Eni keeps output target after beating Q2 expectations

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Eni keeps output target after beating Q2 expectations

1:49 CAT | 28 Jul 2017

Reuters (File photo)

Italian oil major Eni stuck to its target of increasing output by 5 percent this year after swinging to a second-quarter profit on Friday on higher production and oil prices to beat expectations.

Eni reported an adjusted net profit of 463 million euros ($541 million) after a loss of 317 million a year earlier.

That topped the 300 million profit expected by analysts.

“These results have been achieved while maintaining an extremely efficient spending structure which will reduce capex by about 18 percent compared to 2016,” CEO Claudio Descalzi said.

Europe’s major oil and gas companies reported a strong growth in profits this week helped by cost cutting.

Eni, which posted a 56 percent jump in cash generation, said it would add 0.8 billion barrels of oil equivalent of new resources this year to reach its target of 1.84 million boed.

Eni, the biggest foreign oil company in Africa, has one of the best discovery records among majors including large gas finds in Mozambique and Egypt.

It said production growth this year would be driven by earlier-than-planned start-ups in Indonesia, Angola and Ghana as well as ramp-ups at the giant Kashagan field in Kazakhstan.

“At the end of the year production will begin at (Egypt’s) Zohr,” Descalzi said.

It confirmed the company would pay an interim dividend on 2017 results of 0.4 euros per share.

Source: Reuters