Italian energy firm Eni said its liquefied natural gas (LNG) sales were down in the second quarter of this year.
Eni sold 2.2 bcm (1.6 million tonnes of LNG) in the second quarter of this year, according to its quarterly results report released on Friday.
Quarterly LNG sales dropped compared to 2.7 bcm in the previous quarter and 2.5 bcm in the second quarter last year.
During the first half of this year, Eni’s LNG sales dropped 6 percent to 4.9 bcm.
Eni sold 9.6 bcm of LNG last year and this compares to 9.4 bcm in 2022 and 10.9 bcm in 2021.
In February, Eni shipped the first LNG cargo from its Tango floating LNG facility moored in Congolese waters and this shipment arrived at Snam’s FSRU-based facility in Piombino.
The firm also sent the second LNG cargo in May and this shipment landed in Spain.
In the second quarter, Eni’s natural gas sales, including LNG, were 9.38 bcm, down 16 percent year-on-year, due to lower gas volumes marketed in Italy (down 14 percent) particularly in the Italian gas exchange and spot markets and industrial segment, Eni said.
Eni said that in the European markets gas volumes decreased by 15 percent as result of lower sales in Turkey and Benelux, balanced by higher sales in Germany.
In the first half, natural gas sales amounted to 24.83 bcm, down 4 percent year-on-year, mainly due to lower gas volumes marketed in the European markets, Eni said.
Gas and LNG earnings dip
Eni’s gas and LNG business reported a proforma adjusted EBIT of 334 million euros ($362 million) in the April-June period, including the operating margin of the equity accounted entity SeaCorridor.
This marks a decrease of 71 percent year-on-year.
Eni said the result was down due to one-off effects linked to the outcomes of negotiations/settlements in particular in the second quarter 2023.
In the first half of this year, proforma adjusted Ebit amounted to 659 million euros, down by 74 percent year-on-year, driven by “less favorable price scenario and reduced volatility which affected trading and optimization opportunities and lower benefits from one-off effects inked to the outcomes of negotiations/settlements,” Eni said.
Overall, Eni reported proforma adjusted Ebit of 4.10 billion euros and adjusted net profit of 1.5 billion.
Adjusted net profit reached 1.93 billion euros in the second quarter of 2023.
Oil and gas production rose by 6 percent year-on-year to 1.71 million boe/d driven by ongoing ramp-up at Eni’s flagship projects in Cote d’Ivoire and Congo floating LNG, higher contribution from Libya and by the full integration of Neptune, Eni said.