Eni Aims To Significantly Up Liquidity From Snam Debt Repayment
April 27 2012 - 09:56AM
Dow Jones News
Italian energy company Eni SpA (E) wants some cash consideration
as part of its split from Snam SpA (SRG.MI) and to boost liquidity
plans to retain a large portion of the debts Snam will pay back,
said Chief Financial Officer Alessandro Bernini Friday.
Eni aims to "increase significantly" its liquidity in the event
of more adverse conditions in the financial markets, said the CFO
on a conference call to comment on first-quarter results. "The
troubles on the financial markets are not over."
Italy's government has decided Eni must give up its controlling
stake in the country's biggest natural gas grid Snam as part of
efforts to reduce the country's energy costs and increase
competition. Eni controls Snam with a stake of more than 52%, which
is currently worth about EUR6.6 billion at stock market prices.
Snam used Eni to finance its debts but must repay Eni net debts
of more EUR11 billion once the two companies split.
Friday, Eni's CFO said the Rome-based company will repay the
debt with the highest interest rates while keeping the rest for
liquidity.
Eni aims to have liquidity that covers the company's spending of
at least one year, added Bernini on the call.
-By Liam Moloney, Dow Jones Newswires; +39 06 6976 6924;
liam.moloney@dowjones.com
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