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E NYSE· Eni Spa
Earnings report Q1 2024

Eni's Q4 '23 Revenue Declines Across Segments, Driven by Weaker Refining and Chemicals Performance

Segments of revenue

  • Eni's Q4 '23 revenue was impacted by declines across its segments.
  • The Refining business reported an adjusted operating profit of €33 million in Q4 '23, compared to €355 million in Q4 '22.
  • The Chemicals business, managed by Versalis, reported an adjusted operating loss of €237 million in Q4 '23.

Strengths

  • Eni delivered a robust Group performance in Q4 '23, driven by strong operational execution and financial discipline.
  • Despite a volatile scenario with weaker Brent and natural gas prices, Eni's adjusted profit before tax was €3.2 billion in Q4 '23, signaling a resilient performance.
  • Proforma adjusted EBIT for Q4 '23 was €3.8 billion, driven by steady Exploration and Production (E&P) results, a record-breaking Gas, Power, and Renewables (GGP) performance, and a positive contribution from Plenitude.
  • E&P earned €2.4 billion of adjusted EBIT in Q4 '23, with a strong rebound in hydrocarbon production.
  • Enilive, the marketing segment, delivered €0.12 billion of adjusted EBIT in Q4 '23, benefiting from a resilient marketing performance.

Challenges

  • The Refining business faced challenges in Q4 '23, with narrowing differentials between heavy/sour and light/sweet crude qualities and product crack spreads, resulting in a decline in adjusted operating profit.
  • The Chemicals business reported a significant adjusted operating loss of €237 million in Q4 '23, reflecting operational challenges.

Noteworthy

  • Eni's Q4 '23 revenue decline was primarily driven by weaker performance in the Refining and Chemicals segments.
  • The company's E&P segment experienced a decline in adjusted EBIT due to weaker realized prices, partially offset by increased hydrocarbon production.
  • Plenitude & Power, the segment focusing on renewables and gas-fired plants, saw a decrease in adjusted EBIT in Q4 '23, impacted by lower marketing margins.

Summary

Eni's Q4 '23 revenue was negatively impacted by weaker performance in the Refining and Chemicals segments. However, the company demonstrated strength in its operational execution and financial discipline, leading to a robust Group performance. The Exploration and Production segment rebounded with increased hydrocarbon production, while the marketing segment, Enilive, showed resilience. Eni faces challenges in the Refining and Chemicals businesses, which contributed to the decline in revenue. Overall, Eni's performance in the latest quarter reflects a mixed outcome across its segments.

Source documents

Form 6-K  filed on Feb 21, 2024
337 pages scanned

Reference data

Company financials Q1 revenue 25.03B
Analyst estimates Q1 EPS missed by -11.40%
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