Eni plans to reduce costs and investment to the tune of €7.8bn in 2020-2021, in a context of market volatility related to the COVID-19 pandemic. The group plans to reduce costs by €1.4bn and investments by €2.6bn in 2020 (vs. €600m already announced) and to cut costs by another €1.4bn and investments by €2.4bn in 2021 (vs. €2.5-3bn already announced); around 25%-30% of the cost reduction identified for 2020 and 2021 will be structural.
Eni has also reviewed its production profile. Oil and gas production is expected to reach around 2 Mboe/d in 2023, rising to a peak of around 2.05-2.10 Mboe/d per day in 2025. The Italian company plans ramp up investment in its biorefinery and renewable energy businesses, as its new green businesses would account for 17% of investments over the 2020-2023 period, up from a previous 12%, and would reach 26% in 2023. In particular, the installed power capacity generated from renewables is expected to reach 3 GW, and gasand power retail customers are expected to reach 10.5 million.