Eni (ENI) Q2 2024 earnings summary

Executive summary

• First-half 2024 performance exceeded plan, with strong financial outcomes, robust cash flow, and declining leverage, supported by disciplined capital expenditure and portfolio upgrades including Neptune acquisition, asset sales in Congo, Nigeria, and Alaska, and UKCS combination with Ithaca.

• Transition businesses Enilive and Plenitude delivered high growth in biofuels and renewables, with significant investments, operational milestones, and new biorefinery projects in Malaysia, South Korea, and Italy.

• The company is executing a transformation plan focused on profitability, sustainability, and value creation, targeting net zero by 2030.

• Share buyback program accelerated, with €0.3 billion spent by July 2024 and potential for further €500 million buyback.

Financial highlights

• Proforma adjusted EBIT for H1 2024 was €8.2 billion (down 18.6% year-over-year), with net profit €3.1 billion (down 36%), and strong cash flow from operations of €7.8 billion.

• Upstream production grew 6% year-over-year to 1.73 million boe/d, supported by Neptune integration and new project ramp-ups.

• Organic capex for H1 2024 was €4.1 billion, tracking below €9 billion guidance; net capex expected under €6 billion after disposals.

• Net borrowings before lease liabilities at June 30, 2024: €12.1 billion; leverage at 0.22, expected well below 20% by year-end.

• Shareholder returns in H1 2024 totaled €2 billion (dividends and buybacks), with buyback program of €1.6 billion underway.

Outlook and guidance

• Full-year hydrocarbon production expected at the top end of 1.69–1.71 million boe/d guidance.

• GGP full-year proforma adjusted EBIT guidance raised to ~€1 billion; Enilive and Plenitude each to deliver ~€1 billion proforma adjusted EBITDA.

• Group proforma adjusted EBIT guidance raised to ~€15 billion; adjusted CFFO before working capital over €14 billion.

• Capex plan confirmed at ~€9 billion; net capex after disposals streamlined to <€6 billion.

• Interim dividend up 6% to €1/share; buyback minimum set at €1.6 billion, with potential for an additional €500 million.