Eni Shareholders Set for Cash Boost After Earnings Double — Update
By Adam Whittaker
Eni kicked off earnings season for the energy majors with an extraordinary dividend and buyback hike after volume growth, higher prices and exceptional refining margins provided a cash windfall that the Italian company could return to shareholders.
The oil and gas company said Friday that it would pay a one-off dividend of 1.3 billion euros ($1.46 billion) in December, and plans to buy back 3.8 billion euros of shares by the end of 2026.
Oil and gas prices remained elevated over the summer and refining margins jumped to record highs. Eni adopts a flexible distribution policy that sets shareholder returns against financial metrics and the oil-price environment. As more cash than expected has poured into the company, it plans to return more of the upside to shareholders.
Friday's buyback hike is Eni's third of the year and illustrates how the conflict in the Middle East and record high refining margins are offering energy majors an unexpected windfall.
But the impact of soaring energy prices is showing up across the economy and squeezing workers' pay packets. Eni has sought to damp the effects in Italy by capping diesel prices for a period, and offering discounts on fuel for certain economic sectors. The extraordinary returns, however, could prompt calls for additional taxation on energy profits.
Eni said adjusted earnings before interest and taxes in the third quarter doubled on year to 5.99 billion euros after oil and gas production rose to 1.83 million barrels of oil equivalent a day.
The company reported a 76% jump in earnings at its oil and gas unit and a significant increase from refining. Quarterly earnings in its Enilive unit rose 80%, driven by a stronger performance in biorefining unit.
As a result, Eni increased the full-year cash flow forecast and confirmed its 2026 ordinary dividend of 1.1 euros a share.
Write to Adam Whittaker at adam.whittaker@wsj.com
(END) Dow Jones Newswires
October 23, 2026 03:28 ET (07:28 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
4 Stocks to Buy for the Long-Term While They’re Still Undervalued
6 ETFs To Diversify Away From AI
Why This Vanguard ETF Is One of the Best
The Best AI Stocks to Buy Now
United States