Eni’s 41-Year Qaddafi Link Means Lowest Oil Industry Valuation

Eni SpA’s four-decade relationship with Muammar Qaddafi’s regime in Libya has exacerbated its position as the cheapest stock with the highest credit risk among the world’s largest oil companies.

The company’s reserves are valued at about $8.20 a barrel, the lowest in Europe based on enterprise value, a measure of equity and debt minus cash, according to analysts at Bank of America-Merrill Lynch. Since the uprising against Qaddafi started on Feb. 16, Eni’s share price has fallen relative to its peers and the cost of insuring Eni’s debt has risen 28 percent.