E

Business Context and Reporting Period

Company: Eni S.p.A.
Filing Type: Form 6-K (Report of Foreign Issuer)
Reporting Period: First Quarter 2025 (Ended March 31, 2025)
Release Date: April 24, 2025

Eni reported solid Q1 2025 results driven by improved economic fundamentals, despite macro uncertainty. The period was marked by strategic portfolio management, including the closing of a 30% investment by KKR in Enilive and EIP reaching a 10% stake in Plenitude. The company successfully applied its dual exploration model, securing farm-out agreements with Vitol for the Baleine and Congo FLNG projects.

Key Financial Metrics

Material Changes vs. Prior Period

• Revenue & Profit Decline: Proforma adjusted EBIT decreased 11% year-over-year, primarily due to a ~10% drop in Brent crude prices and continued downturns in downstream refining and chemicals margins.
• Production Mix: Hydrocarbon production averaged 1.65 million boe/d (down 5% YoY). Liquids production was flat (-1%), while natural gas production fell 9% due to divestments and mature field declines, partially offset by ramp-ups in Congo, Italy, and Mozambique.
• Segment Performance:
  • E&P: Adjusted EBIT of €3.3 billion (down 2% YoY) due to lower realizations, offset by efficiency gains.
  • Refining & Chemicals: Reported a proforma adjusted loss of €334 million (vs. €53 million loss in Q1 2024) driven by deteriorating crack spreads and weak European demand.
  • Enilive & Plenitude: Combined adjusted EBIT of €336 million (down 21% YoY), impacted by lower biorefining margins at Enilive.
• Balance Sheet Strengthening: Net borrowings decreased by €1.8 billion to €10.3 billion. Proforma leverage improved to 0.12x, supported by €3.0 billion in proceeds from portfolio monetization (KKR investment in Enilive and EIP investment in Plenitude).

Guidance, Outlook, and Management Commentary

• 2025 Outlook Revision: In response to macro headwinds and trade tariff uncertainty, Eni identified over €2 billion in mitigating actions (capex, portfolio, and cost initiatives).
  • Capex: FY 2025 gross capex revised down to below €8.5 billion (from €9.0 billion); net capex seen below €6.0 billion (from €6.5-7.0 billion).
  • Cash Flow: FY CFFO before working capital expected at €11 billion based on a revised scenario (Brent $65/bbl, TTF €40/MWh).
  • Production: Oil and gas production expected at 1.7 million boe/d.
• Shareholder Returns:
  • Dividend: Proposed 5% increase in FY 2025 dividend to €1.05 per share.
  • Buyback: Commencement of a new €1.5 billion share buyback program.
  • Payment: Fourth tranche of 2024 dividend (€0.25/share) scheduled for May 21, 2025.
• Strategic Developments:
  • Indonesia: Establishing a financially independent E&P satellite JV with Petronas targeting 500 kboe/d plateau.
  • Cyprus/Egypt: Historic agreement to export Cronos gas resources to Europe via Eni infrastructure.
  • Monetization: Farm-out agreements with Vitol for Baleine and Congo FLNG projects expected to generate $2.7 billion in proceeds.

Investor Verification Checklist

• Monetization Closing: Verify the regulatory approval and closing timeline for the Vitol farm-out agreements (Baleine and Congo FLNG) to confirm the $2.7 billion proceeds.
• Downstream Margins: Monitor the trajectory of Standard Eni Refining Margin (SERM) and European chemical sector demand, as these segments remain loss-making and sensitive to macro conditions.
• Capex Execution: Track the execution of the revised €2 billion in cost mitigation measures to ensure the net capex target of below €6 billion is met.
• Dividend Approval: Confirm the approval of the €1.05 per share dividend and the €1.5 billion buyback authorization at the Annual General Meeting (AGM) on May 14, 2025.
• Indonesia JV: Assess the progress of the JV formation with Petronas and the timeline for the 500 kboe/d production plateau.