| Eni (E) Reports Loss in Q3; Revenues Deteriorate Y/Y | |
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EniSpA’s E third-quarter 2015 adjusted loss from continuing operations of 16 cents per American Depository Receipt/ADR (€0.07 per share) compared unfavorably with the year-earlier earnings of 85 cents per ADR (€0.32 per share). The deterioration mainly stemmed from a higher consolidated tax rate in the E&P segment.
Total revenue in the quarter decreased 29.3% to €18.8 billion ($20.9 billion) from the year-ago figure of €26.6 billion ($35.3 billion).
Operational Performance
Total liquids and gas production in the third quarter was 1,703 thousand barrels of oil equivalent per day (MBoe/d), up 8.1% year over year. New project start-ups during the quarter mainly drove the upside. Higher production in Libya, along with ongoing production ramp ups at the fields in Angola, Venezuela, the United Kingdom, Egypt and the United States (that were brought online in 2014), contributed to the production growth as well.
Liquids production was 868 thousand barrels per day (MBbl/d), up 6.9% from the year-ago level of 812 MBbl/d. Natural gas production increased 9.2% year over year to 4,582 million cubic feet per day (MMcf/d).
Gas sales were 20.49 billion cubic meters (Bcm), up 4.4% from the year-ago quarter on increased sales and higher volumes marketed.
Financials
As of Sep 30, 2015, the company had long-term debt (including current portions) of €29.3 billion. The debt-to-capitalization ratio was 30%.
In the reported quarter, net cash generated by operating activities from continuing operations amounted to €1.7 billion. Capital expenditure totaled €2.4 billion.
Outlook
Eni believes that a certain degree of ambiguity still looms with respect to the economic slowdown that has affected the Euro zone in particular as well as the volatile market conditions. This Italian oil giant expects the uncertainty to prevail in the European gas, refining and marketing, and chemicals sectors. Though overall global economic growth is likely to remain weak in 2015, China and other emerging economies will make contributions.
The company expects 2015 oil and natural gas production to increase by about 9% from the 2014 level. This is mainly due to new field start-ups and ramp up of fields commissioned in 2014. The company is also optimistic about higher yields from Libya.
The company expects 2015 oil prices to be lower than the 2014 level. Considering an ongoing demand downturn from both large customers and retail segments amid commodity oversupplies, particularly in Italy, further decline in costs seems inevitable. Nonetheless, worldwide gas sales are expected to remain stable.
For 2015, refining throughputs are expected to increase from the 2014 level due to favorable trading environment as well as higher output at the new EST technology conversion plant at the Sannazzaro Refinery.
The company expects full-year capital spending to be lower than the 2014 level by about 17%.
Zacks Rank and Stocks to Consider
Eni currently carries a Zacks Rank #5 (Strong Sell). Some better-ranked stocks from the same space are Natural Gas Services Group Inc. NGS, Matrix Service Company MTRX and Seadrill Partners L.P SDLP. Each of these stocks sports a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ENI SPA-ADR (E): Free Stock Analysis Report MATRIX SERVICE (MTRX): Free Stock Analysis Report SEADRILL PTNRS (SDLP): Free Stock Analysis Report NATURAL GAS SVC (NGS): Free Stock Analysis Report To read this article on Zacks.com click here.
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Natural Gas Services Group Inc.
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CODE : NGS |
ISIN : US63886Q1094 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Natural Gas Services est une société de production minière et de pétrole basée aux Etats-Unis D'Amerique. Natural Gas Services est cotée aux Etats-Unis D'Amerique. Sa capitalisation boursière aujourd'hui est 313,8 millions US$ (293,2 millions €). La valeur de son action a atteint son plus bas niveau récent le 11 août 2023 à 10,00 US$, et son plus haut niveau récent le 25 avril 2024 à 24,17 US$. Natural Gas Services possède 12 982 262 actions en circulation. |