Italian oil company Eni SpA (E) Thursday said its second-quarter net profit was up 52% on the year due to surging crude prices and higher output after its acquisition binge, but a weak U.S. dollar and surge in inflation costs weighed on earnings.
The Rome-based company said net profit in the three months ended June 30 advanced to EUR3.44 billion compared with EUR2.27 billion in the same period of last year. Net sales from operations advanced to EUR27.11 billion, or 37% higher than in 2007.
Eni said profit adjusted to exclude changes in the value of inventories and special items - the income figure that is most closely watched by analysts - rose 4.4% to EUR2.32 billion from EUR2.22 billion in the equivalent period of 2007.
The adjusted profit figure was slightly below expectations of EUR2.44 billion, according to an average of nine analysts polled by Dow Jones Newswires.
Eni is slated to hold a conference call Thursday at 1030 GMT on the results.
The share price is down around 11% over the last three months, outperforming the roughly 16% drop in Italy's S&PMib Index, as investors awaited details in the build up of costs and delays in the start of output at the massive Kashagan field in Kazakhstan.
Eni closed Wednesday down 0.05% at EUR22.04 against small gain overall market.