Italian Eni says that spending budget would be ~30% less in 2020

Rome, April 24 - Neftegaz.RU. Italian energy group Eni said that it registered a net loss of EUR 2.93 billion from a profit of EUR 1.10 billion in the year-earlier period. The loss was partly attributed to the alignment of the book value of inventories to market prices as well as impairments from oil-and-gas assets and negative fair-valued derivatives, according to Eni.

On an adjusted basis, profit was EUR 59 million.Adjusted operating profit in the period was EUR 1.31 billion, compared with EUR 2.35 billion in the previous year. Revenues in the quarter fell to EUR 14.09 billion from EUR 18.80 billion the previous year.

In first quarter results, Eni said it would spend about 30% less this year than planned and it expected spending in 2021 to be 30%-35% lower than previously predicted. Already in March it said it would cut 2020 capital expenditure by 25%.

"The period since March has been the most complex period the global economy has seen for more than 70 years," Eni CEO Claudio Descalzi said in a statement. "Like everyone, we expect a complicated 2020."

Descalzi, who in February pledged to cut oil production and reduce greenhouse gas emissions in one of the industry's most ambitious clean-up drives, is set to be re-appointed for a third term in office in May.

Eni is planning 3 oil & gas field startups in 2020 along with 7 FIDs, 4 of which are in the UAE. Mozambique's Rovuma LNG development is also on the cards.