A Review of the Nigerian Energy Industry

Eni sees 9% profit jump

15 February 2012, Sweetcrude, HOUSTON – Italian oil and gas giant, Eni, says its full year net profit jumped by 9.1% to $9.07 billion (€6.89 billion ) in 2011, from 2010.

According to the firm, which is the parent company of Agip, the growth in net profit was helped by higher oil and gas prices, which also helped it out a fall in production from its Libyan activities during the months of crisis in the country.

The net profit grew by €573 million, largely due to better results from the company’s exploration and production division.

In the fourth quarter of 2011, Eni’s adjusted net profit was down 9.5% on the fourth quarter 2010 to €1.54 billion, reflecting lower operating results and a higher consolidated adjusted tax rate.

The 2011 rise was largely due to higher oil and gas prices as well as the depreciation of the euro against the US dollar, resulting in a 15.8% or €2.19 billion rise in adjusted operating profit, to €16.08 billion.

This came despite a 13% fall in production for the year to 1.6 million barrels of oil equivalent per day, brought on mainly by the six-month shutdown of the company’s Libyan interests during the height of the unrest in the nation.

But the outlook on future production was positive, Eni said, with 80% of its Libyan output now online and gas exports restarted.

Company chief executive officer, Paolo Scaroni, said 2011 was a year of significant exploration success for Eni, which had made important discoveries in the Barents Sea, Angola and South-East Pacific over the year.

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