Italian energy major Eni has raised its 2026 financial outlook, announced a €1.3 billion extraordinary dividend and increased its share buyback programme by 12% to €3.8 billion after delivering strong third-quarter results and record-low debt gearing.

 

The company expects adjusted cash flow from operations (CFFO) to reach €16.5 billion this year, an improvement of €1.2 billion against its initial outlook, supported by robust operating performance and favourable commodity market conditions.

 

The upgraded outlook comes as Eni reported third-quarter adjusted operating profit of €6 billion, double the level recorded in the same period last year, while adjusted net profit more than doubled to €2.8 billion.

 

Eni's proforma gearing fell to a historic low of 9%, strengthening its financial position and capacity to fund growth while increasing returns to shareholders.

 

The board has approved an extraordinary dividend of €0.46 per share, worth approximately €1.3 billion, payable on December 9. The company has also raised its 2026 share buyback programme to €3.8 billion from the previously announced €3.4 billion. Its ordinary dividend remains unchanged at €1.10 per share, up 5% from 2025.

 

Eni CEO Claudio Descalzi said the results reflected the company's operating strength, disciplined investments and expanding growth opportunities.

 

“Eni’s excellent results in 3Q were driven by the strength of our operating model and disciplined investments into a well-diversified portfolio of advantaged assets. Due to our strong fundamentals, continuously improving growth prospects, and a historically robust financial performance, we are well positioned to continue delivering to our customers affordable, secure and increasingly decarbonized supplies. 

 

"In 3Q, E&P again delivered outstanding underlying production growth of 7%, reflecting project ramp-ups and full operativity of our assets and the benefit of the start-up of our Searah JV in Southeast Asia. Moreover, during this quarter we have fast tracked a new wave of material initiatives in South America, Africa and Southeast Asia, which will enhance growth and cash generation for years to come."

 

He added: "Finally, thanks to our outstanding exploration activities, this year we have discovered 1.23 bln barrels of new hydrocarbon resources, well above our budget target, while also reducing our exploration costs. While growing upstream and ensuring steady results in our gas and power businesses and refining, we are also recording transition businesses results in excess of our expectations, increasingly contributing to the diversification of the Group’s earnings. The capital raise and the new governance of Plenitude have further derisked Eni’s balance sheet and will enable this satellite to grow in a self-funded way."

 

Eni's exploration and production (E&P) division was the main driver of quarterly performance, with underlying output rising 7% year-on-year to 1.83 million barrels of oil equivalent per day (boe/d). Production also increased 2% from the previous quarter.

 

Growth was driven by the ramp-up of projects in West Africa, offshore Mexico and Norway, alongside a full-quarter contribution from the Searah joint venture in Southeast Asia.

 

The company has also expanded its upstream growth pipeline through strategic agreements in Venezuela, where it signed deals with state oil company PDVSA to revitalise the giant Junin 5 oilfield under revised contractual terms and export gas from the Perla field. The agreements provide access to approximately 5.5 billion barrels of oil equivalent in recoverable resources.

 

In Argentina, the YPF-Eni-XRG consortium has applied for the country's investment incentive regime for a major integrated liquefied natural gas (LNG) project. The development targets initial export capacity of 12 million tonnes a year, with a final investment decision expected around the end of 2026.

 

Eni also secured new exploration opportunities offshore Uruguay and in Indonesia's Kutei Basin, where it was awarded the Sapukala block with a 100% participating interest.

 

The company said it had discovered 1.23 billion barrels of new hydrocarbon resources this year, exceeding its budget target while lowering exploration costs.

 

Eni's third-quarter proforma adjusted EBIT reached €6 billion, up 100% year-on-year and 12% sequentially, reflecting stronger performance across its businesses, contributions from E&P subsidiaries and continued restructuring benefits.

 

The E&P division delivered adjusted EBIT of €4.63 billion, a 76% increase from the third quarter of 2025, driven by higher production volumes, an improved production mix and supportive commodity prices.

 

Gas, global supply and power generated adjusted EBIT of €450 million, with the gas and global supply business contributing €410 million, up 46% year-on-year.

 

Refining adjusted EBIT rose significantly to €730 million, benefiting from improved plant utilisation and favourable market conditions, although higher shipping costs and unfavourable crude oil differentials weighed on performance.

 

Enilive, Eni's biofuels business, reported adjusted EBIT of €410 million, up 80% year-on-year. Plenitude, its renewables and retail energy business, recorded €190 million, an increase of 95%, supported by growth in renewable energy volumes.

 

The chemicals business Versalis continued to benefit from restructuring and plant closures but remained under pressure from deteriorating product margins, posting a loss of €180 million.

 

Eni's energy transition businesses, Enilive and Plenitude, generated combined adjusted EBITDA of €1.8 billion in the first nine months of 2026, up 20% from a year earlier.

 

The company completed an agreement with investment firm Ares to establish joint control over Plenitude through a capital increase that diluted Eni's stake from 70% to 65%. The transaction led to Plenitude's deconsolidation from Eni's balance sheet at the end of September.

 

Under the new structure, Plenitude is expected to pursue self-funded growth and remains on track to reach 6.5 gigawatts (GW) of installed renewable capacity by year-end, with another 1.2 GW under construction.

 

Enilive's performance benefited from stronger biorefining margins, reinforcing the contribution of biofuels to Eni's expanding energy transition portfolio.

 

Meanwhile, Eni continued reshaping its asset portfolio to release capital for higher-return investments. It received €1.8 billion during the quarter through a long-term partnership involving an infrastructure-based E&P portfolio and completed the sale of a 10% stake in the Baleine oilfield to Azerbaijan's Socar.

 

In October, the company also signed binding agreements to sell its retained 10% working interest in two groups of Indonesian gas assets in the Kutei Basin to Pertamina and Medco. The assets include the Northern and Southern hub development projects and the Geliga discovery.

 

Eni's improved performance has prompted a series of upgrades to its full-year guidance.

 

The company now expects underlying oil and gas production growth of 6% to 7% in 2026. Its adjusted proforma EBIT forecast for gas and global supply has increased to approximately €1.5 billion, 50% above the initial guidance.

 

Enilive's full-year proforma adjusted EBITDA target has been raised to €1.4 billion, nearly 30% above the original assumption, while Plenitude is expected to deliver EBITDA of approximately €1.2 billion.

 

Eni confirmed gross capital expenditure of €7 billion and expects net capital expenditure to remain below €4.5 billion. Proforma gearing is projected at the lower end of its previously guided 10%-15% range.

 

Third-quarter adjusted cash flow from operations before working capital changes stood at €4.29 billion, funding €1.3 billion in organic capital expenditure. Shareholder distributions totalled €1.9 billion during the quarter, comprising €800 million in ordinary dividends and €1.1 billion in share repurchases.

 

Net debt stood at €6.7 billion at the end of September.

 

Eni's revised €3.8 billion buyback programme is almost three times its original €1.5 billion plan, reflecting stronger cash generation and the company's policy of returning a substantial portion of excess cash to shareholders.

 

The extraordinary dividend follows the company's policy of distributing 100% of incremental adjusted cash flow when the forecast Brent crude price exceeds $90 a barrel, subject to the specified conditions for gas prices and refining margins.

 

The revised outlook is based on assumptions including Brent crude at $95 a barrel, a SERM refining margin of $18 a barrel and a European TTF gas price of €55 per megawatt-hour, with a euro-dollar exchange rate of 1.15.

 

Eni's stronger financial position, rising production and growing contribution from transition businesses have provided the basis for the upgraded outlook, allowing the group to increase shareholder payouts while continuing to invest in new oil, gas and lower-carbon energy projects.