Q1 2026 Eni SpA Earnings Call Transcript
Key Points
- Eni SpA (E) reported a strong financial performance with EUR3.5 billion of pro forma EBIT and cash flow from operations of EUR2.9 billion.
- The company achieved significant exploration success, discovering new resources in seven different countries, including major finds in Indonesia and Libya.
- Eni SpA (E) demonstrated robust production growth, with a 9% year-on-year increase, notably from operations in Norway and Congo.
- The company maintained a strong balance sheet with pro forma gearing at 15%, and expects it to reduce further to 12% with planned consolidations.
- Eni SpA (E) increased its share buyback program by 90% to EUR2.8 billion, reflecting confidence in its financial outlook and commitment to shareholder returns.
- The energy market's volatility and disruptions, particularly in the Middle East, posed challenges to Eni SpA (E)'s operations and supply contracts.
- Downstream and biorefinery operations were impacted by traditional maintenance, limiting the capture of upside potential in the quarter.
- Working capital had a large negative impact on cash flow due to the sharp rise in prices in March, although this is expected to reverse in future quarters.
- The company's refinery utilization was low due to a major turnaround program, affecting short-term operational efficiency.
- Eni SpA (E) faces potential cost pressures in the contractor market, particularly in deepwater activities, due to increased global upstream activity.
Good afternoon, ladies and gentlemen, and welcome to Eni's 2026 first-quarter results conference call, hosted by Mr. Francesco Gattei, Chief Transition and Financial Officer. (Operator Instructions)
I'm now handing you over to your host to begin today's conference. Thank you.
Good afternoon. Amid the volatility and disruption to the energy system over the past two months, at Eni, we continue to focus on the delivery of financial performance and key strategic milestones. As we set out at our capital market update just over a month ago, we are working to deliver reliable, affordable and lower carbon energy for all our customers. Our industrial strategy, anchored to technology skills and long-term investment into top tier assets across a diversified portfolio has, if anything, been further validated in the context of the event of this year.
Our investment framework underpinned by strong cash flow and a robust balance sheet supports us in delivering sector-leading growth. As a result, we can
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