Eni: profit drops 73% as oil prices plunge
(CercleFinance.com) - Eni on Friday reported a drop in fourth-quarter profit as the plunge in crude prices due to the Covid-19 crisis weighed on the Italian oil company's profitability.
Adjusted operating profit dived 73% to 488 million euros in the last three months of the year, a far cry from 1.8 billion euros in the fourth quarter of 2019, the company said.
Like other oil majors, Eni is feeling the pain from the low price of Brent crude, which averaged 44 dollars in the last quarter of 2020, down 30% from a year before (63 dollars).
Operating profit at the exploration and production unit - the company's main profit generator - slumped 61% to 802 million euros, from over 2 billion euros one year earlier.
In all, hydrocarbon production dropped 11% to 1.7 billion barrels per day.
Despite these better-than-expected results, investors remained cautious, and the shares fell 1.3% in Milan on Friday morning, with the company set to release a further update later today before CEO Claudio Descalzi's strategic presentation.
Copyright (c) 2021 CercleFinance.com. All rights reserved.
Adjusted operating profit dived 73% to 488 million euros in the last three months of the year, a far cry from 1.8 billion euros in the fourth quarter of 2019, the company said.
Like other oil majors, Eni is feeling the pain from the low price of Brent crude, which averaged 44 dollars in the last quarter of 2020, down 30% from a year before (63 dollars).
Operating profit at the exploration and production unit - the company's main profit generator - slumped 61% to 802 million euros, from over 2 billion euros one year earlier.
In all, hydrocarbon production dropped 11% to 1.7 billion barrels per day.
Despite these better-than-expected results, investors remained cautious, and the shares fell 1.3% in Milan on Friday morning, with the company set to release a further update later today before CEO Claudio Descalzi's strategic presentation.
Copyright (c) 2021 CercleFinance.com. All rights reserved.