ENI’s Companies Suffer Despite Efforts, Production

After presenting its partnership with Egypt last week, ENI and its subsidiary Saipem suffer on Monday, with share prices losing around 2%. Saipem, in particular, made the headlines over the last hours.

According to Reuters, Italian authorities cleared US investment firm BlackRock of any wrongdoing over its sale of a 2% stake in Saipem in 2013. Also on Monday, reports confirmed that the service company is working with Bain & Company to cut costs and proceed with a portfolio balancing to cope with the future market conditions. 

The plan should be discussed during the presentation to the financial community, which will take place on Tuesday afternoon.

"The plan is called 'Fit to 60' -- whipping the company into shape to deal with life with crude at $60 a barrel," a source with knowledge of the matter anticipated to Reuters.

Earlier this month, Saipem received notification of the termination for convenience of the South Stream BV contract.

ENI owns 43% of Saipem. The Italian major, which is betting on Egypt despite the regional complexities, also owns 8% of Portugal’s Galp Energia.  

The Portuguese company posted an adjusted quarterly net profit over the expectations over an increase in production in Brazil, which pushed the production to 43,800 barrels of oil equivalent per day during 2Q 2015. Production registered a 5.5% uptick from 41,500 boepd in 1Q 2015, and a 70% growth with respect to 2Q 2014.

Nonetheless, according to the data published on its website, Galp suffer a loss over 3% on Monday.