Eni to Cut Spending, Slash Dividend and Sell Assets Amid Low Oil Price

By Eric Sylvers 

LONDON-- Eni SpA, the Italian oil and gas company, said it would reduce spending, slash its dividend and sell EUR8 billion ($8.5 billion) of assets over the next four years as it grapples with the recent plunge in oil prices.

The four-year plan for the years 2015-2018 projects a 17% fall in capital expenditure compared with a previous plan.

Eni said it would pay a dividend on this year's earnings of EUR0.80 a share, a 29% reduction from last year. There was no mention of paying the dividend in shares as several rivals including Royal Dutch Shell PLC have recently decided to do.

"The progression of the (dividend) distribution policy will be in line with our growth," Chief Executive Claudio Descalzi said while presenting the company's new four-year plan.

Eni has traditionally had one of the highest dividend payouts in the industry.

The company is forecasting Brent crude oil, the global benchmark, to average $55 a barrel this year, rising to $70 in 2016, $80 in 2017 and $90 in 2018.

Write to Eric Sylvers at [e-mail]

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