Italian energy group Eni on Thursday reported a smaller than expected 11% yearly drop in adjusted net profit for the first quarter.
Adjusted net profit came in at 1.41 billion euros ($1.60 billion) between January and March, down from 1.58 billion euros in the first quarter of 2024, but above an analyst consensus of 1.15 billion euros compiled by the company.
In response to lower oil prices, the state-controlled group said it would reduce planned net capital expenditures for this year to below 6 billion euros and introduce several mitigation measures that would be worth 2 billion euros.
Eni confirmed its distribution policy including a share buyback of 1.5 billion euros.
"Given the sell off in oil and gas prices, we think there was some expectation that Eni may slightly revise (its buyback) downward, and reassurance on this as well as its leverage target should be taken positively," Royal Bank of Canada analyst Biraj Borkhataria said in a report.
The group said it was lowering Brent oil price expectations to $65 a barrel, down from $75, and commodity price assumptions with a negative effect on the full-year underlying cash flow from operations (CFFO), which is now seen at 11 billion euros this year, down from 13 billion euros.
The Milan-based company confirmed its hydrocarbon production goal for this year as well as financial targets for its gas division, and its low-carbon units Plenitude and Enilive.
In the first quarter a sound performance of the upstream and the gas divisions partly offset a continued weakness at the group's refining and chemicals businesses.
Under its so-called 'satellite strategy', Eni has been developing dedicated units - or satellites - and selling minority stakes in these businesses to outside investors.
Proceeds coming from some of these deals helped to reduce the leverage - which measures total debt in relation to equity - to 18% at the end of March from 23% at the end of last year.
($1 = 0.8821 euros)
(Reuters - Reporting by Francesca Landini, editing by Valentina Za)