Italian oil and gas company Eni has announced its 2018 full-year results, reporting almost doubled operating and net profits and increased levels of offshore oil production.

Eni reported an adjusted operating profit of €2.93bn in the fourth quarter (Q4) of 2018, a 49% increase from 2017. Adjusted net profit in Q4 was €1.46bn, an increase of 55% from 2017.

Eni’s full-year adjusted operating profit in Q4 2018 was €11.24bn, an increase of 94% from 2017. Adjusted net profit in the full year of 2018 was €4.59bn while net profit was €4.23bn, an increase of 25% from 2017.

Eni CEO Claudio Descalzi said: “2018 was a strong year for Eni both financially and operationally, which was characterised by a robust fourth quarter performance. We successfully optimised our portfolio and strengthened it for the future, and we doubled operating and net profit, while the price of Brent averaged 25% higher than 2017 in euro terms.

“We increased cash flow from operations by 35% allowing us, after investments, to cover our €3 billion dividend while also reducing net debt by approximately the same amount to €8.3 billion.”

Eni reported record levels of hydrocarbon production in 2018, with 1.85 million barrels of oil equivalent per day (Mboe/d) for the full year, despite a decline in gas demand.

This increase in production was fuelled by an addition of more than 300 kilo barrels of oil equivalent per day (kboe/d) from “highly-profitable giant projects” as well as increased production at the Kashagan, Goliat and Val d’Agri fields. Eni also reported an addition of 620Mboe of new resources over 2018.

Descalzi said: “In our Upstream division we achieved our highest ever level of production of 1.85 million barrels per day, with a cash flow per barrel of $22.5, achieving our 2022 target four years early. The proven reserves replacement ratio was once again higher than 100%, for a three-year average of 131%. Gas & Power achieved its highest ever operating profit since the spin-off of regulated transport and distribution activities, equal to €0.5 billion.

“With a view to the future we strengthened and geographically diversified our upstream portfolio, expanding our growth prospects with the establishment of Vår Energi in Norway and building of a significant presence in the Middle East, while keeping costs low and maintaining a high level of profitability.”