Eni (ENI) Q2 2024 earnings summary

Executive summary

• First-half 2024 performance exceeded plan, with adjusted EBIT pro forma of €8.2 bln, net profit of €3.1 bln, strong cash flow, and leverage reduced to 22%, supported by disciplined capital expenditure and portfolio upgrades including Neptune acquisition and asset sales in Congo, Nigeria, and Alaska.

• Upstream production grew 6% year-over-year, driven by ramp-ups in Côte d'Ivoire, Congo FLNG, Libya, and Neptune integration, with major discoveries in Côte d'Ivoire, Cyprus, and Mexico.

• Transition businesses Enilive and Plenitude delivered high growth, with Enilive doubling bio throughputs and Plenitude growing renewables capacity by 24%, advancing new biorefinery projects in Malaysia, South Korea, and Italy.

• Transformation plan focused on profitability, sustainability, and value creation, targeting net zero by 2030, with accelerated shareholder returns and buyback program.

Financial highlights

• Pro forma EBIT for Q2 was €4.1 bln, flat year-over-year; H1 pro forma EBIT reached €8.2 bln, with net profit €3.1 bln and cash flow from operations of €7.8 bln.

• Upstream production grew 6% year-over-year, with pro forma EBITDA of €3.5 bln.

• GGP delivered €334 mln EBIT in Q2, Plenitude EBIT rose 12% to €149 mln, and Enilive Q2 EBIT was €120 mln.

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

• Net debt declined from Q1 peak, with leverage at 22% as of June 30, 2024, and further improvement expected.

Outlook and guidance

• Full-year hydrocarbon production expected at the top end of 1.69–1.71 mln boe/d range, with group proforma adjusted EBIT guidance raised to ~€15 bln and adjusted CFFO before working capital >€14 bln.

• GGP full-year EBIT guidance raised to ~€1 bln; Plenitude and Enilive each to deliver ~€1 bln proforma adjusted EBITDA, with renewables capacity to reach 4 GW by year-end.

• Buyback minimum set at €1.6 bln, with potential for an additional €500 mln depending on further divestments.

• Year-end leverage expected well below 20%, possibly toward 15%.

• Dividend confirmed at €1.00/share, with accelerated pace of distributions.