Eni SpA posted a first-quarter loss that was worse than analysts’ estimates amid a collapse in crude prices.
The Italian oil company’s adjusted net loss was 479 million euros ($546 million), compared with a profit of 454 million euros a year earlier. Analysts had expected a 12.3 million-euro loss, according to the median of nine estimates compiled by Bloomberg.
The plunge in crude prices since the middle of 2014 has weighed on oil company profits, forcing them to cut capital spending, slash dividends and postpone or cancel expensive exploration projects. The industry’s earnings season started with a surprise this year as BP Plc, Statoil ASA and Total SA all did better than forecast.
Eni’s oil and gas production rose 3.4 percent from a year earlier to the equivalent of 1.75 million barrels of oil a day, compared with an average forecast of 1.78 million barrels a day by five analysts surveyed by Bloomberg. The start of output in fields in countries including Norway contributed to the gain. Eni reiterated that it would cut investment this year by 20 percent.
Eni shares have risen 4.3 percent this year, less than the 9.6 percent gain on the Stoxx Europe 600 Oil and Gas Index.