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].
Eni(E) - 2025 Q1 - Quarterly Report