By Mauro Orru

Eni posted a much lower profit for the second quarter, as the group reeled from the effects of declining benchmark crude oil and natural gas prices.

The Italian oil-and-gas major on Friday said that quarterly net profit plunged to 294 million euros ($322.8 million) from EUR3.82 billion in last year's second quarter. On an adjusted basis, net profit declined 49% to EUR1.94 billion.

Adjusted operating profit--one of Eni's most closely watched metrics by analysts and investors--fell 42% to EUR3.38 billion. Sales decreased 38% to EUR19.59 billion.

Hydrocarbon production rose 2% on year to 1.61 million barrels of oil equivalent a day. For the current quarter, the group is forecasting hydrocarbon production of about 1.63 million barrels of oil equivalent a day.

For the year, hydrocarbon production is still expected between 1.63 million and 1.67 million barrels of oil equivalent a day. However, capital expenditure should now be under EUR9 billion, below previous guidance of around EUR9.2 billion.

The group is still targeting an adjusted operating profit of EUR12 billion. Cash flow from operations before working capital should be between EUR15.5 billion and EUR16 billion. Eni had previously expected cash flow of more than EUR16 billion.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

July 28, 2023 02:26 ET (06:26 GMT)

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