The group Eni closed the second tranche of its plan ahead of schedule buyback 2,2 billion. But now all eyes are focused above all on the next moves of the Tesoro which, according to recent rumors, has room to reduce its stake in the energy giant and take home a good nest egg. Today Eni's Capital Market Day is being held in which the company's top management will illustrate "the business prospects and the main industrial and financial targets in the short/medium and long term", says a note.
All the implications of the buyback operation
It's not just any buybacl operation, when the main shareholder is the government. The state's share in Eni is 32,4%, with a direct share of the MEF of 4,7% and 27,7% through Cassa Depositi e Prestiti. At the end of the share buyback operation, the public share would rise to 34%, even if Eni has not canceled all the shares returned to its possession, and on balance the public share should be just over 33%.
In any case, the government could cede a share of between 0,3 and 0,4%, while still maintaining the key share for control of 30%.
Intermonte, regarding the hypotheses on the sale of a 4% stake in Eni, recalls that rumors had already come out in November 2023 about the Treasury's intentions "in light of the fact that the completion of the buyback, by April 2024, and the subsequent cancellation of the treasury shares would allow the Government to reduce the stake without losing control of the company".
Also Akros comments on the hypothesis, highlighting that in May 2023 Eni canceled 195,5 million of its own shares and recalling that the Italian government plans to sell shares of subsidiaries to collect approximately € 20 billion by 2026.
In detail, in the period between 4 and 5 March 2024, Eni repurchased 706.279 on Euronext Milan own actions (equal to 0,02% of the share capital), at the weighted average price of 14,3754 euros per share, for a countervalue total of approximately 10,15 million euros. The purchases thus completed the second tranche of the share buyback programme started on September 4th 2023. As part of this second tranche, Eni purchased a total of 91.447.368 own shares, equal to 2,71% of the share capital, for a total value of over 1,374 billion euros.
Ordinary shares assigned to Eni executives
“Following the purchases made until 5 March 2024”, explains the group, “Eni holds n. 181.668.440 own shares equal to 5,38% of the share capital". The calculation is obtained by considering the treasury shares already in portfolio, the cancellation of 195.550.084 treasury shares, and the assignment of ordinary shares to Eni executives, provided for in the 2020-2022 long-term incentive plan.
The Eni stock on Piazza Affari, after closing yesterday at 14,94 euros, up by 1,9%, in the late morning today is at 15,174 up by over 1,30%, well above the Fitse Mib which it is limited to growth of 0,27%.
2023 accounts confirm the preliminary balance sheet. Earnings per share at 2,46 euros
Eni's board of directors also communicated i definitive financial results of 2023, confirming a consolidated net profit of approximately 4,7 billion euros. There group leader Eni Spa instead recorded a Net income of 3,27 billion. All the data for the 2023 financial year have already been communicated by Eni with the preliminary resultsor published on February 15, 2024.
The distribution of fourth tranche of the dividend 2023 will be approved by the board of directors at the meeting of 4 April 2024, with a payment date of 22 May 2024, ex-dividend date of 20 May and record date of 21 May.
In 2023, the oil giant found itself with a less favorable economic context which generated a decline in revenues and profitability, despite an increase in hydrocarbon production, particularly in the 4th quarter.
The revenues of the characteristic management they amounted to 93,72 billion euros, a decrease of 29% compared to the 132,51 billion obtained the previous year. However, in 2023 the hydrocarbon production rose 3% to 1,66 million boe/d. Adjusted operating profit was 13,81 billion euros, down 32% compared to the 20,39 billion obtained in the previous year, while pro forma adjusted operating profit amounted to 17,81 billion. The adjusted net result was positive at 8,3 billion euros, but down compared to the 13,3 billion recorded in 2022 (-38%). The Net income it was positive for 4,77 billion euros. L'adjusted earnings per share was equal to 2,46 euros.
In the fourth quarter of 2023, positive adjusted operating result fell to 2,77 billion
The Six-Legged Dog has finished the fourth quarter 2023's with a adjusted operating result positive for 2,77 billion euros, compared to 3,58 billion in the corresponding period of the previous year (-23%), while the pro forma figure was positive for 3,8 billion. L'adjusted net profit è dropped by 34% to 1,64 billion, compared to 2,49 billion accounted for in the 4th quarter of 2022.
On the contrary, in the period under review the hydrocarbon production rose 6% to 1,71 million boe/d.
The consensus of analysts, published on the company's website, indicated an adjusted operating profit of approximately 2,9 billion euros and an adjusted net profit of around 1,62 billion euros. Upstream production was listed at 1,68 million barrels equivalent per day.
2023 investments of 9,16 billion fully covered by cash flow
At the end of 2023 the debt ENI's net income had risen to 16,24 billion euros, compared to 11,98 billion at the beginning of the year. On the same date, leverage was 0,3. In the entire financial year ENI recorded one generation of cash operational amounting to 15,12 billion euros, while the investments net they amounted to 9,16 billion; consequently, investments were entirely covered by the adjusted cash flow.
