PMBPF - Eni: Surprisingly Good Quarter Renewables Provide Growth And Anchor

• Eni saw its revenues decline year-over-year, which was largely expected given the action that we saw in oil prices over the past year.
• The cost cuts had a very disappointing effect on the exploration unit, which failed to replace even half of the resources that the company extracted.
• Eni has a plan to fix this problem and it is focusing on natural gas, which is a good idea given the current fundamentals and global trends.
• The company also is a utility and this provided it with some stability and some strong growth prospects in renewables.
• The company failed to generate the cash flow needed to cover its dividend, which could be a problem.

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