Italy's Eni petchems division swings to Q3 net loss of €57m

27 October 2011 13:30  [Source: ICIS news]

LONDON (ICIS)--Eni’s petrochemicals division swung to an adjusted net loss of €57m ($79m) in the third quarter, from a net profit of €18m in the same period last year, despite a rise in sales, the Italian energy major said on Thursday.

Net sales from the business segment during the third quarter rose by 7.4% year on year to €1.60bn.

Eni’s petrochemicals division reported an operating loss of €122m in the third quarter of 2011, from a gain of €24m in the same period last year.

The company said its petrochemicals division had been affected by falling product margins, with the cracker margin severely hit by higher supply costs of oil-based feedstock that were not recovered in sales prices at end markets.

The business was also hit by a substantial decrease in demand because of expectations of a reduction in prices of petrochemical commodities on the marketplace, Eni added.

At group level, the company reported an adjusted third-quarter net profit attributable to shareholders of €1.80bn, a rise of 7.0% year on year.

Net sales from operations came in at €26.1bn, up by 15% year on year, while operating profits jumped by 10.3% from the same period in 2010 to €4.50bn.

“Eni delivered excellent results in the quarter. We have strengthened our portfolio thanks to the agreements with Gazprom which initiate the development of our upstream operations in Siberia, and to our continued exploration successes, most recent of which was in Mozambique where we made the largest hydrocarbon discovery in Eni's history,” said CEO Paolo Scaroni.

($1 = €0.72)


By: Franco Capaldo
+44 (0)20 8652 3214



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