Eni Increases Distribution Policy, Launches $1.72 Billion Buyback -- Update

Dow Jones03-19 22:29
 

By Adam Whittaker and Adria Calatayud

 

Eni said it wants to return more cash to shareholders, including by buying at least 1.5 billion euros ($1.72 billion) of shares over this year.

The Italian energy major also plans to lower investment spending, increase production in its oil-and-gas business and dilute its stake in its renewable power and electric-vehicle charging unit, it said Thursday as it laid out a new strategy through 2030.

Eni said it expects generate more cash over the next few years, with operating cash flow a share targeted to grow by 14% on a compound rate by 2030.

Eni said it now plans to return between 35% to 45% of operating cash flow to shareholders, compared with a previous target of 35% to 40%. It also confirmed that it would return additional cash to shareholders in instances where oil, gas and refining margins are higher than expected, as has been the case in recent years.

For 2026, Eni said its buyback could grow to a maximum of 4 billion euros. It also declared a roughly 5% rise on year in its dividend to 1.10 euros a share.

Over the 2030 plan, investment spending is expected to average less than 6 billion euros a year, around 2 billion euros lower than in Eni's previous midterm plan.

Eni meanwhile said that it would share control of its Plenitude arm with Ares Management in a deal that includes a 1.5 billion-euro capital increase.

Investment company Ares is expected to provide at least 1 billion euros as part of the capital increase. This will dilute Eni's ownership of the renewables-focused unit to close to 65% and see it deconsolidated from its financial statements.

 

Write to Adam Whittaker at adam.whittaker@wsj.com and Adria Calatayud at adria.calatayud@wsj.com

 

(END) Dow Jones Newswires

March 19, 2026 10:29 ET (14:29 GMT)

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