Eni Lifts Buybacks as 2025 Profit Beats Expectations

Eni closed 2025 with stronger-than-expected fourth-quarter earnings, robust cash flow, and lower leverage, as upstream production growth and disciplined capital allocation offset a softer oil price environment.

The Italian major posted fourth-quarter adjusted net profit attributable to shareholders of €1.20 billion, up 35% from a year earlier, while group proforma adjusted EBIT rose 6% to €2.87 billion despite a 15% drop in Brent prices and a stronger euro. Full-year adjusted net profit attributable to shareholders reached €4.99 billion, down 5% year on year.

Operationally, Eni exceeded its own guidance. Hydrocarbon production averaged 1.73 million barrels of oil equivalent per day (boe/d) in 2025, with fourth-quarter output climbing more than 7% year on year to 1.84 million boe/d. The company also reported an organic reserve replacement ratio of 167%, continuing its track record of replacing more than it produces.

Exploration & Production remained the earnings engine, delivering €2.80 billion in fourth-quarter proforma adjusted EBIT as higher volumes and cost discipline offset lower crude realizations. Six major projects were brought on stream during the year across Angola, Indonesia, Norway, and Congo, supporting underlying growth and reinforcing medium-term production visibility.

Strategically, Eni advanced its LNG footprint and upstream consolidation in Asia. The company signed a binding agreement with Petronas to combine upstream assets in Indonesia and Malaysia into a jointly controlled entity targeting a sustainable production plateau of over 500,000 boe/d. In parallel, it signed long-term LNG sales contracts in Turkey and Thailand, strengthening its global gas marketing portfolio and deepening exposure to Asian demand growth.

Transition businesses also showed momentum. Plenitude expanded renewable capacity to 5.8 GW by year-end, up 41% year on year, while Enilive benefited from a recovery in European biofuel margins. Eni crystallized value through external investments, including a 20% stake in Plenitude sold to Ares for €2 billion and a 49.99% stake in its carbon capture and storage unit sold to GIP. Management highlighted more than €23 billion in implied enterprise value across completed transition-related transactions.

Cash generation remained a key theme. Adjusted cash flow from operations reached €12.5 billion for the year, while net borrowings before lease liabilities fell to €9.4 billion at year-end, reducing gearing to 15% and 14% on a pro forma basis. In response, Eni increased shareholder returns, lifting its share buyback program by 20%.