(Bloomberg) – Eni SpA reported revenue that beat analyst estimates as proceeds from asset gross sales and sweeping value cuts helped counter a weak oil market.
Whereas crude costs had been decrease within the second quarter — weighing on earnings at different European oil corporations — Eni has been buoyed by a cost-reduction program launched earlier this 12 months, whereas asset disposals introduced down debt.
Adjusted web revenue fell 25% from a 12 months earlier to $1.3 billion (€1.13 billion), the Italian vitality firm mentioned Friday in an announcement. That exceeded the €932.6 million common estimate of analysts surveyed by Bloomberg.
Eni mentioned it’s now concentrating on round $3.5 billion (€3 billion) of value cuts this 12 months, up from $2.3 billion (€2 billion) beforehand. The corporate has additionally reaped billions of euros by offloading stakes in its renewables arm and mobility division, and is in talks to promote half of its carbon seize unit.
“The mix of divestments set to come back by this 12 months, ongoing ‘self-help,’ in addition to the extra money circulate from new ramp-ups units Eni up for a robust second half of 2025 and 2026,” RBC Europe Ltd. analyst Biraj Borkhataria mentioned in a observe. He expects “rising free money circulate and a extra resilient stability sheet than we’ve seen for a few years.”
The shares rose as a lot as 0.6% on the open in Milan, earlier than buying and selling little modified as of 9:08 a.m. native time.
Eni confirmed plans for shareholders’ returns this 12 months. It expects free money circulate earlier than working capital of about €11.5 billion at $70-a-barrel crude, up from earlier steerage of €11 billion. The corporate additionally raised its forecast for annual earnings from its fuel division to €1 billion from €800 million.
Web debt shrank to €29.1 billion on the finish of June.
