Eni SpA Raises Buyback to EUR2.8B, Lifts Indonesia Output Target to 0.75mbd
Eni SpA boosted its share buyback program by 90% to EUR2.8 billion, maintained pro forma gearing at 15% (targeting 12% post-deconsolidation of EUR2.6 billion debt) and forecasts annualized efficiency gains of EUR50 million. New Indonesian discoveries support lifting production guidance from 0.5 mbd to 0.7–0.75 mbd while working capital drag will reverse.
1. Buyback and Capital Structure
Eni increased its share buyback program by 90% to EUR2.8 billion, reflecting management confidence in cash generation and returns. Pro forma gearing stood at 15%, with a goal to reduce it to 12% after deconsolidating EUR2.6 billion of net debt in Q3.
2. Efficiency Gains and Costs
The company incurred EUR55 million of transformation costs in Q1 as part of efficiency projects expected to generate around EUR50 million of annualized savings. Working capital absorbed cash due to a sharp rise in commodity prices in March, with a reversal expected in subsequent quarters.
3. Indonesia Production Upside
Recent exploration successes in Indonesia have prompted a revision of production guidance from 0.5 million barrels per day to 0.7–0.75 million barrels per day. This increase leverages near-infrastructure discoveries and a dual exploration model to optimize capital expenditure.
4. Debt Deconsolidation and Outlook
Eni will deconsolidate EUR2.6 billion of net debt in the third quarter, driving a pro forma gearing reduction toward 12%. Elevated gas price assumptions support European storage refill needs, while regulatory mandates underpin a robust biofuels market outlook.