Eni Hikes Buyback as Higher Energy Prices Offer Cash Windfall — Update

By Adam Whittaker

Eni nearly doubled its share buyback target as conflict in the Middle East upends energy markets, pushes prices higher and is expected to give oil majors a cash windfall.

War in the Middle East has severely disrupted the flow of oil and gas from the region, driving market volatility and pushing energy prices up.

Eni is the first of the European oil-and-gas majors to report results since the war started in late February but BP has said it expects an "exceptional" oil trading result and Shell has said oil trading operations would deliver a significantly higher result than in the prior quarter. TotalEnergies also expects a boost.

Eni on Friday said it plans to buy up to 2.8 billion euros ($3.27 billion) of shares over the year, around 90% higher than its previous target. It has also raised its cash flow forecasts by 20%.

"Investors may be surprised by the quantum of the buyback upgrade," RBC Capital Markets analysts Biraj Borkhataria and Adnan Dhanani wrote in a note to clients.

The Italian energy company now sees Brent crude priced at $83 a barrel over the year compared with expectations set out in March of $70 a barrel.

Eni's performance over the first quarter was boosted by a 9% rise in oil and gas production. Rampups at its West Africa and Norway operations, coupled with startups in Angola, offset some of the limited impact from disruptions in the Middle East, it said. Meanwhile, its downstream unit was hit by turnaround activity at its refineries.

Net profit fell 9% to 1.07 billion euros from the same period a year prior.

Overall, Eni's quarterly numbers were mixed with weakness in refining and chemicals but the company showed strong operational momentum, the analysts said.

Shares were up 1% in morning trade to 23.45 euros.

Write to Adam Whittaker at adam.whittaker@wsj.com

(END) Dow Jones Newswires

April 24, 2026 04:20 ET (08:20 GMT)