Milan — Italian energy group Eni beat forecasts on Thursday with a 35% year-on-year jump in fourth-quarter adjusted earnings, driven by a strong performance in its exploration and production division and improved refining results.
Adjusted net profit came in at 1.2 billion euros ($1.4 billion) between October and December, beating an analysts’ consensus forecast of 960 million euros compiled by the company.
Hydrocarbon production rose to 1.839 million barrels of oil equivalent per day, up 7% year-on-year and also ahead of analysts’ expectations.
Last year, the state-controlled group started six major upstream projects in Angola, Indonesia, Norway and Congo.
It also signed a binding agreement with Malaysian state energy company Petronas to create a joint venture to oversee some upstream assets in Indonesia and Malaysia. The entity will start operations by end of June this year, Eni said.
“Exploration & Production results were outstanding, driven by accretive production growth and disciplined costs,” CEO Claudio Descalzi said in a statement.
In Europe, TotalEnergies buffered lower oil and gas prices somewhat with higer volumes.
Shares in Eni were up 1.1% by 1225 GMT, outperforming a 0.3% rise in Milan’s blue-chip index.
Underlying cash flow totalled 3 billion euros, up from 2.9 billion euros a year ago, and above the 2.8 billion euro consensus forecast.
The group’s gearing, or debt-to-equity ratio, fell to 14% last year from 18% at the end of 2024 thanks to proceeds from the sale of a minority stake in low-carbon unit Plenitude.
Eni has just completed a 1.8 billion euro share buyback and is expected to provide an update on shareholder payouts and its overall strategy on March 19 at the group’s Capital Markets Day.
Other European oil majors BP, Equinor and TotalEnergies scrapped or slashed their share buyback programmes after oil prices slumped to around $63 per barrel in the quarter from about $74 a year earlier.
Eni said it expected net capital expenditure of around 5 billion euros this year, and production growth in line with the 2%-3% annual increase indicated in its 2025-2028 plan.
“Full-year 2025 results confirm positive upstream growth and a healthy, expanding reserve life, credentials that Eni continue to place itself at the better-quality end of the European international oil companies,” Citi analysts said in a report for clients.
($1 = 0.8462 euros)
Reporting by Francesca Landini; Editing by Valentina Za, Mark Potter and Tomasz Janowski – Reuters
