Eni
Note: This is a daily stock update and the information stands true as of 25/10/24, 09:00 CET.
Company Update:
Expert Opinion:
Eni valuation is relatively low and the Q3 earning is a good surprise. The lowered guidance will have to be taken into account and I expect some very minor adjustments by the consensus. The whole sector is very much connected to the price of oil. With a PE of 7x and dividend yield around 7%, I am happy to own the stock and wait for the next wave on the price of oil.
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Company Update:
Eni’s Q3 net profit came in at €1.3bn, beating company-compiled consensus by 20%. The beat was driven by E&P (23% net profit beat) and GGP (39% net profit beat), supported by ramp-up of higher-value barrels in new projects, resilience in gas, and seasonally high marketing volumes.
However the company cut its FY guidance with EBIT now seen at €14bn vs €15bn previously as the company revised down its Brent price expectations for the year
2024 Share Buyback: Company confirms further buyback increase to €2bn, a 25% rise from previous €1.6bn guidance and over 80% above the initial 2024 plan - bringing total distribution to ~38% of CFFO.
Eni valuation is relatively low and the Q3 earning is a good surprise. The lowered guidance will have to be taken into account and I expect some very minor adjustments by the consensus. The whole sector is very much connected to the price of oil. With a PE of 7x and dividend yield around 7%, I am happy to own the stock and wait for the next wave on the price of oil.
For daily updates, subscribe to our newsletter and for detailed daily updates, reach out to us at sales@alphavalue.eu
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