Eni S.p.A. Q1 FY2026 earnings call

• Amid energy system volatility, ATENI focuses on financial performance and strategic milestones. • 2026 has positive strategic advancement, Q1 with strong financials: 3.5 billion euro of pro forma EBIT, cash flow from operation of 2.9 billion euro, pro forma gearing at 15%. • Major strategic events: exceptional exploration start, FID of Gangnorth and Gahem in Indonesia, production growth, first LNG export from second Congo LNG, transition sector progress. • Exploration: significant discoveries in Angola, Côte d'Ivoire, Libya, Egypt, Indonesia. • Downstream and biorefineries under traditional maintenance. • Versailles reported progress in curtailing losses.

EMP delivered 9% year-on-year production growth. GGP pro forma EBIT of €0.3 billion. Transition businesses: pro forma EBITDA of €0.52 billion. Plenitude will increase gross EBITDA by 20% to €1.3 billion. Enilive will reach an EBITDA of €1.1 billion, 16% over last year. Refinery utilization low due to major turnaround. Contribution from associate reflected macro scenario. Cash flow from operation generated in line with expectation. Capes was €1.9 billion, in line with full-year amount of €7 billion.

• Confirmed outlook for EMP production with 3 or 4% growth. • Updated market scenario projection: Brent to $83 per barrel from $70, TTF to €50 for MWh from $36, refining margin in Europe, CERM, to $8 per barrel from $6. • Estimated cash flow from operation pre-working capital of €13.8 billion, up 20% from €11.5 billion. • Share buyback raised by around 90% to €2.8 billion. • New distribution policy to be put to shareholder for approval at AGM on 6th May.

Q: How should we think about the £55 million transformation cost this quarter and full year?

A: Around 50 million of efficiency to be brought, not to multiply 55 by four.

Q: On Indonesia, cash adjustment on deal closing?

A: Expect cash settlement, but amount is irrelevant.

Q: Situation in Middle East and impact on portfolio?

A: Marginal impact on oil production and free cash flow, limited exposure.

Q: Indonesia production target after discoveries?

A: Will raise production target to more than 500, maybe 700-750.

Q: Buyback timing and confidence?

A: Decided to move buyback as market trend changed.

Q: Gas price assumption above forward curve?

A: Believes higher prices needed for refilling storage, price signals not supported.

Q: CAPEX and exploration discoveries?

A: Some discoveries near infrastructure with low CAPEX, others in business combinations.

Q: GGP guidance increase?

A: Based on Q1 results, volume increase and asset-backed trading.

Q: Net debt in Plenitude?

A: 2.6 billion net debt to be deconsolidated.

Q: Biofuels affordability?

A: Biofuel has solution in scarcity, premium reflects scarcity, potential larger market to improve cost.

Q: Libya deepwater well results?

A: Non-commercial discovery but better understanding of basin.

Q: Jet fuel inventory and refiners?

A: Prepared to satisfy customer commitments.

Q: E&I Live margins and guidance?

A: Scenario improved, EBITDA performance adjusted, Venice under maintenance.

Q: Working capital expected to come down?

A: Will improve immediately in next quarter.

Q: Venezuela situation?

A: Signed Cardon for Sustainability Agreement, new license and hydrocarbon law, engaging authorities.

Q: Demand destruction?

A: Too early to say, no real material demand destruction.

Q: Argentina LNG FID?

A: Still projecting FID by year-end, engineering work almost completed.

Q: Price lagging impact on cash flow?

A: Various elements determine different distribution in next quarters.

Q: Discovery in Indonesia and agreement terms?

A: Mechanisms in agreement to readjust value.

Q: Exploration wells in 2026?

A: Plan to drill more wells in Indonesia, Egypt, Ghana.

Q: Chemicals result improvement?

A: Transformation has positive impact, second quarter expected better.

Q: Honoring customer commitments and margin squeeze?

A: In our chain of supply, not relying too much on cargo market.

Q: Exploration blocks with BP in Namibia?

A: Initiative of BP, not part of Azul energy activity.

Q: ADNOC refining dividends?

A: No change in assumption, not material.

Q: Divestment proceeds and trading plans?

A: Expect fourth disposal completed, trading plans in third stage.

Q: Venezuela receivables recovery?

A: Mechanisms to recover past use within oil development framework