By Giulia Petroni

 

Eni SpA said Friday that it swung to profit in the second quarter and lifted its dividend back to pre-Covid levels.

The Italian oil-and-gas major reported a net profit of 247 million euros ($293.6 million) for the quarter, compared with a loss of EUR4.41 billion for the same period a year earlier. On an adjusted basis, profit came in at EUR929 million, supported by a better operating performance and normalization of the tax rate.

Prices of commodities and energy were strong in the quarter, while refining margins continued to show significant weakness, the company said.

Quarterly sales almost doubled to EUR16.29 billion from EUR8.16 billion the previous-year period.

Hydrocarbon production in the quarter ticked down to 1.59 million barrels of oil equivalent a day compared with 1.72 million boe/d a year ago. Eni expects production at 1.68 million boe/d in the third quarter and at about 1.7 million boe/d in the full year.

Looking at 2021, the company said it expects cash flow from operations before changes in working capital at replacement cost to be above EUR10 billion under a Brent crude scenario of $65 a barrel.

Eni raised its dividend to EUR0.86 per share for 2021 and said it will start a EUR400 million share buyback program over the next six months.

 

Write to Giulia Petroni at giulia.petroni@wsj.com

 

(END) Dow Jones Newswires

July 30, 2021 03:24 ET (07:24 GMT)

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