Eni records €13.3bn net profit for 2022 fiscal year
Eni, the Italian multinational oil and gas company, has announced its unaudited consolidated results for the full year and fourth quarter of 2022. The company, chaired by Lucia Calvosa, reported a strong performance, with FY 2022 group adjusted EBIT reaching €20.4 billion, twice the amount of FY 2021.
The impressive growth was driven by the strong performance of Eni’s Exploration and Production (E&P), Gas, Power and Renewables (GGP) and Refining and Marketing (R&M) businesses.
Eni’s E&P business saw a remarkable increase in EBIT, earning €16.4 billion, up by over 70% YoY. This was mainly due to the company’s ability to capture the upside of a favorable commodity environment. Eni’s GGP business earned €2.1 billion of EBIT, replacing Russian flows with equity gas or supplies from countries where Eni operates.
This ensured optimization of the gas and LNG portfolio in a tight market while ensuring stable and secure supplies to its customers and managing financial risks.
Eni’s R&M business achieved its best-ever performance with €2.2 billion, compared to breakeven in 2021, due to plant availability and output optimization that allowed Eni to capture the upside of a strong refining environment. Efficiency measures were also implemented to address the rise in plant utility expenses.
However, Eni’s Versalis business was impacted by competitive pressures, weakening demand, and higher gas-indexed utility expenses, driving a loss of €0.25 billion.
Despite these challenges, Eni’s Plenitude business delivered against its operating and financial targets with EBIT of €0.34 billion and a renewable capacity of 2.2 GW, despite the challenging market scenario.
Eni’s FY 2022 adjusted net profit attributable to Eni shareholders was €13.3 billion, up by €9 billion compared to FY 2021, due to a strong operating performance and higher results of equity-accounted entities.
Meanwhile, FY 2022 net profit attributable to Eni shareholders was €13.8 billion, driven by an improved underlying performance, partly offset by lower net special gains mainly due to inventory evaluation.
In 2022, Eni incurred special charges largely related to environmental and remediation provision of €2 billion, including €0.3 billion decommissioning provision for the refinery, impairment charges of €1.1 billion for oil and gas assets and chemical plants, and windfall taxes on energy profits totaling €1.7 billion, of which €1 billion was paid in 2022.
These charges were offset by gains of €2.5 billion on the Azule transaction and of €0.4 billion on the divestment of an interest in the Vår Energi associate and by deferred taxes of €1.6 billion.
In Q4 2022, Eni’s group adjusted EBIT was €3.6 billion, down by €0.2 billion from Q4 2021 owing to the reclassification of Azule Energy (Eni E&P activities in Angola) into associates, lower hydrocarbons production, and GGP one-off gains in 2021.
However, this was partly offset by the strong performance of Eni’s R&M business. Q4 2022 adjusted net profit attributable to Eni shareholders was €2.5 billion, almost 50% higher compared to Q4 2021, up by €0.8 billion due to higher results of equity-accounted entities, partly as a result of the Azule JV, more than offsetting a lower operating profit.
