UPDATE 3-Eni Q2 net hit by higher taxes, below forecast

(Adds analyst comments, CEO on Gas Natural, Galp)

By Ian Simpson

MILAN, July 31 (Reuters) - Italian oil and gas major Eni SpA (ENI.MI) posted a 4.4 percent rise in second-quarter adjusted net profit on Thursday, below analysts' forecasts, weighed down by higher taxes.

Eni, Europe's fourth-biggest oil company by market value, reported adjusted net profit of 2.32 billion euros ($3.62 billion). Eleven analysts polled by Reuters on average had forecast 2.421 billion euros, a figure that excludes inventory gains and special charges.

Adjusted earnings before interest and tax was 5.61 billion euros, up 33.6 percent from 2007, Eni said in a statement.

Eni's hydrocarbon output was 1.77 million barrels of oil equivalent per day (boepd), up 2.1 percent from the year before.

Eni said the stronger operating performance was partly offset by a higher tax rate -- to 57.5 percent from 48.3 percent -- on an adjusted basis.

Italy's conservative government approved a windfall tax on energy companies profits last month, backdated to the start of the year.

Eni forecast output growth of about 2 percent in 2008 assuming a Brent oil price of $112 a barrel for the full year. Eni estimated output growth of 3 percent a year until 2011 at a Brent price of $120, down from a forecast of 4.5 percent growth in February.

Eni said it would propose an interim dividend of 0.65 euros a share, up from 0.60 euros the year before.

Bernstein analyst Neil McMahon wrote in a report: "Overall, the results do not give us any major concerns for the outlook of the company, which continues to trade well below the target price of 26.60 euros."

GAS NATURAL TALKS

Scaroni also said Eni would likely start talks with Spain's Gas Natural (GAS.MC) in September over Eni's 50 percent stake in a gas joint venture with Union Fenosa UNF.MC. Eni has a pre-emptive option to buy the other half.

Gas Natural is buying Spanish builder ACS's (ACS.MC) 45.3 percent stake in Union Fenosa for 7.6 billion euros. Eni bought its 50 percent stake in Union Fenosa's gas unit for about 400 million euros but Scaroni said analysts now valued it at between 2.5 billion and 4 billion euros.

However, Gas Natural Chief Executive Rafael Villaseca said his company was not thinking about selling the remaining stake in the gas joint venture. "It's a very valuable asset," he told analysts in Madrid.

Stefano Cao, head of the core exploration and production unit, is resigning and will be replaced by his deputy Claudio Descalzi, Eni said.

One of Cao's main tasks had been development of the giant Kashagan oil field in Kazakhstan.

Scaroni said Eni will have revised estimates for capital spending at Kashagan when an amended development accord is signed in October. Eni is leading development of the field.

Asked about Eni's 33.34 percent holding in Portugal's Galp Energia (GALP.LS), Scaroni called the stake "transitory" and added Eni could decide to sell it if it did not take over the company.

"I think in the next three to five years the situation could evolve," he said.

(Additional reporting by Carlos Ruano in Madrid)

(Reporting by Ian Simpson; Editing by Andy Bruce)