Addressing investor doubts: Eni chief executive Paulo Scaroni
Eni lowers output targets
Italy's oil and gas group Eni cut its production output guidance today as chief executive Paolo Scaroni moved to clear up investor doubts on growth, debt and dividend that have weighed on its shares.
Eni said production to 2013 is expected to grow an average of over 2.5% per year. In its 2008-2012 plan it had forecast an output growth of 3.5% per year, Reuters reported.
It said production this year is expected to be in line with last year and that its output would surplass 2 million barrels of oil equivalent per day by 2013.
Eni, the world's seventh biggest listed oil company and Italy's largest, said in a statement on its 2010-2013 strategic plan its dividend growth will be in line with OECD inflation from 2011.
Eni, one of Europe's most leveraged integrated oil companies, cut its dividend last year after it breached a self-imposed 40% ceiling for gearing, disappointing investors.
Supermajor BP, Europe's largest oil company, said last month it was sticking to last year's 1%-2% annual production growth target, while rival Shell affirmed its 2-3% growth targets.
To help fund production growth investments in the period are expected to rise to 52.8 billion compared to 48.8 billion in the previous plan.
