Eni Sp A announced plans to return more cash to shareholders, driven by soaring energy prices following the Middle East war. The Italian oil and gas producer will pay an extraordinary dividend of about €1.3 billion ($1.5 billion) and increase its share buyback. Eni's third-quarter refining margin more than tripled from a year earlier, while oil and gas output grew to 1.83 million barrels of oil equivalent a day.
Milan-based Eni has expanded its global production portfolio, with project ramp-ups further buoying the bottom line. The company will increase its 2026 share buyback to €3.8 billion from €3.4 billion. Eni has a policy of returning more cash when commodity prices rise above certain thresholds.
Adjusted net income was €2.8 billion in the third quarter while net cash from operations jumped to €4.36 billion, both beating analyst estimates. The company raised its full-year cash flow forecast, citing strong operational performance and higher commodity prices. Oil and gas output rose 4% in the quarter as projects ramped up in West Africa, Mexico and Norway.
Eni boosted its full-year forecast for underlying production growth to 6%-7%. Gains come as Prime Minister Giorgia Meloni's government seeks contributions from energy companies to help fund its 2027 budget after their profits surged.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing