27th Feb 2025 10:49
(Alliance News) - Eni Spa and Petronas on Thursday said they have agreed to combine upstream assets in Malaysia and Indonesia in a joint-venture company that will focus on new gas development projects.
Milan-based energy producer Eni also released its annual results, showing lower profit for 2024 despite a positive final quarter.
Petroliam Nasional Bhd, known as Petronas, is the Malaysian state oil company, based in Kuala Lumpur.
Petronas and Eni said they will create a joint venture that will combine 3 billion barrels of oil equivalent in reserves with an additional 10 billion boe of potential exploration upside. The venture will aim for production of 500,000 barrels of oil equivalent per day in the medium term, becoming a "major" regional player in liquefied natural gas.
The Petronas and Eni joint venture will raise external financing on a stand-alone basis, the two companies said. The JV will "aim to ensure stability in production for Malaysian assets while supporting timely new developments in Indonesia," they said.
Separately, Eni said net profit fell by 45% to EUR2.64 billion in 2024 from EUR4.77 billion in 2023, while proforma adjusted earnings before interest and tax declined by 20% to EUR14.32 billion from EUR17.81 billion. This was the result of lower Brent crude oil prices in 2024, the company said.
In the fourth quarter alone, net profit was up 43% to EUR247 million from EUR173 million a year before. However, proforma adjusted Ebit was down 28% to EUR2.70 billion from EUR3.76 billion.
Eni said its 2024 financial and operating results were above its prior guidance.
Hydrocarbon production was 1.72 million barrels of oil equivalent per day in the fourth quarter and 1.71 million across the full year. In all of 2023, production was 1.66 million boe per day.
"2024 was an exceptional year of growth and value creation for Eni, underpinned by our financial framework and our cost discipline," said Chief Executive Officer Claudio Descalzi.
Eni said it will provide financial and operating targets for 2025 later Thursday.
Eni shares were down 0.9% to EUR14.15 in Milan late Thursday morning.
By Tom Waite, Alliance News editor
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