ENI LOSS €0.95 BLN
Third Quarter Highlights and FY 2015 outlook
- Divestment of interest in Saipem: agreed the terms of the sale of a 12.5% interest to FSI. At closing, expected in first quarter of 2016, Saipem will be derecognized and Eni will be reimbursed of its financing receivables by €6.1 billion net. Pro-forma leverage as of September 30 decreasing by 8 percentage points.
- Exploration success: discovered more than 1.2 bn boe resources, at an average cost of 0.6 $/boe versus a planned target of 500 mm boe in 2015 at an average cost of more than 2 $/boe. Giant Zohr discovery in the Mediterranean Sea.
- Strong hydrocarbon production growth: up 8.1% to 1.703 million boe/d in the quarter (up 8.7% in the nine months). Excluding price effects, production increased by 4.3% (up 4.9% in the nine months). FY 2015 production is now seen growing by about 9%, up from a prior guidance of more than 7%.
- Robust R&M and Chemicals performance: best adjusted EBIT since the third quarter of 2006 due to the restructuring plan and a favourable trading environment. FCF is projected to be positive as early as in 2015, anticipating the original plan by two years.
- Improved G&P performance: enhanced adjusted EBIT guidance, now expected to substantially break even in 2015, in spite of delayed settlement of ongoing arbitrations.
- Further cost reduction: raised the target reduction of FY capex to 17% from a prior guidance of a 14% cut; opex per barrel expected to decrease by 12% to 7.3 $/bl (previous guidance was down by 7%).
- Self-financed capex: when excluding Saipem, capex organically financed as early as in 2015 at a Brent scenario of 55 $/b.
- Entrance in new countries: upstream of Mexico with the operatorship of three offshore oilfields.
- Cash flow: €1.71 billion for the quarter (€7.39 billion in the nine months).
- Adjusted operating profit excluding Saipem: €0.6 billion in the quarter (down 79%); €3.51 billion for the nine months (down 60%).
- Adjusted net profit excluding Saipem: loss of €0.29 billion in the quarter; €0.76 billion for the nine months (down 76%).
- Net loss: €0.95 billion for the quarter; €0.36 billion in the nine months.
- Net borrowings: €18.41 billion at the end of September; leverage at 0.30 (0.22 as of December 31, 2014).
Claudio Descalzi, Chief Executive Officer, commented:
"Saipem's stake sale and deconsolidation marks another significant step in Eni's transformation as we refocus on our core business.
It increases our financial flexibility, freeing up resources to support our strategic plan. In the meantime we retain a significant share in Saipem and we will participate in its capital increase, strengthening its financial solidity and the execution of its new business plan. In the quarter, despite a weak oil price environment, Eni continued to deliver strong growth in upstream and important progress in restructuring the mid and downstream businesses. 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. This has all been achieved at a lower exploration cost. Meanwhile, we have improved our guidance for G&P, while R&M and Chemicals are on track to deliver an excellent performance and positive cash generation in 2015. These businesses continue to benefit from the restructuring and efficiency initiatives we have been implementing and from the favourable pricing environment. These actions, along with the further optimization of our investments during the year and the improvement of our operational cost structure, will allow us to cover our investments in 2015 with organic cash flow, excluding Saipem and considering a 55 $/b oil price scenario."
|November, 20, 09:35:00|
|November, 20, 09:30:00|
|November, 20, 09:25:00|
|November, 20, 09:20:00|
|November, 20, 09:15:00|
|November, 20, 09:10:00|
REUTERS - India’s natural gas consumption is expected to rise to 70 billion cubic metres (bcm) by 2022 and 100 bcm by 2030, according to a government think tank and the Oxford Institute of Energy Studies, up from 50 bcm now. India burns just 7 percent of what top user the United States consumes in a year with about a quarter of India’s population.
Norway, which relies on oil and gas for about a fifth of economic output, would be less vulnerable to declining crude prices without its fund investing in the industry, the central bank said Thursday. The divestment would mark the second major step in scrubbing the world’s biggest wealth fund of climate risk, after it sold most of its coal stocks.
WSJ - Light, sweet crude for December delivery rose $1.41, or 2.6%, to $56.55 a barrel on the New York Mercantile Exchange, snapping a three-session losing streak. Brent, the global benchmark, advanced $1.36, or 2.2%, to $62.72 a barrel.
U.S. Rig Count is up 327 rigs from last year's count of 588, with oil rigs up 267, gas rigs up 61, and miscellaneous rigs down 1 to 1. Canada Rig Count is up 24 rigs from last year's count of 184, with oil rigs up 9 and gas rigs up 15.