Eni profit falls more than 60% on lower oil prices

By ALESSANDRA MIGLIACCIO and CHIARA VASARRI

ROME (Bloomberg) -- Eni reported a 64% decline in profit caused by falling oil prices and losses on the fair-value interests in Galp and Snam.

Adjusted net income for the fourth-quarter fell to 464 million euros ($529 million euros) from a year earlier, the Rome-based company said in a statement. That was below the 597 million-euro average estimate of 13 analysts surveyed by Bloomberg. Revenue declined 10% to 26.8 billion euros.

Producers from Total to Exxon Mobil all posted lower profits hurt by crude prices that have fallen to around $50/bbl from more than $100 seven months ago. Eni reported a 39% decline in operating profit in its exploration and production division in the fourth-quarter.

Oil prices have been falling since July as production from U.S. shale fields boomed and the world economy slowed.

The company is undertaking capacity restructuring, cost cuts and renegotiation of long-term gas supply contracts to offset the oil price decline.

Eni’s gas and power division narrowed its adjusted operating income to 108 million euros in the fourth-quarter from 341 million euros, while the refining and marketing business posted an adjusted operating profit of 192 million euros over the same period.