Reuters reported that ENI.MI expected its output to increase this year thanks to a recovery of production in Libya after missing expectations on underlying net profit in the Q2.

State controlled Eni said a flagged resumption of its Libyan production to pre conflict levels would offset delays to some important start ups the impact of leaks at the Elgin platform in the North Sea and the rapid rise in sabotage and thefts in Nigeria.

Earlier Eni had made a new discovery at its bumper Mozambique field which would take gas in place to an estimated 1.974 billion cubic meters.

Over the past year, Eni has dispelled some concern about its profitability and long-term growth potential by scoring exploration successes in Norway and, notably in Mozambique.

Mr Jason Kenney an analyst with Santander said that "There was some disappointment on the upstream performance, but that's more than offset by the enthusiasm for new discoveries like Mozambique.”

Eni said that its adjusted net profit in the second quarter rose 2% to EUR 1.46 billion. That compared to a Reuters poll of nine analysts that had forecast an average of EUR 1.542 billion. The group's gas sales business continued to weigh on the bottom line as weak demand and tougher competition led to 4% fall in sales.

It would offer an interim dividend of EUR 0.54 compared to EUR 0.52 a year earlier. The group is in the process of selling its controlling stake in gas grid operator Snam SRG.MI which could raise around EUR 7 billion in cash and will remove EUR 11 billion in debt from its balance sheet and some analysts have said the company could sweeten its dividend policy.

Source - Reuters

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