MILAN, July 30 (Reuters) - Italian energy group Eni (ENI.MI) pledged higher shareholder returns after swinging to a net profit in the second quarter to beat expectations as firmer oil prices offset lower production.

Adjusted net profit in the period came in at 929 million euros ($1.1 billion), above an analyst consensus provided by the company of 0.57 billion euros, Eni said on Friday.

In the same period last year it posted a loss of 714 million euros.

"These results, the progress on delivering our strategy, the outlook, and a Brent reference scenario of $65/bbl, have allowed us to increase our dividend back to pre-COVID levels," CEO Claudio Descalzi said.

Eni, which cut its dividend last year to 0.36 euros, said it would pay a 2021 dividend of 0.86 euros per share and launch a 400 million euro share buyback.

Descalzi said half the dividend would be paid in September.

The move follows similar hikes at peers like Shell (RDSa.L) , as the industry signals confidence in a lasting recovery from the pandemic, reassuring investors on the roll out of risky climate strategies.

Eni, which confirmed a full-year oil and gas production forecast of about 1.7 million boe/d, doubled its forecast for renewable energy capacity to 2 gigawatts.

Its shares rose almost 2% in early trading.

($1 = 0.8422 euros)

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