Eni Shareholders Greenlight €4 Billion Buyback, Reelect Board Amid Steady Energy Markets
ROME — Shareholders of Italian energy major Eni voted Wednesday to approve the company’s 2025 financial statements, a €4 billion share buyback program, and a newly elected board of directors and auditors, reinforcing the group’s commitment to shareholder returns even as energy markets show signs of stabilization.
The company confirmed a total 2026 dividend of €1.10 per share, to be paid in four installments through May 2027, alongside authorization for a potential extraordinary dividend — a move that signals confidence in its cash flow generation despite lingering macroeconomic uncertainty.
Eni’s 2025 standalone financial statements, which posted a net profit of approximately €4.43 billion, were also approved. Shareholders voted to allocate the earnings to reserves rather than distribute them directly, a decision that aligns with the company’s strategy of retaining capital for future investments and debt reduction.
The meeting renewed Eni’s board for a three-year term ending with the approval of the 2028 financial statements. Giuseppina Di Foggia was appointed chair of the board, while long-serving CEO Claudio Descalzi retained a board seat as the company continues to expand its upstream portfolio and low-carbon businesses. Descalzi, who has led Eni since 2014, remains a central figure in the company’s dual-track strategy of growing oil and gas production while advancing biofuels, carbon capture, and renewable power projects.
A major focus of the meeting was shareholder remuneration. Investors authorized the repurchase of up to 303 million shares for a total consideration of up to €4 billion through April 2027, with most of the buyback earmarked for shareholder remuneration. The company also secured approval to cancel up to 297.9 million treasury shares, effectively reducing the share count and boosting earnings per share.
The move reinforces a broader trend among European oil majors prioritizing capital returns as commodity prices stabilize after the extreme volatility seen following Russia’s invasion of Ukraine. Companies including Shell plc and TotalEnergies SE have likewise maintained aggressive buyback and dividend strategies despite weaker refining margins and softer crude prices. Analysts note that Eni’s approach reflects a delicate balancing act: rewarding shareholders while funding its energy transition ambitions.
“Eni is walking a tightrope,” said Marco Bellini, an energy analyst at Milan-based consultancy Energeia. “They’re trying to keep investors happy with buybacks and dividends, but the real test will be whether they can deliver on their decarbonization promises without sacrificing profitability. So far, the market seems to be giving them the benefit of the doubt.”
Not all shareholders were entirely satisfied. “Another buyback? Give me a break,” said retired engineer and longtime Eni investor Luisa Ferrara, 68, who attended the meeting in Rome. “They keep talking about the future, but the planet is burning. Meanwhile, they’re spending billions to prop up the stock price. It feels like they’re more interested in Wall Street than the world we’re leaving our kids.”
Eni has increasingly positioned itself as one of Europe’s most active energy transition investors while continuing to grow oil and gas production. The company has expanded its upstream presence in Africa and the Eastern Mediterranean in recent years, while also advancing biofuels, carbon capture, and renewable power projects. Its low-carbon division, Eni Sustainable Mobility, has been a key focus, with investments in biorefineries and electric vehicle charging infrastructure.
The shareholder meeting also approved Eni’s 2026-2028 long-term incentive plan for management and backed the company’s 2026 remuneration policy, which ties executive pay to both financial performance and emissions reduction targets.
By Charles Kennedy for Oilprice.com
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