BAKU, Azerbaijan, Oct.29
By Leman Zeynalova – Trend:
In the nine months of 2020, capital expenditure of Italian Eni company amounted to €3,457 million (€6,135 million in the nine months of 2019), decreasing by 44 percent from the same period of the previous year, Trend reports citing the company.
The company’s capex was mainly related to: ‐ development activities (€2,323 million) mainly in Egypt, Indonesia, the United Arab Emirates, Iraq, Italy, Mexico, Mozambique, the United States and Kazakhstan; - refining activity in Italy and outside Italy (€319 million) mainly relating to the reconstruction of the EST conversion plant at the Sannazzaro refinery, the finalization of the I and II generation biomass treatment plant at the Gela biorefinery, logistic and storage services, activities to maintain plants’ integrity, as well as HSE initiatives; marketing activity (€55 million) for regulation compliance and stay-in-business initiatives in the retail network in Italy and in the rest of Europe; ‐ initiatives relating to gas and power marketing in the retail business (€121 million).
In the third quarter of 2020, the Exploration & Production adjusted operating profit of €515 million rebounded significantly from the previous quarter loss of approximately €800 million, driven by a partial recovery in the pricing environment with the Brent crude oil price of 43 $/barrel on Business segments operating results -9- average vs. 29 $/barrel in the previous quarter.
Instead, the comparison with the corresponding period a year ago down by 76 percent was negatively affected by a depressed oil scenario due to the COVID-19 pandemic which impacted economic activity and travel leading to both reduced hydrocarbons realized prices (down by 29 percent on average) and lower production. Particularly, lower sales volumes were driven by capex optimizations intended to preserve the Company’s cash flows, the production cuts implemented by the OPEC+ agreement and falling gas demand with more pronounced effects in certain geographies (e.g. Egypt).
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