Eni: shelves buyback plans after oil plunges

(CercleFinance.com) - Italy's Eni, the fourth largest European oil company, said that it will not go ahead with its planned share buybacks, due to the recent fall in commodity prices and the consequences of the COVID-19 pandemic.


The Rome-based company said that it is also considering a major reduction in capex and expects costs at levels that are consistent with new oil prices, it said.

Eni has updated its commodities scenario for 2020 and 2021, downgrading the forecasts on the Brent price to 40-45 dollars in 2020, followed by 50-55 dollars in 2021.

Highly volatile over recent weeks, Brent oil is currently trading at around 26 dollars per barrel.

The company said that it would reconsider share buybacks when the price of Brent price is at least equal to 60 dollars per barrel.

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