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Eni Q1 Earnings Miss Estimates on Refining and Chemicals Loss
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Key Takeaways
Eni posted Q1 adjusted EPS of 81 cents, missing estimates due to refining and chemical segment losses.
Higher hydrocarbon output and crude prices helped offset weaker gas prices and Chemicals underperformance.
Production rose 9% year over year, supported by new projects and ramp-ups across key regions.
Eni S.p.A (E - Free Report) reported first-quarter 2026 adjusted earnings from continuing operations of 81 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of $1.13. The bottom line declined from the year-ago quarter’s 92 cents.
Total quarterly revenues of $23.5 billion topped the Zacks Consensus Estimate of $22.7 billion. The top line decreased from $24.2 billion a year ago.
The weak quarterly earnings can be primarily attributed to lower gas prices and losses from the Refining and Chemical segments. However, increased hydrocarbon production and higher crude price realizations partially offset the negatives.
Eni operates through four business segments — Exploration & Production; Global Gas & LNG Portfolio, and Power; Refining, Chemicals and Sites in Transformation; and Transition Businesses.
Exploration & Production
Total oil and gas production was 1,798 thousand barrels of oil equivalent per day (MBoe/d), up 9% from 1,647 Mboe/d in the prior-year quarter.
Liquids’ production totaled 862 thousand barrels per day (MBbl/d), up 10% from the year-ago quarter’s 786 MBbl/d. Natural gas production totaled 4,893 million cubic feet per day (mmcf/d), compared with 4,502 mmcf/d a year ago.
The average realized price of liquids was $72.79 per barrel, up 4% from $69.72 a year ago. The realized natural gas price was $7.28 per thousand cubic feet, lower than $7.57 in the year-ago period.
The increase in hydrocarbon production was supported by ramp-ups in Norway, Congo and Mexico, alongside new project start-ups in Angola and higher production in Egypt. The increase was partially offset by production declines at mature fields and divestment of assets in Congo and Côte d'Ivoire, finalized in 2025.
The Exploration & Production segment generated pro-forma adjusted EBIT of €3.4 billion, higher than the year-ago quarter’s €3.3 billion. The growth was supported by volume/mix effects, cost discipline and higher crude price realizations, which offset the effects of weaker gas prices and unfavorable exchange rate translation.
Global Gas & LNG Portfolio, and Power
Eni’s worldwide natural gas sales in the first quarter of 2026 totaled 13.90 billion cubic meters (bcm), up 15% year over year. The increase can be primarily attributed to higher sales volumes in Italy. Natural gas sales in the European market also improved, particularly due to higher volumes sold in Germany, Austria and Benelux.
In the first quarter of 2026, thermoelectric production totaled 5.32 terawatt-hours (TWh), 2% lower than 5.41 TWh in the prior-year quarter. The decrease can be attributed to a lower plant utilization rate.
The integrated energy major’s Global Gas & LNG Portfolio segment reported a pro-forma adjusted EBIT of €315 million, reflecting a 2% increase from the year-ago quarter’s €310 million. The Power business segment reported a pro-forma adjusted EBIT of €12 million compared with the year-ago quarter’s €163 million. The significant difference reflects a one-time benefit realized in the first quarter of 2025.
Refining, Chemicals and Sites in Transformation
For the first quarter, total refinery throughputs were 5.01 million tons (mmtons) compared with 5.84 mmtons in the corresponding period of 2025. The Standard Eni Refining Margin (“SERM”) averaged $10.9 per barrel compared with $3.8 per barrel in the prior-year quarter. For the quarter under review, the Refining segment reported a pro-forma adjusted loss of €47 million compared with the year-ago figure loss of €91 million.
Petrochemical product sales decreased 19% year over year to 0.65 mmtons. The Chemical segment reported a pro-forma adjusted negative EBIT of €158 million, marking an improvement of 35% from the year-ago figure of negative €243 million.
The Sites in Transformation business reported a pro-forma adjusted loss of €55 million due to plant restructuring expenses.
In the Refining segment, the pro-forma adjusted loss was lower than the previous year, supported by improved product crack spreads, partially offset by lower average plant availability. The Chemicals business segment showed an improvement from the previous year due to restructuring progress and plant closures. However, the overall business environment in the chemical segment remains weak due to macroeconomic headwinds affecting demand and competition from producers having a lower-cost structure.
Transition Businesses
Total sales managed by Enilive declined 11% year over year to 4.69 mmtons. Enilive’s bio throughputs came in at 252 thousand tons compared with the year-ago figure of 292 thousand tons, while the average bio refinery utilization rate fell to 64% from 79% in the year-ago quarter.
Retail gas sales managed by Plenitude declined 5% year over year to 2.27 bcm. As of March 31, 2026, Plenitude’s installed renewable capacity was 5.9 GW compared with 4.1 GW in the year-ago quarter, representing organic development in Spain, the UK, Italy, Greece and Kazakhstan, along with acquisitions in France and the United States.
Enilive’s pro-forma adjusted EBIT was €138 million, up 45% from the first quarter of 2025. In the reported quarter, Enilive’s performance was aided by strong results from its biorefineries business due to improved market conditions, despite downtime at the Venice plant to improve its biorefinery configuration.
Plenitude reported a pro-forma adjusted EBIT of €213 million, 12% lower than the prior-year quarter. It faced a volatile commodity pricing scenario, along with competitive pressure resulting in the shrinking of its Retail customer base, partially offset by stronger performance in Renewables.
Financials
As of March 31, 2026, Eni had a long-term debt of €21.7 billion and cash and cash equivalents of €8.3 billion.
For the reported quarter, net cash generated by operating activities was €1.4 billion. The capital expenditure totaled €1.87 billion.
Outlook
Management raised full-year 2026 adjusted cash flow from operations guidance by 20% to €13.8 billion, reflecting an improved commodity pricing and refining environment and underlying performance. Consistent with its distribution framework, Eni lifted the proposed 2026 share buyback to €2.8 billion from the prior €1.5 billion plan, while confirming a 2026 dividend of €1.1 per share.
Eni reaffirmed 2026 gross capex of €7 billion and net capex of €5 billion, with expected underlying production growth of 3-4%.
Equinor ASA is one of the leading integrated energy companies globally and a major supplier of natural gas in Europe. The recent conflict between the United States and Iran has resulted in a spike in gas prices and disrupted LNG supply, following damage to critical infrastructure in Qatar, tightening global LNG supply. This is expected to boost demand for Eqinor’s gas exports to Europe, positioning the company to benefit from heightened prices. The company’s expansion in the renewable energy space positions it for long-term growth as more countries transition toward cleaner energy solutions to meet their climate goals.
Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. It is engaged in refining and marketing of oil products and natural gas marketing and sales.
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Eni Q1 Earnings Miss Estimates on Refining and Chemicals Loss
Key Takeaways
Eni S.p.A (E - Free Report) reported first-quarter 2026 adjusted earnings from continuing operations of 81 cents per American Depository Receipt, which missed the Zacks Consensus Estimate of $1.13. The bottom line declined from the year-ago quarter’s 92 cents.
Total quarterly revenues of $23.5 billion topped the Zacks Consensus Estimate of $22.7 billion. The top line decreased from $24.2 billion a year ago.
The weak quarterly earnings can be primarily attributed to lower gas prices and losses from the Refining and Chemical segments. However, increased hydrocarbon production and higher crude price realizations partially offset the negatives.
Eni SpA Price, Consensus and EPS Surprise
Eni SpA price-consensus-eps-surprise-chart | Eni SpA Quote
E’s Operational Performance
Eni operates through four business segments — Exploration & Production; Global Gas & LNG Portfolio, and Power; Refining, Chemicals and Sites in Transformation; and Transition Businesses.
Exploration & Production
Total oil and gas production was 1,798 thousand barrels of oil equivalent per day (MBoe/d), up 9% from 1,647 Mboe/d in the prior-year quarter.
Liquids’ production totaled 862 thousand barrels per day (MBbl/d), up 10% from the year-ago quarter’s 786 MBbl/d. Natural gas production totaled 4,893 million cubic feet per day (mmcf/d), compared with 4,502 mmcf/d a year ago.
The average realized price of liquids was $72.79 per barrel, up 4% from $69.72 a year ago. The realized natural gas price was $7.28 per thousand cubic feet, lower than $7.57 in the year-ago period.
The increase in hydrocarbon production was supported by ramp-ups in Norway, Congo and Mexico, alongside new project start-ups in Angola and higher production in Egypt. The increase was partially offset by production declines at mature fields and divestment of assets in Congo and Côte d'Ivoire, finalized in 2025.
The Exploration & Production segment generated pro-forma adjusted EBIT of €3.4 billion, higher than the year-ago quarter’s €3.3 billion. The growth was supported by volume/mix effects, cost discipline and higher crude price realizations, which offset the effects of weaker gas prices and unfavorable exchange rate translation.
Global Gas & LNG Portfolio, and Power
Eni’s worldwide natural gas sales in the first quarter of 2026 totaled 13.90 billion cubic meters (bcm), up 15% year over year. The increase can be primarily attributed to higher sales volumes in Italy. Natural gas sales in the European market also improved, particularly due to higher volumes sold in Germany, Austria and Benelux.
In the first quarter of 2026, thermoelectric production totaled 5.32 terawatt-hours (TWh), 2% lower than 5.41 TWh in the prior-year quarter. The decrease can be attributed to a lower plant utilization rate.
The integrated energy major’s Global Gas & LNG Portfolio segment reported a pro-forma adjusted EBIT of €315 million, reflecting a 2% increase from the year-ago quarter’s €310 million. The Power business segment reported a pro-forma adjusted EBIT of €12 million compared with the year-ago quarter’s €163 million. The significant difference reflects a one-time benefit realized in the first quarter of 2025.
Refining, Chemicals and Sites in Transformation
For the first quarter, total refinery throughputs were 5.01 million tons (mmtons) compared with 5.84 mmtons in the corresponding period of 2025. The Standard Eni Refining Margin (“SERM”) averaged $10.9 per barrel compared with $3.8 per barrel in the prior-year quarter. For the quarter under review, the Refining segment reported a pro-forma adjusted loss of €47 million compared with the year-ago figure loss of €91 million.
Petrochemical product sales decreased 19% year over year to 0.65 mmtons. The Chemical segment reported a pro-forma adjusted negative EBIT of €158 million, marking an improvement of 35% from the year-ago figure of negative €243 million.
The Sites in Transformation business reported a pro-forma adjusted loss of €55 million due to plant restructuring expenses.
In the Refining segment, the pro-forma adjusted loss was lower than the previous year, supported by improved product crack spreads, partially offset by lower average plant availability. The Chemicals business segment showed an improvement from the previous year due to restructuring progress and plant closures. However, the overall business environment in the chemical segment remains weak due to macroeconomic headwinds affecting demand and competition from producers having a lower-cost structure.
Transition Businesses
Total sales managed by Enilive declined 11% year over year to 4.69 mmtons. Enilive’s bio throughputs came in at 252 thousand tons compared with the year-ago figure of 292 thousand tons, while the average bio refinery utilization rate fell to 64% from 79% in the year-ago quarter.
Retail gas sales managed by Plenitude declined 5% year over year to 2.27 bcm. As of March 31, 2026, Plenitude’s installed renewable capacity was 5.9 GW compared with 4.1 GW in the year-ago quarter, representing organic development in Spain, the UK, Italy, Greece and Kazakhstan, along with acquisitions in France and the United States.
Enilive’s pro-forma adjusted EBIT was €138 million, up 45% from the first quarter of 2025. In the reported quarter, Enilive’s performance was aided by strong results from its biorefineries business due to improved market conditions, despite downtime at the Venice plant to improve its biorefinery configuration.
Plenitude reported a pro-forma adjusted EBIT of €213 million, 12% lower than the prior-year quarter. It faced a volatile commodity pricing scenario, along with competitive pressure resulting in the shrinking of its Retail customer base, partially offset by stronger performance in Renewables.
Financials
As of March 31, 2026, Eni had a long-term debt of €21.7 billion and cash and cash equivalents of €8.3 billion.
For the reported quarter, net cash generated by operating activities was €1.4 billion. The capital expenditure totaled €1.87 billion.
Outlook
Management raised full-year 2026 adjusted cash flow from operations guidance by 20% to €13.8 billion, reflecting an improved commodity pricing and refining environment and underlying performance. Consistent with its distribution framework, Eni lifted the proposed 2026 share buyback to €2.8 billion from the prior €1.5 billion plan, while confirming a 2026 dividend of €1.1 per share.
Eni reaffirmed 2026 gross capex of €7 billion and net capex of €5 billion, with expected underlying production growth of 3-4%.
E’s Zacks Rank and Other Key Picks
E currently sports a Zacks Rank #1 (Strong Buy).
Some other top-ranked stocks from the energy sector are Equinor ASA (EQNR - Free Report) , Subsea7 S.A. (SUBCY - Free Report) and Galp Energia SGPS SA (GLPEY - Free Report) . While Equinor sports a Zacks Rank #1, Subsea7 and Galp Energia carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Equinor ASA is one of the leading integrated energy companies globally and a major supplier of natural gas in Europe. The recent conflict between the United States and Iran has resulted in a spike in gas prices and disrupted LNG supply, following damage to critical infrastructure in Qatar, tightening global LNG supply. This is expected to boost demand for Eqinor’s gas exports to Europe, positioning the company to benefit from heightened prices. The company’s expansion in the renewable energy space positions it for long-term growth as more countries transition toward cleaner energy solutions to meet their climate goals.
Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.
Galp Energia is a Portuguese energy company engaged in exploration and production activities. The company’s oil exploration efforts have yielded positive results, particularly with the Mopane discovery in the Orange Basin, offshore Namibia. This discovery allows Galp to diversify its global presence with the potential to become a significant oil producer in the region. It is engaged in refining and marketing of oil products and natural gas marketing and sales.