By John Meyer, consultant in financial affairs – Eurasia Business News, February 27, 2025. Article No 1434.

Eni, the Italian energy company, has announced several strategic moves to enhance shareholder value despite a recent decline in adjusted net profit. Eni intends to raise the 2025 dividend by 5% to €1.05/share while over the four-year Plan the Italian energy company sees an average dividend cash neutrality falling to under $40/bbl.

Financial Performance and Strategic Moves

Adjusted Net Profit: For the period from October to December, Eni reported an adjusted net profit of €892 million, which fell short of analyst expectations of € 960 million.

Dividend Increase: Eni plans to increase its dividend per share to € 1.05 for 2025, marking a 5% rise from the previous year. This is the highest dividend per share in over a decade.

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Share Buybacks: The company has initiated a new share buyback program valued at € 1.5 billion for 2025. This program reflects Eni’s commitment to enhancing shareholder returns and can be adjusted based on financial performance.

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Production Growth: Eni aims to grow its underlying production by 3-4% annually, focusing on both traditional energy sources and transition businesses.

Strategic Focus

Eni’s strategy emphasizes a balance between reinvesting in the business and returning value to shareholders. The company aims to distribute between 35% and 40% of its cash flow from operations (CFFO) through dividends and share buybacks. This approach is designed to capitalize on financial flexibility while maintaining a strong balance sheet.

In 2025 ENI expect to launch the new CCUS satellite company, consolidating its projects under a single entity, leveraging its technical and financial expertise to build a new material business through the late 2020s.

Debt Management

Eni’s disposals have helped reduce its debt ratio, contributing to a more stable financial position. This strategic move supports the company’s ability to invest in growth opportunities and maintain its dividend and buyback commitments.

Joint Venture with PETRONAS

Eni and PETRONAS have announced today a Memorandum of Understanding to progress detailed discussions on establishing a joint venture holding company to oversee selected upstream assets in Indonesia and Malaysia.

This joint venture will create significant opportunities for growth, both in Malaysia and Indonesia, and is expected to generate substantial synergies towards becoming a major LNG player in the region, while delivering in the medium term a sustainable 500,000 boe/d production. The joint venture will combine approximately 3 billion barrels of oil equivalent (boe) of reserves with an additional 10 billion boe of potential exploration upside.

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© Copyright 2025 – Eurasia Business News. Article no. 1434.