Eni has announced its fourth-quarter results for 2023 with an adjusted net profit of €1.64 billion, exceeding analysts’ expectations.

The gas and LNG operations achieved an adjusted EBIT of €0.68 billion, aided by the favorable outcome of the arbitration.

The gas and LNG division outperformed the group’s guidance throughout 2023.

Eni recorded an adjusted EBIT of €3.2 billion in fiscal year (FY) 2023, up by 57% compared with 2022. This was driven by an optimized natural gas and LNG portfolio and contract renegotiation benefits while maintaining stability and reliability of supplies to European markets and compensating for the reduction of Russian volumes. Moreover, the contribution of Joint Venture SeaCorridor, proforma adjusted EBIT for the FY was €3.4 billion.

RBC Europe analyst Biraj Borkhataria stated in a report that, “With little in terms of forward-looking guidance, we see this as a neutral set of results. However, some investors may see the arbitration proceeds as ‘one-off’ in nature and consider the underlying results disappointing.”

Eni’s shares were down 1.9%, underperforming a 0.5% rise in Milan’s blue-chip index.

The company has pledged to buy back shares worth €2.2 billion by April. This buyback and cancellation of shares could offer the Italian government an opportunity to reduce its stake in the energy group, as Italy’s finance minister stated last year.

The government currently owns a combined 32.4% of Eni, which is expected to increase to more than 34% as a result of the share repurchase program.

Once the buyback is completed, the Treasury could potentially sell 4% of Eni, which is worth around €2 billion at current market prices.

“Delivering gas and low-carbon projects is one aspect of our transition plan, as we are also materially growing our presence in new energies,” said CEO Claudio Descalzi.

Eni continued to develop its energy transition businesses, Plenitude and Enilive, under its “satellite approach,” which aims to create independent units that can attract investors.

“Our results were underpinned by our distinctive satellite model, which continues to prove to be an effective lever in accelerating growth and value creation,” said Descalzi.

Notably, Eni is set to present its updated strategy on March 14.