Eni Increases Share Buybacks After Surpassing 2025 Profit Forecasts

Eni’s Strong Performance in 2025

Eni wrapped up 2025 with impressive fourth-quarter results, surpassing expectations in earnings and cash generation. The company’s increased upstream output and careful capital management helped counterbalance weaker oil prices, resulting in reduced leverage.

Financial Highlights

The Italian energy giant reported an adjusted net profit of €1.20 billion for the fourth quarter, marking a 35% increase compared to the previous year. Group proforma adjusted EBIT rose to €2.87 billion, up 6%, despite Brent crude prices falling by 15% and a stronger euro. For the full year, adjusted net profit totaled €4.99 billion, representing a 5% decrease year-over-year.

Operational Achievements

Eni outperformed its own targets, with hydrocarbon production averaging 1.73 million barrels of oil equivalent per day in 2025. Fourth-quarter output jumped over 7% to 1.84 million boe/d. The company maintained a robust organic reserve replacement ratio of 167%, continuing its trend of replenishing reserves beyond production levels.

Exploration & Production

This segment remained Eni’s primary profit driver, delivering €2.80 billion in fourth-quarter proforma adjusted EBIT. Increased volumes and strict cost controls offset lower crude prices. Six significant projects were launched during the year in Angola, Indonesia, Norway, and Congo, supporting growth and ensuring stable production outlook.

Strategic Expansion

Eni made notable progress in expanding its LNG operations and consolidating upstream assets in Asia. The company entered a binding agreement with Petronas to merge upstream assets in Indonesia and Malaysia, aiming for a sustainable production plateau exceeding 500,000 boe/d. Additionally, Eni secured long-term LNG sales contracts in Turkey and Thailand, strengthening its global gas portfolio and increasing exposure to Asian market growth.

Transition and Investment

Eni’s transition businesses gained momentum. Plenitude increased its renewable energy capacity to 5.8 GW by year-end, a 41% rise from the previous year. Enilive benefited from improved European biofuel margins. Eni also unlocked value through external investments, selling a 20% stake in Plenitude to Ares for €2 billion and nearly half of its carbon capture and storage unit to GIP. Management emphasized that completed transition-related deals represent over €23 billion in implied enterprise value.

Cash Flow and Shareholder Returns

Cash generation remained robust, with adjusted cash flow from operations reaching €12.5 billion for the year. Net borrowings, excluding lease liabilities, dropped to €9.4 billion, reducing gearing to 15% (14% pro forma). Eni responded by boosting its share buyback program by 20%.

Outlook for 2026

Looking forward, Eni anticipates oil and gas production growth in 2026 to align with its 2025–2028 strategic plan. The company expects gross capital expenditure to reach €7 billion, with gearing projected between 10% and 15%, assuming Brent crude averages $62 per barrel.

Investor Perspective

These results reinforce Eni’s reputation as a disciplined European energy leader, leveraging upstream growth and LNG integration to fund investments in the energy transition, while maintaining a strong balance sheet amid commodity market volatility.

By Charles Kennedy for Oilprice.com