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ENI S.p.A. (E)

  • Thu, Mar. 26, 3:18 PM
    • Italy's Eni (E -0.5%) and Korea Gas fail to find commercial hydrocarbons off Cyprus, the country's energy minister says, marking another strike out for energy exploration in what has been considered a promising region.
    • A consortium between the two companies also failed to discover exploitable reserves during drilling at a different location within the same offshore block in 2014; France's Total also failed to find notable reserves to warrant drilling in Cypriot waters last year.
    • The area's only major gas find so far is Noble Energy's 2011 discovery of a field with an estimated 4.5T cf of gas, but it is close to Israel's Leviathan with its estimated 22T cf of reserves.
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  • Mon, Mar. 23, 6:45 PM
    • Oceaneering International (NYSE:OII) says it has won a $100M contract with Eni (NYSE:E) as part of a consortium with GE Oil & Gas to supply equipment for the Offshore Cape Three Points project off Ghana.
    • OII's scope of work is to supply electro-hydraulic steel tube umbilicals totaling ~32 miles in length, and the contract adds more than $100M to its subsea products backlog.
    • OII expects product manufacturing to be completed by Q4 2017.
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  • Fri, Mar. 20, 7:53 AM
    • Royal Dutch Shell (RDS.A, RDS.B) says its Nigerian subsidiary has sold its 30% stake in an oil mining lease and related facilities in the eastern Niger Delta to Eroton Exploration & Production for $737M.
    • Eroton also took additional stakes in the area from subsidiaries of Total (NYSE:TOT) and Eni (NYSE:E).
    • Shell says the divestment is part of the strategic review of its onshore portfolio, and that it is committed to keeping a long-term presence both onshore and offshore Nigeria.
  • Thu, Mar. 19, 12:26 PM
    • Royal Dutch Shell (RDS.A, RDS.B) is making no progress curbing oil spills in Nigeria and Eni’s (NYSE:E) operations in the country are out of control, according to Amnesty International.
    • The two companies reported more than 550 spills in the oil-rich Niger River delta last year, compared with an average of 10 spills a year in Europe during 1971-2011, Amnesty says; last year, Shell, the biggest oil producer in Nigeria, reported 204 spills while Eni reported 349 spills.
    • Nigeria produces ~2M bbl/day of oil, more than any other African country, and spills are blamed for damaging the environment and fishing villages in the delta.
  • Mon, Mar. 16, 12:55 PM
    • Eni (E -2.1%) says it has made a significant discovery of gas and condensate with a wildcat well drilled at its Bahr Essalam South exploration prospect off Libya.
    • The well produced 29M cf/day and 600 bbl/day of condensate during the production test; once producing, the well is expected to deliver more than 50M cf/day and 1K bbl/day of condensate.
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  • Mon, Mar. 16, 9:14 AM
    • Eni (NYSE:E) signs a framework agreement with Egypt worth $5B over 4-5 years for concessions in the Mediterranean, the Western Desert, the Nile Delta and Sinai.
    • Oil Minister Sherif Ismail says he expects the investment in several discoveries would generate production of 200M barrels of oil and 1.3T cf of gas.
    • Eni, which started Egyptian operations in 1954, currently produces ~210K boe/day.
    • Also: BP signs $12B Egypt energy deal
    • Also: Siemens signs €10B in power plant deals with Egypt
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  • Fri, Mar. 13, 3:44 PM
    • Eni (E -5.9%) is 6% lower after becoming the first global oil major to cut its dividend, as well as suspending the €6B ($6.7B) share buyback plan it announced last year.
    • BP and Royal Dutch Shell (RDS.A, RDS.B) have said they would do their utmost to continue paying high dividends and would rather cut operating and capital spending, sell assets and increase borrowing than reduce payouts.
    • "Everyone was convinced they'd do all they could to keep the dividend steady," says a fund manager at Ifigest, adding that the capex cuts and intensity of the asset sales - the company is eyeing ~$8.5B in sales - also are causes for concern.
    • UBS calls Eni’s decision to cut the dividend a “bold step” because the higher payout risked skewing strategy to protect it; Eni’s dividend payout is now below several peers, including Shell, though the comparison is somewhat false as the other companies are paying partly in shares, UBS adds.
    • Despite a proposed a 17% cut in planned capital spending over the 2015-18 period compared to previous plans, Eni says production will grow 3.5%/year in the four years on the back of several projects started in 2014 in Angola, Congo, the U.K., the U.S. and Norway.
  • Fri, Mar. 13, 11:13 AM
    • Eni (E -5.2%) staggers to two-month lows after its new strategic plan outlines sharply lower spending, a big dividend cut and asset sales totaling €8B ($8.5B) over the next four years amid lower oil prices.
    • Eni traditionally has one of the highest dividend payouts in the industry, but it now plans to pay an annual dividend of €0.80/share, a 29% reduction from last year.
    • Eni's four-year plan for 2015-18 projects a 17% drop in capex compared with its previous plan.
  • Tue, Mar. 10, 2:27 PM
    • Exxon Mobil (NYSE:XOM) and Royal Dutch Shell (RDS.A, RDS.B) are likely to withstand the oil price collapse better than their rivals because they are closer to finishing expensive investment projects, according to a Reuters analysis.
    • Chevron (NYSE:CVX) and Total (NYSE:TOT), on the other hand, are both in the midst of large project spending cycles and will need to tap into more debt in order to stay afloat.
    • While all companies are expected to keep paying high dividends by increasing borrowing, Exxon and Shell appear to be most able to cover both spending and dividend payouts if oil prices stay at current prices, and are likely to be able to pick up bargain assets while the price collapse shakes out the sector.
    • Exxon and Shell also are ahead in terms of where their cash flow breaks even: According to analysts at Jefferies, both have 2015 breakevens of $75-$80/bbl, healthier than Chevron, BP and Eni's (NYSE:E) respective breakevens of $95, $100 and $120.
  • Tue, Feb. 24, 10:14 AM
    • Oil production in the British section of the North Sea continued to decline in 2014 amid rising costs, high taxes and low oil prices, according to a report from an industry lobbying group which wants the U.K. government to cut taxes and streamline the complex regime for the oil and gas sector.
    • British North Sea production in 2014 fell 1.1% Y/Y to 1.42M boe/day, the report says, down ~70% since the area's peak in 1999.
    • The report notes that oil companies drilled only 14 exploration wells last year in the British part of the North Sea, vs. ~70 exploration wells drilled in the nearby Norwegian sector, where the government offers more generous tax incentives.
    • Among the North Sea's major producers: BP, RDS.A, RDS.B, COP, E, BHP, TOT, CVX, CEO, OTCPK:BRGXF, OTCQX:BRGYY, OTCQX:REPYY, OTCPK:REPYF
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  • Wed, Feb. 18, 9:02 AM
    • ENI (NYSE:E): Q4 EPS of €0.13
    • Revenue of €27.45B (-10.0% Y/Y)
    • Shares +2.45% PM.
    • Press Release
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  • Wed, Feb. 18, 3:52 AM
    • A sharp drop in crude prices wreaked havoc on Eni's (NYSE:E) Q4 results, as the Italian oil and gas group reported lower profits and hefty write-downs.
    • Adjusted profit fell by two-thirds to €464M, way below analysts' estimates of €614M, while the company marked down the value of its inventories by €860M and booked asset impairments and other charges of €1.94B.
    • Placating investors, Eni slightly raised its yearly dividend to €1.12 a share, from €1.10 a year ago.
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  • Tue, Feb. 17, 4:39 PM
    • Eni (NYSE:E) says it has reduced the number of expatriates working in Libya but that remaining expats and local workers were enough to guarantee normal production activities in the war-torn country.
    • Libya, which relies on oil revenue for almost its entire budget, is producing less than 200K bbl/day, down from 1.6M bbl/day before Qadhafi's ouster in 2011; Italy, which traditionally has held close ties with Libya, closed its embassy in Tripoli on Sunday.
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  • Tue, Jan. 27, 5:25 PM
    • Commodities trader Vitol and Italian energy company Eni (NYSE:E) receive final approval from Ghana's government to develop a $7B offshore oil and gas project, in the largest project backed by foreign investment in the country since gaining independence in the 1950s.
    • The Offshore Cap Three Point project would produce 15 years worth of gas for Ghana’s domestic power stations as well as crude oil for sale on international markets.
    • Vitol and Eni expect oil to start flowing from the project’s five fields in 2017, with gas production expected to start a year later.
    • The decision to go ahead with the project comes as many oil and gas companies are looking to cut costs and reduce spending on big developments because of sharply lower oil prices.
  • Fri, Jan. 23, 2:58 PM
    • As investors come to terms with the ~20% drop in shares of European oil company shares since last June, their focus will now turn to how the companies will maintain cherished dividends while coping with the collapse in oil prices.
    • So far there is no hint of any major oil companies scaling back their dividend payouts, which long have been the key attraction for investors; BP's Bob Dudley says the dividend is "rock solid," and CEOs at Total (NYSE:TOT) and Eni (NYSE:E) also recently said they would maintain dividends.
    • Analysts at Nomura and Barclays foresee an average 7% Y/Y decline in 2015 spending for the European oil majors, but with a large part of this year's project spending already committed, borrowing is inevitable to keep up dividend payouts.
    • Shell (RDS.A, RDS.B) is seen by several analysts as best able to cope in the current environment, as its refining segment benefits the most from lower crude prices; Barclays expects Shell's Q4 EPS to rise by 29% Y/Y.
  • Fri, Jan. 23, 11:52 AM
    • Eni (E -2.2%) expects to cut costs this year by 10%-15% while postponing investments in its most costly projects, Chairwoman Emma Marcegaglia tells WSJ.
    • The company has managed to obtain better terms - discounts of as much as 30% vs. the recent past - on new contracts with its contractors and the governments in the countries where it operates, Marcegaglia also says.
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Company Description
Eni SpA together with its subsidiaries offers integrated energy services. Its business segments include Exploration & Production, Gas & Power and Refining & Marketing.