🎈 Up Big Today: Find today's biggest gainers with our free screenerTry Stock Screener

Eni raises share buyback plan after third-quarter earnings top estimates

Published 25/10/2024, 08:28 pm
© Reuters.
ENI
-

Investing.com -- Eni (BIT:ENI) announced it will increase its annual share buyback program to 2 billion euros, far above its original plan for the year, after the Italian energy firm posted better-than-anticipated third-quarter earnings.

The state-backed company had previously said it could raise its repurchases to up to 2.1 billion euros from 1.6 billion euros depending on an improvement in economic conditions.

A decrease in oil price expectations -- coming after over two years of outsized profits -- had led some analysts to predict large energy firms would either maintain or reduce the size of its buybacks.

However, Eni said "strategic progress" on its disposal plan and cost reductions to control its debt pile had persuaded the business to lift the amount it aims to return to stakeholders. On Thursday, Eni revealed that US fund KKR would purchase a 25% interest in its biofuel business, in a sign that the group is pushing to offload assets to bankroll its energy transition.

For the third quarter ended on Sept. 30, adjusted net profit of 1.27 billion euros beat company-compiled analysts' estimates of 1.08 billion euros. But the figure slipped from 1.82 billion euros in the year-ago period.

A projected decline in the average price of Brent crude to $83 a barrel this year -- down from Eni's earlier expectations of $86 a barrel -- also underpinned the firm's decision to slash its full-year guidance for underlying cashflow from operations and operating profit. Oil prices have been under pressure in recent months as concerns over sluggish growth in top importer China have counterbalanced worries over potential supply constraints stemming from ongoing tensions in the Middle East.

"Overall, Eni continues to deliver on its strategic objectives [...], and the nudge up in distributions is likely to be welcomed by investors," analysts at RBC Capital Markets said in a note to clients.

Milan-listed shares in Eni were higher in morning trading on Friday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.