Eni Expects EUR3.5 Billion of Impairments on Lower Outlook for Prices
July 07 2020 - 2:27AM
Dow Jones News
By Pietro Lombardi
Eni SpA expects to report impairments of around 3.5 billion
euros ($3.96 billion) due to a lower outlook for energy prices.
The Italian oil-and-gas major is cutting its forecasts for oil
and gas prices, both in the short and long term. It is now assuming
a long-term price for Brent of $60 a barrel, down from a previous
forecast of $70, it said late Monday.
The company is still working on its assessment of the
impairments and said the estimate might vary by around 20%, up or
down.
Eni expects write-downs of about EUR2 billion related to its
upstream assets and around EUR800 million in its refining
operations. The estimate also includes devaluation of tax credits
of around EUR700 million.
The impairments will be reported in the second-quarter
results.
"Our changed long-term assumptions, reached four months after
the outbreak of the Covid-19 pandemic, reflect our current
expectations about future prices and will be incorporated in our
processes of capital allocation," Chief Executive Claudio Descalzi
said.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com;
@pietrolombard10
(END) Dow Jones Newswires
July 07, 2020 02:12 ET (06:12 GMT)
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