Mib up, but Eni goes to bottom after business plan

(Alliance News) – On Thursday, major European stock exchanges closed mixed with the Mib strong on good results from Pirelli and Stellantis while overseas, New York moved into negative territory after the release of the U.S. GDP which indicated 2.7 percent year-on-year growth in the fourth quarter of 2022, slightly below the 2.9 percent advance estimate.

A figure that, for Oren Klachkin of Oxford Economics, confirms that “the recession will begin in the next quarter, caused by Fed rate hikes and past tightening of financial conditions, and will be mild relative to previous recessions.”

On the possible path of the Federal Reserve, in the CME Group platform’s FedWatch Tool — using futures also based on the actual federal funds rate, or EFFR — the main rate hike for the March 22 meeting has a 73 percent probability priced into the 475/500 bps range. In contrast, the probability of an increase in the 500/525 bps area is at 27%. The current target is between 450 and 475 bps.

Thus, the FTSE Mib closes up 0.7 percent at 27,277.62. Among Italy’s smaller listings, the Mid-Cap is up 1.0 percent to 44,509.40, the Small-Cap picks up 1.2 percent to 30,049.42, and Italy Growth is in the green 0.2 percent to 9,542.33.

In Europe, London’s FTSE 100 gives up 0.3 percent, Paris’ CAC 40 picks up 0.3 percent and Frankfurt’s DAX 40 is up 0.5 percent.

Also of note, Eurostat released the euro area’s annual inflation rate for January, which came in at 8.6 percent, down from 9.2 percent. A year earlier, the rate was 5.1 percent.

On the main list in Piazza Affari, Saipem leads the way with a plus 3.9 percent, followed by Stellantis, which cashes in on investor confidence after its accounts and picks up 3.6 percent. It reported Wednesday that both the company’s revenues and net income posted double-digit increases in FY2022. Revenues increased to EUR179.6 billion from EUR149.4 billion in the previous year or EUR152.1 billion pro forma from the year before. Net income rose 26 percent to EUR16.78 billion in 2022 from EUR13.22 billion a year earlier or EUR13.35 billion pro forma.

Pirelli also did well, following with a 3.1 percent rise. On Wednesday, the board of directors approved preliminary results as of December 31, 2022, reporting numbers up and above the targets set in November 2022, which had already been revised upward during the year, the company specified in a note.

Revenues in 2022 were EUR6.62 billion, above the target of EUR6.5 billion and up 24 percent from 2021, when they were EUR5.33 billion.

Net income in 2022 was EUR435.9 million, up 36 percent from EUR321.6 million in 2021.

Eni, on the other hand, closed in the red after unveiling its business plan to 2026 on Thursday, which focuses on energy security and accessibility through geographic and technological diversification; emissions reduction; leveraging technology for today’s initiatives and future innovation opportunities; and shareholder value creation.

The company expects a 2023 Ebit of EUR13 billion, the second-best result in 10 years after a record 2022.

Eni, in fact, reported Thursday that 2022 net income more than doubled year-on-year to EUR13.81 billion from EUR5.82 billion a year earlier.

In the fourth quarter alone, however, there was an 84 percent decline, with net income falling to EUR550 million from EUR3.52 billion in the same period a year earlier.

Adjusted net income — which excludes special items and inventory result — marks an increase in the full year, to EUR13.31 billion from EUR4.33 billion, and in the fourth quarter, to EUR2.50 billion from EUR1.70 billion.

Accounts day also for A2A, in the green by 0.5 percent after preliminary consolidated results for fiscal year 2022 in which it reported Ebitda at EUR1.5 billion up 5.0 percent from EUR1.43 billion in 2021.

Net financial position was EUR4.26 billion from EUR4.11 billion as of December 31, 2021.

On the mostly bullish cadet list, at the bottom are Intecos and Seco, in the red by 3.3% from 1.6%. Acea is also bad, down 1.3 percent.

Fincantieri — up 1.5 percent — announced Wednesday that it has signed a cooperation agreement with Abu Dhabi Ship Building, a subsidiary of EDGE Group, a leader in the design, construction, repair, maintenance, refitting and conversion of military and commercial vessels.

De’ Longhi takes the top spot, up 4.7 percent, followed by Maire Tecnimont and Safilo Group, up 4.1 percent 3.9 percent respectively.

On the Small-Cap side, the board of directors of Esprinet — up 3.0% — on Thursday reviewed its preliminary figures as of Dec. 31, 2022, which closed with revenues from contracts with customers at EUR4.68 billion, broadly in line with last year’s result.

Gross trading margin is EUR243.8 million, up 5 percent from 2021, when it was EUR232.9 million.

IGD SIIQ makes a 4.2 percent jump. On Thursday, it reviewed and approved the draft operating and consolidated financial statements as of December 31, 2022, reporting, “as a result, in particular, of increased fair value changes,” as explained in a note, a net loss of EUR22.3 million, which compares with a profit, in 2021, of EUR52.8 million.

Recurring FFO net income, on the other hand, is EUR67.2 million, up 3.8 percent from 2021. The increase is higher than the guidance that had been communicated to the market, which forecast growth of around 2 to 3 percent.

The board also proposed a dividend per share of EUR0.30.

Il Sole 24 Ore ends up 4.5 percent after approving its 2023-2026 Business Plan on Tuesday, which confirms the group’s steady and sustainable growth through digitization of products and processes, internationalization, and continued brand enhancement.

Revenue and margin growth is also confirmed in the changing geopolitical, economic and market environment.

The plan to 2026 calls for a further push on investments enabling the group’s digital transformation and process optimization, with a time rescheduling from the previous Plan to 2025.

Doing better is only Biesse, which up 12 percent ranks at the top of the list.

Eukedos gives up 3.2 percent. Wednesday approved consolidated financial statements from Dec. 31, 2022 reporting value of production at EUR47.0 million up from EUR45.2 million in 2021.

EBITDA is EUR10.3 million as of Dec. 31, 2022 in line with the result of EUR10.7 million reported as of Dec. 31, 2021.

Profit for the year is EUR443,000 in 2022 compared to a profit of EUR570,000 in 2021.

Among SMEs, Rocket Sharing Company rises with a plus 7.7 percent, followed by Laboratorio Farmaceutico Erfo, up 6.7 percent on the eve of results, due tomorrow.

In New York, at the height of trading on Thursday, the Dow is in the red by 0.7 percent, the Nasdaq gives up 0.5 percent as does the S&P 500.

Among currencies, the euro changes hands at USD1.0583 versus USD1.0628 at close of trading Wednesday. In contrast, the pound is worth USD1.2014 from USD1.2069 on Wednesday evening.

Among commodities, Brent crude is worth USD81.75 per barrel versus USD81.29 per barrel on Wednesday evening. Gold, on the other hand, trades at USD1,821.68 an ounce from USD1,843.15 an ounce at Wednesday’s close.

On Friday’s macroeconomic calendar, Germany’s GDP and the Gfk report on sentiment among German consumers will be released at 0800 CET.

At 0845 CET French GDP and the transalpine consumer confidence index are expected.

At 1110 CET in Italy there will be two auctions of BTPs with 10- and 5-year maturities.

In the afternoon, from the U.S. at 1430 will come the personal spending price index and the consumer spending close index.

From Canada at the same time will come out the manufacturing sector sales and wholesale sales.

At 1600 CET, data on new home sales and the Michigan Confidence Index for February are expected from the US.

Among companies listed on the Milan Stock Exchange, results from Juventus FC, Laboratorio Farmaceutico Erfo, Omer and Sogefi are expected.

By Chiara Bruschi, Alliance News reporter

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