July 25, 2025 [Reuters]- Italian energy group Eni said on Friday its second-quarter earnings fell 25% year-on-year as lower oil prices and a weaker dollar outweighed a better-than-expected performance at its gas business.
April-June adjusted net profit came in at 1.13 billion euros ($1.33 billion), down from 1.52 billion euros in the same period of last year, but above an analyst consensus of 0.93 billion euros compiled by the company.
Despite an adverse economic backdrop, the state-controlled group was able to cut its leverage before lease liabilities – a measure of total debt in relation to equity – to 19% from 22% in the same period last year.
Including the proceeds expected from recent asset sales, its pro-forma leverage dropped to a historical low of 10%.
“Divestments set to come through this year, ongoing ‘self-help’, as well as the additional cash flow from new ramp ups set Eni up for a strong second-half 2025 and 2026, with a more resilient balance sheet than we have seen for many years,” RBC analysts said.
The stock was steady, in line with a barely changed Milan blue-chip index at 0805 GMT.
Eni’s rival TotalEnergies said on Thursday its net debt leapt 89% year-on-year to $25.9 billion, pushing gearing – a measure of debt to equity – to 22.6% including leases.
Eni increased its annual cash benefit target – or cost-saving goal – to 3 billion euros from 2 billion euros previously, reflecting steps taken in the past quarter.
“We believe our strong financial position, unique and differentiated strategy and ability to be flexible and agile, mean we are well positioned to navigate the current market volatility,” Eni CEO Claudio Descalzi said in a statement.
The state-controlled group stuck to its 1.5 billion euro share buyback plan and dividend policy, while raising its full-year forecast for underlying cash flow from operations (CFFO) to around 11.5 billion euros from 11 billion euros.
It also raised its expectations for its gas and LNG division for this year and confirmed its outlook for its low-carbon units.
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