Eni's CEO, Claudio Descalzi: "Measures to defend balance sheet and dividend solidity"
Eni, compared to what was communicated to the market on 18 March, completed the revision of the business plan in advance, induced by the sharp reduction in commodity prices and the constraints that can now be expected from the COVID-19 pandemic.
In particular, in 2020 Eni will reduce its capex by approximately 2 billion euro, equal to 25% of the total budgeted and the opex by approximately 400 million euro. For 2021, a reduction in capex of about 2,5-3 billion euros is expected, equal to 30-35% of what is expected for the same year in the plan.
The projects affected by the interventions mainly concern upstream activities, in particular those relating to the optimization of production and new development projects which were expected to start shortly. In both cases the activity can be restarted quickly when the optimal conditions return, and with it the recovery of the related production. As a result of this maneuver and the particularly depressed scenario, production in 2020 is expected to be between 1,8 and 1,84 million barrels of oil equivalent per day, and will remain unchanged the following year.
Eni's CEO, Claudio Descalzi, commented: "We implement these interventions with the aim of defending the solidity of our financial statements and dividends, while preserving the highest standards of safety at work".