Eni profits down 57 per cent

Saipem chief Executive Paolo ScaroniItalian energy group, Eni, reported a 57% drop in quarterly profits on Wednesday.

The sharp drop in profit was as a result of production drops and lower crude prices affecting its exploration and production division.

Net profits stood at €1.54 billion ($2 billion) for the three months to March, down from €3.61 billion in the year-ago period.

Eni has been confronted by a production drop of 4.9%, for a total of 1.6 million barrels of oil equivalent per day, due to “one-off” events in Nigeria, Libya and the UK.

Chief executive Paolo Scaroni acknowledged a “slower first quarter” but said the company would maintain its guidance numbers.

“Our E&P Division confirms its production growth targets for 2013 driven by continuing progress in developing ongoing projects,” he said in a statement.

Also affecting results was a 46% drop in earnings after “weak” performance from the engineering and construction division, which was “adversely affected by falling demand for oilfield services and lower margins at certain works.”

About the Author