Finance
Italy's Eni beats profit forecast on strong upstream business
Published by Global Banking & Finance Review®
Posted on February 26, 2026
2 min readLast updated: February 26, 2026
Quick Summary
Eni reported a 35% year-on-year jump in Q4 adjusted net profit to €1.2 billion, beating a €960 million consensus. Gains were fueled by strong exploration and production performance.
By Francesca Landini
MILAN, Feb 26 (Reuters) - Italian energy group Eni beat forecasts on Thursday with a 35% year-on-year jump in fourth-quarter adjusted earnings, driven by a strong performance in its exploration and production division and improved refining results.
Adjusted net profit came in at 1.2 billion euros ($1.4 billion) between October and December, up from 885 million euros in the same period a year earlier and beating an analysts' consensus forecast of 960 million euros compiled by the company.
Hydrocarbon production rose to 1.839 million barrels of oil equivalent per day, up 7% year-on-year and ahead of analysts' expectations.
Last year, the state-controlled group started six major upstream projects in Angola, Indonesia, Norway and Congo.
It also signed a binding agreement with Malaysian state energy company Petronas to create a joint venture to oversee some upstream assets in Indonesia and Malaysia. The entity will start operations by end of June this year, Eni said.
"Exploration & Production results were outstanding, driven by accretive production growth and disciplined costs," CEO Claudio Descalzi said in a statement.
Underlying cash flow totalled 3 billion euros versus 2.9 billion euros a year ago, and above the 2.8 billion euro consensus forecast.
The group's gearing - or debt to equity ratio - fell to 14% from 18% at end-2024 thanks to proceeds from the sale of a minority stake in low-carbon unit Plenitude.
Eni said it expected net capital expenditure of around 5 billion euros this year, and production growth in line with the 2%-3% annual increase indicated in its 2025-28 plan.
"The 2026 guidance highlights lower capital spending than we expected, with this reflecting the Indonesia JV closure by mid-year, while production growth looks set to continue, also supported by the new volumes from this deal," said RBC analyst Biraj Borkhataria.
Eni will provide a strategic update on March 19 at its Capital Markets Day.
($1 = 0.8462 euros)
(Reporting by Francesca Landini. Editing by Valentina Za and Mark Potter)
Key Takeaways
- •Adjusted net profit reached €1.2 billion in Q4, up 35% year over year.
- •Results beat a company-compiled analyst consensus of €960 million.
- •Growth was driven by strong performance in exploration and production.
- •Report dateline is Milan; article cites Reuters reporting.
Frequently Asked Questions about Italy's Eni beats profit forecast on strong upstream business
1What is the main topic?
Eni’s fourth-quarter adjusted net profit rose 35% to €1.2 billion, beating a €960 million analyst consensus, with gains led by its exploration and production unit.
2How much did Eni beat estimates by?
Adjusted net profit was €1.2 billion versus a company-compiled analyst consensus of €960 million, indicating a clear beat.
3What drove the increase in profit?
The company cited solid growth in its exploration and production division as the main driver of the year-on-year rise.
