BAKU, Azerbaijan, July 7
By Leman Zeynalova – Trend:
The revised scenario adopted by Italian Eni foresees a long-term price of the marker Brent of 60 $/barrel in 2023 real terms compared to the previous assumption of 70 $/barrel, Trend reports citing the company.
For the years 2020-2022, Brent prices are expected respectively at 40, 48 and 55 $/barrel (compared to the previous assumptions of 45, 55 and 70 $/barrel), according to Eni.
The company expects the price of natural gas at the Italian spot market “PSV” at 5.5 $/mmBTU in real terms 2023 compared to the previous assumption of 7.8 $/mmBTU.
“For the years 2020-2022 it is expected respectively at 3.0, 4.6 e 5.2 $/mmBTU (previously 3.9, 5.1 and 7.3 $/mmBTU). Long-term refining margins in the Mediterranean area are confirmed slightly lower than 5 $/barrel,” said the Italian company.
Based on information available to management and on the current progress of assessments, Eni currently expects to record in the results of the second quarter 2020 estimated non-cash, post-tax impairment charges against non-current assets, including a devaluation of tax credits recorded in connection with tax-losses carryforwards, of € 3.5 billion, plus/minus 20 percent. At its mid-point, this estimation represents a limited decrease of around 4 percent in the value of non-current assets.
“Pre-tax impairment charges estimated at € 2.8 billion relate for € 2 billion to upstream assets, with the remaining charges to be recorded in the refining business. Management does not expect any impairment charge against the value of explorations assets triggered by the revision of the pricing scenario,” said Eni.
The reduction in tax credits of € 0.7 billion is due to an impairment loss recorded at tax-losses carryforwards net of the tax effects associated with the charges recorded against the book values of property, plant and equipment, according to the company.
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