activities amounted to €2,933 million. Capital expenditure totaled €1,232 million.
Outlook
The company projects its 2021 cash flow from operations, before changes in working capital at replacement cost, to grow to approximately €12 billion. The integrated energy player reaffirmed its hydrocarbon production target for 2021 at 1.7 million BoE/D. For the December quarter, the energy giant projects hydrocarbon production at 1.76 million BoE/D. The company continues to project organic capital expenditure for this year at €6 billion.
Zacks Rank & Other Stocks to Consider
The company sports a Zacks Rank #1 (Strong Buy). Other prospective stocks from the energy space include Whiting Petroleum Corporation , Comstock Resources, Inc. (CRK - Free Report) and APA Corporation (APA - Free Report) . All the stocks sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.
Comstock is expected to witness earnings growth of 378.3% in 2021.
APA Corporation has seen upward earnings estimate revisions for 2021 in the past 30 days.