Eni (ENI) Q4 2023 earnings summary

Executive summary

• FY23 production reached 1.66m boe/d, the upper end of guidance; discovered resources were ~900m boe, above the 700m boe target.

• Adjusted EBIT was €13.8bn and adjusted net profit attributable to shareholders was €8.3bn, both lower YoY amid weaker commodity prices and downstream conditions.

Financial highlights

• FY adjusted EBIT was €13.8bn, pro forma EBIT €17.8bn and adjusted net profit €8.3bn; sales from operations were €93.7bn, down 29% YoY.

• Q4 adjusted EBIT was €2.77bn, down 23% YoY; adjusted net profit attributable to shareholders was €1.64bn, down 34%.

• FY reported net profit attributable to shareholders was €4.75bn; Q4 reported net profit was €149m.

• Adjusted CFFO was €16.5bn, organic capex €9.2bn and leverage 20% before IFRS 16 lease liabilities; organic free cash flow before working capital was €7.3bn.

• Q4 adjusted pre-tax earnings were €3.2bn versus €3.3bn in Q3 and €4.4bn in Q4 2022; associates contributed materially to Q4 results.

Outlook and guidance

• FY production of 1.66m boe/d was at the upper end of the 1.63–1.67m boe/d guidance range; discovered resources were ~900m boe versus a 700m boe target.

• GGP adjusted EBIT reached €3.25bn, above the €1.7–2.2bn guidance range; Plenitude EBITDA was €0.9bn versus guidance of >€0.7bn.

• Adjusted EBIT of €13.8bn exceeded the €13bn target; adjusted CFFO of €16.5bn was below the >€17bn target, while leverage was 20% versus 10–20% guidance.

• 2024 operating and financial targets and strategic plans were scheduled for release at a Capital Markets Day on March 14, 2024; Neptune was expected to contribute to 2024 results.