Despite the difficult economic situation in Egypt due to the conflict in Gaza, the country is steadfast in making payments to energy groups, according to Claudio Descalzi, the Chief Executive of Italy’s Eni. Egypt is facing challenges as its key sources of foreign currency, including natural gas exports, tourism, worker remittances, and Suez Canal revenue, have come under pressure, affecting its ability to meet debt obligations to foreign investors.
Responding to a query on whether Eni has experienced an increase in receivables from Egypt, Descalzi stated that Egypt has maintained a positive attitude toward companies investing in the country. While there is a marginal build-up, Descalzi emphasized that Egypt is making payments, even if they are in small installments, demonstrating a willingness to protect investors.
The Israeli-Palestinian conflict last year impacted gas imports from Israel to Egypt, affecting Egypt’s ability to export liquefied natural gas (LNG). Eni’s Chief Operating Officer for Natural Resources, Guido Brusco, noted that Eni anticipates three LNG cargoes in December, with expectations of eight to ten cargoes in the coming months.
Eni reported a fourth-quarter adjusted net profit that exceeded analysts’ forecasts, driven by a strong performance in its gas and LNG division. The company’s plans for the low-carbon unit Plenitude include listing it, with a focus on monitoring financial markets in 2024 and 2025 to choose the right timing for the listing.
