Eni's Q1 2025 Earnings Call: Unpacking Contradictions in Cash Strategies, LNG Exports, and Refining Outlook

Cash initiatives and disposal strategy, investor partnerships and disposals, disposal strategy and timing, Egyptian LNG exports, and refining margin outlook are the key contradictions discussed in Eni's latest 2025Q1 earnings call.



Strategic Growth and Asset Sales:
- Eni reported net income of €1.4 billion for Q1 2025, representing a 60% increase quarter-on-quarter.
- The growth was driven by strategic divestments, asset valorization, and strong performance in the upstream segment.

Transition Business Progress:
- Plenitude completed the construction of a 200 MW battery in Texas and acquired 245 MW of photovoltaic capacity in California.
- These investments reflect Eni's shift towards renewable energy and sustainable practices.

Cash Flow Management and Balance Sheet Strength:
- Cash flows before working capital in Q1 were €3.4 billion, aligning with the full-year guidance of €13 billion at $75 per barrel.
- Eni's balance sheet leverage improved to 18%, with Pro Forma leverage at 12%, indicating enhanced financial stability.

Operational Challenges and Structural Improvements:
- The refining and chemicals segments reported losses, mainly due to weak margins and reduced throughputs.
- Eni is restructuring the chemicals segment and expects an EBITDA improvement of €1 billion per year by 2030.

Production Outlook and Geopolitical Considerations:
- Upstream production is expected to average 1.7 million barrels per day in 2025, supported by major start-ups in Norway, Angola, and Congo.
- Eni is monitoring developments in Kazakhstan, but no production cuts have been requested by authorities yet.