Eni S.p.A.

Eni said Q2 pro forma EBIT was EUR 5.4 billion and net income EUR 2.3 billion, both doubling year over year. Cash flow from operations was EUR 4.5 billion, up over 60%, and first-half pro forma EBIT increased 40% year over year. Reported gearing was stable quarter over quarter, while pro forma gearing declined to 10%. For guidance, management raised underlying oil and gas production growth to exceed 5% in 2026, GGP pro forma EBIT to over EUR 1.4 billion, Plenitude and Enilive combined full-year pro forma EBITDA to EUR 2.6 billion, and Enilive adjusted EBITDA to EUR 1.3 billion. At a revised Brent scenario of $85 per barrel, adjusted CFFO is expected at EUR 15 billion, supporting EUR 3.4 billion of buybacks; gross CapEx is expected at approximately EUR 7 billion and net CapEx below EUR 5 billion.

Claudio Descalzi framed the quarter as proof that Eni’s strategy is working, emphasizing operating leverage, geographic diversification, and the company’s ability to absorb a weak FX backdrop and Middle East disruption. He repeatedly stressed that Eni’s model combines upstream growth with scaling low-carbon and trading businesses, and said the company is in “one of the strongest position in its history.” His tone was confident and expansive, especially around the long-term resource pipeline and the idea that Eni must stay across the full value chain to win the energy race.

Francesco Gattei highlighted the hard numbers behind the beat: Q2 cash flow from operations was EUR 4.5 billion, tax rate in the first half was about 39%, capital expenditure was EUR 1.8 billion in Q2, and full-year gross CapEx remains around EUR 7 billion with net CapEx now guided below EUR 5 billion. He said working capital was a positive contributor and still expected to reduce over 2026, and noted Eni repurchased EUR 600 million of shares in the quarter after paying the final 2025 dividend. He also pointed to the raised EUR 15 billion CFFO target as the basis for the higher EUR 3.4 billion buyback program and said reported gearing should converge toward 10% by year-end.

Analysts focused on 2030 production visibility, Venezuela contract terms, refining margins, CapEx discipline, chemicals, and the special dividend/buyback framework. Management said 2026 production growth guidance has been raised to 5% from 3%-4%, and that 2030 growth is supported by 54 organic projects and earlier FIDs, with further upside possible beyond 2030. On Venezuela, management said negotiations are progressing, contracts would need to protect investment, and the structure is likely to be more like a PSC; on refining, they said benchmark margins understate actual realizable margins because of freight, logistics and crude-yield effects. On shareholder returns, management said the special dividend triggers are already being met on current assumptions and that a higher buyback could also be considered if prices stay strong.