Eni Soars On Fall Of Gaddafi Regime

Printer Friendly Version

The U.S.-listed shares of Eni SpA, Italy's largest oil company, rose nearly 7% on volume that was about double the daily average after rebels seized control of the Libyan capital of Tripoli, effectively toppling the regime of embattled dictator Muammar Gaddafi.

Eni (E) had the largest Libyan footprint of any Western oil major, relying on the African nation for 13% of total sales, according to the Wall Street Journal. The stock has dropped more than 25% since the onset of violence of Libya in February as lost production from the country that was once Africa's third-largest oil producer weighed on investors' outlook for the Italian company.

Before the start of violence in Libya, Eni was pumping 280,000 barrels of oil there per day, but that total has fallen dramatically to 50,000 barrels, the Journal reported. The company called the events in Libya over the weekend positive, though it did not say if it expected to increase output there anytime soon.

Other Western oil majors with Libyan exposure were slightly lower on Monday. BP (BP), Europe's second-largest oil company, and ConocoPhillips (COP) and Occidental Petroleum (OXY), the third- and fourth-largest U.S. oil companies, respectively, were all in the red today.