Eni Q2 profit falls 25% as oil prices and euro strength pressure earnings

Investing.com -- Eni (BIT:ENI) on Friday reported a 25% drop in second-quarter adjusted net profit to €1.13 billion, down from €1.52 billion a year earlier, as lower crude prices and a stronger euro weighed on earnings.

Proforma adjusted EBIT declined 35% to €2.68 billion from €4.11 billion in the second quarter of 2024. 

The Italian energy company cited a 20% year-on-year decline in Brent crude and a 5% appreciation in the euro versus the U.S. dollar as the main external pressures.

Group revenue fell 14% to €18.77 billion from €21.72 billion. Adjusted profit before taxes decreased 36% to €2.2 billion. 

The effective tax rate improved to 46.6%, compared with 55% in the same period last year, reflecting a more favorable geographic mix of earnings.

The exploration and production segment contributed €2.42 billion in proforma adjusted EBIT, a 33% decline from the previous year. 

Realized oil and gas prices fell by 17% and 28%, respectively. The company said this was partially offset by low-cost developments and cost control.

Eni’s Global Gas & LNG Portfolio and Power unit posted a 9% increase in proforma adjusted EBIT to €387 million, citing gains from portfolio optimization and contractual settlements.

Enilive reported EBIT of €129 million, broadly in line with the prior-year quarter, as resilient marketing offset weaker biofuel margins. 

Plenitude recorded €133 million in EBIT, down 11%, affected by softer retail margins despite expanded renewable capacity.

Refining was near breakeven, down from a profit a year earlier, while chemicals posted a €184 million loss, though the company noted signs of improvement from early restructuring.

Hydrocarbon production averaged 1.668 million barrels of oil equivalent per day, down 3% from the second quarter of 2024, largely due to asset disposals in Nigeria, Alaska and Congo. 

Liquids production rose 6% to 825,000 barrels per day, while natural gas output dropped 9% to 4.42 billion cubic feet per day.

Cash flow from operations before working capital changes totaled €2.78 billion, down from €3.91 billion. 

Capital expenditure was €2.03 billion, compared with €2.13 billion in the same period last year.

Eni returned €1 billion to shareholders through €760 million in dividends and €280 million in share buybacks. 

Net borrowings before leases stood at €10.2 billion as of June 30, down from €12.1 billion at the end of December. The company received €0.6 billion in proceeds from portfolio sales during the quarter.

For the first half of 2025, adjusted net profit attributable to shareholders was €2.55 billion, down 18% from the same period in 2024.

Proforma adjusted EBIT for the half-year totaled €6.36 billion, a 23% decline.