Eni raises output target as Q2 profits slump on Saipem (updated)

DhanSafal Finserve

30/07/2015 07:50

(Recasts lead, adds detail) 
    MILAN, July 30 (Reuters) - Italian oil and gas group Eni 
 ENI.MI  raised its production targets for the year on Thursday 
as second-quarter net profit slumped due to lower oil prices and 
a heavy loss at oil contractor subsidiary Saipem  SPMI.MI . 
    State-controlled Eni said adjusted net profit in the second 
quarter was 0.14 billion euros ($153 million), below the 
consensus forecast of 0.48 billion euros in a Reuters poll of 
analysts. 
    Stripping out the Saipem effect, adjusted net profit was 
0.45 billion euros. On Tuesday, Saipem reported a quarterly 
adjusted operating loss of 738 million euros after heavy 
writedowns as part of a turnaround plan.  ID:nL5N1084MR  
    Eni is looking to sell down its 43 percent stake in the 
subsidiary to get more than 5 billion euros of Saipem debt off 
its balance sheet. 
    Eni said it expected oil and gas production to rise more 
than 7 percent this year, up from a previous 5 percent target, 
boosted by output in Venezuela, Norway, the United States, 
Angola and Republic of Congo, as well as expectations of higher 
volumes in Libya. 
    The Italian major, whose output in the second quarter grew 
10.7 percent, is focusing increasingly on the bread and butter 
business of finding oil and gas under its CEO Claudio Descalzi. 
    Eni, which will cut investment this year in step with other 
major oil companies, said it would pay an interim dividend of 
0.4 euros per share. 
    Earlier this year it became the first large oil company to 
cut its dividend after the slump in oil prices. 
($1 = 0.9127 euros) 
 
 (Reporting by Stephen Jewkes; editing by Oleg Vukmanovic and 
David Clarke) 
 ((stephen.jewkes@thomsonreuters.com; +39.0266129695; Reuters 
Messaging: stephen.jewkes.thomsonreuters.com@reuters.net)) 
 
Keywords: ENI RESULTS