Upstream business “carries the weight” Eni (E.US) Q2 earnings beat expectations and raises full-year guidance
Eni, the Italian energy giant, reported better-than-expected second-quarter earnings and raised its full-year outlook after a strong performance in its upstream business.
European energy companies have been buffeted by two forces: the negative impact of weak fuel demand, low gas prices and lower oil refining margins, and the positive impact of higher oil prices due to OPEC+ production cuts. For Eni, the positives outweighed the negatives.
The Italian energy giant reported adjusted net income of €1.52bn ($1.7bn), beating the average analyst estimate of €1.46bn. Adjusted EBITA rose to €3.53bn, up 26 per cent.
Eni raised its full-year adjusted EBITA target by €1bn to about €15bn.
In contrast, Total, the French energy giant, reported lower-than-expected second-quarter earnings as the impact of higher oil prices was offset by lower gas prices and weaker refining margins. The company reported adjusted net income of $4.67bn, down from $4.96bn in the second quarter of 2020 and below the market’s $4.92bn estimate.