How to succeed with low prices while driving long-term growth.
March 2016: Eni’s chief executive Claudio Descalzi presented the company’s Strategic Plan 2016-19 to the financial community in London.
Step by step, the keys points in our strategy for the next four years.
“The oil industry is facing a highly complex challenge: how to reduce costs to meet short-term financial constraints, while continuing to create value in the long term. The success of our strategy of restructuring the company and its transformation into an integrated oil and gas company will enable us to meet this challenge with a competitive cost structure, an efficient operating model and a flexible asset portfolio. We have begun a new profitable growth cycle and have the potential to create greater value for the future.”
“We are continuing to successfully restructure our mid-downstream areas. The gas and power sector will benefit from the renegotiation of long-term contracts and the reduction of logistics costs. In the refining and marketing sector, we will focus on the reduction in refining margins and on improving operational efficiency, while at the same time defending our market share in retail.”
“In 2015 we reached 90 per cent of the objectives for disposals foreseen in the previous plan. Today we have increased our target for the next four years to new disposals worth €7 billion by 2019. This will be done mainly through the dilution of our holdings in important recent discoveries, in line with our dual exploration strategy.”
“We will continue to focus on strong cash generation through sustainable upstream growth, the completion of the restructuring of other sectors, greater cost efficiency and the management of a flexible portfolio. In addition, thanks to our financial flexibility, our remuneration policy will continue to be sustainable, even with lower than expected oil prices.”