ENI sees growth in 2011 on output rise

City A.M. Reporter
ITALIAN oil and gas company Eni trimmed its 2010 output view to flat but said it expected stronger growth from next year as new fields come onstream and others ramp up production.

“[We confirm] our full year production target [will be] in line with 2009,” Claudio Descalzi, head of exploration and production, told analysts yesterday. On April 23, Eni had raised its outlook for 2010 hydrocarbon output when posting first-quarter results, saying it expected production to be slightly higher than in 2009.

Eni, which has 41 development projects under way from now to 2013 spanning from Africa to the Far East and the Arctic, confirmed its earlier target of a 2.5 per cent annual output increase in 2010-2013.

“The growth will become evident from 2011 onwards,” with some fields ramping up output and new ones coming onstream, Eni Senior Vice President for Development Antonio Panza said.

“It was a positive afternoon with lots of detail on the net present value offering of Eni. Long-term investors will go away and realise that Eni is very cheap on this value,” ING analyst Jason Kenney said. ING has a “buy” rating on Eni. Eni shares closed up 0.07 per cent at €14.69.