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Eni's (E) Q3 Earnings Miss Estimates, Revenues Rise Y/Y
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Eni SpA (E - Free Report) reported third-quarter 2018 adjusted earnings from continuing operations of 45 cents per American Depositary Receipt/ADR, which missed the Zacks Consensus Estimate of 68 cents. Nevertheless, the figure improved from adjusted earnings of 15 cents in the prior-year quarter.
Total revenues in the quarter rose 16% to €19,695 million ($22.9 billion) from €15,684 million in the year-ago quarter.
Higher expenses along with mature field declines affected results in the third quarter of 2018, partially offset by increased oil and gas prices realizations.
Operational Performance
Total liquids and gas production in the third quarter was 1,803 thousand barrels of oil equivalent per day (MBoe/d), unchanged year over year.
Liquids production was 886 thousand barrels per day (MBbl/d), up from the year-ago quarter’s level of 885 MBbl/d. However, natural gas production was 5,008 million cubic feet per day (MMcf/d) compared with 5,012MMcf/d in the prior-year quarter.
Realized price of oil was $69.99 per barrel, up 45.7% from the year-ago quarter’s realized price of $48.03 per barrel. Realized natural gas price was $5.73 per thousand cubic feet (kcf), up 50.8% from $3.80 in the year-ago quarter.
Gas sales were 17.47 billion cubic meters (Bcm), up 0.2% from 17.44 Bcm in the year-ago quarter.
Financials
As of Sep 30, 2018, the company had long-term debt of €19.9 billion. The debt-to-capitalization ratio was 28.1%.
In the reported quarter, net cash generated by operating activities from continuing operations amounted to €4.1 billion. Capital expenditures totaled €5.5 billion for the nine months ended Sep 30, 2018.
Outlook
Eni expects oil and natural gas production for 2018 to grow 3% year over year. The growth is expected from ramp-up of fields in 2017, especially in Egypt, Kashagan field and Indonesia along with commissioning of new fields in Ghana and Angola. The new project in UAE will boost growth.
Gas sales are anticipated to decline due to fall in long-term contractual commitments. The company projects refining break-even margin at about $3 per barrel by the end of 2018.
The company expects 2018 capital spending at €7.7 billion.
Zacks Rank & Other Key Picks
Eni currently sports a Zacks Rank #1 (Strong Buy).
El Dorado, AR-based Murphy Oil C is a global oil and gas exploration as well as production company. It pulled off an average positive earnings surprise of 96.5% in the last four quarters.
Headquartered in Calgary, Alberta, Enbridge is a leading energy infrastructure company. The company delivered an average positive earnings surprise of 35.3% in the trailing four quarters.
Range Resources is an independent oil and gas company, engaged in the exploration, development and acquisition of oil and gas properties. The company delivered a positive earnings surprise of 74.2% in the last four quarters.
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The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
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Eni's (E) Q3 Earnings Miss Estimates, Revenues Rise Y/Y
Eni SpA (E - Free Report) reported third-quarter 2018 adjusted earnings from continuing operations of 45 cents per American Depositary Receipt/ADR, which missed the Zacks Consensus Estimate of 68 cents. Nevertheless, the figure improved from adjusted earnings of 15 cents in the prior-year quarter.
Total revenues in the quarter rose 16% to €19,695 million ($22.9 billion) from €15,684 million in the year-ago quarter.
Eni SpA Price, Consensus and EPS Surprise
Eni SpA Price, Consensus and EPS Surprise | Eni SpA Quote
Higher expenses along with mature field declines affected results in the third quarter of 2018, partially offset by increased oil and gas prices realizations.
Operational Performance
Total liquids and gas production in the third quarter was 1,803 thousand barrels of oil equivalent per day (MBoe/d), unchanged year over year.
Liquids production was 886 thousand barrels per day (MBbl/d), up from the year-ago quarter’s level of 885 MBbl/d. However, natural gas production was 5,008 million cubic feet per day (MMcf/d) compared with 5,012MMcf/d in the prior-year quarter.
Realized price of oil was $69.99 per barrel, up 45.7% from the year-ago quarter’s realized price of $48.03 per barrel. Realized natural gas price was $5.73 per thousand cubic feet (kcf), up 50.8% from $3.80 in the year-ago quarter.
Gas sales were 17.47 billion cubic meters (Bcm), up 0.2% from 17.44 Bcm in the year-ago quarter.
Financials
As of Sep 30, 2018, the company had long-term debt of €19.9 billion. The debt-to-capitalization ratio was 28.1%.
In the reported quarter, net cash generated by operating activities from continuing operations amounted to €4.1 billion. Capital expenditures totaled €5.5 billion for the nine months ended Sep 30, 2018.
Outlook
Eni expects oil and natural gas production for 2018 to grow 3% year over year. The growth is expected from ramp-up of fields in 2017, especially in Egypt, Kashagan field and Indonesia along with commissioning of new fields in Ghana and Angola. The new project in UAE will boost growth.
Gas sales are anticipated to decline due to fall in long-term contractual commitments. The company projects refining break-even margin at about $3 per barrel by the end of 2018.
The company expects 2018 capital spending at €7.7 billion.
Zacks Rank & Other Key Picks
Eni currently sports a Zacks Rank #1 (Strong Buy).
A few other top-ranked players in the same sector are Murphy Oil Corporation (MUR - Free Report) , Enbridge Inc (ENB - Free Report) and Range Resources Corporation (RRC - Free Report) . All these stocks flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
El Dorado, AR-based Murphy Oil C is a global oil and gas exploration as well as production company. It pulled off an average positive earnings surprise of 96.5% in the last four quarters.
Headquartered in Calgary, Alberta, Enbridge is a leading energy infrastructure company. The company delivered an average positive earnings surprise of 35.3% in the trailing four quarters.
Range Resources is an independent oil and gas company, engaged in the exploration, development and acquisition of oil and gas properties. The company delivered a positive earnings surprise of 74.2% in the last four quarters.
3 Medical Stocks to Buy Now
The greatest discovery in this century of biology is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating revenue, and cures for a variety of deadly diseases are in the pipeline.
So are big potential profits for early investors. Zacks has released an updated Special Report that explains this breakthrough and names the best 3 stocks to ride it.
See them today for free >>