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This article was published March 18, 2016 at 14:48 hours.
the last change is the March 18, 2016 at 15:23.
LONDON – With oil continues to remain at very low levels, the license plate Eni Claudio Descalzi gets ready to continue to face a very delicate economic situation and is determined to continue along the route already mapped out by the ad: strong refocusing on core businesses (upstream), completion of the restructuring in other segments and narrow even more determined cost. These are the pillars of the new strategic plan announced today, in London, by Eni that promises to shareholders to confirm, for this year, a dividend of 80 cents (paying entirely in cash) and, above all, to support investment in 2016 assuming a Brent price of $ 50 a barrel (which will rise to $ 60 next year to cover capex and dividends), a significantly lower value than the $ 63 the previous plan to take into account the uncertainty shaking sector.
A positive reaction to the plan market. To 15 salt title by almost 2% to EUR 13.84 per share while Piaza Business is up by about half a point.
The trailer continues to be the upstream, ie exploration and production. Here, despite the 18% reduction in investment, the annual growth is expected over the 3% by 2019 (with a cumulative progress of 13% by end of the plan), mainly due to the ramp-up (ie the progression of production up to the maximum level) and the start of new projects, which will provide a total intake of 800 thousand barrels of oil equivalent per day in 2019. Not to mention of course the support resulting from exploration to date has provided an important bank group (11 , 9 billion barrels discovered in the last eight years, that is, almost two and a half times the totalized production in the same period) and that will be more crucial in the next four years, by the end of which, Eni expects new discoveries to 1.6 billion barrels of oil at competitive cost of $ 2.3 per barrel and a much reduced time to market, with an average spending in line with 2015.
But, more importantly, the group of Descalzi is ready to reduce from 45 to 27 US dollars per barrel, to align the prices of crude oil, the breakeven of the new projects.
in gas and power, which has almost hit a draw (the finish line for the break- structural even point is expected in 2017), Descalzi continue to work on the renegotiation of long-term contracts to align them with spot prices, the further streamlining of operating costs and the extension of the 20% of the customer base in the retail to ensure, by here to 2019, a cumulative operating cash flow of 2.8 billion euro. As for the refining and marketing, the watchword, on this front, it is still reduce the refining margin, while maintaining unaltered the ability to bring it to about $ 3 a barrel by 2018, so as to generate, over plan, 2.9 billion euro of cumulative operating cash flow.
The Eni Descalzi is therefore ready to face a negative scenario that could last much longer. And this, as mentioned, involves both a cut in operating costs – over the Plan, the bar is fixed under 7 euro per barrel – with a reduction in expenditure of 6 billion (including economies insured by efficiencies in corporate costs and savings insured by the renegotiation of contracts in the upstream) and a reshaping of the investments that are planned at 37 billion, a cut of 21% compared to the previous plan. In the face of which, Eni also promises to strengthen the effort in terms of divestments with a further 7 billion euro of assets ready to be sold, which are in addition to 7 billion already valued in 2015 and that can be achieved by lightening participation in the recent major discoveries.
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