* Q2 adj net 1.46 bln euros vs consensus 1.542 bln

* Interim dividend rises to 0.54 euros

* Makes new natural gas discovery in Mozambique

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MILAN, Aug 1 (Reuters) - Italy's oil and gas group Eni

ENI.MI said on Wednesday it expected its output to increase this year thanks to a recovery of production in Libya after missing expectations on underlying net profit in the second quarter.

State-controlled Eni said a flagged resumption of its Libyan production to pre-conflict levels would offset delays to some important start-ups, the impact of leaks at the Elgin platform in the North Sea and the rapid rise in sabotage and thefts in Nigeria.

Earlier Eni, one of the largest foreign oil and gas producers in Africa, said it had made a new discovery at its bumper Mozambique field which would take gas in place to an estimated 1.974 billion cubic metres.

Over the past year, Eni has dispelled some concern about its profitability and long-term growth potential by scoring exploration successes in Norway and, notably, in Mozambique.

"There was some disappointment on the upstream performance, but that's more than offset by the enthusiasm for new discoveries like Mozambique," said Jason Kenney, an analyst with Santander.

In a statement, Eni said its adjusted net profit in the second quarter rose 2 percent to 1.46 billion euros. That compared to a Reuters poll of nine analysts that had forecast an average of 1.542 billion euros.

The group's gas sales business continued to weigh on the bottom line as weak demand and tougher competition led to a 4 percent fall in sales.

Eni said it would offer an interim dividend of 0.54 euros compared to 0.52 euros a year earlier.

The group is in the process of selling its controlling stake in gas grid operator Snam SRG.MI which could raise around 7 billion euros in cash and will remove 11 billion euros in debt from its balance sheet and some analysts have said the company could sweeten its dividend policy.

"Through the divestment of our stakes in Snam and Galp

GALP.LS our balance sheet will be transformed, securing our capacity to finance robust long-term growth in any market environment," Eni CEO Paolo Scaroni said. ($1 = 0.8120 euros)

(Reporting By Stephen Jewkes; editing by Keiron Henderson)

((stephen.jewkes@thomsonreuters.com)(+39.0266129695)(Reuters Messaging: stephen.jewkes.thomsonreuters.com@reuters.net))

Keywords: ENI RESULTS/