Italy’s Eni to boost buyback after quarterly earnings beat expectations
MILAN (Reuters) -Italian energy group Eni will increase its share buyback programme to 2 billion euros ($2.2 billion), it said on Friday after reporting better than expected third-quarter results.
Adjusted net profit was 1.27 billion euros, beating the 1.08 billion euro consensus from analyst forecasts compiled by the company but down from the 1.82 billion euros in the third quarter last year.
The state-controlled group had indicated in July that it could raise its buyback to up 2.1 billion euros if the macroeconomic situation improved.
Despite lower oil price expectations, Eni said on Friday that it would increase rewards for investors as progress on its disposal plan and cost control help to keep its debt in check.
Analysts have warned that a drop in oil prices after more than two years of bumper profits could push big energy companies to borrow to maintain shareholder payouts or force them to cut buybacks.
Eni announced on Thursday that U.S. fund KKR would buy a 25% stake in its biofuel business Enilive for 2.938 billion euros, continuing efforts to spin off growth businesses to fund energy transition.
With Eni expecting the Brent crude oil price to drop to average $83 a barrel this year, down from a previous estimate of $86, the company trimmed its full-year guidance for both underlying cashflow from operations and operating profit.
($1 = 0.9238 euros)
