Eni: results for the second quarter and half year 2025

• Our resilient strategy and strong execution resulted in excellent Q2 ‘25 results despite commodity and currency headwinds. FY ’25 outlook raised and shareholder distributions confirmed.
• Company flexibility and optionality enabled over €1 bln of cash initiatives to mitigate scenario impacts during this quarter; annual cash benefit target raised to €3 bln versus prior €2 bln.
• Progress continued in realizing value from Eni’s distinctive satellite model through:
  o   20% investment in Plenitude by Ares, with implied enterprise value of €12 bln.
  o   Exclusivity agreement signed with GIP for CCUS JV.
  o   New upstream satellite JV with Petronas on track to close around the end of year, establishing a world-class, gas-focused player across Indonesia and Malaysia.
• Major strategic step to enter the Argentina LNG project agreement with YPF to develop 12 mln tons/year as part of Eni’s strategy to expand its gas/LNG business.
• Group proforma leverage at 10%, an historical low due to portfolio optionality, capital discipline and cash initiatives.

Leading E&P expertise and project management capabilities driving sustained growth

•  Q2 ’25 production was down 2.6% y-o-y as a result of portfolio activity but up, counter-seasonally, 1.3% sequentially, confirming the trend of underlying growth expected through the year.
• In April, Azule Energy (Eni 50%) announced a light-oil discovery at the Capricornus 1-X well, offshore Namibia. In July, Azule also revealed a gas discovery at the Gajajeira-01 well, offshore Angola.
• Framework for a world-class, self-funded JV agreed between Eni and Petronas, combining two portfolios in Indonesia and Malaysia, targeting long-term production of 500 kboe/d and 50 TCF of low-risk exploration potential.
• Agreement signed between Eni and YPF to develop the 12 mln tons/year Argentina LNG project, developing gas from the Vaca Muerta formation. In a phased approach, expected to export up to 30 mln tons/year of LNG by 2030.
• In May, Eni started production from the Merakes East gas field in the Kutei basin, offshore Indonesia, within just two years from FID. In June, Vår Energi (Eni 63%), started production at the Balder-X field in the North Sea.

Growth of energy transition businesses

• Installed renewable capacity reached 4.5 GW, up 45% y-o-y. Bio-refining capacity stands at 1.65 MTPA, with 1 MTPA under development.
• In June, Plenitude submitted a binding offer to acquire Acea Energia growing its customer base by over 10%.

Restructuring of challenged businesses on-track, leveraging on our technological lead

• Versalis closed its loss-making cracking units in Brindisi in March and Priolo in July, ahead of the original plan. Start of reconversion phase to the manufacture of decarbonized products.
• Construction work started at the Livorno hub to convert it into a biorefinery.

Significant value realization from investment in our transition businesses

• 20% investment by Ares in Plenitude, contributing €2 bln of cash to Eni based on an enterprise value of the satellite greater than €12 bln.
• Creation of a new, financially independent company, jointly controlled by Eni and GIP, to operate and fund our CCUS business.
• In IH ’25 approximately €3.8 bln cash realized from third-party investments into Enilive and Plenitude.

Portfolio and cash mitigation measures to preserve leverage, deliver value and generate sustainable shareholders’ returns

• Over €1 bln of cash mitigation measures delivered in Q2’25 to counterbalance commodity and currency headwinds.
• Proforma leverage of 10% aided by transition valorization, portfolio management and spending optimizations.
• In Q2 ‘25, €0.76 bln of cash returned to shareholders and 2025 buy-back program started (€0.28 bln). 

Solid results underpinned by strength of business model, financial discipline, and high-quality portfolio, ensuring resilience against macro headwinds

• Q2 ‘25 Group proforma adjusted EBIT of €2.68 bln, resisting the significant impact of weaker commodity prices and a falling USD. Performance supported by several self-help measures including cost efficiencies, volume growth and favorable mix effects. The Group generated €1.13 bln adjusted net profit with a Group tax rate of 46.6%.
• In Q2 ‘25:

- E&P generated €2.42 bln of proforma adjusted EBIT (down 27% sequentially and 33% y-o-y). Positive effects from both rising contribution of low breakeven projects and self-help initiatives helping to offset an adverse scenario (-20% Brent prices; +5% appreciation in the EUR/USD rate).

- GGP and Power reported proforma adjusted EBIT of €0.39 bln (up 9% y-o-y) reflecting continued value maximization from the gas portfolio and positive renegotiation and settlement outcomes. 

- Enilive generated €0.13 bln of proforma adjusted EBIT (€0.2 bln EBITDA), almost flat compared to the Q2 ’24. The positive performance of marketing activities was offset by the negative impact of deteriorated bio margins. Plenitude reported a proforma adjusted EBIT of €0.13 bln (€0.3 bln EBITDA), lower than the same quarter of 2024.

- Refining was close to breakeven, with a sequential improvement due to improved product crack spreads and plant utilization rates. The Chemicals business reported a loss of €0.18 bln amidst a prolonged downturn of the European sector but began showing some improvements due to the early effects of the restructuring plan.

- Adjusted cash flow before working capital was €2.78 bln, significantly covering gross capex of €2.03 bln (down 5% y-o-y). The resulting organic free cash flow of €0.75 bln, additional cash-in due to several initiatives addressing working capital, and the proceeds from the portfolio management of about €0.6 bln, mainly relating to the closing of the second 5% tranche of the KKR investment in Enilive, funded €1 bln of cash returns to shareholders, comprising the fourth instalment of the 2024 dividend for €0.76 bln and share repurchases of €0.28 bln as the 2025 buy-back program began.  Net borrowings decreased by about €0.14 bln to €10.2 bln from March 31, 2025.

Eni is raising its FY ’25 CFFO outlook and confirming cash returns to shareholders despite the headwinds of lower commodity prices and a weaker USD.

Specifically we are:

• Raising the Group’s expected CFFO before working capital adjustments to circa €11.5 bln at the updated scenario^[1]. This represents a €0.5 bln underlying improvement on the original Plan guidance.
• Raising to around €3 bln from €2 bln the level of cash initiatives and other self-help measures aimed at mitigating the scenario effects.
• Raising the FY projection of GGP’s proforma adjusted EBIT to around €1 bln (from a previous €0.8 bln) thanks to better than anticipated outcome from renegotiations and settlements, and portfolio optimizations.

In addition we:

• Confirm FY gross capex expected to be below €8.5 bln, down from an initial guidance of below €9 bln; net capex is seen below €6 bln from an initial guidance of €6.5-7 bln.
• Continue to expect oil and gas production at 1.7 mln boe/d, in line with original assumptions. Q3 production is seen at between 1.7 and 1.72 mln boe/d.
• Confirm Enilive and Plenitude outlook:

o FY proforma adjusted EBITDA respectively of around €1 bln and above €1.1 bln;

o End of year installed renewable capacity projected at more than 5.5 GW (Plenitude @100%); biorefinery capacity at 1.65 MTPA plus 1 MTPA under construction.

Robust balance sheet and leverage continue to be expected to be within the Plan stated range.

• Leverage at year-end expected between 0.15 - 0.2 on a proforma basis.

Confirmed the planned shareholders returns for 2025, featuring a 5% dividend increase to €1.05 per share and the execution of a buy-back program of at least €1.5 bln.

• The first tranche of the 2025 dividend of €0.26 per share is set to be paid on September 24, 2025 (record date September 23).

The full version of the Press Release is available in PDF format.