Eni Plans to Raise Shareholder Returns

Eni SpA has bumped up the upper range of its shareholder distributions from 35-40 percent of cash flow from operations (CFFO) to 35-45 percent as part of its updated plan (2026-30) announced Thursday.

The increase would be supported by “a strong balance sheet, new satellites and de-consolidated cashflows and lower capex”, the Italian majority state-owned energy major said in an online statement for investor day.

“As a result, alongside the proposed 2026 dividend of EUR 1.10, up around 5 percent, Eni is also announcing its intention to repurchase EUR 1.5 billion of shares in the 2026 program”, the statement said.

This year’s share buyback package is part of the board’s proposal to redeem up to 303 million treasury shares, amounting to about 10 percent of Eni’s share capital, until April 2027.

“Eni confirms that, as it has done in previous years, [it] will share CFFO upside with shareholders. Firstly, Eni will apply 60 percent of incremental cashflows above plan, up to $90/barrel, to an additional share buyback”, the statement added.

“Furthermore, the company is also introducing an added upside so that in scenarios where the average Brent price for the year exceeds $90/barrel, or gas prices or refining margins exceed by 50 percent Eni’s budget, Eni will apply the full incremental cashflow as an extraordinary dividend, to be made as a payment to shareholders in the final quarter of the year”.

Eni expects a 14 percent compound annual growth rate in CFFO per share. “From a 2026 level of EUR 11.5 billion at $70/barrel Eni anticipates cumulative CFFO over the plan of around EUR 71 billion”, the statement said.

“In combination with the disciplined and efficient investment program this will give rise to above EUR 40 billion of FCF [free cash flow] over 2026-2030, or above EUR 45 billion including the portfolio effect”.

Lower Investment

Under the 2026-30 plan, Eni expects to invest less than EUR 6 billion a year, around EUR 2 billion lower than the 2025-28 plan.

The projected decrease in investment reflects “further efficiency and focus initiatives as well as the deconsolidation of certain activities; including the contribution from portfolio transactions, net investments over the plan period decrease from EUR 6 billion to around EUR 5 billion per year”, Eni said.

Plenitude ‘Deconsolidation’

Also as part of the 2026-30 plan Eni said it has initiated a reorganization of the shareholding structure of its renewables arm. The reorganization allows for joint control of Plenitude between Eni and partner Ares, ” resulting in the deconsolidation of Plenitude from Eni’s financial statements”, Eni said in a separate statement.

“The transaction involves a non-proportional capital increase to be subscribed to by the shareholders amounting to approximately EUR 1.5 billion, of which at least EUR 1 billion is expected to be provided by Ares, based on a 100 percent pre-money equity valuation of Plenitude of EUR 10.75 billion (and an implied enterprise value of EUR 13.1 billion).

“Following the capital increase, Eni anticipates holding an equity stake of close to 65 percent, and expects to continue exercising direction and coordination rights over Plenitude (known as ‘direzione e coordinamento’ under Article 2497 of the Italian Civil Code), in a manner compatible with the newly established joint control agreement with Ares.

“The capital increase is designed to strengthen Plenitude’s capital structure, supporting its growth targets organically and inorganically, including with respect to an installed capacity of 15 gigawatts and 15 million retail customers by 2030”.

Reduced Indebtedness

Eni expects gearing at 10-15 percent between 2026 and 2030, “an historically low level for the company”, Eni said in the investor day statement. Eni ended 2025 with pro forma gearing of 14 percent.

On Tuesday Eni said it has entered into a five-year revolving credit facility of EUR 9 billion to refinance existing debt.

The new loans, extendable by two years, will be used to pay credit facilities of EUR 6 billion and EUR 3 billion signed 2022 and 2023 respectively.

Eni had EUR 4.94 billion in short-term debt at the end of 2025, plus a EUR 3.43 billion current portion of long-term debt. Long-term debt stood at EUR 20.14 billion, with EUR 4.16 billion paid last year. Current liabilities totaled EUR 34.27 billion, according to the company’s report of consolidated financial statements published Wednesday.

Meanwhile current assets stood at EUR 40.86 billion including EUR 8.1 billion in cash and cash equivalents.

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