Italian oil and gas company Eni booked a loss in the third quarter of 2020 compared to a profit in 3Q 2019 while its hydrocarbons production declined by 10 per cent due to impacts of the Covid-19 pandemic, OPEC production cuts, and lower demand.
Eni on Wednesday posted a net loss of €503 million ($595.1 million) for 3Q 2020 compared to a profit of €523 million ($618.8 million) in the corresponding quarter of 2019 .
The Italian company’s result was negatively impacted by the lack of recognition of deferred tax assets for losses of the period.
Eni’s hydrocarbon production was 1.7 million boe/d in the third quarter of 2020, down by 10 per cent compared to the third quarter of 2019.
Net of price effects, the decline was due to COVID-19 impacts and related OPEC+ production cuts as well as lower gas demand, mainly in Egypt.
According to Eni, its results were significantly impacted by the combined effects of the economic downturn due to COVID-19 that suppressed energy demand and caused oversupplied markets.
The third-quarter performance showed a noticeable improvement over the previous quarter due to a better balance in oil market fundamentals, against the backdrop of a slow economic recovery and uncertainties about the containment of the pandemic with repercussions on travel.
Eni CEO, Claudio Descalzi , said: “We achieved excellent results during the quarter, clearly exceeding market expectations in the face of a 30 per cent decline in oil and gas prices and a 90 per cent decline in refining margins.
“In E&P, even with Brent at 43 $/barrel, we achieved production levels in line with our expectations, and an EBIT of €0.52 billion, double consensus estimates. In a quarter that is traditionally weaker seasonally, the Global Gas & LNG Portfolio has achieved significant results”.