Eni 2Q23 Results | Climate Transition Analysis
We saw Eni continue to build its renewables and biorefinery capacity, despite reduced low carbon capex.
In our view, more details are needed on how the company plans to increase oil and gas production whilst reducing absolute emissions.
Key findings
Higher renewable installed capacity and volumes supported stronger performance from Plenitude and Power with 2Q23 adjusted net profit of €102m, up 7% from 2Q22.
Despite good results, capex for Plenitude & Power was €158m, down 13% from 2Q22.
As a part of Eni’s long-term guidance, it is targeting average growth in oil and gas of 3%-4% pa to FY26 and then plateauing. The $4.9bn acquisition of Neptune, a gas-oriented E&P company, is expected to contribute to a third of expected production increase between now and FY26 (ex-divestments and runoff).
Eni has reiterated FY23 oil and gas production guidance of ~1-4% for FY23, with 2Q23 increasing 2% from 2Q22.
