The Strategist

Italian Eni recovers after 18 months of depression


03/01/2017 - 14:33



Net loss of one of the world's largest energy companies, Italian Eni SpA, attributable to shareholders of the company shrank by 5.9 times to 1,464 billion euros in 2016, the company said.



Luca Mascaro via flickr
Luca Mascaro via flickr
Per share loss numbered 0.41 euro against a loss of 2.44 euro in 2015. Eni's revenue in the reporting period decreased by 22.9%, up to 56.693 billion euros. The company decreased production of hydrocarbons by less than 1% in 2016 – the figure amounted to 1,759 million barrels of oil equivalent per day.

In the fourth quarter, Eni recorded a net profit of EUR 340 million compared with a loss of 8.72 billion euros a year earlier. Diluted earnings per share was 0.09 euro of profit against a loss of 2.42 euro a year earlier. Eni's revenue for the period amounted to 16.154 billion euro, which is 4.8% more compared to the same period of 2015. Volume of hydrocarbon production in the fourth quarter increased by 1.5% and amounted to 1.86 million barrels of oil equivalent per day.

"The results in 2016 reflect successful completion of transformation processes in the company", - said Head of the group Claudio Descalzi. He also stressed that the company has faced one of the most difficult periods in the oil industry during the past three years.

In February, Eni completed sale of 10 percent stake in concession agreement Shorouk to British oil giant BP Plc. Recall that Shorouk includes the largest gas field in Egypt Zohr, said Eni in a press release.

"General Director of Eni Claudio Descalzi, CEO of BP Bob Dudley and Egyptian Petroleum Minister Tarek El-Molla signed the agreement on final sale of 10 percent stake in Shorouk concession to BP" – reads the statement.

At the end of November 2016, Eni agreed to sell 10% in the concession to BP for 375 million dollars. The deal also included an option to purchase additional 5% on the same conditions until the end of 2017. In December, Russian Rosneft entered the project, and agreed to buy 30% from Eni in the concession agreement, and 15% in the project operator for $ 2.8 billion. The deal has to be approved by the Government of Egypt.  

At the end of August 2015, Eni discovered the largest gas field in the Mediterranean Sea. According to the company, the finding was a "super-giant discovery" in the field of natural gas, located in the sea off the coast of Egypt. Potential new field Zohr of 100 square kilometers is expected to hide up to 850 billion cubic meters of gas.

Italian oil and gas company Eni was founded in 1953. It has been present in Egypt since 1954. Daily production of Eni in the country is about 230 thousand barrels of oil equivalent. 

source: reuters.com




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