Eni raises share buyback to €3.8 billion and approves €1.3 billion special dividend
Key Facts
Eni announced a special dividend of €1.3 billion, equivalent to €0.46 per share, and raised its 2026 share buyback program to €3.8 billion. The company said the special dividend would be paid on December 9, 2026. The buyback program was increased by 12% from the previous estimate of €3.4 billion. The decision adds two separate channels for shareholder returns: a special dividend and a share buyback program. Eni announced the measures alongside third-quarter results that showed increases in profit, production and cash flow.
Adjusted net profit was €2.8 billion in the third quarter, more than double the figure for the same period a year earlier. The group’s preliminary adjusted operating profit reached €6 billion, double its level a year earlier and up 12% from the second quarter. In exploration and production, underlying output was 1.83 million barrels of oil equivalent per day. Eni said production rose 7% year on year excluding the impact of prices, and increased 2% from the previous quarter. The figures show simultaneous improvement in operating performance and financial results during the quarter.
The company attributed production growth to the start-up of new projects in West Africa, offshore Mexico and Norway, as well as the full operation of the “Sierra” joint venture. Exploration activities discovered 1.23 billion barrels of new hydrocarbon resources during the year through the third quarter, it said. The chief executive said discoveries exceeded the budget target while exploration costs were reduced. In the second quarter, underlying production had reached 1.79 million barrels of oil equivalent per day, up 11% year on year. The company had then expected annual production growth of about 5% in 2026, before later raising its estimate to a range of 6–7%.
Adjusted operating cash flow before working capital changes was €4.29 billion in the third quarter, while organic capital expenditure was €1.3 billion. At the end of the quarter, net debt was €6.7 billion, with a preliminary gearing ratio of 9%. In the second quarter, Eni had recorded adjusted operating cash flow before working capital of €4.47 billion, net debt of €11.3 billion and a preliminary gearing ratio of 10%. Net debt and the gearing ratio therefore fell between the ends of the two quarters, while cash flow declined from the second quarter. The company expects adjusted operating cash flow to reach €16.5 billion in 2026, a structural increase of €1.2 billion from its previous estimates.
The special dividend remains separate from the regular dividends planned for 2026, which Eni confirmed would amount to €1.1 per share, up 5% from 2025. The board approved the second tranche of regular dividends, worth €0.27 per share, at its meeting on October 22. The tranche is scheduled to be paid on November 25, 2026. It will be preceded by the ex-dividend date on November 23, followed by the record date on November 24. The special dividend of €0.46 per share is due to be paid later, on December 9.
Eni shares rose as much as 3.9% at the opening of trading in Milan on October 23, reaching their highest level in more than 18 years. The move followed the third-quarter results and the measures to increase shareholder returns. On operating forecasts, the company raised its estimate for underlying oil and gas production growth in 2026 to a range of 6–7%. It also said adjusted operating cash flow could reach €16.5 billion during the year. In renewable energy, it said Plenitude was on track to reach its target installed capacity of 6.5 gigawatts at year-end.