Eni's First Quarter 2026 Performance and Strategic Outlook

Eni reported a nearly 10% increase in total hydrocarbon production during the first quarter, reaching 1.8 million barrels of oil equivalent per day, driven by new project start-ups in Angola and production ramp-ups in Norway and Congo Brazzaville. Despite this operational growth, the Italian oil major booked adjusted net income of €1.3 billion, an 8% decline year-on-year and slightly below analyst forecasts of €1.5 billion. The lower quarterly earnings were attributed to an unfavorable euro-US dollar exchange rate and one-off items.

Share Buyback and Cashflow Guidance

Eni has nearly doubled its share buyback plan for 2026, targeting a total of €2.8 billion ($3.3 billion) in repurchases, approximately 90% higher than the previously planned €1.5 billion. The company also raised its cashflow from operations guidance by 20% to €13.8 billion, based on higher revised price scenarios for Brent, TTF, and refining margins, reflecting expectations of sustained higher energy prices due to the ongoing Middle East war.

Divisional Performance and Strategic Developments

The gas, liquefied natural gas, and power (GGP) division, Eni's second largest after exploration and production (E&P), saw its income drop by about one-third. In contrast, the upstream business booked slight growth. The refining division remained loss-making, though the loss narrowed due to higher crack spreads. Eni highlighted "exceptional exploration success" and the nearly completed joint venture with Petronas in Southeast Asia, which CEO Claudio Descalzi stated will drive a new phase of growth and value generation in a key geography. The company noted a limited impact from Middle East war-related disruptions.

Exploration Success and Production Guidance

Eni's recent discoveries in Angola, Ivory Coast, Libya, Egypt, and Indonesia add approximately 1 billion barrels of oil equivalent (boe) of resources. The company maintained its 2026 production growth guidance of 3% to 4% and net capex guidance of €5 billion. It also increased earnings guidance for the GGP business by 30% for the year. RBC Capital Markets commented that given gas market dynamics, this guidance increase is largely expected, and investors may anticipate further uplifts if Middle East tensions persist and gas markets remain volatile.

Market Reaction

Following the announcement, Eni's share price traded 1.10% higher near 10:30 am London time on Friday.