Energy group Eni misses expectations with 27pc profit fall

Madiha Shakeel July 26, 2019

MILAN: Italian energy group Eni missed expectations on second-quarter adjusted net profit with a 27% plunge, it said on Friday, citing lower oil and gas prices.

Adjusted net profit came in at 562 million euros ($626 million), compared with a company supplied analyst consensus forecast of 950 million euros.

Shares in the company were down 0.9% in early trade.

Concerns that trade tensions are causing the global economy to slow and rising supply from the United States have undermined crude prices, prompting the Organization of Petroleum Exporting Countries (OPEC) to prop up the market by limiting supplies.

On Thursday France’s Total reported second-quarter adjusted net profit down 19%, hit by low oil prices, sharp declines in gas and sliding refining margins.

Eni’s output was down 2% in the second quarter and it said it expected oil and gas production this year to grow by 2.0-2.5%. In April it forecast 2.5% growth.

“The projected range is assuming a production level of 40 Kboe/d in Venezuela and a scaling down in production volumes at our Indonesian project to factor in a slowdown in end-markets in Asia,” it said.

Eni also said it is making a slight cut to its previous 8 billion euro investment target for the year without disclosing figures.

Copyright Reuters, 2019

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