(Recasts, adds comments, details, shares, graphic)
By Stephen Jewkes
MILAN, Feb 19 (Reuters) - Italian energy group Eni's
fortunes improved in the final quarter of the year on
firmer oil prices after "a year like no other" sent full-year
profit tumbling.
Adjusted net profit in the fourth quarter was 0.66 billion
euros ($798 million), down 88% on the year but beating analyst
expectations for a loss of 0.04 billion euros.
But for the full year, it reported a loss of 742 million
euros compared to a 2.876 billion euro profit in 2019 after what
Eni Chief Executive Claudio Descalzi said had been "a year like
no other in the history of the energy industry".
The unprecedented fall in demand triggered by the COVID-19
pandemic led bigger European rivals Shell and BP
and U.S. majors Exxon Mobil and Chevron to
report heavy losses for the year.
Eni shares fell sharply last year, hitting their lowest in a
quarter of a century as the health pandemic shook oil markets.
In the fourth quarter production fell 11% to 1.713 million
barrels of oil equivalent per day but the company said full-year
production was in line with target.
Like its rivals, Eni has slashed its investments to offset
fallout from the pandemic and spent 35% less last year at 5
billion euros.
Adjusted cash flow for the year fell to 6.7 billion euros
compared to guidance for 11.5 billion euros at a Brent oil price
of $60 per barrel.
"Through leveraging the actions we put in place, our 2020
adjusted cash flow ... was able to finance our capex, with a
surplus of 1.7 billion," Descalzi said.
The company, which said it was well equipped to deal with an
uncertain trading environment this year with liquidity of around
20.4 billion euros, confirmed its 2020 dividend of 0.36 euros a
share.
In a note Royal Bank of Canada said Eni remained one of the
more leveraged names among the integrated oil companies.
"We see Eni's aggressive strategy around the energy
transition posing risks to shareholders over time," it said.
Eni, like other European peers, is cleaning up its business
as investors crank up pressure on the oil and gas sector to
fight climate change.
It is due to release its new business plan later on Friday.
At 1019 GMT Eni shares were down 1.1%, while the European
oil and gas index was down 0.5%..
($1 = 0.8271 euros)
(Additional reporting by Stefano Bernabei; Editing by Edmund
Blair and David Evans)
