Eni forecasts weak 2012 as Europe falters
ITALIAN oil and gas group Eni sees economic gloom in Europe hurting its business in 2012, yesterday citing “poor recovery prospects” for its gas business and “a depressed trading environment” for its loss-making refining division.
Reporting results ahead of a strategy presentation due next month, the company said it expects oil and gas output to grow from last year’s 1.58m barrels a day.
However, this would be driven by a post-war recovery in Libyan production, which has already returned to 80 per cent of its 270,000 barrels-a-day norm.
A rare bright spot in the announcement was a new gas discovery offshore Mozambique.
“Recovery perspectives look poor in the gas sector,” the company said in a statement yesterday. “Gas demand is expected to be soft due to slow economic activity and increasing competition from renewables.”
Adjusted net profit in the fourth quarter fell 9.5 per cent to €1.54bn (£1.2bn) on the poor gas and refining performance.
Natural gas sales fell 11 per cent in the final quarter on weak demand and competitive pressure from oversupply.