Download PDF

1. Company Snapshot

1.a. Company Description

Eni S.p.A. engages in the exploration, development, and production of crude oil and natural gas.It operates through Exploration & Production; Global Gas & LNG Portfolio; Refining & Marketing and Chemicals; Plenitude and Power; and Corporate and Other activities segments.The Exploration & Production segment is involved in the research, development, and production of oil, condensates and natural gas; and forestry conservation and CO2 capture and storage projects.


The Global Gas & LNG Portfolio segment engages in the supply and wholesale of natural gas by pipeline, international transport; and purchase and marketing of LNG.The Refining & Marketing and Chemicals segment is involved in the processing, supply, distribution, and marketing of fuels and chemicals.The Eni gas e luce, Power & Renewables segment engages in the retail sales of gas, electricity, and related activities, as well as in the production and wholesale of electricity produced by thermoelectric and renewable plants.


As of December 31, 2021, it had net proved reserves of 6,628 million barrels of oil equivalent; and installed operational capacity of 4.5 GW.The company was founded in 1953 and is headquartered in Rome, Italy.

Show Full description

1.b. Last Insights on ENI

Eni S.p.A.'s recent performance has been driven by strategic advances in its carbon capture and storage (CCUS) business. The company has agreed to sell a 49.99% stake in Eni CCUS Holding to Global Infrastructure Partners (GIP), a part of BlackRock, to accelerate development of CCUS projects. This partnership is expected to help scale carbon capture projects in the UK, Netherlands, and Italy. Additionally, Eni reported robust Q2 earnings, with net income of $616.1 million, and announced a deal to divest 20% of its renewable energy unit, Plenitude, to Ares for around €2 billion.

1.c. Company Highlights

2. Eni's Q3 2025 Earnings: A Strong Performance Amidst Challenging Market Conditions

Eni reported a robust financial performance in Q3 2025, with pro forma adjusted EBIT reaching EUR 3 billion, a 12% increase from Q2 2025. The company's adjusted net income stood at EUR 1.25 billion, despite a $10 barrel fall in crude prices and a weaker US dollar. Earnings per share (EPS) came in at 0.4095, beating analyst estimates of 0.3308. Revenue growth is expected to be negative, with analysts estimating a -2.2% growth rate for next year.

Publication Date: Oct -25

📋 Highlights
  • Production Growth:: Underlying production rose 8.5% YoY to 1.76 million barrels per day, driven by Norway's Vår (400,000 bpd) and Johan Castberg/Balder X projects.
  • Financial Resilience:: Q3 pro forma adjusted EBIT hit EUR 3 billion (+12% QoQ) despite a $10/barrel crude price drop, with adjusted net income of EUR 1.25 billion.
  • Coral North LNG:: FID secured for $5 billion offshore Mozambique floating LNG project, targeting 2028 startup, leveraging the successful Coral South model.
  • Cash Return Strategy:: Share buyback program progressed with EUR 840 million repurchased as of September, and EUR 1 billion cash initiative upgraded to enhance shareholder returns.
  • Biofuel Momentum:: Enilive reported EUR 233 million pro forma EBIT (+23% YoY), with EUR 40–50 million annual savings from chemical plant shutdowns starting H2 2025.

Operational Highlights

Eni's production grew by 8.5% year-on-year, driven by its consistent long-term focus and investment in exploration and production (E&P). The Azule Energy business combination with BP in Angola and Namibia began production from its operated Agogo West Hub development, while Vår reached 400,000 barrels per day production. Guido Brusco attributed the increase in production to Norway, Johan Castberg, and Balder X, as well as accelerated start-up in Angola and better performance in various projects.

Valuation Metrics

Eni's current valuation metrics suggest a relatively attractive profile, with a P/E ratio of 19.44, P/B ratio of 0.97, and EV/EBITDA of 3.32. The company's dividend yield stands at 6.38%, while its free cash flow yield is 9.04%. Return on equity (ROE) is 4.8%, and return on invested capital (ROIC) is 1.88%. These metrics indicate that Eni's stock may be undervalued, considering its strong financial performance and growth prospects.

Growth Prospects and Outlook

Eni has confirmed its expectation of a 3% underlying growth in production for 2026, driven by new projects and M&A operations. The company is also making progress in its renewable energy business, with Enilive reporting EUR 233 million of pro forma EBIT. Francesco Gattei broke down the key wins, including EUR 500 million from the Upstream, EUR 300 million from GGP, and EUR 300 million from Enilive, and expects to capture upside in the coming years, particularly in production enhancement, GGP performance, and Enilive.

Strategic Initiatives

Eni is focusing on its strategic initiatives, including the development of its floating LNG business, with the Coral North project expected to start up in 2028. The company is also making progress in its biofuel business, with strong demand growth expected due to mandatory blending requirements and voluntary demand from countries like Germany. Stefano Ballista reported strong biofuel margins and improvements in throughput and utilization, and the company expects a progressive rebalancing of supply-demand dynamics in the biofuel market.

3. NewsRoom

Card image cap

Eni Secures 10-Year LNG Deal With Thailand’s Gulf Development Company

Dec -05

Source:

Card image cap

Eni Launches Congo LNG Phase 2 as FLNG Nguya Arrives Offshore Congo

Dec -04

Source: zacks.com

Card image cap

Eni Signs 10-Year LNG Supply Deal With Turkey's BOTAS Starting 2028

Dec -04

Source:

Card image cap

Turkiye Signs for 10-Year LNG Supplies from Eni, SEFE

Dec -04

Source:

Card image cap

Sector Update: Energy Stocks Gain in Afternoon Trading

Dec -03

Source:

Card image cap

European Oil Stocks Rise After EU Vows to Phase Out Russian Gas by 2027

Dec -03

Source:

Card image cap

Eni Starts Congo LNG Phase 2 Ahead of Schedule

Dec -03

Source:

Card image cap

Eni commissions second phase of Congo LNG project

Dec -03

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.65%)

6. Segments

Exploration & Production

Expected Growth: 4.6%

Eni S.p.A's Exploration & Production segment growth is driven by increasing crude oil prices and growing demand for clean energy, with a significant focus on renewable energy sources, such as wind and solar power, and natural gas as a bridge fuel.

Refining and Chemicals

Expected Growth: 2.5%

Eni S.p.A.’s Refining and Chemicals segment growth is driven by rising demand for petrochemicals, improving refining margins, and strategic expansion into high-growth markets, particularly in Asia.

Enilive

Expected Growth: 8.2%

Enilive by Eni S.p.A. driven by increasing demand for energy services, Eni’s strong brand reputation, and expansion into new markets, particularly in the renewable energy sector.

Global Gas & LNG Portfolio and Power

Expected Growth: 4.1%

Eni S.p.A.'s Global Gas & LNG Portfolio growth is driven by increasing demand in the Asia-Pacific region, expansion of liquefaction capacity, and strategic partnerships. Additionally, the company's focus on clean energy and reducing carbon emissions supports long-term growth prospects.

Plenitude

Expected Growth: 10.5%

Growing demand for renewable energy, declining costs of production, and Eni's strong brand presence drive growth in Plenitude segment, aligning with Europe's clean energy transition goals.

Corporate and Other Activities

Expected Growth: 4.5%

Eni's corporate and other activities are expected to grow, supported by the company's transformation plan, which includes the integration of its energy transition initiatives and the development of its renewable energy business, leading to an increased focus on sustainable energy solutions.

Consolidation Adjustments

Expected Growth: 4.3%

Eni's growth is driven by its strategic plan focused on decarbonization, growth in the renewable energy business, and increasing its presence in the liquefied natural gas market, thus enhancing its overall competitiveness.

7. Detailed Products

Petroleum Products

Eni S.p.A. refines and markets petroleum products such as gasoline, diesel fuel, liquefied petroleum gas (LPG), and jet fuel.

Natural Gas

Eni S.p.A. explores, produces, and markets natural gas, a cleaner-burning fuel used for power generation, industrial processes, and heating.

LNG (Liquefied Natural Gas)

Eni S.p.A. produces and markets LNG, a natural gas that has been converted to a liquid state for easier transportation and storage.

Renewable Energy

Eni S.p.A. develops and operates renewable energy sources such as wind, solar, and hydroelectric power.

Chemicals

Eni S.p.A. produces and markets a range of chemicals, including olefins, aromatics, and intermediate chemicals.

Biofuels

Eni S.p.A. produces and markets biofuels, a renewable energy source derived from organic matter.

Oilfield Services

Eni S.p.A. provides oilfield services, including drilling, completion, and production optimization.

8. Eni S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Eni S.p.A. operates in the energy industry, where substitutes are limited. However, the increasing focus on renewable energy sources and energy efficiency could pose a threat to the company's traditional business model.

Bargaining Power Of Customers

Eni S.p.A. has a diverse customer base, including industrial, commercial, and residential customers. While large industrial customers may have some bargaining power, the company's diversified customer base reduces the overall bargaining power of customers.

Bargaining Power Of Suppliers

Eni S.p.A. relies on a diverse range of suppliers for its operations, including oil and gas producers, equipment suppliers, and service providers. While some suppliers may have bargaining power, the company's scale and diversification reduce its dependence on any single supplier.

Threat Of New Entrants

The energy industry has high barriers to entry, including significant capital requirements, regulatory hurdles, and technical expertise. These barriers make it difficult for new entrants to challenge Eni S.p.A.'s market position.

Intensity Of Rivalry

The energy industry is highly competitive, with many established players competing for market share. Eni S.p.A. faces intense competition from other major energy companies, which can lead to pricing pressure and reduced market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.07%
Debt Cost 9.25%
Equity Weight 57.93%
Equity Cost 9.25%
WACC 9.25%
Leverage 72.62%

11. Quality Control: Eni S.p.A. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
PKN ORLEN

A-Score: 6.7/10

Value: 8.7

Growth: 3.3

Quality: 4.6

Yield: 8.1

Momentum: 9.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Repsol

A-Score: 6.7/10

Value: 7.1

Growth: 5.6

Quality: 2.5

Yield: 8.8

Momentum: 8.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Eni

A-Score: 6.4/10

Value: 7.5

Growth: 4.8

Quality: 3.2

Yield: 8.8

Momentum: 5.0

Volatility: 9.3

1-Year Total Return ->

View Full Report
Stock-Card
TotalEnergies

A-Score: 6.1/10

Value: 7.3

Growth: 4.7

Quality: 5.1

Yield: 8.8

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Shell

A-Score: 6.0/10

Value: 6.9

Growth: 4.1

Quality: 4.5

Yield: 6.2

Momentum: 5.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
BP

A-Score: 5.7/10

Value: 6.2

Growth: 2.9

Quality: 2.7

Yield: 8.8

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.1$

Current Price

16.1$

Potential

-0.00%

Expected Cash-Flows