SAN DONATO MILANESE (ITALPRESS) – Eni’s Board of Directors, meeting yesterday under the chairmanship of Giuseppe Zafarana, approved the consolidated results for the fourth quarter and fiscal year 2024 (unaudited). In 2024, the Group reported adjusted net income of 5,264 million euros. Pro forma adjusted operating profit was 14,322 million.In the fourth quarter of 2024, the Group achieved pro forma adjusted operating profit of 2,699 million euros, down 28 percent from 3,755 million in the comparative period due to E&P (-17 percent, corresponding to -559 million) due to lower realized prices, deterioration of margins in the Refining business (-147 million), and the circumstance that in the 2023 quarter the GGP business benefited from the favorable outcome of an arbitration proceeding. On an annual basis, the Group’s adjusted pro forma operating income of 14,322 million is down 20 percent compared to 2023, due to the GGP and Power business (-65 percent compared to 2023), which then recorded a significant result due to particularly favorable market conditions and one-time income from contract renegotiations and the favorable outcome of an arbitration proceeding, as well as the further phase of decline in the downstream businesses due to weak demand and competitive pressure in an oversupply environment.In the fourth quarter of 2024, adjusted pretax income of 1,932 million, down 1,257 million (-39%) from the comparative quarter, reflects the trend in adjusted operating income and the lower contribution from equity-accounted JVs and associates.In the fourth quarter of 2024, adjusted net income attributable to Eni shareholders of 892 million was down 46% from the fourth quarter of 2023.Compared to the smaller 39% decrease achieved at the pre-tax profit level, the trend in adjusted net income was affected by the increase in the Group’s adjusted tax rate to 52.8% (compared to 47.3% in the comparative quarter) due to the higher impact on consolidated pre-tax profit of foreign countries where upstream operates characterized by significant tax rates, while the contribution to Group pre-tax profit of other segments operating in OECD jurisdictions with lower tax rates decreased.Special items in 2024 of 2.315 million include noncash charges related to asset impairments in the E&P segment of 1.8 billion euros, net of the related tax effect, as part of a portfolio analysis with a review of spending priorities by decreasing the commitment in future phases of development of marginal assets and greater focus on “core” projects in line with the strategy, partly mitigated by the income related to an agreement to share environmental charges on an equal basis with an Italian operator, the gain related to the sale of upstream assets, and the revaluation of deferred taxes of Italian consolidated companies due to improved profitability prospects.”Assured returns to shareholders of more than €5 billion thanks to industrial results and debt repayment action,” Eni reports. The results for Q4 2024, which “confirm the soundness of Eni’s business model, based on discipline in costs and investments. The Group’s operating and financial results in 2024 exceeded initial expectations thanks to the effective execution of the strategy. KKR’s investment in Enilive and EIP’s investment in Plenitude confirm the attractiveness of Eni’s transition-focused satellites in a year of solid strategic progress. The Group’s “pro forma” debt ratio stands at 15 percent, thanks to rapid progress on portfolio maneuvering. “In 2024, growth and value creation have reached an outstanding level, supported by our financial structure and cost discipline. Our leadership position in the industry is the result of the competitiveness of the asset portfolio and the consistent management and financial design of the satellite model, which materialized more than 21 billion euros of enterprise value during the year,” comments Eni CEO Claudio Descalzi.”We continue to extract value from our resource portfolio, with E&P achieving a 3 percent increase in oil and gas production driven by organic project start-ups and the integration of Neptune,” Descalzi continues. “We increased its value through the creation of a new geographically focused satellite in combination with Ithaca Energy in the North Sea, while advancing the divestment of mature, non-strategic assets. Our exploration business continued on its path of outstanding results, with 1.2 billion boe of new resources providing the basis for future development and opening up opportunitiesfor early monetization of discoveries, in line with our dual model. The chemicals business, impacted by structural weaknesses in the European industry, has embarked on a process of restructuring and transformation that will leverage our technological expertise in building businesses characterized by competitive advantages in the energy transition and circular economy. “Plenitude and Enilive both achieved their annual EBITDA targets, despite the challenging market environment, highlighting the value of our long-term focused approach,” the CEO emphasizes. “Operating results were excellent, as evidenced by the growth in installed renewables capacity and processing. Applying our well-established satellite model, we are advancing the implementation of CCS projects in Italy and the UK, laying the groundwork for the creation of a new transition-related satellite by leveraging our distinctive competencies and asset positioning. This excellent strategic and operational progress resulted in €14.3 bn pro forma adjusted operating profit and €13.6 bn adjusted cash flow, both well above our forecasts. After financing 8.8 bn organic capital expenditures, a lower level than originally estimated, management has made available a surplus of about 5 bn euros to cover shareholder remuneration, which includes an increased dividend from 2023 and an accelerated pace in the share buyback program nearly doubled to 2 bn euros,” Descalzi concludes. In addition, our portfolio operations have enabled us to achieve an all-time low in the debt ratio, which stood at 15 percent on a pro forma basis, providing us with the financial flexibility to continue to invest in the business and remunerate our shareholders through industry cycles.”
– IPA Agency Photos –
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