Eni sees natural gas sales decline year-on-year
BAKU, Azerbaijan, Aug.3
By Leman Zeynalova – Trend:
In the second quarter of 2020, natural gas sales of 13.92 bcm decreased by 22 percent from the same quarter of 2019 (30.67 bcm, down by 22 percent in the first half), Trend reports citing Eni company.
Sales in Italy (9.13 bcm, down by 6 percent and 18.10 bcm, down by 12 percent, in the second quarter and in the first half, respectively) were lower than the corresponding period a year ago mainly due to weaker seasonal sales and the impact of an ongoing economic downturn driven by the lockdown measures adopted in Italy and Europe to contain the spread of COVID-19.
Sales in the European markets (2.89 bcm and 8.76 bcm in the second quarter and in the first half, respectively) decreased by 41 percent and 26 percent from the comparative periods, respectively, as result of the challenging demand backdrop also following lower gas nominations made by Botas in Turkey and portfolio rationalization initiatives in Germany.
Power sales were 8.38 TWh in the quarter (18.27 TWh in the first half), reporting a 9 percent decrease from the same period of the previous year (down by 6 percent compared to the first half 2019) due to an economic slowdown in connection with lockdown measures adopted to contain the COVID-19.
In the second quarter of 2020, the Gas & Power segment reported an adjusted operating profit of €218 million (€649 million in the first half, up by 72 percent), representing a fivefold increase compared to the same period of 2019.
The better operating performance of the GLP business in both reporting periods benefitted from optimization initiatives at the gas and power asset portfolio against the backdrop of high price volatility, partly offset by a declining performance at the LNG business due to the lockdown of Asian economies in response to the COVID-19, which forced a number of buyers to reduce liftings at LNG supply contracts, exacerbating a global glut in the gas market and pricing pressure.
The retail business reported an improved performance (the adjusted operating profit was up by €6 million vs. the year-ago quarter, up by 30 percent), despite lower sales due to the COVID-19 pandemic-induced economic downturn and higher provisions for doubtful accounts based on an expected deterioration in the counterparty risk. Those negatives were more than offset by gains due to commercial/efficiency initiatives, by the contribution of extra-commodity products and services in Italy as well as by the development in France and Greece.
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