Italian energy group Eni has announced plans to accelerate its share buyback program following a second-quarter net profit that exceeded expectations. The company reported an adjusted net profit of €1.52 billion ($1.65 billion) for the period from April to June, marking a 21% decrease from the previous year but surpassing analyst expectations of €1.42 billion.
The stronger performance was attributed to robust results in Eni’s upstream and Gas & LNG divisions. Additionally, ongoing efforts to streamline its portfolio are expected to lead to reduced debt levels by the end of the year. Eni stated that it now anticipates its leverage ratio, which measures total debt relative to equity, to fall significantly below 20%, an improvement from its earlier estimate of 20% to 25%.
Eni’s Chief Executive, Claudio Descalzi, emphasized that these developments would facilitate the execution of a €1.6 billion share buyback program, originally slated to conclude in April 2025. The company is also considering increasing the buyback by an additional €500 million in the third quarter.
In conjunction with these announcements, Eni has been active in divesting assets, including a recent deal to sell upstream operations in Alaska and exclusive negotiations with KKR to sell a minority stake in its biofuel unit, Enilive. Following the news, Eni’s shares rose by 3.5% on the Milan stock exchange, outperforming the broader blue-chip index.