Eni CEO: Italy's Eni is considering increasing the share buyback.

Claudio Descalzi, the chief executive of Italian energy company Eni, said that if positive trends continue in the first half of this year then it is possible to increase their share buyback program later this year.

A weaker dollar and lower oil prices weighed down on the company's second-quarter adjusted profit. This was despite a better than expected performance in its gas business.

The results exceeded analysts' expectations.

The company's net debt decreased and it improved its full-year targets for its Gas and LNG division as well as cost-saving measures.

Descalzi told analysts on a call that he was considering improving the buyback program. He added that the current 1,5 billion euro programme would be a minimum.

The group's shares ended up rising 1.8%, beating the 0.3% increase in Milan blue chip index.

The adjusted net profit for April-June was 1.13 billion euro ($1.33 billion), a decrease from 1.52 billion euro in the same period last year. However, it was above a consensus estimate of 0.93 billion euro.

State-controlled group reduced its leverage (total debt divided by equity) to 19%, down from 22% during the same period of last year.

Descalzi, who took the top job in 2014, became the longest-serving CEO of Eni in the company's history in 2015.

When asked about succession plans, Descalzi said that the group can count on a group of strong managers. His term ends in May.

The strength of Eni does not lie in its CEO but rather the team. He said that "inside we have a clearly defined succession plan".

By the end of the year, it is expected that the group will accelerate its hydrocarbon production. It will also sign a final deal to combine gas assets in Asia and Malaysia's Petronas.

Descalzi stated that the deal would be transformative.

The overhaul of Eni’s chemical division will also reap benefits in the coming year.

Eni decided to move the closure of its two Italian steam cracking facilities to the end June due to the challenges that the sector faces in Europe.

(source: Reuters)