Italian energy group Eni on Wednesday lifted its share buyback programme by €600 million to €3.4 billion ($3.9 billion) after reporting better than expected second-quarter results.
The company’s adjusted net profit more than doubled in April-June compared with the same period last year to €2.3 billion, beating an analyst consensus of €2.09 billion and hitting its highest level in three years.
Eni said it may pay an extra dividend in the fourth quarter if the price of Brent oil remains substantially above its forecasts.
Shares in the state-controlled group were up 4.4% at 0750 GMT, outperforming a 0.2% rise in Milan’s blue-chip index .FTMIB.
“Adjusted net income betters market consensus, driven by gains in gas trading, a positive contribution from elevated biofuels margins and from a lower tax charge in the core upstream business,” Citi said in a note to clients.
A spike in energy prices triggered by the U.S.-Iran conflict helped the group’s performance.
The Iran war has disrupted traffic through the Strait of Hormuz, cut supplies, and driven crude and gas prices to multi-year highs, boosting profits for oil majors including Norway’s Equinor and France’s Totalenergies.
Financial Deal with Asset Manager Ares
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