Eni's Q2 2025 Earnings Call: Key Contradictions on Tax Rates, Asset Sales, and Cash Flow Strategies

Tax rate expectations, Vitol asset sale value adjustment, cash initiatives and flexibility, Plenitude cash flow neutrality timeline, and Enilive divestment strategy are the key contradictions discussed in Eni's latest 2025Q2 earnings call.



Upstream Growth and Exploration Success:
- Eni discovered approximately 600 million barrels of new oil equivalent resources in the first half of 2025, with significant activity planned in the second half.
- The growth is driven by industry-leading exploration, including successful ventures in Namibia, Ivory Coast, and Norway, supported by the startup and ramp-up of major upstream projects like Johan Castberg and Balder X.

Transition Business Expansion:
- Plenitude's customer base grew by over 10%, and renewable capacity is expected to increase by over 30% year-on-year, reaching over 5.5 gigawatts net to Plenitude by the end of 2025.
- This expansion is supported by strategic investments, such as the acquisition of Acea Energia, and is part of Eni's strategy to build new complementary energy businesses focused on decarbonization.

Cash Flow Initiatives and Efficiency:
- Eni achieved a cash flow of EUR 2.8 billion in Q2, with an additional EUR 1 billion identified to be captured by year-end, enhancing its efficiency in converting earnings into cash.
- This efficiency is attributed to improved financial strategies, working capital management, and organizational changes that reduce over-costs and improve cash flow.

Strategic Partnerships and Investments:
- Eni has secured significant investments from private equity funds, such as Ares and KKR, valuing Enilive and Plenitude at around EUR 12 billion and EUR 12 billion in enterprise value, respectively.
- These strategic investments are part of Eni's strategy to attract allies in transitioning businesses and support its innovative financial strategies.