Italy’s eni spa (adr) reports massive loss amid oil price slump

Eni SpA (ADR) ( NYSE:E) stated that it achieved outstanding results in executing strategy of efficiency enhancement, capital expenditure optimization, and organic growth. Working at noodles and company The company still reported a net loss, but it could have been worse, had it not been for improved efficiency and strategic decisions. Noodles and company woodbury The sound results are commendable especially when the commodity prices have taken a dip in the recent past.

One of the oil major companies, Eni Spa reported its first quarter of fiscal 2016 (1QFY16) financial results on Friday before the market open. Noodles and company headquarters Eni Spa reported a net loss of $897.8 million (€792 million) in the first three months of 2016. Noodles and company hudson wi The bottom line fell by €832 million reported in the last year’s first quarter. Noodles and company new berlin The massive decline is attributed to a prolonged downturn in oil prices, driven by oil glut and charges related to subsidiary. Noodles andcompany Revenues for the quarter stood at €12.35 billion, down by 38.1% from €19.98 billion in the first quarter of 2014.

Adjusted operating profits — excluding its chemical division known as Versalis which is expected to be monetized — dipped by 69% year-on-year (YoY) to €472 million. Noodles and company menu prices The Street had estimated operating profits to plunge further to €220 million, but solid performance by Eni Spa’s power and natural gas division helped the company report better operating margins.

In the first quarter of 2016, the refining & marketing segment reported adjusted operating profit of €66 million, down by €26 million or 28% YoY. Noodles nd company The results reflect a deteriorated refining margin scenario, partially counter balanced by optimization and efficiency initiatives. Noodles and company to go Furthermore, marketing activities reported better results on the back of improved margins, compared to the depressed environment one year ago.

For the first three months of first quarter 2016, the gas & power segment reported an adjusted operating profit of €285 million, down by €9 million or 3.1% from the first quarter of 2015. What is noodles This reflected lower one-off benefits associated to contract re-negotiations and other non-recurring events, lower margins on LNG sales due to an unfavorable trading environment, partially counterbalanced by optimization initiatives, and reduced logistical costs. Noodles locations Production

Eni’s hydrocarbon production for the first quarter clocked in at 1.754 million barrels of oil equivalent per day (BOEPD), 3.4% higher YoY. Noodles and company draper Excluding the price effects reported in Production Sharing Agreement, production was up 1.3% YoY due to new start-ups in the US, Venezuela, Egypt, Congo, and Angola. Noodles etc chicago Also, as the glut continues and prices remain low, the company does not expect its production to surge in 2016 as compared to previous years. Noodles and company louisville Outlook

After hitting a 13-year low in February to below $30 per barrel, the price of crude oil has recovered to around $40 dollar-mark, thanks to signs of production cap and reduction in oil stockpiles. Noodles and things However, Eni Spa’s management believes that the current fundamentals of the oil market remain fragile with the price of crude oil exposed to potential negative factors including weak Chinese demand – second largest consumer of oil – in the medium and long term.

In order to tackle the low oil price, which is expected to persist till late 2016, Eni Spa’s management plans to escalate efforts to optimize capital expenditure and reduce operating costs by tapping the deflationary pressure triggered by low oil price environment. Noodles history Other Developments

In the past couple of days, other oil major companies such as Statoil ASA, BP, Total reported better-than-expected results, due to initiatives of steep capital expenditure reduction and some comfort provided by the refining arm of the companies.

Eni Spa’s closest competitor, Total, also reported its quarterly results earlier. Noodles fast food Total reported first quarter 2016 (1QFY16) profit of around $1.64 billion, as the company curtailed its investment programs and some comfort was provided by the downstream segment of the company. Noodles and company texas Also a surprise profit was also reported by BP Plc on Tuesday, driven by better-than-expected trading and refining performance.