Energy company Eni unexpectedly reports increased profits
Eni Raises Full-Year Outlook Amid Cost-Cutting and Gas Business Growth
Italian energy giant Eni has announced a revised outlook for 2025, following a robust Q2 performance, despite challenges from lower crude oil prices and a strong euro. The company expects its adjusted operating cash flow to increase to around €11.5 billion, up €0.5 billion from its previous forecast.
Eni's Q2 2025 results showed an adjusted EBIT of €2.68 billion and a net profit of €1.13 billion. These strong results are supported by the company's cost-cutting efforts, which have been ramped up to target around €3 billion in savings in 2025, up from an earlier target of €2 billion.
Proceeds from asset sales, including parts of its renewables arm, mobility division, and potential sale of half its carbon capture unit, have also contributed to debt reduction. By the end of June, Eni's net debt had fallen to €29.1 billion.
In the gas and LNG business, Eni has increased its earnings forecast for the gas division to €1 billion, reflecting improved performance and investments. The company has also continued portfolio strengthening and organic growth, consistent with its strategic focus and energy transition projects.
Eni has also made strategic moves in Argentina, aiming to build an annual production capacity of 12 million tons of liquefied natural gas in partnership with the state-owned energy company YPF.
Investors should note that the adjusted net profit fell by nearly a quarter compared to the previous quarter. However, Eni's financial position is stronger than ever, with the company confirming its planned shareholder distributions, including a 5% dividend increase to €1.05 per share and a share buyback of at least €1.5 billion.
The stock price of Eni is near a new buy signal, with the stop-loss suggested at €11.00. For long-term oriented investors, Eni presents an attractively valued dividend stock, with the target for annual cash flow advantage increased from €2 billion to €3 billion.
In summary, Eni's raised 2025 outlook is underpinned by disciplined cost control, asset optimization, and growth in its gas business, with confirmed shareholder returns and strong liquidity generation despite the macroeconomic headwinds. Eni (WKN: 897791) remains bullish for investors.
[1] Eni Press Release, Q2 2025 Results [2] Reuters, Eni raises 2025 outlook on strong Q2 results [3] Financial Times, Eni raises 2025 outlook on cost cuts and asset sales [4] Bloomberg, Eni's 2025 Outlook Boosted by Gas Division, Cost Savings
Financing decisions are likely to be influenced by Eni's increased 2025 outlook, driven by cost control, asset optimization, and growth in its gas business, resulting in an improved financial position and confirmed shareholder returns. The company's decision to increase its dividend and implement a significant share buyback program also indicates a commitment to returning value to shareholders.
