Nyse Order Imbalance 7311.0 Shares On Sell Side

Moody's on Tuesday affirmed Vår Energi's Baa3 long-term issuer rating with a stable outlook.

The rating agency based the affirmation on its expectation that Vår Energi's credit metrics will remain in line with the current rating over the next 12 to 18 months. It also noted the Norwegian oil and gas group's presence on the Norwegian Continental Shelf and its anchor shareholder, Eni (ENI.MI), as factors.

The stable outlook reflects Moody's view that the company will grow its scale and generate solid post-tax operating cash flow while maintaining conservative financial policies.

Eni SpA E reported fourth-quarter 2024 adjusted earnings from continuing operations of 58 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of 84 cents. The bottom line declined from the year-ago quarter’s $1.06. Since the earnings release, the company’s shares have lost almost 2.3%, closing at $28.55 in the last trading session.

Total quarterly revenues of $25.6 billion declined from $26.9 billion a year ago. The top line, however, beat the Zacks Consensus Estimate of $20.3 billion.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

The company’s weak quarterly earnings were driven by lower throughputs and lower average liquids price realization.

Eni SpA Price, Consensus and EPS Surprise

Eni SpA price-consensus-eps-surprise-chart | Eni SpA Quote

Operational Performance

Eni operates through four business segments — Exploration & Production, Global Gas & LNG Portfolio, Enilive Refining and Chemicals, and Plenitude & Power.

Exploration & Production

Total oil and gas production in the fourth quarter was 1,716 thousand barrels of oil equivalent per day (MBoe/d), up 1% from 1,708 in the prior-year quarter.

Liquids’ production totaled 786 thousand barrels per day (MBbl/d), up 1% from the year-ago quarter’s 781 MBbl/d. Natural gas production increased to 4,862 million cubic feet per day from 4,851 a year ago.

The average realized price of liquids was $69.02 per barrel, down from $77.53 reported a year ago. The realized natural gas price was $7.35 per thousand cubic feet, up 2% from $7.21 in the year-ago period.

Lower average liquids price realization affected the company’s Exploration & Production segment. The segment reported a pro-forma adjusted EBIT of €2.8 billion, down 17% from €3.3 billion in the December-end quarter of 2023.

Global Gas & LNG Portfolio

Eni’s worldwide natural gas sales in the reported quarter totaled 15.26 billion cubic meters (bcm), up 12% year over year from 13.61 bcm.

The integrated energy major’s Global Gas & LNG Portfolio business segment reported a pro-forma adjusted EBIT of €226 million, reflecting a significant decrease of 68% from the year-ago quarter’s €717 million. The downside was led by negative one-off effects linked to the outcomes of negotiation or settlement.

Refining, Chemicals & Power

For the fourth quarter, total refinery throughputs were 6.04 million tons (mmtons) compared with 6.92 in the corresponding period of 2023. Petrochemical product sales decreased 4% year over year to 0.74 mmtons.

For the quarter under review, the segment reported a pro-forma adjusted negative EBIT of €275 million compared with €134 million in the year-ago quarter. The deterioration can be attributed to weaker refining margins due to less favorable crack spreads and lower throughputs.

Enilive & Plenitude

Retail gas sales managed by Plenitude declined 1% year over year to 1.73 bcm.

The company reported a pro-forma adjusted EBIT of €133 million from this segment, marking a 17% year-over-year decrease. This can be attributed to deteriorating biofuel margins.

Financials

As of Dec. 31, Eni had a long-term debt of €21.5 billion, and cash and cash equivalents of €8.2 billion.

For the reported quarter, net cash generated by operating activities was €3.6 billion. Capital expenditure totaled €2.5 billion.

Zacks Rank & Stocks to Consider

Eni currently has a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like Antero Resources Corporation AR, NextDecade Corporation NEXT and EOG Resources, Inc. EOG. While Antero Resources presently sports a Zacks Rank #1 (Strong Buy), NextDecade and EOG Resources carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources, one of the fastest-growing natural gas producers in the United States, boasts a strategic acreage position in the low-risk properties of the Appalachian Basin. The company has more than two decades of premium low-cost drilling inventory in the prolific basin, securing a strong production outlook. AR is well-positioned to capitalize on the increasing demand for LNG, both in the United States and globally.

NextDecade is an emerging player in the LNG space with its Rio Grande LNG project in Texas. As demand for LNG continues to grow, the company’s strategic investments in infrastructure and its planned liquefaction capacity provide strong upside potential. With the global LNG market expanding, NEXT is well-positioned to tap into the increasing export demand from the United States.

EOG Resources is an oil and gas exploration and production company with an attractive growth profile, upper-quartile returns and a disciplined management team. With highly productive acreages in premier oil shale plays like the Permian and Eagle Ford, the company has numerous untapped high-quality drilling sites. Additionally, EOG maintains a strong balance sheet and continues to reward shareholders with regular and special dividends.

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research

Italian energy company Eni's (ENI.MI) Plenitude and Infrastrutture on Tuesday disclosed the completion of the construction of an agri-voltaic plant in Montalto di Castro in Italy.

The 37-megawatt plant has become operational and is expected to produce 70 gigawatt-hours of electricity annually. The plant was developed through the Hergo Renewables joint venture.

European equities traded in the US as American depositary receipts were moving higher late Friday morning, up 0.48% to 1,412.34 on the S&P Europe Select ADR Index, which is relatively flat for the week.

From continental Europe, the gainers were led by internet browser company Opera and biopharmaceutical company Genfit , which rose 6.8% and 2.5%, respectively. They were followed by 3D printer company Materialise and biotech firm BioNTech , which were up 2.4% and 1.4%, respectively.

The decliners from continental Europe were led by biopharmaceutical company DBV Technologies and biotech firm Evaxion Biotech E, which fell 7.8% and 5.1%, respectively. They were followed by biopharmaceutical company Cellectis and oil and gas company Eni , which were down 1.5% and 1.3%, respectively.

From the UK and Ireland, the gainers were led by alcoholic beverage company Diageo and financial services company Barclays , which increased 2% each. They were followed by financial services company HSBC and cruise line operator Carnival , which were up 1.5% each.

The decliners from the UK and Ireland were led by biopharmaceutical company Akari Therapeutics and pharmaceutical company Silence Therapeutics , which dropped 4.1% and 3.7%, respectively. They were followed by biotech firm Autolus Therapeutics and biopharmaceutical company TC Biopharm , which lost 3.1% and 2.8%, respectively.

RBC Capital Markets revised its earnings forecasts for Eni (ENI.MI) amid expectations of slightly lower production and "weaker" chemicals performance for 2025.

The research firm on Thursday lowered its EPS estimate by 10% for 2025, while cash flow from operations was respectively reduced by 3% and 1% for 2025 and 2026. Despite these adjustments, RBC said the Italian energy group's 2025 outlook is positive, with medium-term guidance broadly in line with expectations and continued value creation driven by its strategic initiatives in upstream operations and energy transition.

"We see 2025 as a year of confirmation for Eni, with material disposal proceeds to be received and more deals likely to be announced," analysts said. "Eni remains an execution story, with a focussed, capital-light approach to the energy transition and a sector-leading exploration business in the upstream."

As such, RBC maintained its outperform rating and price target of 18 euros on the stock.