Eni's Profit Halved on Saipem, Gas; Sees Strong 2nd Half Improvement

Eni SpA (E), Italy's biggest oil and natural gas company by market value, Thursday said it raised its interim dividend by 1.9% despite second-quarter adjusted net profit plummeting 55% on weak results from the gas and power business and oil services subsidiary Saipem SpA (SPM.MI).

Eni Chief Executive Paolo Scaroni said he expects a "significant" improvement in second-half results. The company also forecasts 2013 hydrocarbon output in line with that of last year, while gas sales are predicted to drop on the year, as are refining throughputs.

MAIN FACTS:

-Interim dividend rises to 0.55 euro ($0.73) a share from EUR0.54 a year earlier.

-Adjusted net profit, which is closely watched by analysts because it excludes changes in the value of oil inventories, slipped to EUR576 million from EUR1.29 billion a year earlier.

-Analysts had expected an adjusted net profit of EUR703 million.

-Adjusted operating profit declined by 51% to EUR1.95 billion versus EUR4.0 billion in the April-June period of 2012.

-Net sales from operations were EUR28.1 billion compared with EUR30.1 billion in the same period.

-Worldwide gas sales were down 5.5% at 19 billion cubic meters.

-Net debt rose to EUR16.49 billion at the end of June from EUR15.99 billion three months earlier.

-Production: 1.648 million barrels of oil equivalent a day versus 1.656 million.

-Wednesday, Eni shares closed at EUR16.61, giving it a market value of EUR60.4 billion.

Write to Liam Moloney at [e-mail]

Order free Annual Report for Saipem SpA

Visit http://djnweurope.ar.wilink.com/?ticker=IT0000068525 or call [phone]

Order free Annual Report for Eni SpA

Visit http://djnweurope.ar.wilink.com/?ticker=IT0003132476 or call [phone]

Order free Annual Report for Eni SpA

Visit http://djnweurope.ar.wilink.com/?ticker=US26874R1086 or call [phone]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires