Eni SpA, Italy’s largest oil producer, reported better-than-expected third-quarter earnings as higher oil prices offset lower production from Libya.
Adjusted net income increased 7 percent to 1.8 billion euros ($2.5 billion) from 1.7 billion euros a year earlier, the Rome-based company said today in a statement. That compares with the 1.5 billion-euro average estimate in a Bloomberg survey of 15 analysts. Output fell 14 percent in the quarter to 1.47 million barrels of oil equivalent a day.
Eni said 2011 production will fall 10 percent compared with last year due to lower output from Libya, where the conflict to oust Muammar Qaddafi closed fields. Eni resumed operations in Libya in September and said gas output will probably return to normal in the coming months, while oil production will be back to pre-war levels in a year. Eni pumped about 280,000 barrels of oil equivalent a day before the unrest.
“I am very pleased by the fast resumption of hydrocarbon production in Libya and the restart of the GreenStream pipeline,” Chief Executive Officer Paolo Scaroni said in the statement.
Eni confirmed that no damage was reported to its Libyan facilities and its Tripoli offices have re-opened.
Some of the lost Libyan production will be recovered by increasing production in areas like Nigeria, Norway, Egypt, Angola and the U.K., the company said. Eni is also planning to start new fields in Italy, Egypt and Nigeria in the fourth quarter.
Gas revenue fell 3.4 percent in the period as margins declined due to sluggish demand and oversupply. While refining margins in the Mediterranean area are improving, margins are expected to remain at unprofitable levels, Eni said.
