Italy: Eni’s 2Q Net Profit Drops, Production Rises

Italy’s Eni, an international oil and gas company, today announces its group results for the second quarter and the first half of 2012.

The company, which today made a significant gas discovery offshore Mozambique, reported net profit of €3.84 billion for the first half, 1.1% up when compared to  €3.801 achieved in the first half of 2011.

Eni reported second quarter net profit of €0.23 billion, a drop of 81.9 % when compared to the same period in 2011.

Oil and gas production grew by 10.6% to 1.647 mmboe/d in the second quarter (up 4.7% in the first half).

Furthermore, Eni in the first half 2012 divested a 5% stake in Galp to Amorim Energia BV.

In its press release, Eni highlighted new giant gas discoveries at the Mamba North East 2 and Coral 1 prospects offshore Mozambique, which increased the full potential of Area 4 to 70 Tcf of gas in place.

The first half also saw the Company buying exploration blocks in promising areas of Vietnam, Kenya and Indonesia.  Also, the company started exploration off the Russian section of the Barents Sea and the Black Sea in partnership with Rosneft.

In June 2012, Eni started up the offshore field of Seth, located in the Ras El Barr concession in Egypt. The field is expected to produce approximately 4.8 million cubic meters of gas per day, of which Eni’s equity is 1.7 million cubic meters (approximately 11,000 boe/d) net to Eni.

Paolo Scaroni, Chief Executive Officer, commented:

“In the first half of 2012, Eni delivered excellent results with strong production growth, supported by the recovery in Libyan output. We have achieved unprecedented exploration success with major new discoveries and secured promising opportunities in high potential areas.

Scaroni added “Through the divestment of our stakes in Snam and Galp our balance sheet will be transformed, securing our capacity to finance robust long-term growth in any market environment. Our confidence in Eni’s outlook underpins my proposal of an interim dividend of €0.54 per share to Eni’s Board on September 20.”

The company’s management plans to continue spending on exploration to appraise the mineral potential of recent discoveries (Mozambique, Norway, Ghana and Indonesia) and invest large amounts on developing growing areas and maintaining field plateaus in mature basins.

[mappress]
Press Release, August 1, 2012