Eni S.p.A (E) Q1 2020 Earnings Call Transcript

Eni S.p.A (E) Q1 2020 Earnings Call Transcript

Good afternoon, ladies and gentlemen, and welcome to Eni's First Quarter 2020 Results Conference Call hosted by Mr. Claudio Descalzi, Chief Executive Officer.. Overall, the actions, coupled with the cost and capex reductions have more than halved our all-in cash neutrality, while reducing our net debt.. Over 80% of the capex reduction is from upstream, where capex rephasing affect mainly new development projects by 35%, and production optimization by 20%.. The production optimization we have postponed can be restarted quickly, as soon as appropriate market conditions appear, and related production will be recovered with limited loss of value.. Our production costs, notwithstanding the lower production this year is being optimize, and we expect to keep it just below $6 per barrel, confirming our competitive position in the sector.. Production in 2020 is expected to be around 1.75 million to 1.8 million barrels of oil equivalent per day, before the OPEC cut, that are still unknown at field level.. The lower production versus budget is two-third as a result of capex cuts and COVID-19, and [Indecipherable] for lower gas demand, mainly in Egypt and force majeure in Libya.. The weaker scenario account for minus EUR3 billion, while the action we are