Eni: Fourth quarter loss deepens

Italian oil company Eni has reported a net loss of €2.34 billion for the fourth quarter of 2014, compared to a €647 million net loss reported in the corresponding period of 2013.

The company has said that its net profit for the quarter was impacted by “a loss on the alignment of crude oil and product inventories to current market prices (down by €0.86 billion) and asset impairments and other post-tax charges amounting to €1.94 billion.”

Adjusted profit

Eni has reported a 64 percent fall in its adjusted net profit for the fourth quarter of 2014. The adjusted net pofit for the quarter was €464 million, down from €1.29 billion a year ago.

In the fourth quarter of 2014, Eni’s hydrocarbon production was 1.648 million boe/d, up by 6.7% from the fourth quarter of 2013 on a homogeneous basis i.e. excluding the impact of the divestment of Eni’s interest in Siberian assets. On the same basis, hydrocarbon production for the full year 2014 was up 0.6% at 1.598 million boe/d compared to the previous year. Production increases in the United Kingdom, Algeria, the United States and Angola, more than offset mature fields’ declines, Eni has said.

In the context of lower oil prices, Eni has said its will reduce expenditure this compared to the 2014 levels. In 2014 the company’s capex was €12.2 billion.

Claudio Descalzi, Chief Executive Officer, commented: “In spite of an unfavourable trading environment, Eni delivered excellent results in the fourth quarter, underpinned by record cash flow generation over the last six years. The performance was driven by the increased contribution from upstream production and the accelerated restructuring of our mid and downstream businesses.

“We continue to deliver on the initiatives launched in May 2014 as we rebalance the Group’s portfolio, pursue a higher level of efficiency and focus on core upstream activities, which have been further strengthened by continued exploration success and the organic growth of our proven reserves. In light of these results, I will propose to the Board of Directors the distribution of a 2014 final dividend of €0.56 per share.”

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