February 26, 2026 [Reuters]- Italian energy group Eni beat forecasts on Thursday with a 35% year-on-year jump in fourth-quarter adjusted earnings, driven by a strong performance in its exploration and production division and improved refining results.

Adjusted net profit came in at 1.2 billion euros ($1.4 billion) between October and December, up from 885 million euros in the same period a year earlier and beating an analysts’ consensus forecast of 960 million euros compiled by the company.

Hydrocarbon production rose to 1.839 million barrels of oil equivalent per day, up 7% year-on-year and ahead of analysts’ expectations.

Last year, the state-controlled group started six major upstream projects in Angola, Indonesia, Norway and Congo.

It also signed a binding agreement with Malaysian state energy company Petronas to create a joint venture to oversee some upstream assets in Indonesia and Malaysia. The entity will start operations by end of June this year, Eni said.

“Exploration & Production results were outstanding, driven by accretive production growth and disciplined costs,” CEO Claudio Descalzi said in a statement.

Underlying cash flow totalled 3 billion euros versus 2.9 billion euros a year ago, and above the 2.8 billion euro consensus forecast.

The group’s gearing – or debt to equity ratio – fell to 14% from 18% at end-2024 thanks to proceeds from the sale of a minority stake in low-carbon unit Plenitude.

Eni said it expected net capital expenditure of around 5 billion euros this year, and production growth in line with the 2%-3% annual increase indicated in its 2025-28 plan.

“The 2026 guidance highlights lower capital spending than we expected, with this reflecting the Indonesia JV closure by mid-year, while production growth looks set to continue, also supported by the new volumes from this deal,” said RBC analyst Biraj Borkhataria.

Eni will provide a strategic update on March 19 at its Capital Markets Day.