Eni Cuts Profit Guidance on Weakening Oil-Price Outlook

(Bloomberg) -- Eni SpA lowered profit guidance for the year, reflecting a worsening oil-price outlook, even as third-quarter earnings beat analyst estimates.

Europe’s energy companies are reporting results for a period marked by lower crude prices and narrower margins for refining and chemical products.

Eni reduced its forecast for full-year proforma adjusted earnings before interest and taxes to €14 billion ($15.2 billion) from previous guidance of about €15 billion. Quarterly adjusted net income edged above estimates at €1.27 billion.

Although energy companies around Europe and elsewhere braced for weaker profits in the quarter, there’s so far no sign they’ll curtail returns to investors. Eni confirmed plans to raise its 2024 share buyback to €2 billion, a 25% increase on previous guidance.

Financial Breakdown: Eni Cuts FY Pro Forma Adjusted Ebit Forecast

Earlier this week, the Italian firm signed a deal with KKR & Co. to sell a minority stake in its biorefining unit Enilive. It’s seeking funds to finance clean-energy projects, a move that includes asset disposals and spinoffs.

Eni said its €8 billion asset-sale plan to 2027 is “proceeding faster than expected,” with half of the disposals coming from the exploration and production business.

“In upstream, we continue our divestment program, and are also in the final stages of evaluating options to monetize recent material discoveries via our dual exploration model,” Chief Executive Officer Claudio Descalzi said.

Eni also plans to spend about €2 billion to overhaul its aging chemicals business in Italy as part of a shift toward lower-carbon options, the company said Thursday, confirming an earlier Bloomberg report.

(Updates with CEO comment in seventh paragraph.)

©2024 Bloomberg L.P.