Eni Q2 net income doubled to EUR 2.3 billion and cash flow rose 60%, outstripping Brent's gains. The CEO pointed to gas trading and refining margins. Buyback pace is under review.
Alpha Score of 44 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
Eni S.p.A. posted a sharp rise in second-quarter profit and cash flow, the Italian oil major said Tuesday, pointing to gains across its exploration, refining, and gas trading units that far outpaced the move in crude prices.
Pro forma EBIT hit EUR 5.4 billion in the three months through June, more than double the year-ago figure. Net income came in at EUR 2.3 billion, also doubling. Cash flow from operations reached EUR 4.5 billion, up over 60% from the same quarter last year.
Chief Executive Claudio Descalzi told analysts the results reflected the company's execution against targets it had laid out in prior quarters. The growth significantly exceeded the increase in Brent prices over the same period, he said.
Eni's global natural gas and LNG portfolio contributed strongly, with the division capturing higher volumes and margins on term contracts and spot cargoes. The company's refining and chemicals businesses also swung into positive territory, benefiting from lower feedstock costs and improved utilization rates.
On the exploration side, Eni reported successful appraisal wells in offshore Côte d'Ivoire and Indonesia that extend the resource base for future developments. The company kept its full-year production guidance unchanged, forecasting roughly 1.7 million barrels of oil equivalent per day.
Capital expenditure came in at EUR 2.1 billion for the quarter, in line with the phased budget. Eni maintained its share buyback program, having completed EUR 700 million in repurchases during the first half.
The company's balance sheet showed net debt at EUR 8.1 billion, down from EUR 9.3 billion at the end of 2025, helped by the cash flow generation and asset sale proceeds.
Analysts on the call pressed for detail on the pace of the buyback and any plans to adjust the dividend, given the cash flow beat. Descalzi said the board would review the capital allocation framework in the third quarter, with an update expected alongside the next set of results.
Shares of Eni traded 1.8% higher in Milan on Tuesday afternoon.
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