Eni Q4 petchem profits up on better margins

23 February 2007 07:56  [Source: ICIS news]

SINGAPORE (ICIS news)--Eni’s petrochemicals division more than doubled its adjusted operating profit in the fourth quarter to €154m ($202.6m) from the same period a year ago due to higher margins, the Italian major said on Friday.

The division’s adjusted net profit was up 120% to €141m in the fourth quarter, the oil, gas and chemicals producer said in a statement.

For the full year, the adjusted operating profit for its petrochemicals business fell 16.1% to €219m while its adjusted net profit was down 23.3% to €174m.

To spur growth, Eni said it will increase capital expenditure in 2007 from 2006’s €7.8bn to develop oil and natural gas reserves, upgrade its refineries, retail network and natural gas import and transport infrastructure.

The outlook for 2007 remained positive as sales volumes of natural gas in Europe, electricity sales and retail sales of refined products in Italy are forecast to increase, it added.

At group level, Eni’s adjusted operating profit fell 1.7% to €2.4bn due to a negative impact from an 8.5% rise in the euro against the dollar, higher exploratory expenses and a weak refining performance. Its adjusted net profit fell 27.8% to €1.5bn.

For the full year, its adjusted operating profit rose 12.5% to €10.4bn and adjusted net profit increased 4.9% to €9.2bn.

The return on average capital employed was 22.7%, up from 20.5% in 2005.

($1=€0.76)


By: Florence Tan
+65 6780 4359



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