Eni slows down, but its finances are holding up. CEO Descalzi: "The coming months and 2026 will be better."

MILAN – The drop in Brent oil (-20%) and the decline of the dollar against the euro (-5%) cut Eni's profits by a quarter , which nevertheless earned 1.1 billion in adjusted net profit between April and June, 22% more than the average market expectations, and brought its net profit to 2.65 billion in the six months.

Profits have declined 25% compared to the second quarter of 2024, primarily due to crude oil prices averaging $67.80 a barrel (down from $85 in mid-2024) and the Trump effect, which has weakened the greenback, the currency in which all major global oil companies sell their hydrocarbons. However, Eni then converts those revenues into euros, which thus diminishes.

CEO Claudio Descalz speaks of "excellent results in a challenging environment and despite an unfavorable market environment." He reiterates that "Eni's business model confirms its robustness and flexibility," meaning that management has implemented efficiency measures, increased volumes, and improved production mixes, which have stemmed the declines in crude oil and the dollar (as well as in refining margins, which fell by 20-25% during the period). However, the manager has a more positive outlook: "We expect a positive second half of the year and an even more promising 2026." This is also because, in the quarter ended, Eni further reduced its net debt, falling to 10% of shareholders' equity, "the lowest in the company's history," at a time when several rivals are increasing it.

Looking at the contribution of individual businesses, the oil division, which reported a 33% decline in operating profit of €2.42 billion, is expected to grow thanks to the consolidation of the partnership with Petronas in the Indonesian Kutel basin ("one of the best deals we've made in recent years," according to Descalzi) and the floating LNG project in Argentina . In the gas and LNG (GGP) division, operating profit rose 9% to €387 million, while the renewables businesses of Enilive and Plenitude declined 6% to €262 million, while the chemicals and refining duo remained stable, losing €193 million gross, as at mid-2024.

On the cost side, operating costs fell 11% in the second quarter, as did organic investments (-5% to €2.03 billion). Meanwhile, the group's energy transition continues, following a "satellite" model: the divestment of 30% of its subsidiaries Plenitude and Enilive to minority shareholders generated €6.4 billion in cash, resources that helped accelerate the implementation of the transition plan and increase installed renewable capacity by 45% in one year, reaching 4.5 GW in June. Furthermore, the exclusive negotiation with Gip "is intended to strengthen Eni's leadership in the carbon capture and storage sector."

The stock strengthened on the stock exchange after the presentation of the financial statements, reaching a final gain of 1.82%. Market participants praised the growth in gas profits, the increase in the 2025 operating cash flow target (from €11 billion to €11.5 billion), and the confirmation of remuneration levels, including the €1.5 billion buyback (though management says "this is a minimum base, it could increase in the coming months") and the dividend of €1.05 per share, up 5% from 2024.