UPDATE: Italy Erg CEO: Hopes To Confirm 09 Dividend At EUR0.40/Share

BERLIN (MF-DJ)--Italian oil refiner Erg SpA (ERG.MI) hopes to pay EUR0.40 a share dividend for 2009 despite a difficult year, Chief Executive Alessandro Garrone told reporters in Berlin Monday.

"I hope to bring to the shareholders' meeting the confirmation of a dividend of EUR0.40," Garrone said, adding the company's policy is to distribute a constant or higher dividend every year.

Erg's CEO said the second half of 2009 wasn't better than the first half. Erg, Italy's biggest independent refiner by capacity, swung to a second-quarter net loss, hurt by weaker demand for its products due to the economic slump and weaker refining margins. Garrone added that dividends will depend above all on the first part of 2010 and on the outlook for the following three years.

On 2008 results ERG paid a EUR0.40 a share ordinary dividend plus a EUR0.50 a share one-time extraordinary dividend, with proceeds from selling 49% of the Priolo refinery in Sicily to Russian oil company Lukoil (LKOH.RS).

Garrone also said Monday the company's financial situation is good following the deal with Lukoil, and he remains optimistic the company can cope despite the economic slump.

-By Rosario Murgida of MF-DJ and Chiara Vasarri, Dow Jones Newswires; [phone]; [e-mail]