Financial Statements

Eni reports strong growth in profits and an extraordinary dividend in December. Descalzi: “Excellent results”

The group has revised its growth forecast for E&P upwards and improved its cash flow projection for the full financial year (16.5 billion). The share buyback programme has been increased to 3.8 billion.

6' min read

Translated by AI
Versione italiana

6' min read

Translated by AI
Versione italiana

Thanks to its solid business performance, which has successfully capitalised on favourable commodity prices, Eni has finalised its financial results, exceeding analysts’ expectations, with a double-digit increase in key economic and financial indicators, and has revised certain targets upwards, starting with estimates for oil and gas production growth in the range of 6 to 7 per cent (compared with the previous target of 5 per cent) and the annual cash flow forecast (16.5 billion), with pro forma gearing (financial leverage) at an all-time high, below the 10–15 per cent range. Furthermore, the share buyback programme, underpinned by the results, will be increased by 12 per cent to 3.8 billion. These figures will enable the group led by Claudio Descalzi to distribute an extraordinary dividend of 0.46 euros per share in the fourth quarter.

The sharp rise in profits

Eni’s results therefore show strong growth, starting with net profit, which stood at 7.6 billion in the first nine months (compared with 2.5 billion in the same period of 2025, +202 per cent, whilst the increase for the quarter was 299 per cent, to 3.2 billion). The adjusted figure, i.e. excluding extraordinary items, stands at 6.4 billion (+70 per cent, whilst in the third quarter the increase was 125 per cent, to 2.8 billion). Adjusted pro forma operating profit stood at 14.9 billion (+59 per cent) in the first nine months, whilst in the last quarter the jump was 100 per cent, from 2.99 billion to 5.99 billion.

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Descalzi: excellent results

These figures illustrate the Six-Legged Dog’s excellent positioning. It is no coincidence that, when commenting on the performance, CEO Descalzi speaks of ‘excellent results’ stemming from ‘the strength of our operating model and selective investments in our broadly diversified portfolio of competitive assets’. “Thanks to our strong fundamentals, continuously improving growth prospects and historically solid financial performance, we are well positioned to continue ensuring that our customers receive sustainable, secure and increasingly decarbonised energy supplies.”

The extraordinary growth of E&P

The senior executive then goes on to highlight the achievements of the individual business units, starting with the group’s ‘driving force’, exploration and production. “In the third quarter, E&P once again achieved extraordinary organic production growth of 7 per cent, reflecting the start-up of new projects, the full operational capacity of our assets and the benefits arising from the launch of the Searah joint venture in South-East Asia. “During the quarter, we accelerated a series of significant initiatives in South America, Africa and South-East Asia, which will underpin growth and cash generation for years to come,” adds Descalzi. “Finally, thanks to our excellent exploration activities, this year we have discovered 1.23 billion barrels of new hydrocarbon resources, a result well above our budgeted target, whilst reducing exploration costs,” he added.

Gearing at an all-time low and a special dividend in the fourth quarter (46 cents)

As for the other businesses, Descalzi emphasises “that, in addition to growth in the upstream sector and stable results in our gas, power and refining operations, we are achieving performance that exceeds our expectations in the transition businesses, which are contributing increasingly to the diversification of the group’s profits. The capital increase and Plenitude’s new governance structure will enable this subsidiary to grow on a self-financed basis, thereby mitigating the Group’s exposure’. Thanks to our strategic businesses, operational execution and the wide range of options at our disposal, the CEO further explains, “we are able to generate solid and recurring cash flows across a range of market conditions. Based on our fundamentals and the cash generation outlook for the full financial year 2026, with gearing at historic lows, we are further increasing the distribution with an extraordinary dividend of €0.46 per share, payable in the fourth quarter, and are once again increasing the share buyback to €3.8 billion, underlining our commitment to sharing growth with shareholders.”

Exploration and production

Turning to the individual segments, in the third quarter E&P achieved an adjusted pro forma operating profit of 4.6 billion (+76 per cent) thanks to positive volume and mix effects, against a favourable commodity backdrop with crude oil up 40 per cent and gas up 30 per cent. For the first nine months, pro forma adjusted operating profit stood at 12.7 billion, up 52 per cent compared with the same period in 2025. In the third quarter, adjusted net profit was 2.1 billion (+79 per cent, whilst in the third quarter the increase was 64 per cent, to 5.8 billion).

The gas business

As for the gas business (GGP and Power), GGP’s (Global Gas & LNG Portfolio) in the third quarter stood at 407 million (+50 per cent) thanks to ongoing optimisation of the asset portfolio, whilst for the first nine months the figure stood at 1.1 billion (+31 per cent). For Power, the pro forma adjusted operating profit was 38 million (-43 per cent) in the third quarter (whilst for the first nine months, the figure stood at 85 million (-71 per cent compared with the same period in 2025).

Enilive and Plenitude

For its transition businesses, Enilive recorded an adjusted pro forma operating profit of 410 million, up 76 per cent compared with the same period in 2025, thanks to the biorefinery business, which was buoyed by an improved market environment. Adjusted pro forma EBITDA stood at 490 million (+55 per cent) compared with the third quarter of 2025 (317 million). Over the first nine months, adjusted pro forma EBITDA totalled 1.08 billion, up 55 per cent. As for Plenitude, pro forma adjusted profit in the third quarter stood at 191 million, up 95 per cent compared with the same period in 2025, whilst for the nine-month period the figure was 630 million (+33 per cent). Pro forma EBITDA in the third quarter, however, stood at 204 million (-8 per cent; for the nine-month period, the figure was 745 million, down 11 per cent).

Refining and chemistry

Turning to refining, the adjusted pro forma operating profit stood at 277 million in the third quarter (+400 per cent), whilst for the nine-month period the figure was 793 million, compared with 35 million in the same period of 2025. In the third quarter, Versalis (Chemicals), on the other hand, reported an adjusted pro forma operating loss of 178 million compared with the third quarter (when the loss was 188 million), whilst for the nine-month period the loss stood at 401 million, an improvement of 35 per cent compared with the same period in 2025. The ‘sites undergoing transformation’ business, which includes the group’s restructuring activities, closed the third quarter with an operating loss of 77 million, whilst the loss for the nine-month period stood at 220 million.

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Production, cash flow and gearing revised upwards

In light of the results, which also showed an improvement in debt (down by 2.8 billion over the nine-month period to 6.7 billion, net of lease liabilities), Eni has therefore revised some of its 2026 outlook estimates, starting with oil & gas production, which rose by 7 per cent to 1.83 million barrels of oil per day and for which the group has raised its forecast for the year to +6–7 per cent. The cash flow forecast has also been revised upwards, as mentioned, and stood at just over 10 billion in the first nine months (1.07 billion more than in the same period of 2025): under the updated scenario, adjusted CFFO is now forecast at 16.5 billion and, as the group clarifies, reflects “the excellent operational performance of the business and represents an operational improvement of 1.2 billion compared with Eni’s initial guidance and sensitivity analyses”. Gross capex is confirmed at 7 billion, whilst net capex is forecast to be below 4.5 billion. Pro forma gearing is expected to be at the lower end of the 10–15 per cent range.

Estimates for the sectors

By sector, GGP’s adjusted pro forma EBIT is forecast to rise to around 1.5 billion, up 50 per cent on the initial forecast, whilst Enilive’s adjusted pro forma EBITDA is forecast to rise to 1.4 billion, an increase of approximately 30 per cent compared with the initial forecast. Plenitude’s adjusted pro forma EBITDA is expected to be around 1.2 billion, and its installed renewable capacity at the end of the financial year is expected to be 6.5 GW (gigawatts), with an additional 1.2 GW of capacity under construction (100% owned by Plenitude); biorefinery capacity of 1.65 MTPA (million tonnes per annum), plus a further 0.5 MTPA for which mechanical completion is expected by the end of the year; a further capacity of 1.5 MTPA (Enilive’s share) is currently under development.

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