Eni S.p.A E reported first-quarter 2025 adjusted earnings from continuing operations of 92 cents per American Depository Receipt, which beat the Zacks Consensus Estimate of 91 cents. The bottom line declined from the year-ago quarter’s level of $1.04.
Total quarterly revenues of $24.2 billion beat the Zacks Consensus Estimate of $22.3 billion. The top line, however, declined from $25.2 billion a year ago. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Better-than-expected quarterly results were driven by higher natural gas price realizations. However, the positives were offset by a decrease in hydrocarbon production and lower refining and biofuels margins in the quarter.
Eni SpA Price, Consensus and EPS Surprise
Eni SpA Price, Consensus and EPS Surprise
Eni SpA price-consensus-eps-surprise-chart | Eni SpA Quote
Operational Performance
Eni operates through four business segments — Exploration & Production, Global Gas & LNG Portfolio and Power, Refining and Chemicals, and Enilive and Plenitude.
Exploration & Production
Total oil and gas production was 1,647 thousand barrels of oil equivalent per day (MBoe/d), down 5% from 1,741 in the prior-year quarter.
Liquids’ production totaled 786 thousand barrels per day (MBbl/d), down 1% from the year-ago quarter’s 797 MBbl/d. Natural gas production totaled 4,502 million cubic feet per day (mmcf/d) compared with 4,937 mmcf/d a year ago.
The average realized price of liquids was $69.72 per barrel, down 6% from $74.53 reported a year ago. The realized natural gas price was $7.57 per thousand cubic feet, up 8% from $7.04 in the year-ago period.
The company’s Exploration & Production segment was affected by lower hydrocarbon production due to asset divestitures, which were finalized in 2024, including those in Nigeria, Alaska, and Congo. However, the ramp-up of organic projects in Côte d'Ivoire, Mexico and Italy, among others, and lower expenses partially offset the negatives. The segment reported a pro-forma adjusted EBIT of €3.3 billion, down 2% from €3.4 billion in the first quarter of 2024.
Global Gas & LNG Portfolio and Power
Eni’s worldwide natural gas sales in the reported quarter totaled 12.12 billion cubic meters (bcm), down 22% year over year. The company noted lower wholesale gas volumes sold in Italy. Natural gas sales also declined in the European market, primarily in Turkey.
The integrated energy major’s Global Gas & LNG Portfolio and Power business segment reported a pro-forma adjusted EBIT of €473 million, reflecting a 34% increase from the year-ago quarter’s level of €353 million.
Refining and Chemicals
For the first quarter, total refinery throughputs were 5.86 million tons (mmtons) compared with 6.38 in the corresponding period of 2024. Petrochemical product sales decreased 7% year over year to 0.80 mmtons.
For the quarter under review, the segment reported a pro-forma adjusted negative EBIT of €334 million compared with a negative €53 million in the year-ago quarter. The Refining segment was affected due to lower throughput volumes and lower refining margins globally. The Chemicals business segment also suffered due to the ongoing challenges in the European chemical sector, fueled by macroeconomic pressures and a higher cost of production compared to other regions.
Enilive & Plenitude
Retail gas sales managed by Plenitude declined 7% year over year to 2.39 bcm.
The company reported a pro-forma adjusted EBIT of €336 million compared with €426 million a year ago. This can be attributed to a negative impact on the company’s biofuels business due to lower margins.
Financials
As of March 31, Eni had a long-term debt of €20.1 billion and cash and cash equivalents of €9.1 billion.
For the reported quarter, net cash generated by operating activities was €2.4 billion. Capital expenditures totaled €1.8 billion.
Outlook
Eni has lowered its 2025 capital spending guidance in light of the recent events surrounding trade tariffs. The full-year gross capex is now expected to be below €8.5 billion compared with the prior guidance of approximately €9 billion. Oil and gas production for 2025 is expected to be around 1.7 million barrels of oil equivalent per day.
E’s Zacks Rank and Key Picks
E currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Archrock Inc. AROC, Nine Energy Service NINE and Kinder Morgan, Inc. KMI. While Archrock currently sports a Zacks Rank #1 (Strong Buy), Nine Energy Service and Kinder Morgan carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues. With natural gas playing an increasingly important role in the energy transition journey, AROC is expected to witness sustained demand for its services.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. It operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the need for NINE’s services is anticipated to increase, which should position the company for growth in the long run.
Kinder Morgan is a leading North American midstream player with a stable and resilient business model, largely driven by take-or-pay contracts. KMI’s stable business model shields it from commodity price volatility, resulting in predictable earnings and facilitating reliable capital returns to its shareholders. In the first quarter of 2025, Kinder Morgan increased its quarterly cash dividend to 29.25 cents, reflecting an approximately 2% increase from the prior-year level.
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