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Italy: Eni Profit Dives

August 1, 2013

Eni Profit Dives

Eni, the international oil and gas company, announced its group results for the second quarter and the first half of 2013.

Financial Highlights1

  • Adjusted operating profit: €1.95 billion for the quarter, down 51%2; €5.66 billion for the first half, down 43%2 including Saipem losses which have been recognized in the second quarter;
  • Adjusted net profit: €0.58 billion for the quarter, down 55%2; €1.96 billion for the first half, down 46%2 including Saipem losses which have been recognized in the second quarter;
  • Net profit: €0.28 billion for the quarter, up 76%; €1.82 billion for the first half, down 51%;
  • Operating cash flow: €1.95 billion for the quarter; €4.75 billion for the first half;
  • Leverage at 0.27;
  • Interim dividend proposal of €0.55 per share.


Operational Highlights

  • Oil and gas production: 1.648 mmboe/d, broadly in line with the second quarter of 2012 (down 2.7% in the first half);
  • Renegotiations of long-term gas supply contracts: reached new agreements with Sonatrach and Gazprom;
  • Reached the divestment to CNPC of 28.57% of the share capital of Eni East Africa, which currently owns a 70% interest in Area 4 in Mozambique with a cash consideration of $4.2 billion, not included in the 0.27 leverage as of June 30;
  • Started up six upstream projects in the first half; confirmed Kashagan schedule;
  • Completed the divestment of Snam; progressed the divestment of Galp;
  • Started exploration activities in the Russian upstream with Rosneft;
  • Continuing exploration success; resource base increased by 950 million barrels in the first half.

Paolo Scaroni, Chief Executive Officer, commented:
“First half results were affected by a difficult economic situation across Italy and Europe, production interruption in Libya and Nigeria and by the fall in Saipem’s results. We have strengthened our balance sheet through the continuing divestment of Snam and Galp. In this context I am satisfied with the operational progress achieved in the first half including 6 production start-ups, of the 8 planned for the whole 2013, and the renegotiation of gas contracts with Sonatrach and Gazprom. Thanks to these successes we expect a significant improvement in our second half results. On September 19, I will propose to Eni’s Board of Directors an interim dividend of €0.55 per share.”

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LNG World News Staff, August 1, 2013; Image: Eni