Rewrites throughout, adds details on Canada project, CapEx and analysts comment; updates shares

April 24 (Reuters) - Dow Inc DOW.N said on Thursday that it was widening the review of its European assets and delaying the construction of its Alberta project as the chemicals firm looks to conserve cash amid unfavorable market conditions.

Along with other chemicals firms, Dow has been struggling with higher feedstock and energy costs as well as weak demand and prices for its products, especially in markets such as Europe.

The challenging conditions are expected to persist in the near term, given increased macroeconomic and geopolitical volatility, the company said.

Dow has initiated several steps to help mitigate the impact of lackluster demand and margin pressures and reduce spending, including job cuts and a strategic review of some of its European assets.

It said on Thursday that it was expanding the scope of the review and has identified three initial assets - two in Germany and one in the UK - that it believes will require further action, including idling or complete shutdowns.

It expects to complete the review by the middle of the year, Dow said.

The company is also delaying the construction of its Path2Zero project in Alberta, Canada, until market conditions improve. As a result, it expects total enterprise capital expenditure for 2025 to be $2.5 billion, compared to its original plan of $3.5 billion.

"We view cash savings related to the delay as a positive, but the cost of the delay in terms of sunk investment is not clear to us," Keybanc Capital Markets analysts said in a note.

The company also grappled with lower prices and higher input costs in the reported quarter, but volume growth helped it post a surprise profit of 2 cents per share. Analysts had expected an adjusted loss of 1 cent per share, according to data compiled by LSEG.

(Reporting by Mrinalika Roy in Bengaluru; Editing by Pooja Desai)

((mrinalika.roy@thomsonreuters.com;))