Italy’s energy giant, Eni has reported what is its highest annual net profit in over a decade, joining the league of Majors who are reporting high or record earnings for 2022.
The company published yesterday that its adjusted net profit surged to $14.1 billion (13.3 billion euros) for 2022, up by $9.5 billion (9 billion euros) compared to 2021.
The excellent result, the company said, is owed to a strong operating performance and higher results of equity-accounted entities. However, the slide in prices in the fourth quarter resulted in fourth-quarter earnings slowing from the previous quarter and in line with analyst forecasts, although they were nearly 50% higher than in Q4 2021.
The slowdown in exploration and production in the fourth quarter sent Eni’s shares dipping by 3.6% in Milan mid-day and down by 4% in pre-market trade in New York.
Commenting on Eni’s gas deals last year, chief executive officer Claudio Descalzi said, “During the year, we were able to finalize agreements and activities to fully replace Russian gas by 2025, leveraging our strong relationships with producing states and fast-track development approach to ramp-up volumes from Algeria, Egypt, Mozambique, Congo and Qatar.”
Despite a weaker performance for the fourth quarter, Eni joins the other international majors in reporting bumper annual profits for 2022.
In the business year, 2022, virtually all the world’s biggest oil and gas majors reported record profits this month, doubling their combined net earnings from 2021 and booking the best-ever year for Big Oil.
Put together, the net profits of Exxon, Chevron, BP, Shell, Equinor, and TotalEnergies surged to $219 billion for 2022, up from around $100 billion booked for 2021.
Analysts attribute the huge earnings and profits to surging prices following the Russian invasion of Ukraine, whereas the majors raised oil and gas production to meet growing demand for oil and limited gas supply from Russia to Europe.
By Ken Okoye