Italian energy giant Eni made a massive net profit of €1.09 billion in the first quarter of 2019, up 15% with respect to the same period last year, the company announced Wednesday.
The company said its adjusted operating profit in the first quarter of 2019 was €2.35 billion, slightly down from the profit of €2.38 billion in the corresponding period of 2018.
Hydrocarbon production of the first quarter 2019 was 1.83 million barrels of oil equivalent per day (boe/d), down by 1.3% net of price and portfolio effects.
The Italian state-controlled company said the termination of the Intisar production contract in Libya from the third quarter of 2018 and the decline of mature fields affected the quarter-on-quarter output.
"These negative effects were almost completely offset by strong organic production increases due to the ramp-up of the Zohr field and of projects started in 2018," the company said.
Commenting on the results, Claudio Descalzi, CEO of Eni said, "I'm very pleased of the excellent industrial and financial performance delivered by Eni in the first quarter of 2019. Particularly, in light of a substantially unchanged market scenario, the exploration and production business has improved its operating profit by 25% compared to the first quarter of 2018, confirming our expectations of the business growing cash generation for the full year."
Eni expects a production growth rate in 2019 of 2.5% year-on-year, based on a Brent price forecast of $62 per barrel.
According to Eni, this growth will be fueled by continuing production ramp-up at fields started in 2018, increases at the Zohr and Kashagan fields, as well as the planned 2019 start-ups including the Area 1 oil project offshore Mexico, the Baltim SW in Egypt, the North Berkine in Algeria and the Trestakk project in Norway.
By Murat Temizer