E

Business Context and Reporting Period

Company: Eni S.p.A.
Filing Type: Form 6-K (Report of Foreign Issuer)
Reporting Period: Second Quarter and First Half ended June 30, 2025
Filing Date: July 25, 2025

Eni reported unaudited consolidated results for Q2 and H1 2025. The Board of Directors approved the first tranche of the 2025 dividend provision (€0.26 per share) and confirmed the company's resilient strategy despite commodity price declines and currency headwinds. The company continues to execute its "satellite model" strategy, focusing on portfolio optionality and capital discipline.

Key Financial Metrics

Material Changes vs. Prior Period

• Revenue and Profit Decline: Proforma adjusted EBIT decreased 35% in Q2 and 23% in H1 2025 compared to the prior year. This was primarily driven by a 20% drop in Brent crude prices and a 5% appreciation of the EUR/USD exchange rate, which negatively impacted dollar-denominated assets.
• Segment Performance:
  • E&P: EBIT fell 33% in Q2 due to lower realizations, partially offset by a favorable mix from low breakeven projects.
  • Refining & Chemicals: Refining was near breakeven in Q2; Chemicals reported a loss of €184 million due to European sector downturns, though restructuring efforts are showing early benefits.
  • Global Gas & LNG: EBIT increased 9% in Q2, driven by portfolio optimization and settlement outcomes.
• Production: Hydrocarbon production averaged 1.67 million boe/d in Q2, down 3% year-over-year due to divestments in Nigeria, Alaska, and Congo, though sequential growth of 1.3% was recorded.
• Balance Sheet: Net borrowings decreased by approximately €2 billion in H1 2025, aided by strong cash flow and portfolio monetization.

Guidance, Outlook, and Strategic Developments

• Outlook Raised: Eni raised its FY 2025 Cash Flow From Operations (CFFO) before working capital to approximately €11.5 billion. The target for cash initiatives to mitigate scenario impacts was raised to €3 billion (from €2 billion).
• Shareholder Returns: Confirmed a 5% dividend increase to €1.05 per share for 2025 and a share buy-back program of at least €1.5 billion (potentially up to €3.5 billion). The first dividend tranche of €0.26 per share is payable on September 24, 2025.
• Strategic Milestones:
  • Plenitude: Ares Management agreed to invest 20% in Plenitude for ~€2 billion, implying an enterprise value over €12 billion.
  • CCUS: Signed an exclusivity agreement with Global Infrastructure Partners (GIP) for a Carbon Capture, Utilization, and Storage joint venture.
  • Upstream: Agreed to a new satellite JV with Petronas for Indonesia and Malaysia gas assets; signed an agreement with YPF for a 12 million tons/year LNG project in Argentina.
• Capex Guidance: FY gross capex expected below €8.5 billion; net capex below €6 billion.

Investor Verification Checklist

• Dividend Payment Dates: Verify ex-dividend date (September 22, 2025) and payment date (September 24, 2025) for the first tranche.
• Proforma Adjustments: Review the reconciliation of Non-GAAP measures (Proforma Adjusted EBIT) to GAAP results, noting the impact of special items and inventory holding gains/losses.
• Transaction Closures: Monitor the regulatory clearance status for the Ares investment in Plenitude and the Petronas JV, as these are critical to the proforma leverage of 10%.
• Commodity Exposure: Assess sensitivity to Brent price fluctuations and EUR/USD exchange rates, which were primary drivers of the Q2 decline.
• Chemical Restructuring: Track the progress of Versalis restructuring and the conversion of the Livorno hub to a biorefinery to gauge margin recovery in the Chemicals segment.