As expected the company cut its dividend. It is also adopting a different remuneration policy and now intends to distribute a minimum dividend of €0.36/share (vs €0.89) and increase this with oil ranging from $45 to $60/bbl. Above $60/bbl, a €400m share buy back is planned, rising to €800m with oil above $65/bbl. Considering Eni’s strong sensitivity to oil prices this makes sense although it will irk investors looking for a more predictable payout.
30 Jul 2020
Q2: innovating with a variable dividend policy
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Q2: innovating with a variable dividend policy
As expected the company cut its dividend. It is also adopting a different remuneration policy and now intends to distribute a minimum dividend of €0.36/share (vs €0.89) and increase this with oil ranging from $45 to $60/bbl. Above $60/bbl, a €400m share buy back is planned, rising to €800m with oil above $65/bbl. Considering Eni’s strong sensitivity to oil prices this makes sense although it will irk investors looking for a more predictable payout.