Italian energy conglomerate Eni announced on Friday that its adjusted net profit for the second quarter had decreased by 21 percent compared to the previous year. Despite this decline, the company exceeded market expectations due to a stronger-than-anticipated performance in its gas, exploration, and liquefied natural gas (LNG) divisions. For the April-June quarter, Eni reported an adjusted net profit of 1.52 billion euros (USD1.65 billion), down from 1.94 billion euros the previous year. However, this figure was above analysts’ projections of 1.42 billion euros.
Throughout the past quarter, Eni has been actively pursuing divestments, including a deal to sell exploration assets in Alaska and entering exclusive negotiations with investment firm KKR to sell a stake in its biofuels unit, Eni Life. These strategic moves have positioned Eni to improve its financial stability.
The company now anticipates its leverage ratio, which measures total debt relative to equity, to fall well below 0.2 by the end of the year, an improvement over its previous forecast. This financial enhancement will allow Eni to accelerate its €1.6 billion share buyback program, supporting both business growth and shareholder returns, according to CEO Claudio Descalzi.
Furthermore, Eni has upgraded its adjusted operating profit guidance for 2024 to approximately 15 billion euros. This revision comes after the company had initially set its earnings before interest and taxes (EBIT) guidance at more than 14 billion euros for the current year in April. The state-controlled group’s proactive measures and strategic divestments underscore its commitment to maintaining financial robustness while delivering growth and returns to its stakeholders.
Source:https://menafn.com