ENI (NYSE:E) executives used the company’s fourth-quarter and full-year 2025 results call to highlight production growth, portfolio activity and a capital spending pullback, while reiterating plans to provide a fuller strategic update at a capital markets event in March.
2025 performance framed around three “pillars”
Chief Executive Officer Claudio Descalzi said 2025 marked “exceptional progress,” with results that he argued validated Eni’s strategy and execution. Management organized the year’s discussion across three business pillars: global natural resources, transition activities, and industrial transformation.
Eni also took final investment decisions (FIDs) on four major new projects, three of which are operated, contributing to a reserves replacement ratio “above 160%,” according to Descalzi. He added that Eni has about 500,000 barrels per day of production under development.
On the portfolio side, management highlighted a business combination with PETRONAS in Indonesia and Malaysia, and said it is progressing an Argentina LNG project with YPF and XRG. Descalzi also said Eni discovered 900 million barrels of new resources in 2025, bringing total discoveries since 2014 to more than 10 billion barrels, at what he described as less than $1 per barrel. Later in the Q&A, management said the 2014–2025 discovered resources were roughly 70% gas and 30% oil.
In transition activities, Descalzi said the segment generated about EUR 2 billion of EBITDA in 2025. He also pointed to EUR 5.8 billion of contributions from private equity firms, saying the transactions implied “over EUR 23 billion of enterprise value” for the new business lines, and that these deals were completed at multiples around three times those of Eni standalone.
Within those transition businesses, management said Plenitude expanded renewable capacity by more than 40% in 2025 and is expected to add 10% to its customer base in 2026 upon closing the agreed Archer Energy acquisition. Enilive, meanwhile, has three new biorefineries under construction and two more that have reached FID, which together represent an additional net 2 million tons of annual capacity, according to Descalzi.
In industrial transformation, management discussed steps taken to address European refining and chemical market pressures. Descalzi said Eni accelerated actions in chemicals by closing crackers at Brindisi and Priolo “three to six months earlier than planned,” while working to reposition Versalis toward bio, circular and specialized products.
Financials: cash flow ahead of plan, gearing down, buyback raised
Descalzi said cash flow from operations (CFFO) totaled EUR 12.5 billion in 2025, EUR 1.5 billion ahead of plan on a scenario-adjusted basis. In response to what he called a more challenging scenario, Eni reduced gross capital expenditures to EUR 8.5 billion from an original plan of EUR 9 billion, and identified EUR 4 billion of cash initiatives—up from an initial EUR 2 billion— including EUR 0.5 billion of savings.
On a pro forma basis, management said net CapEx was lower than EUR 5 billion, versus an initial expectation of EUR 6.5 billion to EUR 7 billion, which it attributed to increased portfolio activity. Eni said it completed more than EUR 6.5 billion in 2025 valorization and portfolio activity and has raised around EUR 10 billion over the past two years.
These actions, the company said, contributed to a year-end pro forma gearing ratio of 14% and net debt down nearly EUR 3 billion over the year. Descalzi said that allowed Eni to increase its share buyback by 20% to EUR 1.8 billion from EUR 1.5 billion, while still lowering debt.
For the fourth quarter, Eni reported pro forma adjusted EBIT of EUR 2.9 billion, up 6% year over year despite lower oil prices and a weaker U.S. dollar. The company reported Q4 adjusted net profit of EUR 1.2 billion and a quarterly CFFO of EUR 3 billion, which management said reflected “excellent cash conversion,” helped by the cash initiatives.
Operations: production growth, GGP results, and downstream mixed
Management highlighted strong upstream performance. Eni reported fourth-quarter production of 1.839 million barrels per day, up 7% year over year and 5% sequentially, supported by 2025 startups. Full-year production was 1.728 million barrels per day, which Eni said was 2% above its guidance.
In Gas & Power (including GGP), Descalzi said the business delivered EBIT above EUR 1 billion for a fourth consecutive year, and Eni noted Q4 GGP EBIT of EUR 0.1 billion, despite what management described as relatively low-volatility markets.
Enilive “together” delivered EUR 2 billion of pro forma adjusted EBIT for the year, with management saying Enilive benefited from improved bio margins in the quarter. Refining returned to profit in the quarter but was held back by relatively low utilization rates, while chemicals remained weak, with management pointing to early benefits from the restructuring actions already underway.
2026 outlook: lower CapEx, stable low gearing, portfolio activity expected
Looking ahead, Eni said it expects to limit 2026 gross CapEx to around EUR 7 billion and net CapEx to around EUR 5 billion. Management also confirmed an expectation for pro forma gearing to remain between 10% and 15% in 2026.
On shareholder returns, Descalzi said a “fully funded, attractive, and growing dividend” remains Eni’s first priority, noting that the company has raised the dividend by an average of 5% per year over the last five years. He described buybacks as an additional distribution tool meant to share cash flow generation and upside, and said the company would provide more details at the March capital markets update.
Key Q&A themes: PETRONAS timing, Kazakhstan arbitration, data centers and Venezuela
During Q&A, management provided additional color on several topics:
- PETRONAS business combination: Descalzi said the transaction is expected to be finalized by the end of the second quarter and should contribute for about six months. He said the new company is expected to produce about 300,000 barrels per day initially, with projects planned to reach 500,000 barrels per day over the next years.
- Kazakhstan: Management said Kazakhstan has advanced arbitration claims related to production performance, cost recovery, environmental matters and sulfur storage. Eni said it does not expect a result before 2027 or 2028 and that it is challenging a sulfur fine in courts, while stating operations have been conducted in compliance with Kazakhstan law and with required permits.
- CapEx efficiency and 2026 FIDs: Executives attributed lower CapEx to focusing exploration near existing facilities and to projects with low unit development cost and longer plateaus. Management cited Argentina, Ivory Coast and Cyprus among areas of focus for 2026 FIDs, along with additional African geographies.
- Versalis restructuring timing: Versalis management said benefits from cracker shutdowns are typically visible after 12–18 months and pointed to improvement in the second half of 2025 versus the prior year, with further actions planned and more details to be shared at the capital markets update.
- Exploration success rate: Management said 2025 exploration success was “very close to 100%,” citing low write-offs.
- AI and data centers: Management discussed a planned data center project in northern Italy near Milan, up to 500 MW in phases, coupled with a gas-fired plant. Executives also cited potential AI applications across upstream operations.
- Italian energy reform: Management characterized the impact as slightly negative but “quite marginal,” given Eni’s diversified exposure as supplier, producer and industrial player.
- Venezuela: Descalzi said a recent General License 50 allows Venezuela to pay for gas delivered to the domestic market using crude, which he described as an upside after a period of unpaid receivables. He also referenced potential upside from developments in the Orinoco Belt and offshore, and gas resources such as Perla (about 20 TCF) with potential export optionality.
- Trading operations: Management said it has consolidated trading under one organization, adjusted its approach to risk to be “a little bit less risk adverse,” and initiated dialogue with international trading players.
- Biofuels market: Management said it expects biofuel demand in 2026 to exceed 20 million (versus about 16 million in 2025), driven by Europe and the U.S., and cited developments related to Europe’s Renewable Energy Directive III and anticipated U.S. renewable volume targets.
- Libya exploration: Management said Eni is drilling an offshore exploration well and will announce results when available.
- ETS and CCS: Descalzi declined to engage in political debate on the EU ETS but said CCS economics look favorable at current ETS levels, particularly when leveraging existing assets, and referenced progress in the U.K., the Netherlands and Italy.
Eni said it will provide additional details on strategy, financial frameworks and shareholder distribution at its March 19 capital markets update.
About ENI (NYSE:E)
ENI S.p.A. is an integrated energy company headquartered in Rome, Italy, founded in 1953 as a state-established hydrocarbon entity and later transformed into a publicly traded multinational. The firm’s activities span the full hydrocarbon value chain and extend into power generation and low‑carbon energy solutions. ENI maintains a long history in exploration and production, engineering and project development, and downstream operations that include refining, petrochemicals and retail fuel distribution.
Core businesses include upstream exploration and production of oil and natural gas, midstream and liquefied natural gas (LNG) handling, and downstream refining and marketing of petroleum products and lubricants.
