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Aug 26, 2014

Italy struggles with Plan B if Russian gas supplies cut

MILAN, Aug 26 (Reuters) – Italy will struggle to stay warm
this winter if Russia’s conflict with Ukraine disrupts gas
supplies and Libya veers towards collapse, putting at risk an
already shaky economic recovery following years of recession and
sluggish growth.

Caught between dwindling gas imports from North Africa and a
rising dependency on Russia, Italy’s contingency plans for a
complete breakdown in Ukrainian transit flows consist of raiding
stockpiles, arranging costly emergency shipments, as well as
forcing heavy industry to cut its output.

Aug 20, 2014

Clash at Luxottica could lead to CEO departure -sources

MILAN, Aug 20 (Reuters) – Luxottica, maker of
Ray-Ban and Persol sunglasses, could part ways with Chief
Executive Andrea Guerra due to disagreements over strategy with
founder and chairman Leonardo Del Vecchio, according to sources
close to the matter.

Three sources said Guerra, 49, who had helped the company
become world leader during his tenure, had fallen out with Del
Vecchio, 30 years his senior and Italy’s second-richest man.

Aug 8, 2014

Eni cutbacks bring welcome relief to Europe’s oil refiners

MILAN, Aug 8 (Reuters) – Plans by Italian oil major Eni
to slash its refining business by more than half could
squeeze out a quarter of Europe’s refining overcapacity,
bringing the ailing sector badly needed relief.

European nameplate refining capacity is around 15 million
barrels per day (bpd) but as demand falls and competition grows
analysts say around 1.5-2.0 million bpd of throughput capacity
needs to be mothballed by 2018 to balance the market.

Jul 31, 2014

Eni misses forecasts as Libya woes cloud outlook

MILAN, July 31 (Reuters) – Increasing instability in Libya
led Italian oil major Eni to miss second-quarter
forecasts for oil and gas output, although it still saw a 50
percent boost in net profit.

The company, which expects lower gas sales for the year due
to poor European demand, said on Thursday the worsening crisis
in Libya was the main cause for a rare 12.6 percent drop in
profit in its exploration and production business.

Jul 31, 2014

Debt-laden Enel could cut Endesa stake in shake-up

MILAN, July 31 (Reuters) – Europe’s most indebted utility,
Enel, plans to simplify its operations in Spain and
Latin America to ensure more cash flows into its coffers, and
may reduce its stake in Spanish unit Endesa as a

The reorganisation is focused on stripping out Endesa’s
Latin American assets to give Enel more direct control over them
as it tries to reduce debts that stood at 43.1 billion euros
($57.7 billion) at the end of June, up 8.5 percent from the end
of December.

Jul 29, 2014

Saipem cuts 2014 profit forecast after project delays

MILAN, July 29 (Reuters) – Italian oil services group Saipem
cut its profit forecast on Tuesday to reflect contract
delays and postponements as it tries to complete the low margin
deals that left it nursing heavy wounds last year.

Saipem, 43 percent owned by oil company Eni, said
it expected net profit for the year to be between 280 million
euros and 330 million euros ($375-443 million), compared with a
previous range of 280 million and 380 million euros.

Jul 25, 2014

Eni to revive Saipem sale plans -sources

MILAN/LONDON, July 25 (Reuters) – The new management of
Italy’s Eni plans to press on with the sale of a
controlling stake in oil services subsidiary Saipem so
it can focus on the more lucrative business of finding oil and
gas, sources said.

Former ENI CEO Paolo Scaroni had inked in plans to dispose
of Saipem but they were put on hold when Italian Prime Minister
Matteo Renzi drafted in new management to run the
state-controlled oil giant.

Jul 24, 2014

China State Grid deal will not affect Terna expansion plans

MILAN, July 24 (Reuters) – Italy’s plans to sell a stake in
its energy grid holding company to China’s State Grid Corp will
not affect the strategy or international expansion of power grid
Terna, its CEO said on Thursday.

State Grid Corp of China is in advanced talks with Italy’s
investment agency Cassa Depositi e Prestiti (CDP) to buy a 35
percent stake in its network holding company CDP Reti in a deal
that could be worth some two billion euros.

Jul 22, 2014

Sorgenia restructuring deal with banks very close

MILAN, July 22 (Reuters) – Italy’s Sorgenia, controlled by
holding company CIR and Austria’s Verbund,
is close to reaching a deal that will restructure debt and hand
control of the energy group to creditor banks, a lender and
sources said on Tuesday.

Loss-making Sorgenia – 53 percent owned by CIR, which is in
turn controlled by Italy’s De Benedetti family – invested
heavily in gas-fired power plants that proved expensive to run
when the economic downturn hit demand and prices.

Jul 8, 2014

Eni grapples with ailing refining business as Fitch warns on rating

MILAN, July 8 (Reuters) – Italy’s Eni could be at
risk of a credit downgrade if it fails to turn round its
troubled refining business soon, Fitch Ratings said on Tuesday,
ahead of a meeting between the oil major and trade unions over
the threat of plant closures.

The warning came as Eni’s new CEO gears up for a strategy
presentation this month, which sources have said could announce
the paring back of some of its refining business to focus on
more profitable upstream oil and gas exploration.

    • About Stephen

      "Based in Milan, I cover the Italian energy sector for the Italian team. I have followed energy in Italy for the last 10 years, previously for Bridge News, AFX and Thomson."
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