Eni Withdraws 2020 Share Buyback Plan

Eni Withdraws 2020 Share Buyback Plan
The company will reconsider it if Brent crude recovers to at least $60 per barrel.

Plummeting oil prices and the spread of the COVID-19 pandemic have prompted Eni SpA to take back its plan of authorizing €400 million stock repurchases in 2020. The company is also downgrading its forecast on the Brent price to $40-45 in 2020 and $50-55 in 2021.

In addition, Eni’s CEO, Claudio Descalzi, informed its board of the ongoing revision of the company’s planned activities for 2020-2021. Details of the revised plan are scheduled to be shared in April.

“Following the recent fall in commodities prices and operational constraints caused by the COVID-19 pandemic, Eni promptly started reviewing its planned activities,” Descalzi said in a written statement.

“This revision will consider a strong reduction in the capex and expected costs to levels that are consistent with the new price scenario. We will maintain the highest standards of safety at work, which have been raised due to current circumstances. 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.”

The company plans to reconsider the stock buy-back program once the price of Brent crude recovers to at least $60 per barrel.

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