Financial Performance - Eni reported €3.7 billion of proforma adjusted EBIT, €1.4 billion of adjusted net profit, and €3.4 billion of adjusted cash flow, covering gross capex of €1.9 billion[10]. - In Q1 '25, the company reported an adjusted net profit of €1,313 million, an increase of 11% compared to Q1 '24, driven by contributions from joint ventures and associates[24]. - Adjusted net profit attributable to Eni's shareholders in Q1 2025 was €1,412 million, reflecting an 11% decrease compared to Q1 2024[64]. - The Group's proforma adjusted EBIT for Q1 2025 was €3,681 million, down 11% from the previous year, mainly due to a downturn in downstream businesses[63]. - Proforma adjusted EBITDA for Q1 2025 was €358 million, a 3% increase compared to Q1 2024[49]. - The refining business reported a proforma adjusted loss of €91 million, reflecting ongoing challenges in product crack spreads[17]. - The tax rate in Q1 '25 was approximately 46%, a decrease of about 7 percentage points compared to the same period in 2024, primarily due to a more favorable geographical mix of pretax profit[26]. Production and Operations - Hydrocarbon production decreased to 1,741 kboe/d in Q1 2025, down 5% from Q4 2024, while installed renewable capacity increased by 37% to 4.1 GW[11]. - Hydrocarbon production averaged 1.65 million boe/d in Q1 '25, down by 5% year-over-year, with divestments in Nigeria, Alaska, and Congo offset by ramp-ups in Côte d'Ivoire, Congo, Mexico, and Italy[25]. - Production of oil and natural gas totaled 1,716 kboe/d in Q1 2025, a decrease from 1,741 kboe/d in Q1 2024[121]. - Production of liquids was 786 kbbl/d in Q1 2025, consistent with Q4 2024 but down from 797 kbbl/d in Q1 2024[122]. - Production of natural gas reached 4,862 mmcf/d in Q1 2025, an increase from 4,502 mmcf/d in Q4 2024 but a decrease from 4,937 mmcf/d in Q1 2024[123]. Capital Expenditure and Investments - The company expects FY gross capex to be below €8.5 billion, down from initial guidance of around €9 billion, with net capex seen below €6 billion[21]. - Capital expenditure in Q1 2025 was €1,819 million, a decrease of 6% year-over-year from €1,931 million in Q1 2024[120]. - Exploration & Production capital expenditure was €1,439 million, primarily focused on oil and gas development in regions including the UAE, Indonesia, and Italy[120]. - The company completed a buyback program of €2 billion, repurchasing a total of 144 million shares[71]. - Cash inflows from divestments net of acquisitions were approximately €0.2 billion, including a post-closing adjustment of €0.12 billion from Ithaca Energy Plc[69]. Dividends and Shareholder Returns - The company confirmed a 5% increase in FY 2025 dividend to €1.05 per share and announced a buyback program of €1.5 billion[19]. - The company paid dividends of €765 million to shareholders in Q1 2025, slightly down from €767 million in Q1 2024[118]. Financial Position and Cash Flow - Net cash provided by operating activities in Q1 2025 was €2,385 million, an increase of €481 million compared to Q4 2024[68]. - Free cash flow for Q1 2025 was €1,789 million, significantly up by €1,895 million from Q4 2024[66]. - Net borrowings before IFRS 16 decreased by approximately €1.8 billion, amounting to €10.3 billion as of March 31, 2025[76]. - Shareholders' equity increased by €1.6 billion to €57.3 billion, driven by a net profit of €1.2 billion and equity transactions related to subsidiaries[74]. - Cash and cash equivalents increased from €8,183 million in December 2024 to €9,147 million in March 2025, an increase of approximately 11.8%[1]. Strategic Initiatives and Joint Ventures - Eni has identified over €2 billion in mitigating actions to offset negative scenario effects in 2025, reflecting the company's financial discipline[13]. - The company established a joint venture with Petronas targeting a long-term production plateau of 500 kboe/d in Indonesia[17]. - In March, the company and Vitol agreed on the economic terms for a farm-out of a 25% working interest in the Congo FLNG project, with expected proceeds of $2.7 billion[28]. - In April, the company and KKR completed a transaction increasing KKR's stake in Enilive to 30% for approximately €601 million[43]. Market Conditions and Challenges - In Q1 '25, natural gas sales were 12.12 bcm, a decrease of 22% from the previous year, attributed to lower volumes sold in Italy and the European market[30]. - Enilive reported a proforma adjusted EBIT of €95 million in Q1 '25, down by 48% year-over-year, impacted by deteriorated margins in the biofuels business[40]. - The company reported a significant impact from inventory holding gains and losses, which were excluded from adjusted results[89]. - Special items recorded in operating profit amounted to net charges of €286 million, primarily due to write-downs in the E&P segment[78].

Q1 2025 RESULTS APRIL 24, 2025 Baleine, Côte d'Ivoire Q1 2025 | HIGHLIGHTS EXECUTING OUR DYNAMIC STRATEGIC PRIORITIES FINANCIAL RESULTS GLOBAL NATURAL RESOURCES TRANSITION & TRANSFORMATION UPSTREAM & CCS Start-up of Johan Castberg Agreement for the exploitation of Cyprus' Cronos Block 6 resources MoU with YPF for Eni's participation in the Argentina LNG project in April Financial close for the Hynet Liverpool Bay CCS project PORTFOLIO MoU with Petronas for Indonesia-Malaysia business combination Valorizatio ...

Investment Overview - Eni S.p.A is set to invest nearly 24 billion euros over the next four years in projects across Algeria, Libya, and Egypt to amplify energy production in North Africa [1][3] - The investment aligns with the Roman government's Mattei Plan, aimed at strengthening relations with Africa and re-establishing economic and political connections [2] Market Potential - Algeria, Libya, and Egypt have significant potential to become oil and gas suppliers for Europe, but require foreign investments to scale energy production and meet domestic demand [3] - The demand for energy in these countries is rising substantially, approximately 7-8% each year, driven by population growth [4] Specific Country Insights - Eni has a long-standing presence in Egypt, particularly after discovering the Zohr offshore gas field, but the country is facing setbacks with declining domestic production since 2021, reaching a six-year low in 2024 [5] - An agreement was signed between Egypt and Cyprus in 2025 for gas processing, where Eni will export gas to Egypt for liquefaction and re-export to Europe, enhancing regional energy security [6]

Core Viewpoint - Eni SpA is advancing its strategy to sell a minority stake in its retail and renewables business, Plenitude, with an expected valuation exceeding €10 billion (~$11 billion) including debt [1][2]. Group 1: Stake Sale Details - Eni has received binding offers from five bidders for a further stake in Plenitude, indicating strong investor interest despite market volatility [2][3]. - The exact size of the stake being offered and the identities of the bidders have not been disclosed [3]. - Eni is entering negotiations regarding governance terms and contract specifics with potential investors [3]. Group 2: Strategic Context - The sale aligns with Eni's "satellite strategy," aimed at raising funds to support energy transition by divesting stakes in high-growth units [4]. - Recently, Eni sold 30% of its biofuels unit Enilive to KKR, a U.S.-based private equity firm [4]. - Over the next four years, Eni anticipates its satellite operations, including Plenitude and Enilive, to generate approximately €13 billion in cash flow [5]. Group 3: Valuation Insights - There are reports suggesting Plenitude's valuation could rise to €13 billion, although Eni's CFO did not confirm these figures but indicated a premium over the previous valuation [6][7]. - The strong interest from global investors and a clear capital deployment roadmap suggest Eni is balancing energy transition goals with financial prudence [7].

Group 1: Eni's Strategic Moves - Eni SpA is considering additional sales of its upstream oil and gas assets to optimize its portfolio, following a recent agreement with Vitol to sell stakes in assets in the Ivory Coast and the Republic of Congo [1][3] - The deal with Vitol, valued at $1.65 billion, reflects Eni's strategy to streamline its portfolio and attract capital through divestments while advancing energy transition goals [3][4] - Eni's chief operating officer noted significant investor interest in the company's asset divestments, prompting further consideration of additional sales [2][4] Group 2: Market Response and Implications - The potential new sales could enable Eni to reallocate capital more efficiently, invest in energy transition projects, or reduce debt [4] - High investor interest indicates a resilient appetite for upstream oil and gas assets, particularly in Africa, where Eni has a significant presence [4]

Buyback Program - Eni's Board of Directors proposed a new buyback program for up to €1.5 billion, potentially increasing to €3.5 billion in favorable cash flow scenarios[7][9] - The maximum number of shares to be purchased under the buyback program is 315 million, representing approximately 10% of Eni's share capital[9] - The new buyback program is set to run until the end of April 2026, aimed at rewarding shareholders[7] - The cancellation of treasury shares acquired under the buyback program will be proposed without reducing share capital by July 2026[12] Dividend Distribution - Eni plans to distribute 35%-40% of annual Cash Flow From Operations (CFFO) as dividends and share buybacks, with up to 60% of additional cash in upside scenarios allocated to buybacks[8] - The fourth tranche of the 2024 dividend was approved at €0.25 per share, contributing to a total annual provision of €1.00 per share[15] - Holders of ADRs will receive €0.50 per ADR, payable on June 9, 2025, with each ADR representing two Eni shares[16] Treasury Shares - Eni currently holds 91,610,327 treasury shares, which is about 2.9% of its share capital[13] Regulatory Filings - Eni's Annual Report on Form 20-F for the year ended December 31, 2024, has been filed with the SEC[21] - The documentation for the Shareholders' Meeting will be available to the public in accordance with current regulations[13]

Financial Performance - Eni's consolidated financial statements are prepared in accordance with International Financial Standards (IFRS) [18] - The company reported a significant increase in net borrowings, calculated as total finance debt less cash and cash equivalents, indicating a focus on managing financial condition [28] - Eni's leverage ratio, a non-GAAP measure, is calculated as the ratio between net borrowings and shareholders' equity, providing insight into financial stability [28] - The volatility of hydrocarbon prices significantly affects the company's financial performance, with lower prices negatively impacting revenues recognized in the Exploration & Production segment [47] - In 2024, Eni's refining business incurred a loss of €674 million due to reduced crack spreads and weak demand, while the chemical business faced an operating loss of €1,007 million, marking the third consecutive year of losses [65] - Eni's credit exposure to PDVSA amounted to approximately €2.1 billion as of December 31, 2024, reflecting significant overdue trading receivables [128] - The Group has significant credit exposure towards local companies in Nigeria due to historic underperformance in reimbursing amounts owed [129] - Eni disbursed about €0.45 billion to settle an Italian windfall tax levied in 2023 on profits of energy companies [118] - The Group's operations are subject to increasingly high levels of income taxes and royalties, which may impact future results of operations and cash flows [117] - Eni's financial performance may be adversely affected by unfavorable movements in exchange rates, particularly due to its operations being primarily in US dollars while reporting in euros [162] Operational Efficiency - The average reserve life index, which measures the ratio of reserves to total production, is a key indicator of Eni's operational efficiency [29] - The company’s ability to add new reserves through exploration and property purchases is indicated by a reserve replacement ratio higher than 100%, which suggests more reserves were added than produced in the period [36] - Approximately 70% of Eni's total oil and gas production in 2024 came from offshore fields, which are subject to higher operational risks [100] - Eni's production in Libya was 169 kboe/d in 2024, accounting for about 10% of the Group's total production [126] - Eni's future production levels depend on its ability to replace produced reserves through new discoveries and acquisitions [108] Environmental Impact and Sustainability - The company is committed to reducing greenhouse gas emissions, with a specific focus on its carbon efficiency index [30] - Direct greenhouse gas emissions from the company's operations (Scope 1) and indirect emissions from purchased electricity (Scope 2) are critical metrics for assessing environmental impact [36] - Eni's net carbon intensity is a key metric, reflecting the ratio between net GHG lifecycle emissions and the energy content of products sold [36] - The REDD+ scheme aims to reduce emissions from deforestation and forest degradation, aligning with the company's sustainability goals [42] - The company targets to increase the proportion of natural gas in its production mix while gradually reducing the weight of hydrocarbons in its portfolio, aiming for net zero emissions by 2050 [73] - Eni's strategy aims for carbon neutrality by mid-century, focusing on maximizing asset value and restructuring challenged sectors [171] - Eni aims for net zero emissions by 2050 across all industrial activities, with intermediate targets including a 50% reduction by 2024 and 65% by 2025 compared to the 2018 baseline [205] - The company plans to utilize nature-based solutions to offset approximately 20-25 million tons of CO2 per year by 2050, contributing about 5% of total supply chain emissions reduction [205] - Eni's investment in lower carbon activities is expected to represent around 30% of total planned expenditures for the 2025-2028 period [207] - As of December 31, 2024, natural gas proved reserves accounted for approximately 52% of Eni's total proved reserves, positioning the company favorably in terms of GHG emissions [208] - The company has reduced the breakeven price of its reserves through effective exploration and low-complexity developments, enhancing resilience to low-carbon scenarios [209] Market Dynamics and Geopolitical Risks - In 2024, hydrocarbon prices declined by 2.2% for Brent crude oil and 14% for the European spot price of natural gas, leading to a reduction in Exploration & Production operating profit by an estimated €0.7 billion [48] - The OPEC+ alliance, which includes countries like Russia and Kazakhstan, currently holds a spare capacity of 5-6 million bbl/day, representing about 5-6% of the world crude oil and natural gas liquids supply [45] - The transition to a low-carbon economy may lead to structural lower crude oil demands and prices, impacting the worldwide energy mix [43] - The ongoing conflict in Ukraine and geopolitical tensions could derail macroeconomic recovery, negatively affecting demand for hydrocarbons and leading to lower commodity prices [55] - Eni's ability to remain competitive is challenged by volatile prices, limited product differentiation, and competition from larger players in the energy market [60] - The energy transition and increasing regulatory pressures related to climate change could lead to a decline in demand for hydrocarbons, affecting future financial performance [66] - Eni's business heavily relies on global demand for oil and natural gas, which may decline due to laws and regulations promoting alternative energy sources and electric vehicles [81] Regulatory and Compliance Risks - Eni expects to incur significant operating expenses related to compliance with environmental, health, and safety regulations in the coming years [144] - The company is not insured against all potential HSE risks, which could lead to significant liabilities in the event of a major environmental disaster [149] - Eni is subject to significant penalties under the GDPR, with fines up to 4% of global annual turnover for data protection violations [159] - Regulatory risks in Italy may negatively impact Eni's future sales margins in the gas and electricity markets due to potential pricing controls by the Italian Regulatory Authority [141] Strategic Initiatives and Investments - The company plans to invest approximately €33 billion in gross capital expenditures from 2025 to 2028, with a focus on profitable production growth and transitioning to sustainable energy sources [183] - Eni expects to receive about €3.7 billion in fresh funds from private equity investments in its subsidiaries Enilive and Plenitude, aimed at supporting their independent growth [179] - The company has established a new joint venture with Ithaca Energy, combining UK oil and gas assets, resulting in a 37% interest in the new entity [182] - Eni's refining and chemical businesses are being restructured to focus on biorefineries and sustainable products, leveraging proprietary technologies [179] - Eni's management plans to renegotiate long-term gas supply contracts to align pricing with current market conditions, but the outcomes of these negotiations are uncertain [140] Risk Management - Eni has adopted a structured risk management process to assess assets exposed to climate-related risks over various time horizons [197] - Eni's crisis management systems may be ineffective, potentially prolonging disruptions and negatively impacting financial results [157] - Cybersecurity threats pose risks to Eni's IT systems, which could lead to operational disruptions and damage to the company's reputation [158] - Eni faces significant operational risks in development projects, which may lead to cost overruns and delays [103] - Legal risks from climate litigation could impose additional financial burdens on Eni, affecting its operations and business prospects [84] Acquisitions and Financial Liabilities - Eni's acquisition of Neptune Energy in 2024 was valued at €2.4 billion, marking the largest acquisition in recent years, which may involve integration risks [156] - Eni is exposed to a gross amount of approximately €2.1 billion in trade receivables from PDVSA, with uncertain recoverability due to U.S. sanctions [136] - The company faces liquidity risk, which could lead to higher borrowing costs or even jeopardize its ability to continue operations [165] - Eni incurred €555 million in charges related to write-offs of capitalized exploration expenditures due to uneconomic reserves [102] - The estimated total future development and decommissioning costs associated with the Group's proved total reserves are approximately €41.7 billion, compared to €42.6 billion in 2023 [112]

Company Overview - Eni SpA is headquartered in Rome, Italy, and operates in the Oils-Energy sector, with a price change of 13.82% year-to-date [3] - The company currently pays a dividend of $0.35 per share, resulting in a dividend yield of 4.74%, significantly higher than the Oil and Gas - Integrated - International industry's yield of 1.36% and the S&P 500's yield of 1.57% [3] Dividend Performance - Eni SpA's annualized dividend of $1.48 has increased by 2.1% from the previous year [4] - Over the past five years, the company has raised its dividend twice on a year-over-year basis, achieving an average annual increase of 20.12% [4] - The current payout ratio stands at 41%, indicating that the company distributes 41% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Outlook - For the fiscal year, Eni SpA anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $3.61 per share, reflecting a year-over-year growth rate of 4.03% [5] Investment Considerations - Eni SpA is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7] - The company is positioned well for income investors, particularly in contrast to tech start-ups or growth businesses that typically do not offer dividends [6][7]

Company Overview - Eni is an Italian multinational oil company with a market capitalization of over $44 billion [2] Financial Performance - Eni has continued to generate strong cash flow from a global portfolio of assets and has outperformed the market [2] Investment Strategy - The Value Portfolio focuses on building retirement portfolios using a fact-based research strategy, which includes extensive analysis of 10Ks, analyst commentary, market reports, and investor presentations [2]

Core Viewpoint - Eni S.p.A has announced the sale of interests in certain West African assets to Vitol for a total consideration of $1.65 billion, pending regulatory approvals [1] Group 1: Transaction Details - The deal includes Eni's oil and gas-producing assets and exploration blocks in Cote d'Ivoire and the Republic of Congo [2] - Vitol will acquire a 30% participating interest in the Baleine field, where Eni holds a 77.25% ownership, and a 25% participating interest in the Congo LNG project, where Eni has a 65% interest [3] Group 2: Strategic Implications - The agreement strengthens the existing partnership between Eni and Vitol, who have collaborated on projects in Ghana, enhancing Vitol's presence in West Africa [4] - Eni's decision to divest aligns with its upstream strategy to optimize its asset portfolio, focusing on reducing stakes in exploration discoveries to lower financial risk [5] Group 3: Production and Future Prospects - The Baleine field currently produces over 60,000 barrels of oil equivalent, while the Congo LNG project has a production capacity of 1 billion cubic meters per year, with plans to increase to 4.5 billion cubic meters by the end of 2025 [6]