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Eni Cuts Dividend as Coronavirus Crisis Erases Quarterly Profit

(Bloomberg) — ENI SpA (NYSE:E) reported a second-quarter loss and reduced its dividend as the coronavirus crisis sent oil prices plunging.

The Italian giant, one of several European energy majors reporting results on Thursday, was hurt by slumping demand for crude and fuels as governments imposed lockdowns to contain the virus. Consumption fell particularly sharply in its home market, the first European economy crippled by the pandemic.

Eni’s adjusted net loss was 714 million euros ($839 million) in the quarter, compared with a profit of 562 million euros a year earlier, the Rome-based company said in a statement. Analysts had estimated a 1.11 billion-euro loss.

Eni now sees its full-year dividend at 55 euro cents a share, compared with an expectation of 89 euro cents back in February. The decision to cut follows similar moves at Royal Dutch Shell (LON:RDSa) Plc and Equinor ASA (NYSE:EQNR).

Eni’s quarterly production slid to 1.71 million barrels of oil equivalent a day from 1.83 million a day a year earlier, according to the statement.

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