Eni Raises Share Buyback Plan to $3.3B
This article was first published on Rigzone here
Eni SpA plans to raise its share repurchase program by 90 percent from the initial plan to EUR 2.8 billion ($3.29 billion) on a stronger cash flow projection driven by higher oil prices.
In its report for the first quarter (Q1) of 2026, the Italian state-backed energy major increased its projection for full-year adjusted cash flow from operations (CFFO) by 20 percent to EUR 13.8 billion. Eni had reported EUR 12.5 billion in CFFO adjusted for nonrecurring items for 2025.
The 2026 CFFO forecast relies on "a revised Brent scenario of 83 $/bbl, SERM refining margin at 8 $/bbl, [and] TTF gas price at 50 EUR/MWh, at an exchange rate EUR/USD of 1.15", the report said.
"Due to revised scenario assumptions and improved CFFO guidance and in line with the Group distribution policy, 60 percent of CFFO upside compared to the budgeted CFFO (EUR 11.5 bln) [is] to be returned to shareholders in the form of additional share repurchase till a Brent price of 90 $/bbl", Eni said.
Meanwhile it increased its annualized dividend by five percent to EUR 1.1 per share.
"In case of a scenario with Brent above 90 $/bbl or with a 50 percent increase in budgeted gas prices or refining margins, 100 percent of additional CFFO [is] to be returned as an extraordinary dividend in the fourth quarter", Eni added.
Adjusted CFFO for Q1 2026 stood at EUR 2.88 billion, while shareholder returns totaled EUR 1 billion. Distributions consisted of EUR 770 million in dividends and EUR 300 million in share redemptions. These redemptions completed a EUR 1.8-billion buyback package, which involved 119 million shares.
Despite higher production, sales volumes and oil price realizations, Q1 2026 net profit fell 9 percent year-on-year to EUR 1.07 billion, or EUR 0.34 per share, due to unfavorable exchange rate effects with the euro appreciating 11 percent against the dollar, according to the report. Adjusted net profit declined eight percent year-over-year to $1.3 billion.
The exploration and production segment logged EUR 3.36 billion in adjusted EBIT for Q1 2026, up 1 percent from Q1 2025. Production rose 9 percent to 1.8 million barrels of oil equivalent per day(MMboepd), consisting of 862,000 bpd of liquids and 4.9 billion cubic feet a day of gas. Eni While realized liquids prices rose, gas realizations fell.
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The gas, liquefied natural gas (LNG) and power segment recorded EUR 327 million in adjusted EBIT, down 31 percent year-on-year. While gas sales climbed 15 percent to 13.9 billion cubic meters (490.87 billion cubic feet) and LNG sales 21 percent to 3.4 Bcm, Italian spot and TTF prices fell 13 percent and 15 percent respectively.
Eni's biofuels and green mobility arm Enilive registered EUR 138 million in adjusted EBIT, up 45 percent year-on-year. Sales fell 11 percent to 4.69 million metric tons as bio-throughputs fell 14 percent to 252,000 metric tons and biorefinery utilization weakened to 64 percent.
Eni's renewable power company Plenitude saw a 12 percent fall in adjusted EBIT to EUR 213 million partly due to a decline in Italian index power prices.
Meanwhile refining and chemicals losses improved with adjusted EBIT of -EUR 47 million and -EUR158 million respectively. Refining margins improved but throughputs fell. Chemical sales volumes fell.
Eni acknowledged a negative impact from the war in the Middle East on its refining and upstream volumes, though related supply disruptions benefited the polyethylene spread in its chemicals business.
Revenues totaled EUR 20.06 billion, up from EUR 19.19 billion for Q1 2025. Operating profit rose from EUR 571 million to EUR 705 million. Profit before income taxes rose from EUR 710 million to EUR 830 million.
"Despite the challenges of volatile energy markets we remain focused on disciplined and consistent execution of our strategy to deliver to the market and our customers reliable, affordable and lower carbon energy", said chief executive Claudio Descalzi.
Eni exited Q1 2026 with EUR 8.32 billion in cash and cash equivalents, while current assets totaled EUR 45.09 billion.
Current liabilities stood at EUR 38.88 billion including EUR 6.53 billion in short-term debt and a EUR 2.67 billion current portion of long-term debt. Gearing stood at 15 percent.
To contact the author, email jov.onsat@rigzone.com
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