Eni’s Profit Drops 73%: The Group Weakened by Falling Oil Prices

Eni's Profit Drops 73%: The Group Weakened by Falling Oil Prices

Share:

Gain full professional access to energynews.pro from 4.90$/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90$/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 $/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99$/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 $/year from the second year.

After several quarters marked by solid profitability, the Italian energy group Eni reports a 73% drop in net profit in the third quarter of 2024. The quarterly profit, amounting to 522 million euros, is well below the initial projections of analysts at the financial information provider Factset, who had expected a profit of 1.08 billion euros for the period. The decline in oil prices, influenced by geopolitical tensions and global market fluctuations, is a key factor in this downwardly revised financial performance.

The drop in profitability is also evident in the annual results. Over the first nine months of the year, Eni’s net profit was halved, reaching 2.39 billion euros. This reduction reflects increased pressure on the group’s margins, despite a 2% rise in hydrocarbon production in the third quarter, reaching a daily production of 1.66 million barrels.

Downward Revision of Annual Forecasts

In response to this situation, Eni revised its forecast for its adjusted pro forma operating profit (Ebit), a key performance indicator. The group now estimates this indicator at 14 billion euros for 2024, down from a previous estimate of 15 billion euros. This revision comes in a context where the group anticipates a Brent oil price of around 83 dollars for the year, compared to an initial forecast of 86 dollars.

The adjusted pro forma Ebit for the first nine months of the year also recorded a 17% drop, reaching 11.6 billion euros. This decrease reflects the combined effects of lower oil prices and a less favorable market environment.

An Investment Strategy Despite the Challenges

Despite the challenges posed by the current economic climate, Eni continues to implement initiatives to strengthen its financial structure and retain investor interest. The group announced an increase in its share buyback program, from an initially planned 1.6 billion euros to 2 billion euros for the current year. This decision is supported by an asset disposal program aimed at generating 8 billion euros by 2027.

In parallel, Eni is pursuing its “satellization” strategy for certain activities. Last Thursday, the group signed an agreement with American investment fund KKR to sell 25% of its subsidiary Enilive, specialized in bio-refining, for an amount of 2.9 billion euros. This transaction values the Enilive subsidiary at 11.75 billion euros. According to Claudio Descalzi, CEO of Eni, this sale aims to strengthen the financial stability of the subsidiary and attract investors interested in specialized and autonomous entities.

Investment in Energy Transition

As part of its transformation strategy, Eni also announced a 2-billion-euro investment over five years in its chemical subsidiary Versalis. The goal of this investment is twofold: to reduce CO₂ emissions from the subsidiary while improving its financial performance. Versalis has suffered significant financial losses over the past years, amounting to nearly 7 billion euros in cash flow, including 3 billion euros in the past five years.

This commitment is part of Eni’s intention to diversify its activities and move towards more sustainable solutions, particularly through investments in technologies aimed at reducing the carbon footprint of its operations. Claudio Descalzi emphasized that this transformation is essential to ensure the group’s sustainability and resilience in light of changes in the energy market.

Swedish renewable energy developer OX2 has appointed Matthias Taft as its new chief executive officer, succeeding Paul Stormoen, who led the company since 2011 and will now join the board of directors.
Driven by distributed solar and offshore wind, renewable energy investments rose 10% year-on-year despite falling financing for large-scale projects.
Australian Oilseeds Holdings was granted a deadline extension until 30 September to comply with the Nasdaq’s equity requirements, avoiding immediate delisting from the exchange.
Fermi America has closed $350mn in financing led by Macquarie to accelerate the development of its HyperGrid™ energy campus, focused on artificial intelligence and high-performance data applications.
Soluna Holdings launched two energy projects in Texas, reaching one gigawatt of cumulative capacity for its data centres, marking a new stage in the development of computing infrastructure powered by renewable energy.
Eneco’s Supervisory Board has appointed Martijn Hagens as the next Chief Executive Officer. He will succeed interim CEO Kees Jan Rameau, effective from 1 March 2026.
With $28 billion in planned investments, hyperscaler expansion in Japan reshapes grid planning amid rising tensions between digital growth and infrastructure capacity.
The suspension of the Revolution Wind farm triggers a sharp decline in Ørsted’s stock, now trading at around 26 USD, increasing the financial stakes for the group amid a capital increase.
Hydro-Québec reports net income of C$2.3 billion in the first half of 2025, up more than 20%, driven by a harsh winter and an effective arbitrage strategy on external markets.
French group Air Liquide strengthens its presence in Asia with the acquisition of South Korean DIG Airgas, a key player in industrial gases, in a strategic €2.85 billion deal.
The Ministry of Economy has asked EDF to reconsider the majority sale agreement of its technology subsidiary Exaion to the American group Mara, amid concerns related to technological sovereignty.
IBM and NASA unveil an open-source model trained on high-resolution solar data to improve forecasting of solar phenomena that disrupt terrestrial and space-based technological infrastructures.
The Louisiana regulatory commission authorizes Entergy to launch major energy projects tied to Meta’s upcoming data center, with anticipated impacts across the regional power grid.
Westbridge Renewable Energy will implement a share consolidation on August 22, reducing the number of outstanding shares by four to optimize its financial market strategy.
T1 Energy secures a wafer supply contract, signs 437 MW in sales, and advances G2_Austin industrial deployment while maintaining EBITDA guidance despite second-quarter losses.
Masdar has allocated the entirety of its 2023–2024 green bond issuances to solar, wind, and storage energy projects, while expanding its financial framework to include green hydrogen and batteries.
Energiekontor launches a €15 million corporate bond at 5.5% over eight years, intended to finance wind and solar projects in Germany, the United Kingdom, France, and Portugal.
The 2025 EY study on 40 groups shows capex driven by mega-deals, oil reserves at 34.7 billion bbl, gas at 182 Tcf, and pre-tax profits declining amid moderate prices.
Australian fuel distributor Ampol reports a 23% drop in net profit, impacted by weak refining margins and operational disruptions, while surpassing market forecasts.
Puerto Rico customers experienced an average of 73 hours of power outages in 2024, a figure strongly influenced by hurricanes, according to the U.S. Energy Information Administration.

Log in to read this article

You'll also have access to a selection of our best content.