Eni SpA said it’s raising share buybacks this year on an improved outlook for cash flows, after reporting profit that beat analyst estimates.
The Italian energy company’s balance sheet is benefiting from a cost-reduction program introduced earlier this year and asset sales aimed at bringing down debt, while a ramp-up of projects is bringing in more cash.
That has allowed the company to increase its buyback program by 20% to €1.8 billion ($2.1 billion), according to an earnings report Friday. Third-quarter adjusted net income of €1.25 billion exceeded average analyst estimates.
“A strong print across the board,” Biraj Borkhataria, an analyst at RBC Europe, said in a note. “The company is seeking to share both its underlying performance and part of the disposal proceeds with investors.”
Eni’s bullish outlook comes despite a decline in oil prices, with benchmark Brent dropping almost 20% from its January peak as OPEC+ and other countries boost output. The Italian company has been buoyed by the billions of euros it earned from selling stakes in its renewables and mobility divisions, and by strong oil and gas production.
Eni raised full-year production guidance to as much as 1.72 million barrels of oil equivalent. Free cash flow from operations is now forecast at €12 billion this year, up from a previous expectation of €11.5 billion.
In the firm’s gas business, it sees proforma adjusted earnings before interest and taxes at more than €1 billion.
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