Eni SpA was the last oil company to lower its long-term price expectations by saying that the coronavirus pandemic will have lasting effects on the industry.
Eni now estimates Brent benchmark oil at $ 60 per barrel per in real terms, by 2023 compared with the previous valuation of $ 70, the company said this on Monday late at night, warning of impairment. Competitors Royal Dutch Shell Plc and BP Plc also lowered their price forecasts, as the decline caused by quarantine measures is detrimental to their business, forcing them to reevaluate the value of their assets in the context of switching to cleaner energy.
on the global economy and energy scenario, Eni has revised its understanding of the basic principles of the market, ”the Italian manufacturer said in a statement. The company said it would adhere to – or even accelerate the development of its long-term climate strategy, presented in February.
The worldwide spread of coronavirus this year destroyed fuel demand, affecting oil revenues in the first quarter and threatening to worsen in the second. Despite recent increases in consumption in some of the hardest hit countries, resurgent waves of the virus show that recovery remains fragile.
RBC Europe analyst Biraj Borkhataria notes that lowering price forecasts is “like the flavor of the month” (“season hit” ”- Ed.) At Eni,“ we do not consider the current dividend to be compatible with its aggressive decarbonization strategy. ”
BP and Shell, like Eni, already lowered their forecasts
Last month, BP made it clear ]which will make the greatest estimate of the value of its business after the Deepwater Horizon disaster in 2010, since it reduced estimates of oil and gas prices in the coming decades by 20-30%. Two weeks later, Shell also announced that it had revised its medium and long-term pricing prospects and warned of a record reduction. : ///
Record Eni lowered its forecasts for the price of oil by 2023 first appeared TEKNOBLOG .
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