Eni increases shareholder payouts and buyback targets
Eni raised its distribution target to 45 percent of cash flow and announced a 1.5 billion euro buyback. It is also deconsolidating its Plenitude energy unit.
The energy group Eni S.p.A., headquartered in Italy, has announced an update to its long-term strategy, signaling a significant increase in shareholder returns. The company revealed that it is raising the upper limit of its distribution range for the 2026-2030 period. Under the revised plan, the target distribution payment will rise to between 35% and 45% of cash flow from operations, an increase from the previous range of 35% to 40%. For the current year, this strategic shift will result in a 5% hike in the dividend payment and a share buyback program valued at 1.5 billion euros. The company noted that it might further increase payouts if cash flow exceeds expectations or if the broader macroeconomic environment improves. In a concurrent move to streamline its operations, the group is deconsolidating Plenitude, its retail and renewable energy division. This transition involves a reorganization of shareholding and a new governance structure. The process includes a non-proportional capital increase of approximately 1.5 billion euros, which is roughly 1.72 billion dollars. A substantial portion of this funding, at least 1 billion euros, is slated to come from Ares Management Corporation, an asset manager that already holds an investment in the unit. Following the completion of this capital injection, the parent company will maintain an equity stake of approximately 65% in Plenitude.
