Italy's Eni Q2 profit down 76 percent

Eni said in a statement that net profit in the three months that ended June 30 was euro832 million ($1.17 billion), down from euro3.44 billion in the same period a year earlier.  In the first half, net profit fell 59 percent to euro2.7 billion, from euro6.76 billion.
CEO Paolo Scaroni called the results sound "in the context of sharply lower commodity prices and demand."

Scaroni said the company's "prudent outlook" was reflected in the proposed interim dividend of euro0.50 per share, "which we believe to be appropriate in the current environment." Last year's interim dividend was euro0.65.  Adjusted net profit, or profit excluding special charges, was down 60 percent to euro900 million in the second quarter.

Oil and gas production in the quarter fell 2.2 percent to 1.733 barrels a day, due mostly to OPEC production cuts and security issues in West Africa. Natural gas sales were down 7.7 percent to 22.46 billion cubic meters, reflecting weaker demand due to the economic downturn.  During the period, Eni consolidated its position in Russia, reaching a deal with Gazprom to push forward the South Stream project. Eni also concluded the purchase of the Belgian gas supplier Distrigas, confirming its leadership in European gas production.

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