Eni's Solid Upstream Overshadowed By Multiple Downstream Issues
Stephen Simpson, CFA
Stephen Simpson, CFA
Fri, Jun. 24, 2:11 PM
Thu, Jun. 9, 11:06 AM
- Eni (E -1.6%) and BP (BP -0.9%) say they made a significant natural gas discovery off the Egyptian coast, adding to a series of finds in the region in the last year.
- Eni, the operator, and BP each hold a 50% stake in the Baltim South exploration project in the Nile Delta.
- The discovery is 10 km from the Nooros field, which already is pumping 65K boe/day.
- Today’s news is “positive given unsatiated domestic gas demand” in Egypt, according to Tudor Pickering Holt.
Thu, May 19, 9:57 AM
- Eni (E -1.7%) says attackers have blown up one of its gas pipelines in Nigeria's Niger Delta, in the latest in a string of attacks on oil and gas facilities in the country.
- Eni says "sabotage" of the pipeline had affected 1K boe/day; a radical group calling itself the Red Egbesu Water Lions has declared responsibility for the attack.
- A wave of recent attacks in the Delta has cut oil output to 1.4M bbl/day from 2.2M bbl/day, as has impacted facilities operated by Exxon, Shell and Chevron.
Tue, May 17, 11:59 AM
- South Africa, seeking to reduce its dependence on coal-fired power, is creating a unit to import liquefied natural gas for power plants as suppliers including Cheniere Energy (LNG +1.9%) await fuel tenders for at least 3M tons in annual shipments.
- Bloomberg reports that Cheniere is among companies interested in supplying South Africa’s gas-to-power program, which plans to add 3,126 MW of capacity during 2019-25.
- The new government unit may consider regional gas supplies from Botswana and Mozambique, which expects Anadarko Petroleum (APC +1.8%) and Eni (E -1.1%) to make final investment decisions on LNG export projects later this year.
Fri, May 13, 3:11 PM
- Eni (E -1.6%) says production from an exploration well in the Nooros field offshore Egypt reached 65K boe/day, just 10 months after the initial discovery in the Nile Delta.
- Eni plans to more than double current production to 140K boe/day by year-end.
- Eni says its equity production in Egypt as of last year was ~200K boe/day and that full-scale production from the Nooros field should help Egypt reduce its dependency on foreign gas imports.
Tue, Apr. 12, 5:40 PM
Wed, Mar. 30, 12:45 PM
- Eni (E +2.7%) confirms that three people died when one of its oil pipelines in the Niger Delta region in Nigeria exploded during repair works.
- Eni believes the pipeline was damaged during an act of sabotage on March 24, after which production was shut and repair works were carried out; the repairs were concluded on Saturday, but the bodies not found until Sunday.
- Nigeria has suffered several attacks on pipelines in recent months, caused by attempted oil theft, including two refineries shut in January because of sabotage.
Wed, Mar. 30, 10:57 AM
- Nigeria is in talks with Chevron (CVX +1.2%), Total (TOT +2.8%) and Eni (E +4%) to get help in revamping the country's aging refineries, the oil minister tells Reuters.
- The country, Africa's top crude oil producer, has been trying to restart its outdated refineries in Port Harcourt, Warri and Kaduna to end its dependency on costly fuel imports.
- The minister also says the state-run oil firm NNPC has reached deals with oil majors, with which it works in joint ventures, to help make up for a shortage of dollars due to a slump in oil revenues hindering fuel imports.
Fri, Mar. 18, 10:34 AM
- Eni (E +1.5%) unveils a plan to sell €7B in assets by 2019, with a portion coming from stakes in recently discovered oil and gas fields, and €6B in cost cuts, including €3.5B derived from renegotiating existing contracts.
- In its new 2016-19 business plan, Eni says it expects oil and gas production to grow by more than 3%/year compared to the 3.5% growth outlined in the previous plan; by 2019, it aims to tap 1.6B boe and bring down breakeven prices on new projects to $27/bbl from the current $45/bbl.
- The company also says it will pay a dividend of €0.80/share on its 2016 earnings, the same level as last year.
Fri, Feb. 26, 8:24 AM
- Eni (NYSE:E) says its Q4 net loss more than tripled to €8.46B ($9.32B) from a year-earlier loss of €2.38B, as revenue fell by more than a third to €13.89B.
- A weakening euro, down 12% vs. the dollar in Q4, and an increase in production tempered what could have been an even bigger loss; Q4 output jumped 14% Y/Y to 1.88M bbl/day, the company's highest level in the past five years.
- However, shares are higher in European trading and +4.9% in U.S. premarket, as the Q4 standalone adjusted loss of €200M, after €4.7B in writedowns, came in better than analyst expectations.
- Eni says it will cut 2016 capital spending by 20% after a 17% reduction in 2015, but does not specify where the cut will be made; it gave no update on future dividends after last year being the first global oil major to cut its payout to shareholders.
- The company revised its view of prices for 2016-19 to $65/bbl from its previous forecast of $90/bbl, but the lower figure is still substantially above current Brent prices.
Tue, Jan. 26, 1:49 PM
- Oilfield services company Saipem (OTCPK:SAPMY) and energy group Ansaldo Energia (OTC:ASDOF) are among Italian companies that signed deals valued at ~€17B ($18.36B) during Iranian Pres. Rouhani’s visit to Europe, his first overseas trip since the European Union lifted sanctions on Iran.
- Eni (E +3.3%) - a majority owner of Saipem - also is among European companies expected to move quickly to resume business with Iran, which is eager to drum up foreign investment in sectors including energy after years of sanctions.
- Saipem entered an MoU with the Parsian Oil and Gas Development Co. to upgrade two refineries and a second one with the National Iranian Gas Co. on pipeline projects covering 1,800 km (1,100 miles); no financial terms were released.
- Italian steel firm Danieli (OTC:DNIFY) said during the visit it would sign deals valued at ~€5.7B, and French car maker Peugeot (OTCPK:PEUGF) is expected to complete an agreement to manufacture cars in Iran as part of a 50-50 JV with an Iranian automaker valued at more than €300M.
Tue, Jan. 19, 2:43 PM
- Anadarko Petroleum (APC -4.3%) says it achieved first oil at its Heidelberg field, the company's second of a pair of truss spar developments in the deepwater Gulf of Mexico.
- Lucius, the spar’s sister development, began production last January; the spars have design capacities of 80K bbl/day and 80M cf/day.
- APC operates Heidelberg and holds a 31.5% interest; partners include Freeport McMoRan (FCX -8.2%) and Eni (E -0.5%), each with a 12.5% stake; Statoil (STO -1.1%), with 12%, and Exxon Mobil (XOM -2.5%) and Cobalt Energy (CIE -10.4%), with 9.375% each.
Thu, Jan. 14, 3:26 PM
- Energy stocks are broadly higher as U.S. crude oil bounces off $30/bbl to end pit trading at $31.22, +2.6%; the SPDR Energy ETF (XLE +5.1%) soars 5%, with 36 of its 40 equity components trading higher, after closing yesterday at its lowest level since September 2010.
- Exxon Mobil (XOM +5.5%) and Chevron (CVX +5.9%) are the Dow's top two gainers; and pipeline companies sport strong showings with Kinder Morgan (KMI +8.2%), Plains All American Pipeline (PAA +11.7%) and Williams Cos. (WMB +27.4%) among the biggest winners.
- Among other major energy movers: ETE +22.6%, BP +7.6%, MRO +7.5%, OXY +7.1%, PBR +7%, COP +7%, RDS.A +6.7%, SE +6.1%, PSX +6.1%, ETP +6.1%, EPD +5.3%, APA +5%, E +4.6%, HES +4.1%, MPC +4.1%.
- Amid overwhelmingly negative sentiment, a few analysts are venturing out to say the worst may be over or nearly so: Deutsche Bank’s Torsten Slok thinks "we now have the worst behind us in terms of the negative impact of falling oil prices on the economy," and Gluskin Sheff’s David Rosenberg argues that the oil selloff is getting “long in the tooth.”
- ETFs: USO, OIL, XLE, UCO, UWTI, VDE, ERX, OIH, SCO, XOP, BNO, DBO, DWTI, ERY, FCG, DIG, GASL, DTO, DUG, BGR, USL, XES, IYE, IEO, IEZ, DNO, FENY, PXE, PXI, PXJ, FIF, OLO, SZO, NDP, RYE, FXN, OLEM, DDG
Mon, Jan. 11, 10:43 AM
- Eni (E +1.6%) says it has started production from the Mpungi Field in the West Hub development project offshore Angola, with plans to ramp up production to ~199K bbl/day of oil per day later this quarter.
- The start-up of Mpungi field follows the West Hub’s first oil from the Sangos field in November 2014 and the Cinguvu field in April 2015.
- The West Hub project encompasses the development of the Sangos, Cinguvu, Mpungi, Mpungi North, Ochigufu and Vandumbu fields.
Dec. 15, 2015, 11:33 AM
- Statoil (STO +2.7%) says its development of the Johan Castberg oil field will move ahead as planned despite the decision by Norway's oil ministry to give up seeking permission from European competition authorities to provide state support to the project.
- Norway had wanted to offer a package of incentives to STO and partner Eni (E +2%) to help set up an onshore processing oil terminal for the field, which is believed to contain up to 650M boe.
- Separately, STO awards contracts worth up to NOK24B ($2.77B) for the maintenance of its offshore and onshore oil and gas installations in Norway, saying it had designed a new compensation system to save more money on oil services.
Dec. 8, 2015, 3:36 PM
- "What is worrying me is not the price of today; it is what is happening in the industry,” Eni (E -2.8%) CEO Claudio Descalzi tells Bloomberg, worried that the global oil industry is set to repeat this year’s $200B of investment cuts in 2016 and "create in the mid term an imbalance between supply and demand."
- Consultants at Rystad Energy say spending has been cut by $250B this year from 2014, with another $70B reduction in store 2016 - a figure that may move higher following OPEC’s decision to set aside its production target.
- Descalzi also says a “right price” for Brent oil is $60/bbl, which fell below $40 today for the first time in almost seven years.
Eni SpA engages in the exploration and production of oil and natural gas; processing, transportation, and refining of crude oil; transport of natural gas; storage and distribution of petroleum products; and the production of base chemicals, plastics and elastomers. It operates through the... More
Sector: Basic Materials
Industry: Major Integrated Oil & Gas
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