Italy’s Eni posts massive 2020 loss on virus hit

MILAN – Italian energy giant ENI said today it booked a net loss of €8.6 billion (RM42.07 billion) in 2020, suffering like its peers as the coronavirus pandemic pushed down the price of oil and gas. 

Analysts surveyed by FactSet had expected the company to report a net loss of €7.6 billion after a net profit of €148 million in 2019. 

In the fourth quarter of 2020 alone, as the economy recovered some of the ground lost earlier in the year due to stringent virus lockdowns, ENI posted a net loss of €725 million, again worse than expected.

In the corresponding period of 2019, the company had recorded a net loss of €1.9 billion.

Stripping out exceptional items, ENI said its 2020 net loss amounted to €742 million, but it booked a small profit of €66 million in the fourth quarter.

“The shock from the pandemic sparked a collapse in prices and profit margins for raw materials.” the company said.

In April last year, oil prices even turned negative at one point, but they have since recovered to trade above US$60 (RM242.73) per barrel on a combination of production cuts and increased demand.

Revenues in 2020 tumbled to just under €44 billion, coming in well below analyst forecasts for just under €56 billion. – AFP, February 19, 2021