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Eni (E) Q3 Earnings Miss Estimates, Production Improves

Eni SpA E reported third-quarter 2017 adjusted earnings from continuing operations of 15 cents per American Depository Receipt/ADR, lagging the Zacks Consensus Estimate of 22 cents. The company reported a loss of 31 cents in the year-earlier quarter. The improvement mainly stemmed from higher production and realized prices.

ENI S.p.A. Price, Consensus and EPS Surprise


ENI S.p.A. Price, Consensus and EPS Surprise | ENI S.p.A. Quote

Operational Performance

Total liquids and gas production in the third quarter was 1,803 thousand barrels of oil equivalent per day (MBoe/d), up 5.4% year over year.

Liquids production was 885 thousand barrels per day (MBbl/d), up 2.4% from the year-ago level of 864 MBbl/d. Natural gas production increased 8.6% year over year to 5,012 million cubic feet per day (MMcf/d).  

Realized price of oil was $48.03 per barrel, up 17.7% from the year-ago realized price of $40.82 per barrel. Realized natural gas price was $3.80 per thousand cubic feet (kcf), up 21% from $3.14 in the year-ago quarter.

Gas sales were 17.44 billion cubic meters (Bcm), down 9.5% from the year-ago quarter. Divestment of retail activities in Belgium and Hungary led to the decline.  


As of Sep 30, 2017, the company had long-term debt (including current portions) of €20.4 billion. The debt-to-capitalization ratio was 30.4%.   

In the reported quarter, net cash generated by operating activities from continuing operations amounted €2.2 billion. Capital expenditure totaled €1.6 billion.


Eni expects oil and natural gas production in 2017 to be 1.815 million (BOE/D), higher by 5% year over year. The company also projects discovery of 0.8 billion BOE of new resources in 2017.

The company expects full-year capital spending to decline 18% from the year-ago comparable quarter. Eni estimates 2017 capital spending at €7.5 billion. Also, total debt level for 2017 is anticipated to decline from the previous year.

Q3 Price Performance

The pricing chart reveals that the company’s shares have outperformed the industry in the last three months. During this period, the company’s shares have returned 10% compared with the industry’s rally of 9.6%.

Zacks Rank

Currently, Dril-Quip carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector include Northern Oil and Gas Inc NOG, Braskem SA BAK and Noble Midstream Partners LP NBLX. All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Northern Oil and Gas, based in Minnetonka, is an independent energy company. The company delivered earnings surprise of 100.00% in the preceding quarter.

The largest petrochemical operator in Latin America, Braskem, delivered an average positive earnings surprise of 88.17% in the last four quarters.

Noble Midstream Partners, headquartered in Houston, TX, has diversified energy infrastructure properties. The company delivered positive earnings surprise of 30.67% in the preceding quarter.

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ENI S.p.A. (E): Free Stock Analysis Report
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