ENI : Additional optimization measures to cope with a not-so-friendly business environment

Better than expected H1-25 results . Eni this morning published results which came out lower YoY but above expectations. On an adjusted basis, EBIT and net income stood at €6.4bn and €2.5bn respectively, down 23% and 18% YoY. The decrease in adjusted EBIT is mainly attributable to refining activities, whose contribution went deeper in negative territory over the period ( €527m in H1-25 compared with -€246m in H1-24). Net debt (after the impact of IFRS 16) stood at €15.9 billion as at 30/06/25, showing a €2.7bn decrease over the period, thanks to €3.8bn of cash proceeds from sales products related to the ‘ satellite ’ model. Additional efforts to allow continuation of the shareholder policy in keeping with a solid financial str u cture . While maintaining the main lines of its shareholder policy for 2025 (5% dividend increase relative to 2024 and share buyback of at least €1.5bn), group management raised to €3bn (from €2bn previously) the level of cash initiatives to offset the impact of the current downward pressure on oil prices. M easures to be taken include, inter alia, optimization of operations and capex, disposal of non-strategic assets. As a result , net capex envelope for the full year is reduced to < €6bn vs. a level of €6.5-7bn previously targeted , while the CFFO target is raised by €0.5 bn to €11.5 bn . Overall credit picture unchanged . Today’s announcements will enable Eni to maintain a shareholder’s policy commensurate with that of peers (Total, Repsol) in a context of lower oil prices and refining margins , while preserving a fairly stable financial profile . That said, despite the progress made in the implementation of the satellite model, Eni continues to enjoy limited leeway at S&P for the preservation of the A- rating level. We reiterate our MW recommendation on the issuer, for both senior and hybrid debts.