Finance
Italy's Eni considers increasing share buyback, CEO says
Published by Global Banking & Finance Review®
Posted on July 25, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 25, 2025
2 min readLast updated: January 22, 2026
Eni considers boosting its share buyback program amid positive trends, despite a 25% drop in net profit. CEO Descalzi outlines future plans.
By Francesca Landini
MILAN (Reuters) -Italian energy group Eni may increase its share buyback programme later this year if positive trends in the first half continue, Chief Executive Claudio Descalzi said while discussing second-quarter earnings results.
The company reported a 25% year-on-year drop in its second-quarter adjusted net profit, as lower oil prices and a weaker dollar outweighed a better-than-expected performance at its gas business.
The results were better than analysts had expected.
Net debt fell and the company improved its full-year target for its gas and LNG division and cost-saving measures.
"We can consider improving our buyback and we will be clearer in the next months," Descalzi said on a conference call with analysts, adding that the current 1.5 billion euro programme was considered a floor.
Shares in the group ended up 1.8%, outperforming a 0.3% rise in Milan blue-chip index.
April-June adjusted net profit came in at 1.13 billion euros ($1.33 billion), down from 1.52 billion euros in the same period of last year, but above a consensus of 0.93 billion euros.
The state-controlled group was able to cut its leverage before lease liabilities - a measure of total debt in relation to equity - to 19% from 22% in the same period last year.
Descalzi became the longest-serving CEO in Eni's history last year, having taken the top position in 2014.
Asked about succession plans, Descalzi, whose term expires in May next year, said the group could count on a strong group of managers.
"The strength of Eni is not its CEO, it is the team. Inside we have a clear succession plan," he said.
The group is expected to accelerate hydrocarbon production and sign a final agreement for combining gas assets in Asia with Malaysia's Petronas by year-end.
"It will be a transformational deal," Descalzi said.
Next year will also bring clear benefits from the overhaul of Eni's chemical division.
Eni has decided to bring forward the closure of two steam cracking plants in Italy to the end of June responding to challenges the sector is experiencing all over Europe.
($1 = 0.8517 euros)
(Reporting by Francesca Landini, editing by Giulia Segreti, Jan Harvey, Tomasz Janowski Editing by Louise Heavens)
A share buyback occurs when a company purchases its own shares from the marketplace, reducing the number of outstanding shares. This can increase the value of remaining shares and improve financial ratios.
Adjusted net profit is a company's earnings after removing one-time items and expenses that may distort the true financial performance. It provides a clearer view of ongoing profitability.
Leverage refers to the use of borrowed funds to increase the potential return on investment. It can amplify profits but also increases the risk of losses.
A CEO's succession plan is a strategy for identifying and developing new leaders who can replace the current CEO when they leave the position, ensuring continuity in leadership.
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