Italy’s Eni’s petrochemical division Q2 loss unchanged at €23m

29 July 2011 08:26  [Source: ICIS news]

SINGAPORE (ICIS)--Eni’s petrochemical division has reported an adjusted net loss of €23m ($32.9m) in the second quarter of this year, unchanged from the same period in 2010, the Italian oil giant said on Friday.

This is in line with high feedstock costs and lower demand from end-users, the company said in a statement.

The division’s net sales rose by 2.9% year on year to €1.75bn in the second quarter of the year, while its adjusted operating losses widened by €19m to €30m, the statement said.

This was negatively impacted by lower margins as high supply costs of oil-based feedstock were not fully recovered in sales prices on end-user markets, the statement said.

Eni’s customers were expecting the prices of petrochemical commodities to fall in the marketplace, which caused demand to weaken.

As a result, the softened demand weighed on the firm’s operational earnings, the company added.

On a group-wide basis, Eni’s adjusted net profit attributable to shareholders fell by 13.9% year on year to €1.44bn in the second quarter, while net sales from operations rose by 7.4% to €24.6bn.

For the first half of 2011, the company’s petrochemical division narrowed its adjusted net loss to €28m, from €66m in the same period in 2010.

Eni’s sales in January-June grew by 11.7% year on year to €3.17bn, while operating loss narrowed by 40% to €42m.

On a group level, Eni’s adjusted net profit attributable to shareholders for the first half of 2011 rose by 4.2% year on year to €3.63bn, while net sales from its operations grew by 11.9% to €53.4bn.

($1 = €0.70)

By: Nurluqman Suratman

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