October 24, 2025 [Reuters]- Italian energy group Eni reported better-than-expected results for the third quarter on Friday and said it would increase its share buyback, sending shares up more than 2% in early trading.

The company posted an adjusted net profit of 1.25 billion euros ($1.46 billion) between July and September, beating a consensus of 1.02 billion euros and coming in just below the 1.27 billion-euro profit that it recorded a year earlier.

Eni said it would raise its full-year 2025 share buyback by 20% to 1.8 billion euros.

POSITIVE SIGNAL FOR 2026

The company’s shares were up 2.5% at 0810 GMT on the Milan bourse, outperforming a 0.3% gain in the oil-and-gas stock index, with analysts pointing to an improved outlook for next year.

“More important than the strong results, perhaps, is the increased guidance on both production and the buyback,” said Barclays analyst Lydia Rainforth. “For us, this signals continued momentum into 2026 and with it the high likelihood of further re-rating for the shares.”

BUYBACK INCREASE BUCKS INDUSTRY TREND

The announcement of an increased buyback comes a few weeks after Eni’s bigger rival TotalEnergies said it would cut its share repurchases from the fourth quarter to contend with lower oil prices. BP and Chevron have also reduced buybacks this year.

The Italian group said it could improve investor reward thanks to the disposal of minority stakes in a number of businesses and projects.

It had also put costs under tight control with efficiency measures expected to have a beneficial effect of 4 billion euros in the full year from a previous estimate of 3 billion euros.

Pro-forma group leverage – measuring total debt in relation to equity and taking into account proceeds from agreed disposals – stands at around 12%, near historic lows.

STRONG HYDROCARBON PRODUCTION

“Strong (hydrocarbon) production growth allows us to raise our annual guidance towards 1.72 million barrels per day,” said CEO Claudio Descalzi.

He added that the creation of a joint venture with Petronas in Indonesia and Malaysia is expected to create one of the main players on Asia’s liquefied natural gas market.

Hydrocarbon production in the third quarter was equal to 1.756 million barrels of oil equivalent per day, 6% higher than last year and above an analyst consensus.

Eni lifted to its estimates for full-year cash generation to 12 billion euros from 11.5 billion.