Italy’s state-controlled energy giant Eni on Friday said it swung to a net profit last year on the back of higher oil and gas prices and an increase in production.
Eni reported a net profit of 3.43 billion euros ($4.3 billion) for the full year of 2017, compared to a 1.46 billion euros loss in the year before.
On an adjusted basis net profit jumped to 2.41 billion euros in 2017 as compared to 340 million euros loss the year before.
Eni said its net profit and adjusted net profit in the last quarter of 2017 was 2.1 billion euros and 0.98 billion euros, respectfully. This compares to 340 million euros and 459 million euros in the previous year.
Eni said that hydrocarbon production reached 1.92 million boe/d in December 2017, marking an all-time high for the company.
The Italian company produced an average of 1.89 million boe/d in the fourth quarter, up by 1.9 percent, while full-year production rose 3.2 percent to 1.82 million boe/d.
Eni expects its production to rise 3 percent this year.
“We close 2017 with excellent results which underline how the process of intense change started in 2014 has transformed Eni into a company able to grow and create value even in difficult market conditions,” said chief executive Claudio Descalzi.
“Consequently, our cash generation increased 50% compared with an increase in Brent of 22% and our cash‐neutrality decreased to 57 $/bl,” he said.
Eni confirmed a dividend of 0.8 euros a share.