Italian energy group Eni has increased its share buyback programme by €600 million to €3.4 billion after reporting stronger-than-expected second-quarter earnings, driven by higher oil and gas prices and robust trading performance.
The company said on Wednesday that adjusted net profit more than doubled to €2.3 billion in the April–June period, its highest quarterly level in three years and above analysts’ expectations of €2.09 billion. Eni added that it could pay an additional dividend in the fourth quarter if Brent crude prices remain significantly above its internal forecasts.
The improved performance was supported by a surge in energy prices following the U.S.-Iran conflict, which disrupted shipping through the Strait of Hormuz and tightened global oil and gas supplies. Strong gains in gas trading, higher biofuel margins and lower tax charges in its upstream business also boosted results.
Eni raised its full-year hydrocarbon production growth target to 5% from the previous 3%–4% after second-quarter output increased 7% year-on-year. The company also announced a $2 billion capital contribution from U.S. asset manager Ares under a partnership covering selected oil and gas infrastructure assets, a move aimed at funding future growth without increasing debt. CEO Claudio Descalzi said the company is expanding its exploration and production business to support long-term growth and stronger cash generation.