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Eni, the drop in oil and gas prices impacts its accounts. Descalzi: «Excellent results»

With an overall picture that continues to be marked by uncertainty, also due to the persistent decline in oil prices (which in the fourth quarter of the year dropped 5% compared to the fourth quarter of 2022) and gas (- 57% in Europe) in recent months, Eni reaches the halfway point of the preliminary balance sheet with an adjusted net profit, i.e. excluding extraordinary items, of 8.3 billion, down 38% compared to the previous year due to the weakening of the prices, while for the quarter the bar stands at 1.6 billion compared to 2.5 billion in the same period of 2022 (-34%). Net profit is equal to 4.7 billion (-66%), for the fourth quarter the figure is 149 million (down by 76%).

Canada’s Oil Majors Are Sitting Out The Energy M&A Wave

After a two-year hiatus triggered by the historic oil price crash of 2020, the U.S. oil and gas sector saw a surge in mergers and acquisitions (M&A) in 2023 despite a general slowdown in deal-making in many sectors. Last year, the sector leveraged high stock prices and went on a $250 billion buying spree, mostly aimed at securing lower-cost reserves that will help them deal with future challenges.

Unsustainably Low Lithium Prices Set the Stage for the Next Supply Crunch

The crash in lithium prices over the past year is holding back reinvestment in new supply, the world’s largest producer of the key battery metal, Albemarle, says.

Slowing growth in electric vehicle sales, including in the top EV market, China, and a market oversupply in battery metals sent lithium prices crashing by 80% in the past year, prompting lithium miners to pause and scale back expansion projects.

Navigating oil and gas consolidation: Insights for middle market companies

In recent months, the oil and gas sector has experienced a remarkable surge in merger and acquisition (M&A) activity, with over $155 billion in deals in the fourth quarter of 2023, according to Bloomberg. That’s more than the prior five quarters combined. Faced with challenging market and economic conditions, oil and gas companies—particularly upstream, midstream and oil field services companies—are poised to continue this consolidation wave into 2024. Middle market companies are especially likely to be involved in this M&A activity, so it is crucial for them to proactively position themselves for strength in this cycle.

Oil proceeds drop in 2nd half of 2023

This is however lower than the $696.815 million secured in the same period of 2022.

No reasons have yet been attributed to the drop in proceeds.

Meanwhile, the sad development comes particularly at a time when the government is in dire need of funds to shore up its domestic revenue in the wake of the closure of the international capital markets to the country.