1.7
Mboed
Upstream production in 2025
Our strategic objective is unchanged: to generate strong and competitive financial returns while delivering the energy products our customers demand.
Actions to achieve the objective:
We are experiencing enormous change in energy and capital markets, and the wider environment in which we operate. This change brings challenges but also huge opportunities which our strategy is designed to capture.
Claudio Descalzi
Chief Executive Officer of Eni
Objective: focussing on barrel value growth and capturing margin in an integrated portfolio.
Actions to achieve the objective:
Actions for decarbonization and value creation:
Objective: Leveraging integrated business models for growth, while transforming traditional refining and restructuring chemicals.
Actions to achieve the objective:
We have significantly strengthened our financial framework to support sustainable growth and shareholder returns.
We will continue to be selective and disciplined in our gross investment, which is aimed at delivering consistent growth and competitive returns and fueling our portfolio optionality and divestment plan.
Growth is an important and distinctive feature of our investment case. We expect to grow CFFO per share at over 14% annually through this decade, improve ROACE by approximately 6 percentage points to around 13% by 2030 and maintain financial leverage within an historically low range of 10-20%.
Alongside competitive top-line growth we are focussed on a material improvement in corporate level returns. This is driven by the multiple initiatives we have underway and have discussed including:
Our distribution policy confirms the progressive growth in shareholder value as we execute our strategy. We rank distribution as a top priority in our financial framework by allocating a percentage of the operating cashflow - a transparent link to our business performance. We expect to grow dividend over time while also improving its quality.
In February 2025 we raised the target distribution payout range to 35-40% of the annual CFFO, from 30-35% previously, by way of a combination of dividend and share buyback – reflecting the strategic, operational and financial advances Eni has made.
This is equivalent to a total distribution CFFO payout of 36%.
The share buyback is a flexible tool. We intend to use our financial flexibility in lower than planned scenario and any CFFO shortfall to deliver the target buyback. While in case of better than planned CFFO outcomes, we will allocate up to 60% of incremental cash to additional purchases. Additionally, if the disposal plan is more material than planned, we could decide to further increase the percentage of CFFO distribution.
OUTCOMES ACHIEVED 2024 | GUIDANCE 2025* | 2025-2028 PLAN | |
---|---|---|---|
PRODUCTION | 1.71 Mboed | 1.7 Mboed | 3-4% underlying, 2-3% reported |
GGP PRO-FORMA EBIT | €1.1 bln | ~€1.0 bln | ~€0.8 bln avg |
ENILIVE PRO-FORMA EBITDA | €0.9 bln | ~€1.0 bln | €2.5 bln in 2028 |
PLENITUDE PRO-FORMA EBITDA | €1.1 bln | >€1.1 bln | €1.9 bln in 2028 |
GROUP CFFO | €13.6 bln | €11.5 bln | ~€60 bln in 4YP |
NET CAPEX | €5.3 bln on a pro-forma basis | <€6 bln | €27 bln in 4YP |
DIVIDEND | €1.00/share | €1.05/share | 35-40% of CFFO |
BUYBACK | €2.0 bln completed | €1.5 bln | |
*2025 Guidance, as revised during Q2. | |||
EBITDA and EBIT are adjusted. Pro-forma includes Eni’s share of equity-accounted entities. Cash Flows are adjusted pre working capital at replacement cost and exclude effects of derivatives. |
The company explains how it plans to achieve its long-term business goals.