Eni’s petchems post €102m Q2 loss on margins

31 July 2008 09:53  [Source: ICIS news]

SINGAPORE (ICIS news)--Eni’s petrochemical division suffered a second-quarter net loss of €102m ($159m) as opposed to a profit of €51m for the same period a year ago on a steep decline in selling margins, the company said on Thursday.

"The petrochemical division incurred a loss at both the operating level and the bottom line due to a steep decline in selling margins of commodity chemicals, reflecting higher supply costs of oil-based feedstock that were not fully recovered in sales prices," it added in a statement.

The group’s consolidated net profit rose 52% to €3.4bn on high oil prices coupled with the improved operating performance by its exploration and production division which posted a €400m increase in earnings.

Looking forward, the management expects to spend around €14bn to develop oil and natural gas reserves, upgrade construction vessels and rigs and enhance its natural gas transport infrastructure.

($1 = € 0.64)

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By: Bohan Loh
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