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MILAN, March 18 (Reuters) - Italian energy group Eni
followed rivals on Wednesday by cancelling a share
buyback and sharply cutting investments as a result of the
coronavirus outbreak and falling oil prices.
"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," Eni CEO Claudio Descalzi
said in a statement.
Oil prices plunged on Wednesday after Goldman Sachs said
lockdowns to counter the coronavirus pandemic raised the
prospect of the steepest ever annual fall in oil demand.
ConocoPhillips, the largest U.S. independent oil
producer, on Wednesday pared its proposed spending, production
and share buybacks for the year.
Exxon Mobil, BP and Chevron have also
promised unspecified spending cuts.
"This revision will consider a strong reduction in the Capex
and expected costs to levels that are consistent with the new
price scenario," Descalzi said, giving no further details.
Eni, which at the end of February pledged to spend 32
billion euros ($35 billion) in its new four-year plan, said it
was downgrading its Brent forecasts to $40-45 in 2020 and $50-55
in 2021 compared to a $60 per barrel scenario for upstream free
cash flow in its recent plan.
It said it would be withdrawing plans it had to buy back 400
million euros of shares this year, adding it would reconsider a
buyback when Brent was at least $60 per barrel.
($1 = 0.9233 euros)
(Reporting by Stephen Jewkes; editing by David Evans)
