Eni (ENI) Q3 2024 earnings summary

Executive summary

• Delivered resilient Q3 2024 results with pro forma adjusted EBIT of €3.4 billion and strong cash flow, despite challenging market conditions and weaker trading environment.

• Achieved €4.4 billion net profit and €11.6 billion pro forma EBIT for 9M 2024, with robust cash generation and strategic progress across portfolio and transition businesses.

• Upstream production rose 4% year-over-year, with major discoveries and project startups in Indonesia, Côte d'Ivoire, Mexico, and new production in Sicily.

• Strategic milestones included KKR's €2.9 billion investment in Enilive, UK E&P combination with Ithaca, and progress on CCS and renewables projects.

• Accelerated portfolio high-grading, divestments, and early monetization of discoveries, supporting a robust balance sheet and increased shareholder returns.

Financial highlights

• Q3 2024 pro forma adjusted EBIT: €3.4 billion (down 14% y-o-y); Q3 adjusted net profit: €1.27 billion (down 30% y-o-y); Q3 net cash from operations: €3.0 billion.

• Nine-month pro forma adjusted EBIT: €11.6 billion (down 17% y-o-y); net profit: €4.4 billion; cash flow from operations: €10.7 billion.

• Organic capex for 9M: €6.1 billion (down 9% y-o-y); Q3 capex: €2.0 billion.

• Net debt and leverage declined sequentially, with leverage at 22% as of 9M 2024 and pro forma target of ~15% by year-end.

• Share buyback in Q3: €560 million, with 2024 buyback increased to €2 billion; distribution yield at 11.5%.

Outlook and guidance

• Full-year upstream production expected at ~1.7 million boe/d, in line with guidance; GGP pro forma EBIT guidance raised to ~€1.1 billion.

• Enilive and Plenitude each expected to deliver ~€1 billion EBITDA; installed renewables capacity to reach 4 GW by year-end.

• Group pro forma EBIT and cash flow expectations reduced from Q2 but outperform original plan by over €1 billion each; CFFO expected above €14 billion.

• Gross capex confirmed below €9 billion; net capex well below €6 billion.

• 2024 share buyback increased to €2 billion, dividend set at €1/share (+6% vs 2023), payout at 38%.