Italian energy group Eni said on Friday its second-quarter earnings fell 25% year-on-year as lower oil prices and a weaker dollar overshadowed a better-than-expected performance at its gas business.
Adjusted net profit came in at 1.13 billion euros ($1.33 billion) between April and June, down from 1.52 billion euros in the same period of last year, but above an analyst consensus of 0.93 billion euros compiled by the company.
Despite an adverse economic backdrop, 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.
Including the proceeds expected from recent asset sales, its pro-forma leverage dropped to a historical low of 10%.
The group increased its annual cash benefit target - or cost-saving goal - to 3 billion euros from 2 billion euros previously, after putting in place mitigation measures for more than 1 billion euros in the months between April and June.
"We believe our strong financial position, unique and differentiated strategy and ability to be flexible and agile, mean we are well positioned to navigate the current market volatility," said Eni CEO Claudio Descalzi in a statement, adding the group will continue to reward investors.
The state-controlled group stuck to its 1.5 billion euro share buyback plan and dividend policy.
It raised its expectation for underlying cash flow from operations (CFFO) in the full year to around 11.5 billion euros from 11 billion.
It also improved its expectations for its gas and LNG division for this year and confirmed its outlook for its low-carbon units Enilive and Plenitude.
($1 = 0.8517 euros)
(Reuters - Reporting by Francesca Landini, editing by Giulia Segreti and Jan Harvey)