Eni slashes 2018 production outlook

Eni slashes 2018 production outlook

Oil major, Eni, has lowered its output target for the year due to lower gas production in certain countries.

The Italian oil and gas group which reported third-quarter net profit that beat expectations, said it expected oil and gas production to grow around 3 percent this year, against previous guidance of 4 percent.

But it said the lower output would have a negligible impact on cash flow and confirmed guidance for cash neutrality, including dividend payments, at $55 per barrel.

“(Our performance) allowed us to record cash flow from operations, 35 percent higher than the previous quarter with a Brent price broadly unchanged,” Chief Executive Officer, Claudio Descalzi, said.

Adjusted net profit in the quarter rose to €1.39 billion ($1.6 billion), boosted by oil prices, from €0.23 billion a year ago.

That was above an analyst consensus provided by the company of €1.02 billion.

The state-controlled major confirmed its capital spending for the year at €7.7 billion.