Italian energy group ENI has revised down its long-term outlook for oil and gas prices due to the economic fallout from the COVID-19 crisis, the company announced in a statement on Monday.
ENI said it cut its 2023 long-term price assumption for Brent to $60 a barrel from a previous $70 and gas on the Italian hub to $5.5/million British thermal units from $7.8.
ENI said it expected "post-tax impairment charges against non-current assets, including a devaluation of tax credits recorded in connection with tax-losses carryforwards of 3.5 billion euros, plus/minus 20%."
The energy group said it forecasts Brent at respectively $40, $48 and $55 per barrel for the period 2020-2022, compared to the previous $45, $55 and $70 per barrel projection.
"This ongoing evolution will allow the Company to achieve a better balanced portfolio, reducing the exposure to the volatility of hydrocarbon prices, while progressing towards our targets of sustainability and profitability," Claudio Descalzi, ENI’s CEO, said, adding that the company is now assessing how to speed up plans.
International benchmark Brent crude was trading at $42.91 per barrel at 1251 GMT on Tuesday while American benchmark West Texas Intermediate (WTI) was at $40.41 a barrel at the same time.
By Sibel Morrow