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Eni (E.US) will earn $1 billion from the sale of its upstream assets in Alaska.

AInvestMonday, Nov 4, 2024 3:00 am ET
1min read

Italian energy group Eni (E.US) said on Monday it plans to sell its upstream offshore assets in Alaska's Nikaitchuq and Oooguruk to US private company Hilcorp for $1 billion, as part of a deal that will help it raise €8 billion in net proceeds through the sale of upstream assets, reducing its ownership of major exploration discoveries and attracting new investors to fund the development of its low-carbon business, as per its business plan. The company expects to achieve its target in 2025, less than two years from now, considering the completed and ongoing transactions, it said in a statement on Monday.

Eni reported a third-quarter adjusted net profit of €1.27 billion, above analysts' expectations of €1.08 billion but below the €1.82 billion reported a year ago. The company is expected to increase its share buyback plan by 25% to €2 billion (US$2.2 billion) after the earnings beat expectations.

Eni had said in July it might increase its €1.6 billion share buyback plan to €2.1 billion if the macroeconomic situation improves. Despite the expected downward trend in oil prices, Eni said it would increase its returns to investors as it controls its debt through the disposal plans and cost control.

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