Italy's Eni reports 25pct drop in second-quarter profit, cuts debt
Adjusted net profit came in at €1.13 billion (US$1.33 billion) between April and June, down from €1.52 billion in the same period last year, but above an analyst consensus of €0.93 billion compiled by the company.
Despite an adverse economic backdrop, the state-controlled group was able to cut its leverage before lease liabilities – a measure of total debt in relation to equity – to 19 per cent from 22 per cent in the same period last year.
Including the proceeds expected from recent asset sales, its pro-forma leverage dropped to a historical low of 10 per cent.
The group increased its annual cash benefit target – or cost-saving goal – to €3 billion from €2 billion previously, after putting in place mitigation measures for more than €1 billion in the months between April and June.
"We believe our strong financial position, unique and differentiated strategy and ability to be flexible and agile, mean we are well positioned to navigate the current market volatility," said Eni CEO Claudio Descalzi in a statement, adding the group will continue to reward investors.
The state-controlled group stuck to its €1.5 billion share buyback plan and dividend policy.
It raised its expectation for underlying cash flow from operations (CFFO) in the full year to around €11.5 billion from €11 billion.
It also improved its expectations for its gas and LNG division for this year and confirmed its outlook for its low-carbon units Enilive and Plenitude.
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