Italian energy giant Eni's chief executive officer Claudio Descalzi on Friday welcomed the company's third-quarter results which saw its profits soar as oil prices hit a four-year high.
"“I am very pleased with our performance in the third quarter, which allowed us to record cash flow from operations ... 35 percent higher than the previous quarter,”" Descalzi said.
Net profit at the Italian oil major was 1.53 billion euros (1.74 billion dollars) in July-September from 344 million euros in same period last year, the company said in an earnings statement.
Adjusted net profit jumped to 1.39 billion euros from 229 million in the third quarter of 2017, comfortably outstripping a company forecast of 1.02 billion euros, the statement said.
Oil and natural gas production averaged 1,803 million boe/d, unchanged from the third quarter of 2017, according to the statement.
Eni lowered its output growth target for this year to 3 percent from 4 percent previously, due to lower than expected natural gas production in certain countries.
But Descalzi said lower output would have a negligible impact on cash flow and confirmed guidance for cash neutrality, including dividend payments, at 55 dollars per barrel.
"We are reaffirming our guidance of Group cash neutrality, including the funding of the dividend, at 55 dollars per barrel, roughly 20 dollars lower than the current Brent price. This is in line with the financial discipline we aim to maintain over time,” Descalzi stated.
Production growth this year will continue to be fuelled by the ramp-up of the giant Zohr gas field off Egypt and by new fields in Indonesia, Congo and Ghana, Eni said. Higher production at the giant Kashagan project in Kazakhstan, the Goliat field in the Barents Sea, the Val d'Agri fields in southern Italy and a new UAE venture will also boost output, Eni said.
