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ENI S.p.A. First Quarter 2026 Financial Summary

Business Context and Reporting Period

This Form 6-K filing reports the unaudited consolidated results for ENI S.p.A. for the first quarter ended March 31, 2026, released on April 24, 2026. The period reflects strong execution of the company's accretive growth strategy despite energy market volatility. Key strategic developments include the announcement of the demerger of the Plenitude subsidiary, the completion of the acquisition of Acea Energia by Plenitude, and significant exploration successes in Indonesia, Egypt, and Angola.

Key Financial Metrics

Material Changes vs. Prior Period

• Production Growth: E&P production increased 9% year-over-year to 1.839 million boe/d, driven by ramp-ups in West Africa and Norway, and new start-ups in Angola. Underlying growth was 11.5%.
• Exploration Success: Approximately 1 billion boe of resources were discovered year-to-date, including the major Geliga gas and condensate discovery in Indonesia and significant finds in Egypt and Angola.
• Segment Performance:
  • E&P: Proforma adjusted EBIT was €3.36 billion, flat year-over-year. Volume growth and better oil realizations were offset by an 11% appreciation of the EUR against the USD.
  • Transition Businesses: Combined EBITDA was €0.5 billion. Enilive EBIT rose 45% due to improved biorefining margins, while Plenitude EBIT fell 12% due to an unfavorable retail scenario.
  • Refining & Chemicals: Losses narrowed significantly. Refining loss improved to €47 million (from €91 million) due to better crack spreads. Chemicals loss reduced by 35% to €158 million following restructuring.
• Financials: Adjusted net profit declined 8% primarily due to unfavorable exchange rate effects and a one-off gain in the prior year's power segment. The effective tax rate decreased to 42.2% from 47%.

Guidance, Outlook, and Management Commentary

• Revised FY 2026 Guidance:
  • Cash Flow: Adjusted CFFO guidance raised by 20% to €13.8 billion based on a revised scenario (Brent $83/bbl, SERM $8/bbl, TTF €50/MWh, EUR/USD 1.15).
  • Production: Underlying oil & gas production growth expected at 3-4% for the full year.
  • Capex: Gross capex confirmed at €7 billion; net capex at €5 billion.
• Shareholder Returns:
  • Dividend: 2026 dividend confirmed at €1.1 per share (up 5% vs. 2025).
  • Buyback: Share buyback program increased by ~90% to €2.8 billion (from initial €1.5 billion guidance) to return 60% of CFFO upside.
  • Extraordinary Dividend: If Brent exceeds $90/bbl or gas/refining margins rise significantly, 100% of additional CFFO will be returned as an extraordinary dividend in Q4.
• Strategic Moves:
  • Plenitude Demerger: Announced reorganization to establish joint control with Ares, involving a €1.5 billion capital increase. Plenitude is now accounted for as a discontinued operation.
  • Indonesia JV: Final Investment Decisions (FIDs) taken for two major gas hubs in the Kutei basin. A new JV with Petronas is expected to launch in Q2.
  • Enilive Expansion: FIDs approved for biorefining projects at Sannazzaro and Priolo, supported by a €500 million EIB loan.

Investor Verification Checklist

• Exchange Rate Sensitivity: Verify the impact of the EUR/USD appreciation (11% vs. prior year) on reported E&P earnings, as the company operates significant dollar-denominated assets.
• Plenitude Accounting: Confirm the treatment of Plenitude as a discontinued operation and the implications for future consolidation and cash flow reporting.
• Indonesia Project Timeline: Monitor the execution of the Geliga discovery and the South/North Hub FIDs, which are critical to the 3-4% production growth guidance.
• Refining Margins: Assess the sustainability of the improved SERM ($10.9/bbl) given the volatility in Middle East supply disruptions and Atlantic Basin refinery closures.
• Buyback Execution: Track the completion of the revised €2.8 billion buyback program and the conditions triggering the potential extraordinary dividend.