Italian energy group Eni lowered its forecast for production and investments on Friday as the coronavirus crisis has driven down oil and gas demand and hammered crude prices.
In a statement on first-quarter results, it said it would spend about 30% less this year than planned and expected production to be 1.75 million-1.8 million barrels of oil equivalent per day.
The group, which said in March it would cut capital expenditure in 2020 by 25%, said on Friday it expected spending in 2021 to be 30%-35% lower than original plans.
"The period since March has been the most complex period the global economy has seen for more than 70 years ... Like everyone, we expect a complicated 2020," Eni Chief Executive Claudio Descalzi said.
Demand for oil and gas has tumbled as governments have imposed lockdowns to stop the coronavirus spreading, prompting energy companies to slash investment and conserve cash. Many firms are raising extra cash in debt to weather the storm.
On Thursday, Eni approved the issue of bonds for up to 4 billion euros ($4.30 billion).
The company, which forecasts adjusted cash flow of 7.3 billion euros based on benchmark Brent crude at $45 a barrel, said it was sitting on a liquidity cushion of 16 billion euros.
Brent was trading at half that level on Friday.
In the first quarter, adjusted net profit fell by 94% to 59 million euros, below an analyst consensus provided by the company of around 240 million euros.
Eni, which sees a gradual recovery in oil and gas demand in the second half, said it would save about 600 million euros in expenses this year thanks to the measures it was taking.
($1 = 0.9297 euros)
(Reporting by Stephen Jewkes; editing by Agnieszka Flak)