Eni Slips To Hefty Loss In Q1, Sees Complicated FY20; Suspends Share Buyback

(RTTNews) - Italian oil and gas company Eni SpA (E) reported Friday that its first-quarter net loss was 2.93 billion euros, compared to net profit of 1.09 billion euros a year ago. Loss per share were 0.82 euro, compared to profit of 0.30 euro a year ago.

The company said the loss mainly reflected the alignment of the book value of inventories to market prices current at the end of the quarter.

Adjusted net profit was 59 million euros or 0.02 euro per share, compared to prior year's 992 million euros or 0.28 euro per share.

Adjusted operating profit fell 44 percent from last year to 1.31 billion euros. The company noted that the quarterly results were affected by the combined impact of an ongoing economic recession due to the COVID-19 and falling energy prices.

Overall, EBIT was above market forecasts.

Hydrocarbon production of 1.774 million boe/d was 3.6 percent lower than the first quarter of 2019. Net of price effects, the decline was 50 percent due to lower volumes in Libya.

Looking ahead, the company said it expects a complicated 2020. Eni assumes a gradual recovery in global consumption of oil, natural gas and power in the second half of the year, particularly in Eni's reference markets.

The company said it expects a production level of 1.75-1.80 mboe/d in 2020, which is lower than initial projections.

Further, the company reduced outlook for Brent crude oil prices, down to 45 $/bbl and 55 $/bbl respectively in 2020 and 2021.

The company also suspended the share repurchase plan for 2020.