Italian Energy Giant, Eni SpA has posted a surprise fourth-quarter profit as crude prices began to recover and the contribution of low-carbon businesses helped offset the impact of the coronavirus pandemic.
The firm like oil companies around the world, has suffered the effects of the demand destruction wrought by the COVID-19 crisis, according to Bloomberg.
Yet it managed to take advantage of a rally in prices as pockets of consumption growth emerged, helping it beat expectations last quarter. Most of its biggest peers missed estimates.
Eni’s adjusted net income was 66 million euros ($79.8 million), the Rome-based company said Friday. Analysts had estimated an adjusted net loss of 48.1 million euros. Its exploration and production unit reported adjusted operating profit of 802 million euros, up about 60% from the previous three months.
Upstream results were “coming in better than expected,” analysts at RBC Capital Markets said in a note. Eni’s Gas e Luce, Power and Renewables division also beat estimates, they said.
In that segment, energy production from renewable sources amounted to 88 gigawatt-hours in the quarter, a fivefold increase from a year earlier. Retail power sales rose 11 per cent.
“Eni has proven the robustness and flexibility of its business model,” Chief Executive Officer Claudio Descalzi said in a statement. “The upstream business is strengthening its recovery, while our businesses in the production and sale of decarbonized products achieved excellent results in the year.”