Adjusted net profit of 1.25 billion euros ($1.5 billion) between July and September beat a consensus estimate of 1.02 billion euros, just short of the 1.27 billion-euro profit a year earlier.
ASSESSING IMPACT OF NEW SANCTIONS
The group is assessing the potential impact of new U.S. sanctions on Russia’s Rosneft and Lukoil, which have minority stakes in some Eni assets such as Zohr gasfield in Egypt.
“We will ensure full compliance with the sanctions, but you have to take into account that we have a very limited interaction with these two companies,” Eni Chief Transition and Financial Officer Francesco Gattei told analysts on a conference call.
Negotiations with Malaysia’s Petronas to create a relevant player on Asia’s liquefied natural gas market will likely be completed by year-end, he added.
POSITIVE SIGNAL FOR 2026
Eni’s shares were up 2% at 1435 GMT on the Milan bourse, outperforming a 0.4% gain in the oil-and-gas stock index, with analysts pointing to an improved outlook for next year.
“More important than the strong results, perhaps, is the increased guidance on both production and the buyback,” said Barclays analyst Lydia Rainforth. “For us, this signals continued momentum into 2026 and with it the high likelihood of further re-rating for the shares.”
BUYBACK INCREASE BUCKS INDUSTRY TREND
Eni’s bigger rival TotalEnergies has said it would cut its share repurchases from the fourth quarter to contend with lower oil prices. BP and Chevron have also reduced buybacks this year.
The Italian group said it could improve investor rewards after divesting its minority stakes in a number of businesses and projects.
It had also put costs under tight control with efficiency measures expected to have a beneficial effect of 4 billion euros in the full year from a previous estimate of 3 billion euros.
Pro-forma group leverage – measuring total debt in relation to equity and taking into account proceeds from agreed disposals – stands at around 12%, near historic lows.
STRONG HYDROCARBON PRODUCTION
“Strong (hydrocarbon) production growth allows us to raise our annual guidance towards 1.72 million barrels per day,” said CEO Claudio Descalzi.
Hydrocarbon production in the third quarter was equal to 1.756 million barrels of oil equivalent per day, 6% higher than last year and above an analyst consensus.
Eni raised its full-year estimate for cash generation to 12 billion euros from 11.5 billion.
($1 = 0.8575 euros)
Reporting by Francesca Landini; Editing by Gavin Jones and Richard Chang – Reuters
This article was originally posted at sweetcrudereports.com
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