BAKU, Azerbaijan, May 4
By Leman Zeynalova – Trend:
In the first quarter of 2021, capital expenditure of Italian Eni company amounted to €1,139 million (€1,590 million in the first quarter of 2020), decreasing by 28 percent from the same period of the previous year, Trend reports citing the company.
The decrease is mainly related to: - development activities (€801 million) mainly in Indonesia, the United States, Egypt, the United Arab Emirates, Mexico and Iraq; - refining activity in Italy and outside Italy (€87 million) mainly relating to the activities to maintain plants’ integrity and stay-in-business, as well as HSE initiatives; marketing activity (€8 million) for regulation compliance and stay-in-business initiatives in the retail network in Italy and in the rest of Europe; - initiatives relating to gas and power marketing in the retail business (€39 million).
As of March 31, 2021, fixed assets increased by approximately €3 billion mainly due to the appreciation of the US dollar vs. the EURO (the EUR vs. USD exchange rate was 1.17 as of March 31, 2021 vs. 1.22 as of December 31, 2020), while capital expenditures and acquisitions made in the period were offset by DD&A.
Net working capital (-€14 billion) was broadly unchanged y-o-y. A higher balance between trade payables and trade receivables (approximately up by €1.1 billion) and an increased value of oil and products inventories due to the weighted-average cost method accounting in an environment of rising prices (+€0.5 billion) were offset by increased tax liabilities due to indirect taxes in Italy (payment of excise duties for the month of December in the same month).
Shareholders’ equity (€40 billion) increased by approximately €2.5 billion compared to December 31, 2020 due to the net profit for the period (€0.86 billion) and positive foreign currency translation differences (+€1.5 billion). Net borrowings before lease liabilities1 as of March 31, 2021 were €12.2 billion increasing by €0.67 billion from 2020 mainly due to the financing of M&A transactions and exchange rate differences. Leverage2 – the ratio of the borrowings to total equity - was 0.31 at March 31, 2021 unchanged compared to December 31, 2020.
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