Receive our newsletter – data, insights and analysis delivered to you
  1. News
August 2, 2021

Eni swings back to profit in Q2 2021 as oil prices rebound

Eni’s adjusted net profit in the quarter was €929m driven by a robust performance of E&P business.

By Aninda Chakraborty

Italian multinational oil and gas company Eni has returned to profit in Q2 2021 due to stronger oil prices.

The company reported an adjusted net profit of €929m in the three-month period to June 2021. In the same quarter a year ago, Eni recorded an adjusted net loss of €714m.

Adjusted operating profit in the quarter was €2.05bn, compared to a loss of €434m in the previous year.

Eni’s exploration and production (E&P) business reported a robust performance with adjusted operating profit soaring to €1.84bn. Last year, the segment incurred a loss of €807m.

The massive increase was attributed to an improved pricing environment and reduced costs.

Hydrocarbon production in the quarter amounted to 1,597kboe/d, dropping from 1,729kboe/d in Q2 2020. The drop in production was due to maintenance activities.

Content from our partners
How the North of Tyne region is leveraging its legacy to define its future
Q&A with Chevron Lubricants’ Paul Sly, global industrial OEM specialist, and Nathan Knotts, global brand technical manager
The important role of antifoam agents in oil-gas separation and amine treating

The performance in the quarter, outlook and a new Brent reference scenario of $65/bbl also enabled the company to increase its dividend to pre-pandemic levels.

This will represent an annual dividend of €0.86 per share for the fiscal year 2021.

Eni CEO Claudio Descalzi said: “The strong performances across our business and a continued focus on capital discipline resulted in strong cash flow generation in the first half of 2021 with €1.82bn of free cash flow after organic capital expenditure.

“These results, the progress on delivering our strategy, the outlook, and a Brent reference scenario of $65/bbl, have allowed us to increase our dividend back to pre-Covid levels at €0.86 per share, with 50% paid next September.

“We will also start a €400m share buy-back programme over the next six months.”

Last month, Eni and its partners made an oil discovery at the Eban-1X well in Cape Three Points Block 4 (CTP-Block 4) offshore Ghana.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU