Eni S.p.A.

Eni said Q2 pro forma EBIT was EUR 5.4 billion and net income was EUR 2.3 billion, both doubling year on year. Cash flow from operations was EUR 4.5 billion, up over 60%. For the first half, pro forma EBIT rose 40% year on year, and pro forma gearing declined to 10%. Reported gearing was stable quarter on quarter. CapEx was EUR 1.8 billion in Q2, with full-year gross CapEx expected at about EUR 7 billion and net CapEx below EUR 5 billion. Guidance was raised for GGP pro forma EBIT to over EUR 1.4 billion, Enilive and Plenitude combined pro forma EBITDA to EUR 2.6 billion, and adjusted CFFO to EUR 15 billion at a revised $85 per barrel Brent scenario. Underlying oil and gas production growth guidance for 2026 was increased to 5%, and the company expects production growth of around 4% CAGR through 2030. Eni also now expects EUR 3.4 billion of share buybacks in the 2026 program, versus initial guidance of EUR 1.5 billion.

Claudio Descalzi framed the quarter as proof that Eni’s strategy is working, emphasizing operational leverage, diversification, and resilience despite Middle East volatility and FX headwinds. He highlighted a broader energy portfolio now spanning upstream, gas, low-carbon, trading, critical minerals, and batteries, and said the company has more than 54 organic growth projects across 13 to 14 countries. His tone was highly confident, repeatedly stressing that Eni is “in one of the strongest position[s] in its history.”

Francesco Gattei focused on the financial translation of the operating momentum: stronger CFFO, lower net CapEx, and higher shareholder distributions. He said operational working capital was a positive contributor in the quarter and still expects an overall reduction in 2026, while tax rate in the first half was about 39%, below full-year guidance. He also quantified the shareholder return framework, saying the company expects EUR 3.4 billion of buybacks and that an extra dividend could be triggered if Brent stays above $90, refining margins stay above the stated threshold, and gas prices remain above the reference level.

Analysts pressed on Venezuela, asking whether new terms would justify investment beyond 2027-28; management said negotiations are ongoing, the setup is likely to be a PSC-like structure, and the economics are helped by fast-recovery, shallow drilling and existing infrastructure. Questions also focused on downstream and refining; management said benchmark margins understate Eni’s actual capture because of freight, logistics, crude differentials, and hedging, and that July refining conditions are still very strong, above $30 per barrel, with low inventories and limited capacity. Other notable questions covered CapEx discipline, chemicals losses, and the Mercuria trading JV, with management saying the JV should lift ROACE by 1 to 2 percentage points over the long term.