Italian Oil-and-Gas Company’s Q2 Outcomes Awaited on Friday

  • Eni expected to report second-quarter results similar to the first quarter with higher oil and gas prices offsetting weaker refining margins
  • Total revenue forecast at EUR27.58 billion, up from EUR19.81 billion last year
  • Net profit forecast at EUR1.45 billion compared to EUR294 million in the same period last year
  • Adjusted net profit seen at EUR1.42 billion, down from EUR1.935 billion a year ago
  • Weak refining margins impacting downstream earnings across the oil-and-gas sector
  • RBC expects more information on project pipelines during Friday’s conference call
  • Eni’s balance sheet lags peers, but recent divestments and potential deals may improve sentiment
  • Stronger European gas prices and Brent crude oil support positive upstream results
  • Eni’s net debt increased 65% to EUR12.88 billion in Q1 from the same period last year
  • Investors watch for shareholder returns, dividends, and quarterly buybacks

Eni, the Italian oil and gas company, is anticipated to report second-quarter results in line with its first-quarter outcome due to higher oil and gas prices compensating for weaker refining margins. The company’s total revenue is expected to reach €27.58 billion, a significant increase from the same period last year at €19.81 billion. However, the quarterly net profit is forecasted to be €1.45 billion, down from €294 million in the previous year. Adjusted net profit is estimated at €1.42 billion, which is a decline from the €1.935 billion recorded a year ago. Weak refining margins have affected the entire oil-and-gas sector, causing a decrease of 15% in earnings compared to the first quarter, according to Jefferies. Bank of America Global Research expects downstream results to miss consensus estimates by around 10% on average across the industry. RBC Capital Markets predicts a weaker quarter for Eni’s refining, chemicals, and power business due to lower refining contribution. Despite its balance sheet lagging behind peers, recent divestments and potential future deals may shift sentiment positively towards the company. This week, Eni announced the sale of a stake in its biofuels subsidiary, Enilive, for up to €3.125 billion. In December, it sold a stake in Plenitude, its low-carbon unit, for up to €700 million. Berenberg analysts expect an interim dividend of 50 euro cents per share and maintain the €1.6 billion buybacks in Q2. Stronger European gas prices and slightly better Brent crude oil prices are expected to support positive upstream results, along with solid production figures. Eni’s net debt increased by 65% to €12.88 billion in Q1 from the same period last year.

Image Alt: Eni Logo
Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Eni’s expected second-quarter results, including revenue, net profit forecasts, and factors affecting the company’s performance such as refining margins, divestments, and debt levels. It also includes expert opinions from various analysts. The article is focused on the main topic and does not include irrelevant or sensational information.
Noise Level: 7
Noise Justification: The article provides some relevant information about Eni’s expected financial results and market trends, but it is mostly focused on forecasts and analyst opinions without offering much in-depth analysis or actionable insights for the reader.
Public Companies: Eni (ENI), Bank of America (BAC), Jefferies (JEF), RBC Capital Markets (RBC), Berenberg (not available)
Private Companies: Enilive,Plenitude
Key People:

Track all markets on TradingView

Financial Relevance: Yes
Financial Markets Impacted: Oil and gas sector
Financial Rating Justification: The article discusses Eni’s expected financial results, including revenue, net profit, and impact of weaker refining margins on the oil and gas sector. It also mentions divestment announcements and debt levels, which can affect the company’s stock performance and investor sentiment.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: The article discusses Eni’s financial performance and expectations for the second quarter, but there is no mention of an extreme event.

Reported publicly: www.marketwatch.com