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- **Production Record**: Q3 2025 at 1.76 million bpd (8.5% YoY), highest since 2020, driven by Norway, Angola, and Congo LNG.
- **LNG Leadership**: 20 million tpa target with 2028 Coral North startup and Argentina FID in 2026. Floating LNG CapEx 30% lower than onshore, 99.4% uptime at Coral South.
- **Cash Efficiency**: €4 billion self-help initiatives (up €1 billion YoY), reducing net CapEx to <€5 billion and leverage to 12% pro forma.
- **Share Buyback**: €1.8 billion announced (€840 million executed), signaling confidence in strategy amid oil price weakness.
- **Chemicals Turnaround**: €200 million+ annual savings from 2026 as crackers restart, offsetting weak chemical margins.


**【CEO Summary Section】**
- **Production Growth**: Q3 2025 production reached 1.76 million barrels per day (8.5% YoY), driven by new projects like Vår Energy (Norway) and Azule Energy (Angola). Johan Castberg and Balder X ramp-ups contributed significantly.
- **Strategic Projects**: Coral North LNG (Mozambique) FID in October, targeting 2028 startup. Argentina LNG project with YPF expected to reach FID in 2026. Congo FLNG Phase 3 to reach 200,000 bpd by 2028.
- **Financial Highlights**: Pro forma adjusted EBIT of €3 billion (12% QoQ), with Upstream EBIT at €2.6 billion. Transition segment (Enilive) EBITDA up 23% YoY to €317 million.
- **Balance Sheet**: Net debt reduced to €9.9 billion (19% leverage), with share buyback increased to €1.8 billion (€840 million executed by Q3).

**【CFO Financial Commentary】**
- **Cash Flow**: CFFO pre-working capital at €12 billion (€1.3 billion YoY improvement). Gross CapEx €5.9 billion year-to-date, net CapEx below €1 billion.
- **Cost Efficiency**: €4 billion cash initiatives (up from €3 billion guidance), including trading optimization and bond swaps. Tax rate improved to 42% (down from 46% YoY).
- **Guidance Updates**: Full-year production raised to 1.71-1.72 million bpd (3% YoY). GGP EBIT expected >€1 billion. Net CapEx guidance reduced to <€5 billion (from €6.5-7 billion).

**【Q&A Highlights】**
- **LNG Expansion**: 20 million tonnes per annum target with projects in Mozambique, Congo, Indonesia, and Argentina. Floating LNG technology reduces CapEx by 30% vs. onshore, with 99.4% uptime at Coral South.
- **Chemicals Recovery**: €200 million+ annual savings from 2026 as crackers restart post-shutdown. Q4 2025 margin recovery expected, but weak scenario offsets restructuring benefits.
- **Buyback Strategy**: €1.8 billion buyback (€1 billion remaining) reflects confidence in execution and balance sheet strength. No plans to conserve cash despite oil price volatility.
- **Tax Rate**: Cash tax rate stable at 28-29%, aligned with P&L tax rate improvement due to lower-tax upstream mix and transition business growth.
- **Namibia Potential**: 3 successful wells (Sagittarius, Capricornus, Volans) in Namibia, with fast-track development possible due to shallow water (1,500m) and conventional reservoirs.


Eni S.p.A. (E) Q3 2025 Earnings Call Transcript

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