Eni, Italy's largest oil company, will increase buybacks after its quarterly earnings exceeded expectations

Eni, the Italian energy company, announced on Friday that it will increase its share-buyback program to 2 billion Euros ($2.2 billion) after reporting better-than expected third quarter results.

The adjusted net profit for the third quarter of last year was 1,27 billion euros. This is higher than the consensus analyst forecasts, which were compiled by the firm. However, it is lower than the 1,82 billion euros recorded in the previous quarter.

In July, the state-controlled company had said that if macroeconomic conditions improved it would be able to increase its buybacks up to 2.1 billion euro.

Eni announced on Friday, despite lower expectations for oil prices, that it would reward investors more as the progress made on its disposal plan helped to keep its debt under control.

Analysts warn that a fall in oil prices following two years of record profits could force big energy companies into borrowing to maintain payouts to shareholders or to reduce buybacks.

Eni announced Thursday that U.S. Fund KKR will buy a 25 percent stake in Enilive, its biofuels business. This is part of Eni's ongoing efforts to spin-off growth businesses for funding energy transition.

Eni has lowered its guidance for the full year on both cashflow from operations as well as operating profit. The company expects the Brent crude oil to fall to an average of $83 per barrel in 2018, down from the previous estimate at $86, and the company's prior estimate was $86. ($1 = 0.9238 euro) (Reporting and editing by David Goodman).

(source: Reuters)