Eni Slips To Hefty Loss In Q2; Backs FY20 Production View; Stock Dips

(RTTNews) - Italian oil and gas company Eni SpA (E) reported Thursday that its second-quarter net loss attributable to shareholders was 4.41 billion euros, compared to last year's profit of 424 million euros.

Loss per share was 1.23 euros, compared to prior year's profit of 0.12 euro.

Adjusted net loss was 714 million euros or 0.20 euro per share, compared to prior year's profit of 562 million euros or 0.16 euro per share.

The company noted that quarterly results were negatively and materially affected by the combined impact of the ongoing economic recession due to the COVID-19 effects on production, international commerce and travel, with a major impact on energy demand, and by oil and gas oversupplies.

Net sales from operations plunged 56 percent to 8.16 billion euros from 18.44 billion euros last year.

Hydrocarbon production was 1.71 million boe/d in the second quarter, down 6.6 percent from the prior year, due to COVID-19 effects and related OPEC+ production cuts as well as lower gas demand, mainly in Egypt.

Citing the positive trends recorded in the oil market in June and July, Eni assumes a gradual recovery in global consumption of hydrocarbons and power in the second half of the year, particularly in Eni's reference markets.

For fiscal 2020, expected production is 1.71 million boe/d to 1.76 million boe/d including OPEC+ cuts, in line with the earlier guidance.

Eni expects a rebound in energy demand in 2021.

In Italy, Eni shares were trading at 8.24 euros, down 2.09 percent.