12 °c
London
Sunday, September 24, 2023
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

Reuters: Eni cranks up spending cuts, asset sales to fund transformation

FurtherAfrica by FurtherAfrica
March 18, 2016
in Africa, Economy, Energy, FDI, Finance, Gas, Mozambique, Natural Resources
Reading Time: 2 mins read
1.1k 35
0
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

Italy’s Eni is cutting investments and selling down stakes in oil and gas fields to help it prop up dividends and become a leaner exploration-driven player focusing on gas.

The state-controlled company said in its 2016-2019 business plan on Friday it would cut overall group capital spending by 21 percent and exploration budgets by 18 percent, while raising 7 billion euros ($7.9 billion) from asset sales.

It also plans 6 billion euros in cost cuts, more than half of which is expected to come from renegotiating contracts.

“The disposals will be mainly through the dilution of our stakes in recent and material discoveries,” Eni CEO Claudio Descalzi said, picking out its giant gas fields in Mozambique and Egypt as prime candidates.

“We are not far from disposal in Mozambique,” he said, adding Eni was holding talks with “a lot of interested parties”.

The CEO, a trained reservoir engineer, said in recent years a 25 percent drop in exploration costs had not kept pace with a 75 percent fall in oil prices, pressuring explorers’ balance sheets.

“Eni is in good shape to align costs with price (given its) ability to work on a time-to-market of 12-24 months,” he said on a conference call with analysts.

Since taking the helm in 2014, Descalzi has refocused Eni on finding more oil and gas, with a preference for projects that are lower cost and faster to market.

Since 2008, Eni has discovered 2.4 times what it actually produces, compared with a peer rate of just 0.3 times.

“We think gas will be the future,” Descalzi said.

Over the next four years Eni expects oil and gas production to grow by more than 3 percent per year, compared with the 3.5 percent growth under its previous plan, with a focus on North and west Africa and the Far East.

Europe’s fourth-largest oil major by market capitalisation aims to tap 1.6 billion barrels of oil equivalent by 2019 and bring down breakeven prices on new projects to $27 a barrel from $45 a barrel now.

Zenit fund manager Stefano Fabiani said it was a reassuring plan. “The cut in spending has come without impacting output and the disposals have given more visibility to the dividend which is safe medium term,” he said.

Eni, which became the first Western major last year to cut its dividend, confirmed a 0.8 euro per share payout for 2016.

Oil majors around the world are slashing investments to maintain dividends in the face of weak oil prices driven by a global supply glut.

At 1617 GMT Eni shares were up 1.5 percent, while the European oil and gas index was down 0.1 percent.

Source: Reuters

Related

Tags: AnadarkoENIGasLiquid Natural GasLNGMozambiquerovumaモザンビーク莫桑比克
ScanSendShare462Tweet289Share81Pin104Send
FurtherAfrica

FurtherAfrica

Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

Related Posts

Weekend

Top 5 islands in Kenya you must visit

by See Africa Today
September 23, 2023
Weekend

6 stunning beaches in Egypt to visit in 2023

by See Africa Today
September 23, 2023
The Forbes Billionaires’ list: Africa’s richest people 2022
Development

Opportunity through adversity: 8th annual Africa risk-reward index

by Rafael Carvalho
September 23, 2023
Tech

Elon Musk’s Starlink is off to a bright start in Africa

by The Exchange
September 22, 2023
Africa

Nigeria’s smart city dream gets US$200M boost from Afreximbank

by The Exchange
September 22, 2023
Mozambique eVisa
 
MozParks

Translate this page

Read the Latest

Weekend

Top 5 islands in Kenya you must visit

by See Africa Today
September 23, 2023
0

Kenya is a small paradise teeming with beautiful landscapes, rich culture and breathtaking sceneries, not forgetting some of the best...

Read more

6 stunning beaches in Egypt to visit in 2023

September 23, 2023
The Forbes Billionaires’ list: Africa’s richest people 2022

Opportunity through adversity: 8th annual Africa risk-reward index

September 23, 2023

Elon Musk’s Starlink is off to a bright start in Africa

September 22, 2023

Nigeria’s smart city dream gets US$200M boost from Afreximbank

September 22, 2023

FurtherAfrica Partners Network

The Exchange Farmers Review Africa 360 Mozambique
TechGist Africa Energy Capital & Power Club of Mozambique
Taarifa Rwanda Web3Africa See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
O Económico Digilogic Africa  

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 107.3K other subscribers
FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?