MILAN (AFP) - Italian energy group ENI posted a stronger-than-expected 75 percent jump in third-quarter net profit on a strong operating performance and hinted it was on the prowl for acquisitions in Russia.
The group said third-quarter net profit surged to 1.670 billion euros (2.156 billion dollars) from 955 million euros in the same period in 2003, beating analysts' forecasts in a range of 1.283-1.377 billion euros.
Operating profit climbed 58 percent to 2.987 billion euros compared with analysts' expectations in a range of between 2.659-2.808 billion euros.
ENI said the third-quarter increase was mainly due to a 62 percent rise in exploration and production operating profit, to 903 million euros, boosted by a 46 percent jump in the benchmark Brent crude oil price.
The third-quarter operating profit included a 182-million-euro capital gain on sale of mineral assets, while an 8.7 percent depreciation of the dollar cost about 210 million euros, it said.
At the net level, ENI booked extraordinary charges of 160 million euros, against a gain of four million euros in same period a year earlier.
Third-quarter sales were 13.695 billion euros, against 11.916 billion, it said.
Daily hydrocarbon production fell 0.7 percent to 1.545 million barrels of oil equivalent.
Chief executive Vittorio Mincato hinted that the group was keen on joining other Western oil firms rushing into the Russian oil bonanza.
"I don't rule out buying stakes in Russia, but I do rule out a minority participation" that does not give an industrial and management role to ENI, Mincato said in a news conference.
Newspaper reports previously said ENI was interested in Russian oil group Yukos's units Yuganskneftegaz and Sakhaneftegaz.
11/10/2004 - 17:59 GMT - AFP