Italian oil company Eni saw an increase in its first quarter 2019 net profit when compared to the last year’s performance. In 2019, Eni expects its production to grow fueled by ramp-up at new fields.
Eni’s adjusted operating profit in 1Q 2019 was €2.35 billion, slightly down from the profit of €2.38 billion in the corresponding period of 2018.
Eni’s net profit for the first quarter 2019 was €1.09 billion ($1.2 billion) compared to €946 million ($1.06 billion) in the same period in 2018, up by 15%.
The company’s adjusted net profit in the first quarter 2019 grew to €992 million from €978 million in the same period last year.
Hydrocarbon production of the first quarter 2019 was 1.83 million boe/d; down by 1.3% net of price and portfolio effects.
Eni said that this quarter-on-quarter change was affected by the termination of the Intisar production contract in Libya from the third quarter of 2018 and mature fields decline. These negative effects were almost completely offset by strong organic production increases due to the ramp-up of the Zohr field and of the projects started in 2018 (overall 200 kboe/d).
Commenting on the results, Claudio Descalzi, CEO of Eni, remarked: “I am very pleased of the excellent industrial and financial performance delivered by Eni in IQ 2019. Particularly, in light of a substantially unchanged market scenario, the E&P 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.”
The oil company expects its production growth rate in 2019 to be at 2.5% y-o-y, under a Brent price forecast of 62 $/bbl.
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 Trestakk project in Norway.
A yearly contribution from start-ups and ramp-ups is expected to reach approximately 250 kboe/d. Production growth vs. 2018 will accelerate from the third quarter of 2019, after the maintenance activities concentrated in the second quarter of 2019, which includes Kashagan and Goliat fields.