The following is a summary of the Eni S.p.A. (E) Q1 2024 Earnings Call Transcript:
Financial Performance:
Eni reported Q1 2024 pro forma EBIT of €4.1 billion and cash flow from operations of €3.9 billion.
Upstream segment production grew by 5%.
Despite significant investments such as the Neptune acquisition and the 2023 share buyback program, balanced gearing remains within company targets.
Eni raised its 2024 buyback by 45% to €1.6 billion, showing a commitment to share its financial success with investors.
The tax rate for the group for 2024 is expected to be a bit below 50%.
Eni reported a step-up in buybacks due to better-than-expected cashflow, mainly from strong oil prices and resilient gas performance.
An asset disposal plan worth €8 billion over four years is in place, highlighting Eni's financial capabilities.
In Q1 2024, Eni reported strong performance due to contributions from its wholesale business and improved results from non-oil activities.
Business Progress:
Eni completed the purchase of Neptune in January 2024, reporting significant value addition with promising upside in Indonesia and UK optionality.
A €600 million equity investment by Energy Infrastructure Partners into Plenitude strengthens Eni's focus on sustainable energy.
Eni highlighted the Calao discovery off the Ivory Coast, with potential resources between 1 billion to 1.5 billion oil equivalents.
Eni began constructing its HPC6 supercomputer to enhance technical capabilities.
An agreement to combine UK E&P activities with Ithaca Energy takes another significant step in positioning Eni within the UK energy industry.
Eni continues to implement its 'satellite' strategy, aiming to grow and diversify its portfolio.
A 17% increase in LNG growth was seen in China, and robust industrial demand recovery was reported.
Eni plans to continue operations in Egypt, albeit at a slower pace, and intends to launch a supercomputer to enhance geological and reservoir modeling capabilities.
Strong growth was reported in the Plenitude division in Q1 2024, expected to reach an EBITDA of €1 billion by the end of FY 2024.
Versalis is undergoing a transformation process to increase efficiency and reduce costs, and Eni's CCS strategy includes projects in Italy and the UK with an expected FID in 2025.
New oil field discoveries have been made in Ivory Coast, with further appraisal activity required and Phase 2 of the Baleine project expected to come online by the end of 2024.
More details: Eni SpA IR
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