Eni to return more to shareholders, confirms decarbonisation goals

Italian energy group Eni said on Thursday it would simplify and improve returns to investors in its 2023-2026 strategy plan, Report informs via Reuters.

The group said it would raise its dividend by 7% and buy back shares worth 2.2 billion euros ($2.3 billion) in 2023 and pledged to return to investors between 25% and 30% of its cash flow for operations (CFFO).

Until now the remuneration policy of Eni was linked directly to the price of Brent crude oil.

Eni said earlier on Thursday that its adjusted net profit rose to 13.3 billion euros in 2022, the highest in over a decade, but its shares fell as markets focused on a weaker exploration and production performance in the last quarter.

Under its new strategy plan, Eni will generate a CFFO before working capital of over 17 billion euros in 2023 and of over 69 billion euros in total by 2026.

Oil and gas production will grow between 3% and 4% on average every year to 2026 and then remain pretty stable until 2030. The share of gas production will raise to 60% by 2030, it said.

Contractualised liquefied natural gas (LNG) will be over 18 million tonnes per annum (MTPA) by 2026, double than the level of 2022.

Emission reduction targets indicated last year were confirmed, with the group reaching net zero emissions by 2050.

The group said it would grow its green businesses and indicated that its renewable and retail unit Plenitude is expected to triple its 2022 core profit by 2026.

The Sustainable Mobility unit will generate a 1.5 billion euro core profit by 2026.