Eni raised its 2026 oil and gas production outlook and expanded its share buyback program after reporting significantly stronger second-quarter results, supported by double-digit production growth, higher commodity prices and improved performance across several business segments.
The Italian energy company now expects underlying full-year hydrocarbon production growth of around 5%, up from its previous guidance of 3% to 4%, following 11% year-over-year underlying production growth in the second quarter to 1.79 million barrels of oil equivalent per day, excluding price effects.
The improved outlook prompted Eni to increase its planned 2026 share repurchase program to €3.4 billion, up from the previously revised €2.8 billion, while reaffirming its planned dividend of €1.10 per share. The company also said an extraordinary dividend could be considered later this year if refining margins remain well above budget assumptions.
Second-quarter adjusted EBIT more than doubled year over year to €5.38 billion, while adjusted net profit rose to €2.3 billion. The upstream business generated €4.77 billion in adjusted EBIT, benefiting from higher production, favorable oil realizations and continued cost discipline. Cash flow before working capital reached €4.47 billion, comfortably covering €1.84 billion in capital spending and €1.35 billion returned to shareholders through dividends and buybacks during the quarter.
Strategically, Eni continued expanding its upstream portfolio and transition businesses. During the quarter it established the Searah joint venture with Petronas, creating a regional platform spanning Indonesia and Malaysia that will develop major gas discoveries in the Kutei Basin. The company also approved final investment decisions for the Baleine Phase 3 development offshore Côte d’Ivoire, the Greater PAJ project offshore Angola, and the Cronos gas project offshore Cyprus.
Eni also entered the critical minerals sector through investments in graphite and lithium projects in Canada and Chile, signed an agreement with Mercuria to create a global commodities trading joint venture, and advanced plans to partially deconsolidate renewable energy business Plenitude while retaining a 65% stake.
Within its transition businesses, Enilive and Plenitude generated €1.1 billion in adjusted EBITDA during the first half of the year. Eni also continued expanding its renewable generation, biofuels and carbon capture businesses while investing in battery manufacturing and recycling projects.
The company’s balance sheet continued to strengthen, with pro forma gearing falling to approximately 10%, the low end of its target range and its lowest historical level. Looking ahead, Eni maintained gross capital expenditure guidance of €7 billion while lowering expected net capital spending to below €5 billion, supported by continued portfolio optimization and asset monetizations.
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