Italy's Eni considers increasing share buyback, CEO says
The company reported a 25% year-on-year drop in its second-quarter adjusted net profit, as lower oil prices and a weaker dollar outweighed a better-than-expected performance at its gas business.
The results were better than analysts had expected.
Net debt fell and the company improved its full-year target for its gas and LNG division and cost-saving measures.
"We can consider improving our buyback and we will be clearer in the next months," Descalzi said on a conference call with analysts, adding that the current 1.5 billion euro programme was considered a floor.
Shares in the group ended up 1.8%, outperforming a 0.3% rise in Milan blue-chip (.FTMIB), opens new tab index.
April-June adjusted net profit came in at 1.13 billion euros ($1.33 billion), down from 1.52 billion euros in the same period of last year, but above a consensus of 0.93 billion euros.
The state-controlled group was able to cut its leverage before lease liabilities - a measure of total debt in relation to equity - to 19% from 22% in the same period last year.
Descalzi became the longest-serving CEO in Eni's history last year, having taken the top position in 2014.
Asked about succession plans, Descalzi, whose term expires in May next year, said the group could count on a strong group of managers.
"The strength of Eni is not its CEO, it is the team. Inside we have a clear succession plan," he said.
The group is expected to accelerate hydrocarbon production and sign a final agreement for combining gas assets in Asia with Malaysia's Petronas by year-end.
"It will be a transformational deal," Descalzi said.
Next year will also bring clear benefits from the overhaul of Eni's chemical division.
Eni has decided to bring forward the closure of two steam cracking plants in Italy to the end of June responding to challenges the sector is experiencing all over Europe.
($1 = 0.8517 euros)
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