By Adam Whittaker

Italian energy major Eni plans to increase shareholder returns and grow underlying production in its global natural-resources division.

Underlying hydrocarbon production within its global natural resources division is expected to grow by 3% to 4% per annum through to 2028, Eni said in its capital markets day update. Hydrocarbon production for 2024 was 1.71 million barrels of oil equivalent a day.

The integrated oil and gas company said it plans to enhance shareholders payouts and is committed to growing its dividend.

It intends to raise the 2025 dividend by 5% to 1.05 euros ($1.10) a share, and said it plans to initially buy back 1.5 billion euros of shares in 2025 but it could be as high as 3.5 billion euros.

In 2024, Eni delivered 5.1 billion euros in shareholder returns via dividends and a share buyback program of 2 billion euros.

In a revised financial framework, Eni now plans to return 35% to 40% of cash flow from operations to shareholders, up from 30% to 35% previously. In years when cash generation is particularly high, it said it plans to return 60% of the additional cash to shareholders.

Net capital expenditure is forecast to be 7 billion euros a year, which is in line with 2024, the company said.

Meanwhile, cash flow from operations per share is expected to grow at 14% a year through the decade, it said.

Within Plenitude--its division which integrates renewable energy generation, gas and energy supply services and solutions--earnings are expected to double by 2028. Eni said it expects to sell up to 30% of the business to outside investors.

Plenitude's earnings before interest, taxes, depreciation and amortization should reach 1.9 billion euros by 2028 and grow to over 2.5 billion euros by 2030, the company said.

Earnings for Enilive are expected to grow to 2.5 billion euros by 2028 and more than triple the 2024 result to 3 billion euros by 2030, the company said.

Enilive is a mobility-transformation company that offers integrated services and products that are progressively decarbonized by 2050. The business houses its biorefining and biomethane assets, as well as its Enjoy car-sharing business.

Write to Adam Whittaker at adam.whittaker@wsj.com

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Underlying hydrocarbon production within its global natural resources division is expected to grow by 3% to 4% per annum through to 2028, Eni said in its capital markets day update. Hydrocarbon production for 2024 was 1.71 million barrels of oil equivalent a day.

, unveiling its business strategy through to 2028.

(END) Dow Jones Newswires

February 27, 2025 09:29 ET (14:29 GMT)

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