Eni plans extra payout and bigger buyback after beating forecasts

what happened

Italy's state-controlled energy group Eni said on Friday it will pay a special dividend of 1.3 billion euros and slightly increase its share buyback programme. The move follows a third-quarter net profit that more than doubled compared with a year earlier, according to the company.

Adjusted net profit for July to September came in at 2.8 billion euros, up from 1.25 billion a year earlier and above a company-compiled analyst consensus of 2.48 billion euros. Eni also lifted its guidance for underlying cash flow from operations (CFFO) to 16.5 billion euros from 15 billion. The extraordinary dividend of 0.46 euros per share will be paid in the fourth quarter, and the buyback is raised to 3.8 billion euros. CEO Claudio Descalzi said the company intends to keep sharing upside with shareholders.

why it matters

For markets, the update signals strong cash generation at a company where the Italian state is the controlling shareholder. The higher CFFO outlook and bigger shareholder payouts matter for investors tracking dividend policy across European oil and gas majors.

market impact

Eni and FTSE MIB: strong results and larger shareholder payouts support Eni shares

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