Eni Swung to 3Q Loss But Says Performance Improved on Quarter

   By Giulia Petroni 
 

Eni SpA said Wednesday that it swung to a loss in the third quarter as the pandemic hurt energy demand, but that its business improved compared to the previous quarter.

The Italian oil major said it registered a quarterly loss of 503 million euros ($593.4 million) compared with a profit of EUR523 million in the previous-year period.

On an adjusted basis, net loss came in at EUR153 million. Analysts had forecast a loss of EUR180 million, according to a consensus provided by the company.

Adjusted operating profit was EUR537 million compared with EUR2.16 billion last year and analysts' expectations of EUR100 million.

"Results were significantly impacted by the combined effects of the economic downturn due to Covid-19," said Eni. "The third-quarter performance showed a noticeable improvement over the previous quarter due to a better balance in oil market fundamentals."

Sales fell 38% on the year to EUR10.33 billion.

Hydrocarbon production in the quarter was 1.70 million barrels of oil equivalent a day, down 10% on the year due to the pandemic, the Organization of the Petroleum Exporting Countries' cuts and lower gas demand.

Eni said it expects business trends in the fourth quarter to be in line with the quarter just ended, as the fundamentals of the oil market remain weak. The price of Brent crude is seen at around $40 a barrel for the year, according to the company.

Write to Giulia Petroni at [e-mail]

(END) Dow Jones Newswires

October 28, 2020 08:30 ET (12:30 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.