Eni Swings to Net Loss, Revises Upwards Production Growth
Italy’s Eni revised its hydrocarbon production year-on-year growth from 7% to 9% in 2015, adding it swung to a net loss in the third quarter in relation to low oil prices. The company released the note on Thursday, a few hours before meeting the Prime Minister of Israel Netanyahu and the Infrastructure and Energy Minister Steinitz.
3Q 2015 RESULTS
The company led by Claudio Descalzi posted a net loss of € 0.95 billion for the third quarter, which negatively impacted the result for the nine months. In the period, Eni registered a € 0.36 billion net loss.
Eni stressed its efforts to restructure its business, contextualising its decision to sell a 12.5% stake in Saipem as part as a wider strategy meant to increase its focus on its core business.
“It increases our financial flexibility, freeing up resources to support our strategic plan” CEO Descalzi commented on Thursday.
As said, exploration and production are Eni's priority.
“In E&P, we have increased our full year production guidance for the second time this year, almost doubling our original target. We have also more than doubled our resources target after discovering 1.2 billion barrels of new resources over the past nine months”
Eni said that it will be able to cover its 2015 investments with organic cash flow in a 55$/b oil price scenario.
ENI IN ISRAEL
On Thursday, Descalzi went to Jerusalem to speak about its plans to turn Israel, Cyprus and Egypt into a regional gas hub.
‘By sharing future resources as well as export and transportation infrastructures of Israel, Cyprus and Egypt, the area could become a regional gas hub able to also provide an important contribution to the European energy security’ Eni wrote on its website.
In August, Eni reported its Zohr discovery, saying that it is the greatest gas find of all times in the Mediterranean Sea. The company met with Egyptian president, Abdel Fattah Al-Sisi, last 19 October in Cairo, and with the President of the Republic of Cyprus, Nicos Anastasiades, last 10 September in Nicosia.
On Thursday, Israeli Minister Steinitz offered Eni to invest in two small off shore Israeli reservoirs, Karish (50 bcm) and Tanin (20bcm).