Eni (ENI.MI): 2Q26 Boosted by Gas Trading, Biofuels and Upstream Tax

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Eni (ENI.MI): 2Q26 Boosted by Gas Trading, Biofuels and Upstream Tax

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29 Jul 2026 03:20:48 ET │ 15 pages

Eni (ENI.MI)

2Q26 Boosted by Gas Trading, Biofuels and Upstream Tax

CITI'S TAKE

Neutral Eni 2Q26 earnings are c. 10% ahead of latest market consensus, although

for context those market expectations had been revised down c. 10% in Price (28 Jul 26 17:30) €22.02

recent weeks. Positive gains look to come principally from gas trading, the Target price €24.00

contribution of biofuels and from the tax mix in Upstream this quarter. Expected share price return 9.0%

Share buybacks are again bumped higher, although arguably Eni is Expected dividend yield 5.0%

choosing to support shareholder returns with balance sheet capacity, Expected total return 13.9%

more so than Global IOC peers are doing.

Market Cap €66,676M

US$75,924M

2Q26 Summary — Adjusted net income of €2.3bn betters market consensus by c.

10%, driven by gains in gas trading, a positive contribution from elevated biofuels

margins and from a lower tax charge in the core Upstream business that reflects the

geographical mix of production this quarter. Despite the impact from Gulf outages, Alastair R SymeAC

upstream production is +7% YoY reflecting partly the positive accounting of the new +44-20-7986-4030

Searah joint venture but also higher gas volumes in Norway and North Africa. alastair.syme@citi.com

Financial Framework — While cash conversion has improved on previous quarters, Kate O’Sullivan

there is still a 3% QoQ rise in net debt, partly boosted by an acquisition within the Oliver G Connor

Plenitude business (and with that whole business due to be deconsolidated in

2H). Leverage of 1.4x does sit relatively high versus Global IOC peers (the median is Tianhong Bi, CFA