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Eni (E) Q4 Earnings Better Estimates, Revenues Increase Y/Y
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Eni SpA (E - Free Report) reported fourth-quarter 2016 adjusted earnings from continuing operations of 26 cents per American Depository Receipt/ADR. The Zacks Consensus Estimate was of a loss of 12 cents per share, while the year-earlier quarter loss was 24 cents. The improvement was mainly driven by higher gas sales and oil price realization.
Total revenue in the quarter jumped 5% to €15,807 million ($17.1 billion) from €15,066 million ($16.5 billion) in the year-ago quarter.
Operational Performance
Total liquids and gas production in the fourth quarter was 1,856 thousand barrels of oil equivalent per day (MBoe/d), down 1.5% year over year.
Liquids production was 906 thousand barrels per day (MBbl/d), down 9.2% from the year-ago level of 998 MBbl/d. However, natural gas production jumped 6.5% year over year to 5,184 million cubic feet per day (MMcf/d).
Realized price of oil was $44.56 per barrel, up 15.2% from the year-ago realized price of $38.68 per barrel. Realized natural gas price was $3.50 per thousand cubic feet (kcf), down 13.8% from $4.06 in the year-ago comparable quarter.
Gas sales were 23.67 billion cubic meters (Bcm), up 5.8% from the year-ago quarter due to higher spot sales in Germany, Austria and France.
Financials
As of Dec 31, 2016, the company had long-term debt (including current portions) of €20.6 billion. The debt-to-capitalization ratio was 27.9%.
In the reported quarter, net cash generated by operating activities from continuing operations amounted to €3.2 billion. Capital expenditure totaled €2.3 billion.
Outlook
Eni expects oil and natural gas production in 2017–2020 to grow at 3% per year. This will be attained by new field start-ups and ramp-ups. Production optimization is also expected to contribute about 850 thousand barrels of oil equivalent per day (Mboe/d) in 2020.
The company expects breakeven EBIT from gas & power segment in 2017 and generate over €600 million from 2019.
Eni targets to reduce its breakeven margin to around $3 per barrel by 2018 in Refining & Marketing and Chemicals segment.
The company expects full-year capital spending of €31.6 billion, down 8% from the 2016 level.
Denbury Resources posted in-line earnings in the preceding quarter. It had an average positive earnings surprise of 212.50% in the four trailing quarters.
Sunrun posted a positive earnings surprise of 137.21% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 134.71%.
Pioneer Natural Resources posted a positive earnings surprise of 63.33% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 21.86%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>
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Eni (E) Q4 Earnings Better Estimates, Revenues Increase Y/Y
Eni SpA (E - Free Report) reported fourth-quarter 2016 adjusted earnings from continuing operations of 26 cents per American Depository Receipt/ADR. The Zacks Consensus Estimate was of a loss of 12 cents per share, while the year-earlier quarter loss was 24 cents. The improvement was mainly driven by higher gas sales and oil price realization.
Total revenue in the quarter jumped 5% to €15,807 million ($17.1 billion) from €15,066 million ($16.5 billion) in the year-ago quarter.
Operational Performance
Total liquids and gas production in the fourth quarter was 1,856 thousand barrels of oil equivalent per day (MBoe/d), down 1.5% year over year.
Liquids production was 906 thousand barrels per day (MBbl/d), down 9.2% from the year-ago level of 998 MBbl/d. However, natural gas production jumped 6.5% year over year to 5,184 million cubic feet per day (MMcf/d).
Realized price of oil was $44.56 per barrel, up 15.2% from the year-ago realized price of $38.68 per barrel. Realized natural gas price was $3.50 per thousand cubic feet (kcf), down 13.8% from $4.06 in the year-ago comparable quarter.
Gas sales were 23.67 billion cubic meters (Bcm), up 5.8% from the year-ago quarter due to higher spot sales in Germany, Austria and France.
Financials
As of Dec 31, 2016, the company had long-term debt (including current portions) of €20.6 billion. The debt-to-capitalization ratio was 27.9%.
In the reported quarter, net cash generated by operating activities from continuing operations amounted to €3.2 billion. Capital expenditure totaled €2.3 billion.
Outlook
Eni expects oil and natural gas production in 2017–2020 to grow at 3% per year. This will be attained by new field start-ups and ramp-ups. Production optimization is also expected to contribute about 850 thousand barrels of oil equivalent per day (Mboe/d) in 2020.
The company expects breakeven EBIT from gas & power segment in 2017 and generate over €600 million from 2019.
Eni targets to reduce its breakeven margin to around $3 per barrel by 2018 in Refining & Marketing and Chemicals segment.
The company expects full-year capital spending of €31.6 billion, down 8% from the 2016 level.
ENI S.p.A. Price, Consensus and EPS Surprise
ENI S.p.A. Price, Consensus and EPS Surprise | ENI S.p.A. Quote
Zacks Rank
Eni carries a Zacks Rank #3 (Hold). Some better-ranked players in the same space include Denbury Resources Inc. , Sunrun Inc. (RUN - Free Report) and Pioneer Natural Resources Company (PXD - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Denbury Resources posted in-line earnings in the preceding quarter. It had an average positive earnings surprise of 212.50% in the four trailing quarters.
Sunrun posted a positive earnings surprise of 137.21% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 134.71%.
Pioneer Natural Resources posted a positive earnings surprise of 63.33% in the preceding quarter. It beat estimates in all the four trailing quarters with an average positive earnings surprise of 21.86%.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? Last year's market-beating Top 10 portfolio produced 5 double-digit winners. For example, oil and natural gas giant Pioneer Natural Resources and First Republic Bank racked up stellar gains of +44.9% and +44.3% respectively. Now a brand-new list for 2017 has been hand-picked from 4,400 companies covered by the Zacks Rank. See the 2017 Top 10 right now>>