Eni Increases Share Buyback and Reports Q1 Profit Beat in 2024

Eni Increases Share Buyback and Reports Q1 Profit Beat in 2024

Italian energy company Eni has announced a 45% increase in its planned 2024 share buyback to EUR 1.6 billion ($1.71 billion) following a first-quarter net income that surpassed expectations.

Although adjusted net profit declined by 46% to EUR 1.58 billion, it slightly exceeded the analyst consensus of 1.56 billion for the quarter, according to Reuters.

The growth in hydrocarbon output by 5% year-on-year supported the company’s exploration and production segment, with the completion of the Neptune Energy acquisition playing a significant role.

“The results put the company firmly on track to exceed the full-year earnings and cash flow guidance as we work to efficiently grow the upstream, profitably develop the businesses tied to the energy transition, and work to fully capture the market scenario,” CEO Claudio Descalzi said in press release on Wednesday.

Eni’s updated outlook now anticipates full-year cash flow from operations to surpass EUR 14 billion, up from the previously forecasted EUR 13.5 billion.

Consequently, the company raised its 2024 share buyback to 1.6 billion euros from EUR 1.1 billion.

Eni’s retail and renewable business, Plenitude, reported a proforma adjusted EBITDA of EUR 346 million, marking a 48% increase from the previous year.

Eni’s leverage ratio increased to 0.23 at the end of March, nearing the upper end of the range outlined in the 2024-27 business plan.

Following the announcement, Eni’s shares initially rose but later declined by around 1%, underperforming the Milan blue-chip index.

Notably, Ithaca Energy recently agreed to acquire the majority of Eni’s UK-based oil and gas producing assets for approximately 754 million pounds in stock, a move that will position them as one of the largest independent energy companies in the North Sea.


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