-- Eni (ENI.MI) significantly increased its proposed share buyback and lifted its cash flow guidance by 20% for 2026, supported by "strong" underlying financial performance in the first quarter amid energy market disruptions and volatility in commodity prices.
The Italian energy group on Friday reported a total revenue of 20.06 billion euros for the three months ended March 31, up from 19.19 billion euros a year before. Sales from operations also rose over the period to 22.96 billion euros from 22.57 billion euros.
Adjusted net profit attributable to shareholders, on the other hand, declined to 1.30 billion euros from 1.41 billion euros, weighed down by a lower tax rate due to a better geographical mix of profits before taxes in the exploration and production segment.
Analysts at RBC Capital Markets described Eni's first-quarter results as "mixed" but noted the group's continued operational momentum.
"Looking forward, thanks to our high-quality and diversified asset portfolio, providing us with significant flexibility, E&P low breakeven prices and resilient financial structure, with gearing at historic lows, we are uniquely positioned to capture scenario improvements and to share expected upside with shareholders," Chief Executive Officer Claudio Descalzi said in an earnings release. "Our new cash flow guidance of EUR13.8 bln at a revised scenario for the FY '26 reflects this and will translate into an expanded buyback program of EUR2.8 bln, almost a 90% increase vs the original plan."
In terms of dividends, the group confirmed its planned dividend of 1.10 euros per share for 2026, up 5% from the previous year. It also expects to see continued operational growth and cash flow generation during the current financial year.
"Eni has raised its [Global Gas & LNG Portfolio] guidance today to EUR1.3bn, a 30% uplift from its original guidance. Given gas market dynamics, we think this is largely expected, however Eni has a history of multiple nudges up in guidance through the year, and so we think investors will start to anticipate another uplift if the situation in the Middle East persists and gas markets stay volatile," the research firm said.
Eni's shares were trading almost 1% higher in Milan as of midday Friday.