Eni Q2 Earnings & Revenues Beat Estimates on Higher Liquids Production

Eni S.p.A E reported second-quarter 2025 adjusted earnings from continuing operations of 79 cents per American Depository Receipt, which beat the Zacks Consensus Estimate of 67 cents. The bottom line declined from the year-ago quarter’s level of 98 cents.Total quarterly revenues of $21.7 billion topped the Zacks Consensus Estimate of $20.7 billion. The top line, however, declined from $24.8 billion a year ago.The better-than-expected quarterly results can be primarily attributed to higher liquids production. However, the positives were offset by a decrease in natural gas production and weaker refining and biofuels margins in the quarter.Eni SpA Price, Consensus and EPS Surprise Eni SpA price-consensus-eps-surprise-chart | Eni SpA QuoteOperational PerformanceEni operates through four business segments — Exploration & Production, Global Gas & LNG Portfolio and Power, Refining and Chemicals, and Enilive and Plenitude.Exploration & ProductionTotal oil and gas production was 1,668 thousand barrels of oil equivalent per day (MBoe/d), down 3% from 1,712 Mboe/d in the prior-year quarter.Liquids’ production totaled 825 thousand barrels per day (MBbl/d), up 6% from the year-ago quarter’s 777 MBbl/d. Natural gas production totaled 4,415 million cubic feet per day (mmcf/d), compared with 4,888 mmcf/d a year ago.The average realized price of liquids was $62.77 per barrel, down 19% from $77.25 reported a year ago. The realized natural gas price was $7.14 per thousand cubic feet, down 2% from $7.26 in the year-ago period.The company’s Exploration & Production segment was affected by lower hydrocarbon production due to asset divestitures in Nigeria, Alaska and Congo, which were finalized in 2024. Natural declines of mature fields also contributed to lower hydrocarbon production in the quarter. However, the ramp-ups of organic projects in Côte d'Ivoire, Mexico, Congo and Italy partially offset the negatives. The segment reported a pro-forma adjusted EBIT of €2.4 billion, down 33% from €3.6 billion in the second quarter of 2024.Global Gas & LNG Portfolio and PowerEni’s worldwide natural gas sales in the second quarter totaled 9.01 billion cubic meters (bcm), down 4% year over year. The decline can be primarily attributed to lower sales of gas volumes in the wholesale segment. Natural gas sales in the European market increased 1%, driven by higher sales volumes in Benelux, the Iberian Peninsula and the United Kingdom.The integrated energy major’s Global Gas & LNG Portfolio and Power business segment reported a pro-forma adjusted EBIT of €387 million, reflecting a 9% increase from the year-ago quarter’s level of €356 million.Refining and Chemicals For the second quarter, total refinery throughputs were 6.38 million tons (mmtons), compared with 5.82 mmtons in the corresponding period of 2024. Petrochemical product sales decreased 5% year over year to 0.72 mmtons.For the quarter under review, the segment reported a pro-forma adjusted negative EBIT of €193 million, flat year over year. The Refining segment was affected due to lower throughput volumes outside Italy. Additionally, the segment was impacted by lower refining margins. The Chemicals business segment was also affected by weaker margins due to macroeconomic headwinds and a higher cost of production compared to other regions.Enilive & PlenitudeRetail gas sales managed by Plenitude declined 7% year over year to 0.68 bcm. As of June 30, 2025, Plenitude’s installed renewable capacity was 4.5 GW, compared to 3.1 GW in the year-ago quarter.The company reported a pro-forma adjusted EBIT of €262 million, compared with €278 million a year ago. In the reported quarter, Enilive was impacted by weaker biofuel margins. The segment was also affected by lower contributions from Plenitude due to weaker performance from its retail business.FinancialsAs of June 30, 2025, Eni had a long-term debt of €19.8 billion and cash and cash equivalents of €9.2 billion.For the reported quarter, net cash generated by operating activities was €3.5 billion. Capital expenditures totaled €1.95 billion.OutlookEni has reiterated that the full-year gross capex is expected to be below €8.5 billion compared with the prior guidance of approximately €9 billion. Oil and gas production for 2025 is expected to be around 1.7 million barrels of oil equivalent per day. Hydrocarbon production in the third quarter is expected to lie in the 1.70-1.72 million boe/d range.E’s Zacks Rank & Key PicksCurrently, E carries a Zacks Rank #2 (Buy).Some other top-ranked stocks from the energy sector are Venture Global Inc. VG, Galp Energia SGPS SA GLPEY and Enbridge, Inc. ENB, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1(Strong Buy) stocks here.Venture Global is primarily involved in the production and export of liquefied natural gas, sourced from the abundant gas basins in North America. It is the second-largest exporter of natural gas in the United States. The company is well-positioned to capitalize on the rise in LNG demand, partly driven by the growth of data centers and the global shift toward lower-emission fuels.Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. After the initial exploration phase, Galp estimated that the Mopane prospect could hold nearly 10 billion barrels of oil. This discovery allows Galp to diversify its global presence, with the potential to become a significant oil producer in the region.Enbridge is a leading midstream energy firm that operates an extensive crude oil and liquids transportation network spanning 18,085 miles, along with a gas transportation network covering 71,308 miles. 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Click to get this free report Eni SpA (E): Free Stock Analysis Report Enbridge Inc (ENB): Free Stock Analysis Report Venture Global, Inc. (VG): Free Stock Analysis Report Galp Energia SGPS SA (GLPEY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks