MILAN – Italian oil and gas company Eni says second-quarter losses widened to 446 million euros ($494 million) due to a prolonged downturn in low oil prices as well as oversupply and overcapacity in the gas and refining sectors.
Eni said Friday that the loss compared with a 97-million-euro shortfall in the same period last year. Eni cited a 26-per cent drop in Brent prices, hitting production revenues.
CEO Claudio Descalzi characterized the market as “weak but slowly improving.”
Production in the first half was 1.7 million barrels of oil equivalent a day, 2 per cent lower than the same period of 2015 due in part to the shutdown of the Val d’Agri complex in southern Italy due to a probe into the disposal of contaminated water. Eni denies wrongdoing.