Egypt Ensures Timely Energy
In the face of the challenging circumstances arising from the conflict in Gaza, Egypt is meeting its financial commitments to energy companies, as stated by Claudio Descalzi, the Chief Executive of Italy’s Eni, on Friday. Despite the economic strain on the North African nation, marked by pressure on crucial revenue sources such as natural gas exports, tourism, remittances from overseas workers, and Suez Canal earnings, Egypt is trying to honor its debts to foreign investors.
During a post-results conference call with analysts, Descalzi responded to inquiries about Eni’s receivables from Egypt, highlighting the country’s positive approach towards companies investing within its borders. Although there is a minor accumulation, Descalzi emphasized Egypt’s willingness to make payments, even in smaller installments, underscoring a commitment to safeguarding investor interests.
The Israeli-Palestinian conflict from the previous year has impacted gas imports from Israel to Egypt, affecting Egypt’s capacity to export liquefied natural gas (LNG), noted Eni’s Chief Operating Officer for Natural Resources, Guido Brusco, during the call. Despite these challenges, Brusco reported three LNG cargoes in December, expecting eight to ten more in the upcoming months.
Eni’s fourth-quarter adjusted net profit of 1.64 billion euros exceeded analysts’ expectations thanks to a robust gas and LNG division performance, including a one-off arbitration. Looking ahead, the division’s head assured there would be no impact from arbitrations in the current year.
In discussions about Eni’s low-carbon unit, Plenitude, the company’s Chief Financial Officer, confirmed plans to list it. Additionally, he mentioned that the company would closely monitor financial markets in 2024 and 2025 to identify the right window of opportunity for the listing. As of the exchange rate at the time, $1 equals 0.9287 euros.
