ENI S.p.A.

E&P drove the quarter, reporting €4.6 billion of pro forma EBIT as production grew 4.2% year on year and market conditions supported results. Group net income of €2.8 billion rose 20% sequentially and was 2.2 times the year-ago figure. Cash flow from operations before working-capital effects was €4.3 billion, broadly flat versus Q2 and 30% higher year on year despite lower crude prices. Capital expenditure was €1.35 billion, consistent with the company’s expected lower second-half run rate and roughly €7 billion full-year plan.

Eni increased its 2026 buyback to €3.8 billion from €3.4 billion and declared a €1.3 billion exceptional dividend, bringing cash dividends for the year to €4.4 billion. The company put total distributions at €8.2 billion, or about 50% of expected operating cash flow. It raised full-year 2026 cash-flow guidance to €16.5 billion, 43% above the initial outlook, and said that this covers the dividend more than five times. Reported gearing reached 10%, the bottom of the 10%–15% target range, and pro forma gearing was 9%; the latter includes the consolidation of €2.75 billion of Plenitude debt.

Eni raised full-year underlying production-growth guidance to 6%–7%, citing contributions from Congo, Libya, Côte d’Ivoire, Mexico, Ghana and the Searah combination in Indonesia and Malaysia, despite Middle East operating complexity and Kazakh export constraints. Exploration added more than 1.2 billion barrels of resources in 2026, with an 80% technical success rate, a 70% commercial success rate and discovery costs below $1 per barrel. Projects sanctioned this year are expected to deliver around 600,000 barrels per day of new production by 2030; management clarified that Venezuela is not included. Eni also said new agreements and opportunities added about 4.6 billion barrels of equity resources.

In Venezuela, Eni signed a new 25-year contractual regime for Junín 5 and submitted development plans to the authorities. The initial phase is intended to reach 200,000 barrels per day gross within 18–24 months; management described 400,000 barrels per day by the end of 2029 and potential production of 1 million barrels per day in 2032–2033. Development will be phased, initially using spare capacity, with condensate from Perla and lighter oil from Corocoro identified as potential diluents. For Perla, the plan includes a 90 million-cubic-feet-per-day domestic debottlenecking step and a later floating-LNG export phase of 3.4–3.5 million tonnes per year, which would take about three and a half years from FID. In Argentina, Eni has submitted its RIGI application and is targeting 65%–70% project financing; the upstream and midstream activities, including LNG, are expected to be consolidated.

Enilive reported a record result, supported by biorefining margins and retail market-share gains. Management described biofuel demand fundamentals as supportive in Europe and the United States, citing policy and security-of-supply considerations. Plenitude’s EBITDA guidance was cut to €1.2 billion from €1.3 billion as aggressive retail competition and weaker renewable conditions weighed on performance; an unusually high summer demand spike also required spot purchases of power. In refining, utilization recovered after major turnaround work, while the current strong market conditions supported results. Versalis remained under pressure from weak demand, utilities costs and reduced import duties, although management said the business remained on track toward break-even in 2028.