The Strategist

Eni cancels €400M buyback

03/19/2020 - 09:51

One of the world's largest energy companies, the Italian Eni SpA withdrew the offer to buy back shares worth €400 million because of the COVID-19 pandemic and the collapse of the OPEC + deal, the company said.

Luca Mascaro
Luca Mascaro
“In light of recent market events caused by the spread of the COVID-19 pandemic and recent decisions made by OPEC +, Eni’s board of directors has decided... to withdraw the offer to repurchase shares at a shareholders meeting on May 13, 2020 in the amount of €400 million in 2020” - the company’s release reads.

In addition, Eni lowered its forecasts for the price of Brent crude oil to $ 40-45 in 2020 and to $ 50-55 in 2021. The offer to repurchase shares will be revised when the price of oil approaches $ 60 per barrel.

“Following a recent drop in commodity prices and limited operating activities caused by the COVID-19 pandemic, Eni quickly began revising its planned activities. This revision will affect the reduction in capital costs and expected costs...”, said the company head Claudio Descalzi.

Eni was founded in 1953, operates in 73 countries. The staff is approximately 32 thousand people. The headquarters of the company is located in Rome.