Eni posts another loss under pressure from low oil prices

By The Associated Press

Italian oil and gas company Eni reported Friday a third quarter loss that was worse than expected, under pressure from persistently low prices and the shutdown of a key Italian plant.

 

MILAN (AP) — Italian oil and gas company Eni reported Friday a third quarter loss that was worse than expected, under pressure from persistently low prices and the shutdown of a key Italian plant.

Eni said its losses narrowed to 562 million euros ($613 million) from a 790 million euro a year earlier. According to FactSet, Eni was forecast to suffer a net loss of 149 million euros in the third quarter.

Shares in the company, which is 30 percent government-owned, dropped 2 percent to 13.46 euros ($14.69).

Low oil and gas prices were partially offset by cost-cutting and an increase in production, with the resumption of full output at fields in Norway and Italy and the restart of Caspian Sea operations.

Eni said it expects oil and gas output for the year to be in line with 2015, despite the production losses due to the shutdown of the Val d'Agri complex in southern Italy due to a probe into the disposal of contaminated water. Eni has denied wrongdoing, and production resumed in September.

During the quarter, Eni also resumed full production at the Goliat oil field off Norway and restarted the Kashagan field in the Caspian Sea ahead of schedule, which CEO Claudio Descalzi said would boost cash flow from the fourth quarter onward.

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