Eni Posts Loss Amid Oil Price Rout
29 April 2016 - 6:50PM
Dow Jones News
MILAN—Italian oil company Eni SpA plunged to a net loss in the
first quarter, hurt by accounting changes related to disposals and
low crude oil prices.
It posted a net loss for the quarter of €792 million ($897.8
million) compared with a net profit of €832 million in the same
period a year earlier. It also reported a loss on its continuing
operations of €803 million, down from a profit of €617 million in
the first quarter of 2015.
Adjusted operating profit from continuing operations was down
69% compared with the same period last year at €472 million,
pressured by lower commodity prices.
Eni, along with other energy companies world-wide, has been
hampered by an oil price slump that started in 2014 and hit a
13-year low at the beginning of the year of less than $30 a
barrel.
Despite a recent recovery, Eni said the oil market remains weak,
with crude prices "exposed to possible negative pressure," caused
by uncertainties about energy demand growth in the short and medium
term.
To cope with further price slides, Eni said it would increase
efforts to reduce operating costs. It will also renegotiate
long-term supply contracts "in order to align the supply terms with
market conditions as well as boost profitability in its high-value
businesses."
Eni said production grew 3.4% in the quarter to 1.75 million
barrels of oil equivalent a day as it added new fields such as
Goliat in the Norwegian sector of the Barents Sea, and three
others. It took a final investment decision for the Zohr gas field
in the Mediterranean Sea and obtained approval for the Coral field
in Mozambique.
"We are therefore progressing in promoting also in 2016
significant volumes of new proved reserves," Chief Executive
Claudio Descalzi said.
Production for the full year, however, is expected to be in line
with last year, the company said.
Write to Manuela Mesco at manuela.mesco@wsj.com
(END) Dow Jones Newswires
April 29, 2016 04:35 ET (08:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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