) third quarter 2013 adjusted earnings from continuing operations
of 85 cents per American Depository Receipt/ADR (€0.32 per share)
comfortably beat the Zacks Consensus Estimate of 73 cents but
decreased from the year-earlier earnings of $1.23 per ADR (€0.49
Total revenue in the quarter decreased 6.6% to €29.4 billion
($39.7 billion) from the year-ago revenue of €31.5 billion ($42.5
billion). The revenues failed to meet the Zacks Consensus
Estimate of $42.7 billion.
Total liquids and gas production in the quarter was 1,653
thousand barrels of oil equivalent per day (MBoe/d), down 3.8%
from 1,718 MBoe/d in the year-ago quarter.
Liquids production was 851 thousand barrels per day (MBbl/d),
down 4.5% from the year-ago level of 891 MBbl/d. Natural gas
production increased 3.1% year over year to 4,402 million cubic
feet per day (MMcf/d).
Gas sales were 18.35 billion cubic meters (Bcm), down 5.8% from
the year-ago quarter, owing to the ongoing downturn in demand,
intense competitive pressure and oversupplies.
As of Sep 30, 2013, the company had cash and cash equivalents of
€6.0 billion and long-term debt (including current portions) of
€20.2 billion. The debt-to-capitalization ratio was approximately
In the third quarter net cash generated by operating activities
from continuing operations amounted to €3.0 billion. Capital
expenditure- mainly related to continuing development of oil and
gas reserves - totaled €3.1 billion.
Eni believes that a certain degree of ambiguity still looms with
respect to the economic slowdown, particularly in the Euro zone,
and volatile market conditions. This Italian giant expects the
uncertainty to prevail in the European gas, refining and
marketing and chemicals sectors. Overall demand will likely
remain weak due to the ongoing economic dormancy and the
appreciation of the Euro.
The company expects 2013 oil and natural gas production to be
lower than the 2012 level. This is mainly due to the impact of
geopolitical factors, in particular in Nigeria and Libya.
Worldwide gas sales are expected to fall from the 2012 level. The
downside would come from the divestment of Galp and renegotiation
of long-term supply contracts. Retail sales volumes also would be
lower reflecting an expected contraction in domestic demand and
increasing competitive pressure.
For 2013, refining throughputs are expected to decline from the
2012 level of 30.01 million tons. The downside would be due to
the ongoing industry downturn.
The company expects the full-year capital budget broadly in line
with 2012. Eni had 12.76 billion euros in capital expenditure and
0.57 billion euros in financial investments in 2012.
Eni currently carries a Zacks Rank #3, which translates into a
Hold rating. But there are other stocks in the oil and gas
industry that are performing well. These include
Legacy Reserves Lp
Matador Resources Company
Northern Oil and Gas, Inc.
), which hold Zacks Rank #1 (Strong Buy).
ENI SPA-ADR (E): Free Stock Analysis Report
LEGACY RESERVES (LGCY): Free Stock Analysis
MATADOR RESOURC (MTDR): Free Stock Analysis
NORTHRN OIL&GAS (NOG): Free Stock Analysis
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