TSX gains after CPI shows US inflation rose 3%
Investing.com -- Eni shares climbed more than 2% Friday after the company raised its full-year share buyback and cash flow targets following stronger third-quarter earnings, helped by higher production that offset weaker crude prices.
The Italian energy company said Friday it will repurchase €1.8 billion ($2.09 billion) of shares in 2025, an increase of €300 million from its previous plan, citing improved free cash flow and new cost-saving measures.
It also lifted its full-year cash flow before working capital adjustments to €12 billion from €11.5 billion and raised its cost-savings target to €4 billion from €3 billion.
Net profit rose to €803 million in the third quarter from €543 million in the prior three months. Adjusted net profit increased to €1.25 billion, up from €1.13 billion and above the €1.02 billion analysts had expected, according to a company-compiled consensus.
Adjusted operating profit stood at €2.07 billion, also above the €1.9 billion expected by analysts.
Oil prices fell 14% during the quarter, Eni said, but the impact was in part offset by a 6% rise in production to 1.76 million barrels of oil equivalent per day.
The company also upgraded its full-year output forecast to between 1.71 million and 1.72 million barrels of oil equivalent per day.
Jefferies analysts described the results as a “solid beat,” noting they were “mainly driven" by Eni’s Exploration and Production (E&P) and gas and LNG division (GGP) divisions, as well as "a lower tax rate (upstream mix) at 42%.”