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Eni Q1 2014 operating profit down 6.8%

Staff writer ▼ | April 30, 2014
Eni announced its group results for the first quarter of 2014 (unaudited). In the first quarter of 2014, adjusted operating profit was €3.49 billion, down 6.8% compared to the first quarter of 2013.
Eni
EniEni announced its group results for the first quarter of 2014 (unaudited). In the first quarter of 2014, adjusted operating profit was €3.49 billion, down 6.8% compared to the first quarter of 2013.


This decline was driven by lower results achieved by the Exploration & Production Division (adjusted operating profit down by 13.7%), negatively influenced by a weak oil price environment (Brent benchmark down 3.9%) and the appreciation of the euro against the dollar (up 3.7%), and the Refining & Marketing Division, where perating losses were 66.4% more than in the previous-year quarter due to a continuing deterioration in the refining scenario and lower fuels demand.

The Engineering & Construction segment reported a 37.3% reduction in operating profit due to the lower profitability of current contract works.

The Gas & Power Division reported a better operating performance (from a €211 million operating loss in the first quarter of 2013 to an operating profit of €241 million) against the backdrop of declining demand and ongoing competitive pressure. The division benefited in particular from the renegotiation of the Norwegian long-term gas supply contract with economic effects retroactive to the previous thermal year.

Adjusted net profit of the first quarter of 2014 amounted to €1.19 billion, down by 14.3% from the first quarter of 2013. This was driven by a lower operating performance and an increased adjusted consolidated tax rate (up 3 percentage points) due mainly to the Exploration & Production Division as a growing share of taxable profit was earned by subsidiaries subject to a higher tax rate.


 

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