Milan, Italy– Italian energy firm Eni posted a record profit in 2022, buoyed by high oil and gas prices, and said it aims to fully replace Russian gas imports within two years.
The 13.8 billion euros ($14.6 billion) net profit was also the best performance the company had posted in more than two decades, but was less than the 14.0 billion analyst consensus compiled by Factset.
Adjusted earnings, which is followed closely by investors and analysts as it excludes exceptional items, also came in at a record level of 20.4 billion euros.
Sales jumped 73 percent to 132.2 billion euros, beating analyst expectations.
But oil and gas production fell by four percent to 1.61 million barrels per day of oil equivalent.
Eni’s shares fell by 5.4 percent while Milan stocks overall rose by 0.7 percent.
The jump in oil and gas prices following Russia’s invasion of Ukraine has helped energy firms to bumper profits, which has led some countries to impose windfall taxes.
Eni said it was subject to windfall taxes on energy profits totaling 1.7 billion euros, of which 1 billion was paid in 2022.
The company said it has taken a lead in seeking ensure the security and stability of energy supplies after Russia cut back gas deliveries to Europe as tensions over Ukraine flared.
“During the year, we were able to finalise agreements and activities to fully replace Russian gas by 2025, said Eni chief executive Claudio Descalzi.
Algeria, Democratic Republic of Congo, Egypt, Mozambique, and Qatar stepped up deliveries to Italy.
Under the company’s new strategic plan, Eni plans to boost the percentage of natural gas in its production to 60 percent by 2030, up from 50 percent currently.