Financial Data and Key Metrics Changes - In 2025, the company achieved a cash flow from operations (CFFO) of EUR 12.5 billion, which was EUR 1.5 billion ahead of plan on a scenario-adjusted basis [7] - Pro forma adjusted EBIT for Q4 was EUR 2.9 billion, up 6% year-on-year, despite lower oil prices and a weaker dollar [8] - Full-year production reached 1.728 million barrels per day, 2% above guidance, with Q4 production at 1.839 million barrels per day, up 7% year-on-year [8][9] - The company reduced gross CapEx from EUR 9 billion to EUR 8.5 billion, with net CapEx on a pro forma basis lower than EUR 5 billion [7][10] Business Line Data and Key Metrics Changes - The global natural resources segment saw a 4% increase in underlying production, with a reserves replacement ratio above 160% [3] - Transition activities generated EUR 2 billion of EBITDA, with a contribution of EUR 5.8 billion from private equity firms [5] - The industrial transformation segment delivered EBIT above EUR 1 billion for the fourth consecutive year, despite a softer market [4] Market Data and Key Metrics Changes - The company discovered 900 million barrels of new resources in 2025, reaffirming its industry-leading track record [4] - The biofuel market is expected to see demand exceed 20 million in 2026, driven by regulatory changes in Europe and the U.S. [75] Company Strategy and Development Direction - The company plans to continue its focus on organic growth in upstream operations, leveraging exploration successes and partnerships [12] - The strategy remains unchanged, emphasizing operational efficiency and disciplined capital alignment [12][13] - The company is advancing its energy transition programs, including CCS, fusion, and battery storage [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate challenges in the energy market while capturing growth opportunities [6] - The outlook for 2026 includes a focus on maintaining low gearing levels and a commitment to shareholder distributions [11][12] - Management highlighted the importance of maintaining a robust financial position to manage market cycles [6] Other Important Information - The company raised its share buyback program by 20% to EUR 1.8 billion, reflecting a commitment to enhancing shareholder returns [8][12] - The company expects to limit gross CapEx to around EUR 7 billion in 2026, with net CapEx at around EUR 5 billion [11] Q&A Session Questions and Answers Question: Outlook for the joint venture with PETRONAS - Management indicated that the joint venture is expected to contribute to production, with a target of reaching 500,000 barrels per day in the coming years [17][18] Question: CapEx guidance and deconsolidation of Indonesia - Management confirmed that the reduction in CapEx is due to optimization strategies and not a reduction in growth [25][26] Question: Biofuel trading environment in 2026 - The company anticipates a constructive development in the biofuel market, driven by regulatory changes and increased demand [75] Question: Impact of Italian energy reform - Management noted that the impact of the energy reform is slightly negative but marginal, given the company's diverse activities [50] Question: Update on offshore Libya drilling - Management confirmed that drilling is ongoing and results will be announced when available [96]

2025 RESULTS FEBRUARY 26, 2026 Congo LNG Ph2 DISCLAIMER This document contains certain forward‐looking statements particularly those regarding capital expenditure, development and management of oil and gas resources, dividends, share repurchases, allocation of future cash flow from operations, future operating performance, gearing, targets of production and sales growth, new markets and the progress and timing of projects. By their nature, forward‐looking statements involve risks and uncertainties because t ...

Core Viewpoint - Italian energy giant Eni demonstrated strong performance at the end of last year, with net profit exceeding average expectations by 25% [1][2] - Quarterly production also significantly surpassed market expectations [1][2] Group 1: Financial Performance - Eni's net profit exceeded average expectations by 25% [1][2] - Quarterly production levels were notably higher than market forecasts [1][2] Group 2: Future Outlook - Analysts noted limited earnings expectations due to the upcoming capital markets day [1][2] - Eni's capital expenditure outlook appears to be below expectations, reflecting the planned closure of a joint venture in Indonesia mid-year [1][2] - Production is expected to continue growing [1][2]

Core Insights - Eni reported stronger-than-expected fourth-quarter earnings, robust cash flow, and lower leverage, driven by upstream production growth and disciplined capital allocation despite a softer oil price environment [1] Financial Performance - The company posted a fourth-quarter adjusted net profit attributable to shareholders of €1.20 billion, a 35% increase from the previous year, while full-year adjusted net profit reached €4.99 billion, down 5% year on year [2] - Group proforma adjusted EBIT rose 6% to €2.87 billion in the fourth quarter, despite a 15% drop in Brent prices and a stronger euro [2] Operational Highlights - Eni exceeded its own production guidance, averaging 1.73 million barrels of oil equivalent per day (boe/d) in 2025, with fourth-quarter output climbing over 7% year on year to 1.84 million boe/d [3] - The company reported an organic reserve replacement ratio of 167%, maintaining a track record of replacing more reserves than it produces [3] Segment Performance - Exploration & Production remained the earnings engine, delivering €2.80 billion in fourth-quarter proforma adjusted EBIT, supported by higher volumes and cost discipline [4] - Six major projects were brought on stream during the year across Angola, Indonesia, Norway, and Congo, enhancing medium-term production visibility [4] Strategic Developments - Eni advanced its LNG footprint and upstream consolidation in Asia, signing a binding agreement with Petronas to combine upstream assets in Indonesia and Malaysia, targeting a sustainable production plateau of over 500,000 boe/d [5] - The company also signed long-term LNG sales contracts in Turkey and Thailand, strengthening its global gas marketing portfolio [5] Transition and Investments - Transition businesses showed momentum, with Plenitude expanding renewable capacity to 5.8 GW by year-end, a 41% increase year on year [6] - Eni realized value through external investments, including a €2 billion sale of a 20% stake in Plenitude and a 49.99% stake in its carbon capture and storage unit [6] Cash Flow and Shareholder Returns - Adjusted cash flow from operations reached €12.5 billion for the year, while net borrowings before lease liabilities fell to €9.4 billion at year-end, reducing gearing to 15% [7] - In response to strong cash generation, Eni increased its share buyback program by 20% [7]

Core Insights - The company's adjusted net profit increased by 35%, indicating strong financial performance [1] - Earnings growth was supported by a more than 7% rise in oil and gas production, reflecting operational efficiency and market demand [1]

Core Insights - Eni reported a 35% year-on-year increase in adjusted net profit for Q4, driven by strong growth in its exploration and production division [1] - The adjusted net profit for the fourth quarter reached 1.2 billion euros ($1.4 billion), up from 885 million euros in the same period last year, surpassing analyst expectations of 960 million euros [1] Financial Performance - Adjusted net profit for Q4: 1.2 billion euros ($1.4 billion) [1] - Year-on-year growth: 35% increase from 885 million euros [1] - Analyst consensus: Expected profit of 960 million euros [1]

Core Viewpoint - Eni S.p.A. has made a significant gas and condensate discovery offshore the Ivory Coast, enhancing its position in the energy sector and confirming the potential of the Calao channel complex [2][3]. Group 1: Discovery Details - The discovery, named Calao South, was made after drilling the Murene South-1X well in Block CI-501, where Eni holds a 90% stake in partnership with Petroci Holding [2][3]. - The estimated volume of the find is up to 5 trillion cubic feet (Tcf) of gas and 450 million barrels of condensate, equating to approximately 1.4 billion barrels of oil [3]. Group 2: Recent Developments - This discovery marks Eni's second major find in Africa within a short period, following a significant offshore oil discovery in Angola, estimated at around 500 million barrels of oil [4].

Group 1: Eni S.p.A. - Eni S.p.A. is rated a Buy due to its "best-in-class" capital allocation and attractive growth prospects, with a highly sensitive upstream portfolio benefiting from crude price movements [1] - The company is recognized for being a solid dividend payer, significantly boosting total shareholder returns in recent years, and is focusing on energy transition and reducing emissions [8] Group 2: TotalEnergies - TotalEnergies has a strong shareholder return policy, planning to return $2 billion in share buybacks per quarter for 2025, totaling approximately $8 billion annually [2] - The proposed dividend for fiscal year 2025 is increased to €3.40 per share, a 5.6% rise from 2024, with interim dividends set at €0.85 per share, marking a 7.6% increase [3] - The company is viewed as well-positioned to benefit from higher Brent prices while maintaining resilience through strong cash generation [4] Group 3: Galp Energia - Galp Energia has been upgraded to a Buy rating with a price target of €20, driven by strong growth prospects from the Namibia Mopane discovery and increased production in Brazil [10] - The Mopane discovery is estimated to contain over 10 billion barrels of oil equivalent, potentially transforming Namibia into a major oil producer [11] - Analysts expect a 14% compound annual production growth rate through 2027, with increased LNG volumes and strong refining margins [12] Group 4: Saipem S.p.A. - Saipem is rated a Buy due to its underappreciated turnaround potential, with expectations for EBITDA margins to recover to pre-COVID levels by 2028 [13] - The company has a record-high backlog, providing high revenue and earnings visibility for the next 12-18 months [13] - Saipem is pursuing growth through a planned merger with Subsea7, expected to close in the second half of 2026 [14] Group 5: OMV AG - OMV is rated a Buy for its unique combination of upstream leverage and chemicals exposure, supported by a solid dividend track record [15] - The company has proposed a dividend of €3.15 per share plus a variable dividend of €1.25 per share for FY 2025 [16] - Starting in FY 2026, OMV will amend its dividend policy to include 50% of dividends from Borouge Group International and 20-30% of cash flow from operating activities [17]

Core Insights - Eni S.p.A. has commenced oil production at the Ndungu full-field, part of the Agogo Integrated West Hub Project in Block 15/06 offshore Angola, operated by Azule Energy, a joint venture with BP [1][8] - The Ndungu project is expected to reach a peak capacity of 60,000 barrels per day, demonstrating efficient execution and strong operational planning [2] - The phased execution of the Agogo Integrated West Hub Project aims to ensure sustained long-term production, with initial processing through the N'goma FPSO before transitioning to the Agogo FPSO [3] Production Capacity - When fully operational, the combined production from the Agogo and Ndungu fields is projected to be up to 175,000 barrels of oil per day [4][8] Market Environment - Current trading of West Texas Intermediate crude is above $65 per barrel, but forecasts suggest potential declines in crude prices, which may impact the exploration and production segments of Eni and BP [5] - Other integrated oil and gas companies, such as Chevron and Exxon Mobil, are also sensitive to crude oil price fluctuations, with BP, Chevron, and Exxon Mobil currently holding a Zacks Rank of 3 (Hold) [6]

Core Viewpoint - A consortium of major oil companies is initiating arbitration against the Kazakh Government over a $4.6 billion fine related to environmental compliance issues at the Kashagan oilfield [1][2]. Group 1: Arbitration and Dispute - The arbitration proceedings are a response to a $4.6 billion fine imposed for alleged sulphur storage violations at Kashagan's gas processing facilities [1]. - The fine was levied following a 2022 inspection that found excessive sulphur levels, leading to a penalty of KZT2.3 trillion, equivalent to $5.4 billion at that time [2]. - The North Caspian Operating Company (NCOC) asserts that its operations comply with Kazakh law and that it holds the necessary permits [2]. Group 2: Stakeholder Reactions and Historical Context - Shell's CEO announced a pause on further investment in Kazakhstan until the disputes are resolved, indicating a cautious approach from major stakeholders [4]. - Kazakhstan has a history of disputes with international oil companies over operational costs and environmental compliance, leading to multi-billion-dollar claims and various arbitration proceedings [3]. - Previous arbitration cases, such as those involving the Karachaganak field, resulted in significant compensation liabilities for oil companies [4]. Group 3: Strategic Importance of Kazakhstan - Kazakhstan is Central Asia's largest oil producer and plays a crucial role as an energy supplier to Europe, especially after the reduction of reliance on Russian energy post-Ukraine invasion [5]. - The Kashagan project was initially valued as a major global oil discovery, comparable to Saudi Arabia's Ghawar field, highlighting its strategic significance [5]. Group 4: Project Development and Challenges - The Kashagan project has faced significant delays and cost overruns, with initial estimates of $57 billion ballooning to $187 billion, and phase one costs rising from $24 billion to $46 billion [6]. - Operations at Kashagan began in September 2013 but were temporarily halted due to gas leaks caused by sulphide stress corrosion in pipelines [6].