Rome : ENI SpA, Italy's largest energy company, reported a profit in the fourth quarter that beat analysts' estimates after oil production increased.
Net income reached 641 million euros (Dh3.2 billion) for the quarter ended December 31, compared with a loss of 874 million euros a year earlier, Rome-based ENI said yesterday in a statement. Excluding one-time items and gains or losses from inventories, profit exceeded analyst estimates. ENI proposed to cut its dividend by 23 per cent to 1 euro a share.
The quarterly figures are "positive," ING Group NV analyst Jason Kenney wrote in a note, confirming his "buy" rating on the stock. "It's the cheapest stock in the sector and a great value opportunity." ENI rose as much as 2.4 per cent in Milan, the biggest gainer in Italy's benchmark FTSE MIB Index.
CEO Paolo Scaroni is seeking oil ventures abroad to maintain output. ENI is expanding in Venezuela, where it will develop $18 billion (Dh66.1 billion) in projects, and Iraq, where it plans to spend about $1 billion a year with partners to boost production at the Zubair oil field. ENI said it expects 2010 production "not lower" than 2009.
Excluding one-time items and gains or losses from inventories, quarterly profit fell 29 per cent to 1.39 billion euros.
