After the 2013 numbers released this morning, Eni lifts the veil on the 2014-2017 plan. Over the four-year period, the group expects to sell assets for 9 billion euros, including 2,2 billion related to the sale of the stake in the Russian Arketic Russia. The company also plans to invest 54 billion over the next four years (-5% compared to the previous plan). The data was illustrated by the managing director Paolo Scaroni to the financial community in London.
As regards cash flow, Eni expects it to rise from 11 billion in 2013 to an annual average of 15 billion in 2014-2015 and to 17 billion in 2016-2017, despite the bearish scenario for oil prices.
“Disciplined capital management – adds Eni – will continue to be a fundamental pillar of the company's financial strategy. Annual cash generation for the period 2014-2017 will be on average 45% higher than in 2013, considering a scenario with constant oil prices at about 108 dollars per barrel for Brent”.
Eni expects to distribute a dividend for 2014 which will rise to 1,12 euro per share (+1,8%). “Eni's distribution policy – explains the company – continues to be a combination of dividend and buy-back. In 2013 the company distributed a dividend of €1,10 per share”.
Finally, the group announces that it will renegotiate all gas procurement contracts by 2016. "The goal is to achieve full alignment with the new market conditions in terms of prices, flexibility and volumes", reads the plan. Eni does not expect a substantial improvement in gas consumption in Europe over the 2014-2017 plan.
