Italian oil major Eni said on Wednesday it has cancelled its share buyback program, lowered its forecast for Brent crude and is revising its spending plans, Kallanish Energy reports.
The €400 ($428) million buyback proposal has been withdrawn and will be reconsidered when Brent is at least $60 a barrel.
The company also downgraded its forecast for Brent oil price to $40-45/Bbl in 2020 and $50-55/Bbl in 2021.
“Following the recent fall in commodities prices and operational constraints caused by the Covid-19 pandemic, Eni promptly started reviewing its planned activities,” explained CEO Claudio Descalzi. “This revision will consider a strong reduction in the capex and expected costs to levels that are consistent with the new price scenario.”
Details of the plans will be revealed on April 24, when Eni will present its first-quarter results.
“We will maintain the highest standards of safety at work, which have been raised due to current circumstances,” he added. “Eni’s priorities at the moment are safeguarding the health of our people and the communities we operate in, as well as our robust balance sheet and the dividend.”
On Thursday, Descalzi bought 29,300 shares for roughly €200,000 ($214,129). He said Eni’s balance sheet is very robust and the company has excellent growth and value creation prospects from an industrial point of view.
“We have passed through other crises and successfully turned them into an opportunity to become more efficient. We will do it again,” he said.
This post appeared first on Kallanish Energy News.