Eni H1 2025 presentation: Net profit reaches €2.5 billion, guidance raised

Introduction & Market Context

Italian energy giant Eni S.p.A. (BIT:ENI) presented its H1 2025 results on July 25, revealing solid performance across its business segments despite mixed market conditions. The company reported a net profit of €2.5 billion for the first half of the year, with €1.1 billion generated in the second quarter alone. Following the announcement, Eni’s stock rose 1.82% to close at €14.40, approaching its 52-week high of €14.91.

The results come amid a challenging but improving energy market environment, with Eni revising its Brent price assumption upward from $65 to $70 per barrel for the remainder of 2025. This follows the company’s strong Q1 performance, when it exceeded analyst expectations with an EPS of €0.4517 against a forecast of €0.4172.

H1 2025 Financial Performance Highlights

Eni reported an EBIT Pro Forma of €6.4 billion for H1 2025, of which €4.5 billion was attributed to EBIT. The company generated a robust cash flow from operations (CFFO) of €6.2 billion, while keeping organic capital expenditure at €3.9 billion. This strong cash generation has allowed Eni to reduce its net debt by €2.0 billion during the first half of the year.

As shown in the following earnings breakdown for Q2 2025:

The Global Natural Resources segment contributed €2.8 billion to Q2 earnings, while GGP & Power added €0.4 billion. The company noted that exploration and production results were in line with price sensitivities, while GGP benefited from contract renegotiation, driving a full-year guidance upgrade for this segment.

Eni’s cash flow performance has been particularly strong, as illustrated in this H1 2025 cashflow summary:

The company achieved significant deleveraging, with proforma leverage reduced to 10% and gearing at 9%. This improvement was supported by portfolio initiatives, including the €3.6 billion KKR investment into Enilive and €0.2 billion from EIP into Plenitude.

Strategic Portfolio Transformation

A cornerstone of Eni’s strategy is its "satellite model," which focuses management on specific geographies and business areas while balancing internal cash generation with growth opportunities. This approach has already shown success with Vår Energi, which has delivered a total shareholder return of 93% since its IPO.

The satellite model structure is illustrated here:

A major strategic development is Eni’s business combination with Petronas in Indonesia and Malaysia, which will create a significant regional player. The framework agreement was signed in June 2025, with final agreements expected in Q4 2025.

As shown in the following business combination details:

The joint venture will encompass 11 producing assets with initial production exceeding 300,000 barrels of oil equivalent per day, primarily gas, with potential to grow to over 500,000 barrels within 4-5 years. The partnership leverages Eni’s deep geological knowledge of the Kutei Basin, where it has discovered 2 billion barrels of oil equivalent in the last 15 years.

Eni continues to strengthen its balance sheet, with more than €6 billion in debt reduction on a pro-forma basis, placing the company in a significantly stronger position than during previous market downturns.

Energy Transition Progress

Eni is advancing its energy transition strategy through its Enilive and Plenitude subsidiaries. The transition business maintained stable performance year-over-year, as shown in this comparative analysis:

Key developments in the transition business include:

• Start-up of Sustainable Aviation Fuel (SAF) production at the Gela biorefinery
• Launch of a new biorefinery project in Sannazzaro
• Expansion of photovoltaic plants in Spain with an additional 290 MW under construction and 130 MW in operation
• Completion of KKR’s 30% investment into Enilive at an implied ~12X EV/EBITDA
• Agreement with Ares for investment into 20% of Plenitude’s share capital

Plenitude’s renewable capacity increased by 45% year-over-year to 4.5 GW, with plans to exceed 5.5 GW by the end of 2025. Meanwhile, biofuel market conditions in Europe are showing signs of recovery, which should benefit Enilive’s operations.

Updated 2025 Guidance & Outlook

Based on its strong H1 performance, Eni has updated its guidance for the full year 2025:

The company raised its Group CFFO guidance from €11.0 billion to €11.5 billion and increased its cash initiatives target from €2 billion to €3 billion. Eni also revised upward its GGP Pro-Forma EBIT guidance from €0.8 billion to approximately €1 billion.

Production guidance remains unchanged at 1.7 million barrels of oil equivalent per day, while the company confirmed its dividend of €1.05 per share and share buyback program of €1.5 billion for 2025.

The market environment for Q2 2025 showed mixed trends compared to previous periods:

Looking ahead, Eni is focused on several strategic priorities:

• Progressing the Indonesia-Malaysia combination
• Closing the West Africa upstream valorization and Ares investment into Plenitude
• Advancing upstream start-ups and ramp-ups
• Increasing renewable capacity by 25%
• Pushing forward with biorefinery pipeline development, with four projects in progress
• Transforming Versalis operations

With its strengthened balance sheet and strategic portfolio transformation, Eni appears well-positioned to navigate the evolving energy landscape while delivering value to shareholders through both dividends and growth initiatives.

Full presentation:

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