Eni will submit to the shareholders' meeting of 10 May 2023, convened in ordinary session, the proposal for authorization of the new buyback program for a period until the end of April 2024. This was decided by the board of directors which met in Ravenna to approve the 2022 draft budget and the group's final accounts. The amount of the transaction is 2,2 billion, the shares purchased will be canceled as envisaged for the previous buyback 2022-23. Eni shares are up by +4,18% to 12,67 euros in Piazza Affari following the announcement of the operation.
As indicated in the 2023-2026 Strategic Plan, illustrated to the market on February 23, Eni intends to distribute between 25% and 30% of the annual Cffo (Cash flow from operations) through a combination of dividends and buybacks . In the presence of an upside of the Cffo compared to what is envisaged in the Plan, the choice of the BoD is to allocate 35% of the incremental Cffo to remuneration. In line with the Plan, also considering Eni's expectations for the scenario and business performance, Eni therefore intends to launch a new buyback for a value of 2,2 billion euros. The amount may be increased, on the basis of any upsides, up to an overall maximum of 3,5 billion euros.
The authorization to purchase treasury shares under the new Program of buyback - specifies the Eni press release - is required for the following purposes:
– up to no. 275 million shares, to remunerate shareholders;
– up to no. 62 million shares, to build up a "stock stock" that can be used in the context of any extraordinary finance transactions, such as issues of convertible bonds, or for other uses deemed of financial, managerial and/or strategic interest for Eni.
Eni dividend: the fourth tranche is under way
The BoD also approved the distribution of the fourth tranche of the dividend equal to 0,22 euro (out of a total annual disbursement, instead of the dividend, equal to 0,88 euro) for each outstanding share on the ex-dividend date of 22 May 2023, with payment on May 24, 2023.
To holders of ADRs registered by May 23, 2023, listed on the New York Stock Exchange and each representing two Eni shares, the fourth tranche of the disbursement will be €0,44 per ADR, payable on June 8, 2023.
