Eni Presents 2016-19 Strategic Plan; To Sell Another EUR 7 Bln Of Assets By 2019

(RTTNews) - Italian oil and gas company Eni SpA (E) on Friday presented the company's 2016-2019 strategic plan to the financial community.

The company said it has now increased its 4-year target and will dispose of another 7 billion euros of assets by 2019. The asset disposal will be done by the company mainly through the dilution of its stakes in recent and material discoveries as part of its dual exploration model strategy

Further, Eni said it is completing its transformation, which is crucial in a complex oil price environment, in order to enhance long-term growth while meeting short-term financial constraints.

The company noted that the process will provide cumulative production growth of 13 percent over the plan period, despite an 18 percent reduction in overall upstream capital expenditure. The company expects hydrocarbon production to grow by over 3 percent per year across the 2016-2019 period.

Further, the company's group capital expenditure of about 37 billion euros for the period represents a 21 percent reduction at constant foreign exchange rates versus the previous plan.

Throughout the plan, Eni expects new discoveries of 1.6 billion boe, at a unit exploration cost of $2.3 per barrel during the plan period.

Eni said it is continuing to restructure its mid-downstream businesses successfully. Gas & Power will benefit from the renegotiation of long-term contracts and reductions in logistics costs. In Refining & Marketing, the company is focused on lowering its breakeven.

Eni intends to confirm a 2016 dividend of 0.8 euros per share full cash.