Eni, first quarter profits down, but better forecasts for 2023. Share on the stock market in the red

The Eni Group, 30% controlled by the Ministry of Finance, closed the first three months of 2023 with a profit of 2.9 billion eurosslightly down compared to 3.2 in the same period of 2022. The operating profit (difference between income and production costs before tax compliance) was 4.6 billion euros compared to 5.1 in January-March 2022. The profit before tax explains Eni “, emphasizes Eni a marginal phenomenon Reduction compared to the first quarter of 2022 (-5%), despite the significant Decrease in the price of energy raw materials (Oil -20%; Natural Gas -42%)”. Production was essentially flat. Guidance for 2023 has been upgraded, with operating income and cash flow expected at 12 billion and over 16 billion, respectively, “an improvement on original guidance in a constant scenario,” specifies the company. After the publication of the quarterly report, Eni loses about 1.3% in the stock market. Last March, Eni paid the third installment of the dividend for 2022 0.22 per share. The fourth tranche of 0.22 per share will be paid out in May 2023. The Ministry of Economic Affairs recently confirmed the leadership of the company Claudio Descalzi who thus remains managing director.

“Eni has achieved excellent operational and financial results, despite the softening of the scenario, thanks to the solidity of the exploration and production sector, which underlines the recovery in hydrocarbon production, and the absolutely significant result of the sector gas/length”manages Descalzi, Confirmation of “the forecasts for 2023and thanks to the solid financial position and our operational flexibility” and “at the next Annual General Meeting in May, the already announced plan to increase the dividend for 2023 to EUR 0.94 per share and the introduction of the buyback of 2.2 billion”.

Yesterday, meanwhile, the Minister of Economic Affairs Giancarlo Giorgetti he is answering in Parliament a question about the development of the tax on the extra profits of energy companies. The tax provides for a 50% levy on profits if they exceed the average profit of the last 4 years by at least 10%. It is a tax designed to offset the benefits energy companies derive from extraordinary factors such as the war in Ukraine, by redistributing part of the additional revenue to the community’s producers, importers and retailers of electricity, gas and petroleum products , I remind you that the proceeds from payments from around 220 subjects in 2022 amounted to 2.7 billion euros”. However, initial estimates of revenue for a tax introduced by the Draghi government exceeded 10 billion the year.

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