Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on ENI SPA. We currently have 5 research reports from 2 professional analysts.
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First view: weak operational performance, well below expectations
29 Jul 16
The company reported its Q2 16 results below expectations with a loss of €290m compared to expectations of €78m. All divisions (E&P, refining and Gas & Power disappointed). Production was 1.715mbpd, slightly higher than the 1.697mbpd expected. Weak natural gas prices in Europe and in the US, as well as the production shutdown at the Val Agri profit centre for the whole Q2. The group reiterated that it would cut capex by 20% this year.
Strong Upstream, worrying Gas & Power
12 Nov 15
Some comments on ENI's Q3 15 reports. The group reported a net loss (excluding Saipem) of €0.3bn vs. expected. Adjusted operating profit was €752m. By division: - In the E&P division, adjusted operating profit was €757m, down 75% yoy, mainly driven by lower energy prices. Production in Q3 15 was up 8.1% to 1.7mbpd and full-year guidance was raised to 9% growth (vs. 7% earlier), the second upward revision for the year. Excluding price effects, production increased by 4.3% during the quarter. The group also highlighted its success in exploration with 1.2bn boe resources discovered vs. 500m boe planned at an average cost of $0.6/boe vs an average cost of $2/boe. - In the Gas & Power division, the adjusted operating loss was €469m. The declining performance reflected the reversal in gas prepaid in previous years with a book value higher than the current average supply costs of ENI's gas portfolio and an unfavourable trading environment impacting certain sales to large clients. Natural gas' sales were however up 4.4% from the same period last year. - In the refining & Marketing division, adjusted operating profit was €335m, with Refining marketing accounting for half of the profit and Chemicals for the other half. ENI's refining margin was $10/bbl compared to $4.39/bbl a year ago. FCF is projected to be positive as early as 2015, two years ahead of schedule. On Saipem, the group has agreed the terms of the sale of a 12.5% interest to FSI. ENI will be reimbursed of its financing receivable by €6.1bn, leading to a pro forma leverage decreasing by 8%.
Strong cash flow, upwards revision on production
30 Jul 15
The group reported Q2 15 earnings in line with expectation at €0.5bn (excluding Saipem). Including Saipem, adjusted net profit came in at €0.14bn (vs. €883m a year earlier). By division: 1) E&P adjusted operating income came in at €1.5bn, down 48% yoy, but 50% higher than in the Q1 15 thanks to higher production. Production came in at 1.754mbpd up 11% yoy thanks to the PSC effect, but also to the continuing ramp-up of production (+105kbpd) at fields started at the end of 2014, mainly in Angola, Congo, the United States, Egypt and the UK, as well as higher Libyan production. 2) G&P adjusted operating profit came in at €31m, 2x Q2 14 (low basis). The increase reflected contract re-negotiations agreed during the period. Natural gas sales were 22.39bcm, up 17.3% yoy with sales in Italy increasing by 45.5% (higher sale to Hub, Italy represents half of ENI sales) and a positive performance in the residential segment. Sales in Europe decreased by 7.1% 3) Refining & Marketing adjusted operating income came in at €105m, stable compared to Q1 and much better than last year. The improvement helped to decrease the break-even margin of the refining activity to $5.3/bbl. Refining throughput was up 13.4% yoy with volumes processed in Italy increasing by 25.6% 4) Engineering & Construction posted an adjusted operating loss of €740m. Saipem, which is 42%, said that it plans to cut 8,800 jobs as write downs of €929m led to a net loss of €997m in Q2 15. Cash flow from operations came in at €3.4bn close to 2014 despite lower oil prices. Capex stood at €3.1bn and dividends (on a quarterly basis) at €1bn. Net debt increased by 1.2bn to €16.5bn but gearing remains below 30%. Dividend of 0.4/share. The group is considering selling part or all of its onshore Nigerian operations as it seeks to divest peripheral businesses amidst weak oil prices. Depending on what Eni decides to sell, the transaction may raise between $2bn and $5bn.
30 Nov 16
Abzena (ABZA): Interim results indicate happy customers (BUY) | Horizonte Minerals* (HZM): Fund raise completed (CORP) | SacOil* (SAC): Half-year trading statement (CORP) | Revolution Bars (RBG): New openings (BUY) | Amino Technologies* (AMO): Multi operator FUSION roll out (CORP)
Small Cap Breakfast
29 Nov 16
Asia Pacific Investment Partner - the research-driven emerging and frontier markets real estate development business intends to float on AIM and conduct a placing in December RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m Diversified Oil & Gas— Schedule One now out. $60m to be raised. Expected admission 6 December. Creo Medical Group —UK based medical device company focused on surgical endoscopy, a recent development in minimally invasive surgery. Admission due 7 December. Fundraising details TBA.
24 Nov 16
Quixant* (QXT): Gaming gains (CORP) | SCISYS* (SSY): Bringing good news from Germany (CORP) | Hayward Tyler Group*: Contract wins (CORP) | Sound Energy (SOU): TE-7 flow rate and fund raise (BUY) | Water Intelligence* (WATR): Growth and improving returns in a defensive market (CORP) | Imaginatik* (IMTK): Interim trading update (CORP)
High grade, low cost gold
28 Nov 16
High grades and low costs mean that, in our view, Scotgold’s Cononish project could generate more than £14m a year in EBITDA. In addition to advancing funding discussions based on the compelling bankable feasibility study mine plan (which at £950/oz gold price and 8% WACC gives a project NPV of £43.0m), the company is exploring optimisation opportunities, as well as the potential for a phased approach requiring lower up front capital. We are resuming coverage with a Buy recommendation and target price of 2.2p