Eni SpAE stated that its operations in Iran will not be affected by sanctions announced by the Trump administration as it has limited operations in the country.
The Italian company has recovered all outstanding payments due from earlier investments in Iran's upstream sector. However, the company has not received a payment due from a oil supply contract for the purchase of 2 million barrels of oil per month. This contract is expected to terminate by the end of 2018.
Per Eni's evaluations, its limited activities in Iran will not be subjected to specific waivers as the activities are in accordance to the sanctions.
Subsequent to the withdrawal from a nuclear deal with Tehran, the United States has threatened to inflict secondary sanctions on European companies operating in Iran.
At a point, the European Union was Iran's biggest oil importer. The union is looking for methods to save the nuclear accord and protect investments made by European companies.
However, the danger of losing access to the U.S. financial system and risking the sanctions has compelled many companies to re-evaluate their plans.
Among the companies impacted by these sanctions is Total SA TOT , which intends to withdraw its investment from Iran's South Pars gas field if it did not get a waiver from the government.
Price Performance
In the past three months, Eni's shares have gained 8.8% compared with the industry 's 9.9% rise.
Zacks Rank & Key Picks
Eni currently carries a Zacks Rank #3 (Hold).
A few better-ranked players in the same sector are Anadarko Petroleum Corp APC and CVR Refining, LP CVRR . These stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Anadarko Petroleum is one of the world's largest independent oil and gas exploration and production companies. It pulled off an average positive earnings surprise of 89.24% in the last four quarters.
Sugar Land, TX-based CVR Refining is an independent downstream energy partnership with refining and associated logistics properties in the Midcontinent United States. The company delivered an average positive earnings surprise of 7.05% in the last four quarters.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
