E

Business Context and Reporting Period

Company: Eni S.p.A.
Filing Type: Form 6-K (Interim Consolidated Report)
Reporting Period: First half of 2026 (ended June 30, 2026)
Business Overview: Eni is an integrated energy company focused on a just energy transition. Key strategic developments in the period included the establishment of the Searah joint venture with Petronas in Southeast Asia, the acquisition of interests in Argentina upstream assets, and the reorganization of the Plenitude subsidiary as a discontinued operation pending deconsolidation.

Key Financial Metrics

Note: Shareholder returns included €1.6 billion in 2025 dividends and €0.8 billion in 2026 buybacks.

Material Changes vs. Prior Period

• Production Growth: Underlying hydrocarbon production grew 11% year-over-year to 1.79 million boe/d, driven by ramp-ups in West Africa, the Gulf of Guinea, Norway, and Indonesia.
• Segment Performance:
  • E&P: Proforma adjusted EBIT rose 42% to €8.13 billion due to volume growth and higher realizations.
  • Transition Businesses: Enilive and Plenitude combined adjusted EBITDA reached €1.1 billion. Enilive EBIT nearly doubled to €0.43 billion.
  • Refining & Chemicals: Refining returned to profitability (€0.07 billion EBIT) from a loss, while Chemicals losses were cut by nearly 50%.
• Accounting Changes: Plenitude is now classified as a discontinued operation (IFRS 5) following a reorganization of its shareholding structure, though it remains consolidated as of June 30, 2026.
• Market Environment: Brent crude averaged $92.57/bbl (+29% YoY), significantly boosting revenues despite a stronger Euro.

Guidance, Outlook, and Risks

Updated Guidance (FY 2026)

• Production: Underlying oil & gas production growth raised to ~5% (previously 3-4%).
• GGP EBIT: Adjusted proforma EBIT guidance raised to over €1.4 billion.
• Transition EBITDA: Enilive revised upward to €1.3 billion; Plenitude confirmed at €1.3 billion.
• Cash Flow: Adjusted CFFO expected at €15 billion (Brent $85/bbl scenario).
• Capex: Gross capex confirmed at €7 billion; net capex guided to less than €5 billion.
• Shareholder Returns: Buyback program expanded to €3.4 billion. An extraordinary dividend is expected if refining margins remain above budgeted levels.

Risks and Contingencies

• Geopolitical Volatility: Significant price volatility driven by Middle East tensions (Strait of Hormuz closure) and the Russia-Ukraine conflict.
• Commodity Prices: Exposure to oil and gas price fluctuations; long-term demand uncertainty due to energy transition.
• Operational Risks: Risks associated with upstream activities in non-OECD countries (Libya, Venezuela, Egypt) and potential environmental liabilities.
• Legal Proceedings: Ongoing arbitration with the Republic of Kazakhstan regarding cost recovery; various environmental and antitrust proceedings in Italy.

Key Facts for Investor Verification

• Plenitude Deconsolidation: Verify the timeline and regulatory approval for the deconsolidation of Plenitude, which is expected in Q3 2026, and the impact on future consolidated revenue.
• Searah JV Integration: Confirm the operational ramp-up and cash flow accretion of the new Searah joint venture with Petronas in Indonesia/Malaysia.
• Refining Margin Sustainability: Assess the durability of the improved Standard Eni Refining Margin (SERM) of $9.1/bbl amidst geopolitical supply disruptions.
• Share Buyback Execution: Monitor the execution of the expanded €3.4 billion buyback program and the potential declaration of an extraordinary dividend.
• Impairment Charges: Review the €1.47 billion in impairment charges related to mature assets and the methodology used for future impairment testing.