27 April 2012 08:05 [Source: ICIS news]
SINGAPORE (ICIS)--Eni’s adjusted net loss from its petrochemicals business widened to €114m ($200m) in the first quarter of this year from a loss of €5m in the same period a year earlier, on higher oil costs, the Italian energy major said on Friday.
“The chemical sector reported substantial operating losses [at] €162m, from a near break-even situation reported in the first quarter of 2011,” the company said in a statement.
Earnings were negatively impacted by surging oil feedstock costs which squeezed margins, as demand “tracked a recessionary environment”, it said.
“This was particularly true for basic chemical commodities with the benchmark cracker margin falling in negative territory,” the company added.
On a group level, Eni’s adjusted net profit rose by 12.8% year on year to €2.48bn in the first three months of 2012, while adjusted operating profit grew by 26.5% to €6.45bn.
Its net sales from operations rose by 16.3% year on year to €33.5bn during the period, it said.
“Eni expects the 2012 outlook to be challenging due to signs of a continuing economic slowdown, particularly in the eurozone, and volatile market conditions,” the company said.
“Refining margins are anticipated to remain at unprofitable levels due to high costs of oil supplies, sluggish demand and excess capacity,” it added.
($1 = €0.76)
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