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In a context marked by geopolitical tensions, the Italian energy company Eni has decided to strengthen its financial strategy after presenting its results for the first quarter of 2026. The company announced a significant increase in its share buyback program, supported by a more optimistic view of the global energy market.
Eni’s share buyback soars
According to published data, Eni posted an adjusted net profit of 1.3 billion euros in the first quarter, lower than both the same period last year and market forecasts. This decline is mainly attributable to maintenance work at refineries and sustained pressure on margins in the chemicals business.
However, industry analysts believe that these interventions could favor a better operating performance in the coming months. Likewise, the negative impact has been partially offset by the strength of the exploration and production business.
In parallel, the company nearly doubled its share buyback program to €2.8 billion. This decision responds to an improvement in cash flow expectations, which now stand at €13.8 billion by 2026.
This adjustment reflects Eni’s confidence in its ability to generate value in an environment of high energy prices. The strategy also seeks to reinforce shareholder remuneration in a scenario of high volatility.
Conflict with Iran boosts energy forecasts
On the other hand, the company revised upward its forecasts for Brent crude oil prices, natural gas natural gas and refining margins. This change is directly related to the tensions in the Middle East, especially the conflict with Iran, which has generated uncertainty in global energy supply.
The potential impact on strategic routes such as the Strait of Hormuz remains a key factor in the evolution of commodity prices.
In operating terms, oil and gas production increased 9%, driven by new projects in West Africa, Norway and Angola. Exploration also added close to one billion barrels of oil equivalent in new resources, consolidating the company’s position in the upstream segment.
According to CEO Claudio Descalzi, asset diversification and a solid financial structure allow Eni to take better advantage of market conditions.
Despite the favorable price environment, the refining business continues to face difficulties. The utilization rate fell significantly and the division recorded losses, although lower than in the previous year.
The chemicals division also reduced its negative results, although it continues to be affected by weak margins.
Source: Reuters
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