Eni chemistry takes to the streets with a national strike and demonstration in Rome, exactly one week after the publication of the 2015 accounts of the national energy giant. In fact, the president Emma Marcegaglia and the CEO Claudio Descalzi meet the board of directors on February 25 and will announce the data the following day. The expected scenario is that the trend already outlined in the third quarter will be confirmed, closed with a loss of 360 million despite growing production and revised annual estimates upwards "to 9% from over 7%" as indicated in the latest report of the company at the end of the first nine months. Looking at the adjusted data presented at the end of October, the plummeting crude led to a quarterly loss of 257 million which eroded the nine-month profit to 530 million (there were 3,2 billion in 2014): a vertical collapse, difficult to rollover in the fourth quarter when oil fell from $50 to $30.
Since then, Shell and BP have finished the year with an 87% cut in profit in the first case and a record red ($6,4 billion) in the second, accompanied by the announcement in early February, respectively, of 10 and 7 job cuts to come.
It does not appear that Eni has similar intentions, fortunately. And on the other hand, the strategy developed by Descalzi - cutting costs but not those destined for the production and development of the discovered fields, concentrating on the core business and proceeding along the path of restructuring and divestment - earned him the Buy judgment at the end of January of Goldman Sachs and Akros, Hold of HSBC and Equita, more isolated the Underweight of Morgan Stanley. Analysts are revising their estimates downwards but consider Eni a solid stock and therefore invite you to buy or keep it.
Chemistry is at the heart of Eni's resignation program and it is no coincidence. Over the years, a mountain of money has been poured into chemistry, weighed down by the many crashes of the past (Sir, Liquichimica, Enimont, all dumped on Eni), which has not managed to bring it back to the glories of Mattei's times. And Eni, from 2000 to today, has burned 5,8 billion despite the attempts to restructure several times. Now, with "the long night of oil" which according to one of the great experts in the sector, Leonardo Maugeri, could last until 2017 or 2018, flows of this kind are no longer sustainable. Especially since to finance the development of Versalis, 100% controlled by Eni, 1 billion and 200 million investments are planned in the next three years to consolidate the transition to the most promising green productions. A commitment that Eni alone no longer intends to face. Hence the decision to sell 70% and the negotiations started with the Sk Capital fund.
The trade unions know that the definitive exit of the state from basic chemicals is probably being decided and they have opened a tough battle against the sale of Versalis. After an initial general strike by the oil group a month ago, after roadblocks and an appeal letter to President Mattarella, today (Friday 19 February) there is a repeat with a demonstration in Piazza Santi Apostoli attended by the secretaries of CGIL, CISL and UIL. “Versalis can play a fundamental role in this sector, entrusting it to foreign hands is dangerous for the fate of Italian industry. Not only that, in this way Eni will increasingly become a multinational foreign to the country”, the unions never tire of repeating, as they do not consider Sk Capital sufficiently “robust” to handle such a demanding morsel as Versalis. This is the private equity fund of the Iranian-born engineer Barry Siadat, who from New York manages third-party resources for 1,5 billion dollars and has about ten stakes in as many companies in the chemical sector with a turnover of 8 billion and about 9 thousand employed.
"For five years Versalis will remain within its perimeter, for three years there must be no personnel cuts, the CEO must remain the current one (Daniele Ferrari, ed) and Versalis must remain Italian" Descalzi tried to reassure, listing several resumed the stakes imposed in the negotiation. The moment to sell is the right one, right now chemicals are back in the black (+172 million operating profit for the nine months) benefiting, like refining, from the low costs of raw materials. Will Sk Capital be the buyer who gives the most guarantees? Are there other potential buyers or would the alternative risk being worse? Development Minister Guidi met Siadat: "He never sold the assets he purchased," he said in Parliament. And for now he is letting ENI negotiate which, he underlines, "intends to maintain a significant stake".
