NEW YORK - Eni S.p.A. (NYSE: E) announced its first quarter earnings, revealing an adjusted earnings per share (EPS) of EUR0.48 on revenue of EUR22.94 billion.
Eni's stock saw a modest decline of 1.5% following the earnings announcement.
Looking ahead, Eni provided an optimistic outlook for 2024, maintaining its full-year hydrocarbon production guidance within the range of 1.69-1.71 million barrels of oil equivalent per day (boe/d), based on a revised Brent price of $86 per barrel.
The company confirmed a pro forma adjusted EBIT of €0.8 billion for its Gas & Power segment and projected a pro forma adjusted EBITDA of €1 billion each for its Enilive and Plenitude businesses.
Furthermore, Eni expects to achieve an installed capacity of 4 GW from renewable sources by year-end 2024, with an additional 2 GW of organic projects under construction.
Eni's group financials are set to benefit from the revised scenario, with both pro forma adjusted EBIT and cash flow from operations (CFFO) before working capital anticipated to exceed €14 billion for the full year.
Organic capital expenditures are projected to remain at about €9 billion, as initially planned. The company also confirmed its capex net of proceeds from disposal to be within the range of €7 billion to €8 billion.
In a move likely to please shareholders, Eni has increased its expected share buy-back for 2024 to €1.6 billion, a 45% rise compared to the previous guidance of €1.1 billion provided at the Capital Markets Update in March.
The company's CEO stated, "Our first quarter results have set a strong foundation for the year, and we remain committed to delivering value to our shareholders through strategic investments and increased buy-backs."
While the market's response to Eni's earnings was slightly negative, the company's financial guidance and shareholder remuneration plans suggest confidence in its operational stability and growth prospects.
InvestingPro Insights
Eni S.p.A. (NYSE: E) has recently shared its first quarter earnings, and while the immediate market reaction saw a slight dip, a deeper look into the company's financial metrics and analyst insights presents a broader picture of its performance and potential. With a market capitalization of $52.22 billion and a price-to-earnings (P/E) ratio of 9.96 based on the last twelve months as of Q4 2023, Eni stands as a significant entity in the energy sector.
An important aspect for investors is Eni's commitment to shareholder returns, as evidenced by its dividend yield of 6.08% and a history of maintaining dividend payments for 29 consecutive years. This is further reinforced by the fact that Eni has raised its dividend for three consecutive years, showcasing a stable and investor-friendly approach amidst the volatile energy market.
One of the InvestingPro Tips points out that Eni is a prominent player in the Oil, Gas & Consumable Fuels industry, which aligns with the company's optimistic outlook for 2024 and its ambitious plans for expansion in renewable energy capacity. Another tip worth noting is that Eni is trading near its 52-week high, indicating a strong market position.
For those seeking more comprehensive insights, there are additional InvestingPro Tips available, which can be accessed through the InvestingPro platform. For example, while two analysts have revised their earnings downwards for the upcoming period, it's also predicted that the company will be profitable this year, as it has been over the last twelve months. You can uncover even more in-depth analysis and tips at https://www.investing.com/pro/E, and don't forget to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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