MILAN, Feb 26 (Reuters) - Italian energy group Eni said on Thursday its earnings rose 35% year on year in the fourth quarter driven by solid growth in its exploration and production division. Adjusted
Eni Surpasses Profit Expectations with Robust Upstream Performance
By Francesca Landini
MILAN, Feb 26 (Reuters) - Italian energy group Eni beat forecasts on Thursday with a 35% year-on-year jump in fourth-quarter adjusted earnings, driven by a strong performance in its exploration and production division and improved refining results.
Strong Financial Performance in Q4
Adjusted net profit came in at 1.2 billion euros ($1.4 billion) between October and December, up from 885 million euros in the same period a year earlier and beating an analysts' consensus forecast of 960 million euros compiled by the company.
Hydrocarbon production rose to 1.839 million barrels of oil equivalent per day, up 7% year-on-year and ahead of analysts' expectations.
Last year, the state-controlled group started six major upstream projects in Angola, Indonesia, Norway and Congo.
Strategic Partnerships and Projects
It also signed a binding agreement with Malaysian state energy company Petronas to create a joint venture to oversee some upstream assets in Indonesia and Malaysia. The entity will start operations by end of June this year, Eni said.
"Exploration & Production results were outstanding, driven by accretive production growth and disciplined costs," CEO Claudio Descalzi said in a statement.
Underlying cash flow totalled 3 billion euros versus 2.9 billion euros a year ago, and above the 2.8 billion euro consensus forecast.
Financial Health and Future Outlook
The group's gearing - or debt to equity ratio - fell to 14% from 18% at end-2024 thanks to proceeds from the sale of a minority stake in low-carbon unit Plenitude.
Eni said it expected net capital expenditure of around 5 billion euros this year, and production growth in line with the 2%-3% annual increase indicated in its 2025-28 plan.
"The 2026 guidance highlights lower capital spending than we expected, with this reflecting the Indonesia JV closure by mid-year, while production growth looks set to continue, also supported by the new volumes from this deal," said RBC analyst Biraj Borkhataria.
Eni will provide a strategic update on March 19 at its Capital Markets Day.
($1 = 0.8462 euros)
(Reporting by Francesca Landini. Editing by Valentina Za and Mark Potter)
