Italian oil and gas firm Eni S.p.A. (E) Friday reported 1.96 billion euros loss from continuing operations for its fourth quarter that reflected impairment losses as well as a write-down related to Italian subsidiaries. Meanwhile, quarterly sales and production increased from last year. The board has also proposed a higher full-year cash dividend.
In the fourth quarter, the company posted a net loss attributable to shareholders from continuing operations of 1.96 billion euros or 0.54 euros per share, compared to a profit of 1.32 billion euros or 0.36 euros per share last year.
Loss per American Depository share or ADR was $1.40, in comparison with earnings of $0.97 per ADR a year ago.
The company said its recent-quarter results were negatively impacted by impairment losses of 2.86 billion euros, compared to 725 million euros last year. The impairments were mostly in the gas marketing and refining businesses, driven by a reduced profitability outlook on the back of the ongoing European downturn.
In addition, 1.03 billion euros of a write-down was recognized on possible future recovery of certain deferred tax assets of Italian subsidiaries. Further, the prior-year quarter was benefited by a gain of 1.04 billion euros on divestment of Eni's interests in the international gas pipelines.
Excluding items, adjusted net profit attributable to Eni's shareholders was 0.42 euros, while it was 0.43 euros per share a year earlier. Adjusted earnings per ADR was $1.09 for the recent quarter.
Fourth-quarter net sales from continuing operations climbed 9.9 percent to 32.57 billion euros.
Oil and natural gas production in the quarter totaled 1,747 million barrels per day or mmboe/d, up from 1,678 million barrels per day in the same quarter last year. Natural gas sales declined 1.5 percent to 25.08 billion cubic meters.
Capital expenditure of continuing operation for the fourth quarter was 3.89 billion euros.
For 2013, the company expects production of liquids and natural gas to grow compared to 1.701 million boe/day in 2012. In 2013, the management expects a capital budget in line with capital expenditure of 12.76 billion euros in 2012.
In addition, the board plans to submit a proposal for distributing full-year cash dividend of 1.08 euros per share, up from 1.04 euros in 2011, at the annual shareholders' meeting, which included an interim dividend of 0.54 euros per share paid in September 2012. The balance of 0.54 euros per share is payable to shareholders on May 23, 2013. In Milan, Eni shares closed Thursday's trading at 17.32 euros, down 1.81 percent.
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