ENI to double LNG sales
The Italian oil and gas corporation records positive half-year results (except for refineries)
ENI half-year results recently published along with 2018 2Q report are substantially positive, while LNG performance is particularly excellent.
As reported by Eni, “LNG sales in 2018 first semester soared to 5.4 billion cubic metres (+ 54%), more than half of which were sold on the Asian market, also due to the available upstream gas production in Indonesia, ensued from the increased business merger”.
Natural gas excellent performance, along with the restructuring of the long-term order portfolio, showed an excellent recovery in the Gas & Power division (although natural gas global sales dropped), which, in Q2 2018 recorded (net of so called special items) 0.11 billion adjusted operating profit versus 0.15 billion loss recorded in 2Q 2017, while adjusted operating result for the whole semester doubled, growing from 0.19 to 0.43 billion.
Even the Exploration & Production division recorded positive figures, being supported by hydrocarbons' growth up to 1.86 million barrels of oil equivalent per day: +5.2 % in the second quarter, versus +4.6% in the first.
The increase - Eni said – ensued from the “ramp-up of the recently launched big projects like Zohr, Noroos, Jangkrik, OCTP, Ochigufu and Nenè phase 2, and from some particularly significant projects such as the Ochigufu in the offshore market in Angola and phase 2 of Bahr Essalam gas giant in Libya, just three years after Final investment decision”.
San Donato Milanese-based corporation also illustrates the “Rovuma LNG project substantial development, aimed at enhancing Area 4 gas reserves in Mozambique”.
The “Plan of Development” covering the first phase was submitted Mozambique Government, while the long term agreement to sell LNG is being negotiated.
Having recorded excellent performance in all sectors (except for the refining business which showed a drastic drop in volumes and negative results), Eni undoubtedly achieved satisfactory consolidated financial results: 2Q adjusted operating profit reached 2.56 billion Euro (+152% versus last year, while recording +73%, namely 4.94 billion, in the first semester.
Even the net adjusted profit showed positive figures, reaching 0.77 billion Euro (+66%) in the second quarter and 1.74 billion (+45%) in the semester.
Net reported profit (also encompassing special items) recorded 1.25 billion in the second quarter and 2.2 billion in 2018 half term, doubling 2017 semester (0.9 billion).
Regarding 2018 second half, Eni envisages consolidating the positive trend targeting 4% growth in hydrocarbons production versus 2017.
Furthermore, natural gas current sales trend will continue, while long-term contracts will be downsized. However in late 2018 a further increase in LNG volumes should be recorded and they should reach overall 9 million tons.