Eni confirms “strategies and targets, incuding disposals” after worse than forecast loss

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Eni confirms “strategies and targets, incuding disposals” after worse than forecast loss

9:35 CAT | 29 Oct 2016

Reuters / The logo of Italian energy company Eni at an Agip gas station in Lugano, Switzerland.

Italian oil major Eni stuck to its targets on Friday, despite reporting a worse-than-expected net loss in the third quarter as a result of lower oil prices and a domestic production shutdown.

Commitments by Opec last month to restrain output to boost prices have helped buoy sentiment in the industry but Eni, like other oil companies, is still feeling the impact of a fall in crude prices of more than 50 per cent since mid-2014.

Eni said in a statement that its adjusted net loss in the quarter was €0.484 billion, versus a forecast from analysts, which was provided by the company, for a loss of €0.07 billion.

Eni is looking to raise a total of €5 billion in asset sales over the next two years to help fund growth

In the same period last year, Eni posted a net loss of €0.127 billion.

The state-controlled major, which confirmed it would cut investments this year by 20 per cent, said it expected oil and gas output for the year to be substantially in line with 2015. Production in the quarter rose 0.4 per cent to 1.71 million barrels per day.

“The strategies and targets of the group, including disposals, are confirmed,” CEO Claudio Descalzi said.

Eni is looking to raise a total of €5 billion in asset sales over the next two years to help fund growth.

Sources have said US giant Exxon Mobil has clinched a deal with the company to buy a stake in its giant Area 4 gas field in Mozambique.

Source: Reuters