MILAN - Italian energy group Eni promised on Friday to accelerate its share buyback after reporting a smaller than expected drop in second-quarter net profit.

The group said a stronger than anticipated performance at its upstream and Gas & LNG divisions supported its results, while actions it was taking to streamline its portfolio would translate in a lower debt at the end of this year.

Between April and June adjusted net profit came in at 1.52 billion euros ($1.65 billion), down 21% from a year ago, but above an analyst consensus of 1.42 billion.

During the past quarter the energy group pressed ahead with divestments, signing a deal to sell upstream assets in Alaska and announcing exclusive talks with investment firm KKR to dispose of a stake in its biofuel unit Enilive.

Thanks to these moves, Eni said it now expected its leverage ratio, which measures total debt in relation to equity, to be significantly below 0.2 by year end, better than its original projection.

"This will enable us to speed up the execution of our 1.6 billion euro share buyback program and confirm our delivery of both business growth and shareholder returns," Eni Chief Executive Claudio Descalzi said in a statement.

Shares in the Italian group were up 2.6% on Milan bourse, outperforming a slightly negative blue-chip index at 0727 GMT.

Analysts had put the group's debt under the spotlight after credit rating agency S&P recently revised its outlook on Eni to negative from stable.

An 8-billion euro disposal plan to be completed by 2027 should reduce the leverage and also help the energy group unlock fresh funds to be invested in its budding low-carbon businesses.

The state-controlled group also said it was improving its 2024 pro-forma adjusted operating profit guidance to around 15 billion euros. In April it had guided for earnings before interest and tax (EBIT) of more than 14 billion euros this year.

Eni recorded a proforma adjusted EBIT at its exploration & production division of 3.5 billion euros in the second quarter, better than an analysts' estimate of 2.43 billion euros.

Oil and gas production rose by 6% year-on-year driven by the ongoing ramp-up at the group's flagship projects in Ivory Coast and Congo floating LNG, higher contribution from Libya and by the full integration of recently acquired Neptune Energy.

The Gas and LNG business (GGP) posted an adjusted operating profit of 0.33 billion euros, above a 0.18 billion consensus.

($1 = 0.9209 euros)

(Reporting by Francesca Landini, editing by Giulia Segreti, Valentina Za and David Evans)