Capital Markets Update 2025

In an increasingly complex and fast changing energy landscape, our strategic objective is unchanged: to generate strong and competitive financial returns while delivering the energy products our customers demand.

We achieve this by combining new and existing technologies, leveraging our internal expertise, and developing innovative economic and financial models that allow us to capitalise on emerging opportunities.

Our ability to create shareholder value is directly tied to our commitment to providing affordable, reliable and progressively lower-carbon energy solutions.

2024 was a year of decisive execution on the objectives we have set over the past two years. We have a strong sense of purpose to ensure 2025 delivers at the same pace.

Meeting our objectives requires adaptability and a willingness to challenge conventional models – an approach that has always defined Eni.

In this context, we have taken decisive actions:

• Focussed Execution: We concentrate exclusively on a carefully selected portfolio of proprietary technologies along with assets and value chains where we have distinct and sustainable competitive advantage.
• Integrated Business Models: We are strengthening our industrial and customer businesses by integrating them along the value chain with an optimal balance of growth potential and risk-adjusted returns.
• Driving continued momentum in our Satellite model: Azule, Var, Enilive, Plenitude, now Ithaca and soon CCUS and Indonesia.
• Resilient Financial Structures: We are designing financial frameworks that align with the evolving dynamics of energy and capital markets, ensuring disciplined capital allocations, transparency, and self-funded growth.
• Flexibility and Optionality: We maintain a high degree of strategic adaptability in order to be able to respond quickly and profitably to the shifts in our competitive environment.

Global Natural Resources, which encompasses E&P, mid-stream gas and CCUS, has now expanded to include two additional growth areas: gas-fired power generation and trading.

This strategic expansion strengthens our ability to capture value across the entire energy chain, fully integrating with our equity production, in order to maximise efficiency and returns.

Our approach is built on a foundation of in-house expertise, proprietary technologies, and a deep understanding of subsurface potential – built over decades.

This model is a key differentiator, allowing us to systematically optimize discovered resources, accelerate timelines and enhance efficiency across our operations.

While others have opted for outsourcing, we have strengthened our in-house competencies, a strategic choice that gives us a competitive advantage.

Exploration remains at the heart of strategy, driving efficient organic production growth, accelerating value creation through the Dual Model, and reinforcing our ability to deliver longterm, high-quality returns.

In 2025, Eni will launch a new Carbon Capture and Storage satellite company, a further realization of our distinctive model. This initiative aims to consolidate our CCS projects under a single entity. We see a significant value opportunity in addressing hard-to-abate sector decarbonization, combining transportation and storage activities and supporting emitters along the entire value chain.

Both Enilive and Plenitude have emerged as high growth businesses supporting our customers in decarbonising their energy use.

Each was purposely established as an integrated value chain combining a growth component with the backbone of a large and diversified customer base.

Enilive ranges through the agri-feedstock and waste and residues supply, biofuel production to marketing complemented with non-oil services, to people and mobility.

Plenitude, meanwhile, spans renewable electricity generation to the final sale of the products alongside ancillary services, including charging stations, into a large and diverse customer base.

As they continue to grow, they represent an increasingly material source of additional income for Eni, diversifying and enhancing the value of the overall company.

As the energy industry evolves, we are also mindful of the structural responses required in some of our legacy activities. For this reason, a transformation plan is underway.

We are advancing in the conversion of our Italian refineries into biorefineries and we are progressing with the restructuring of our chemicals business.

Last year we developed our plan to restructure and transform Versalis. We are closing steam Cracking and we will continue to pursue our shift to new platforms.  This transformation plan for Versalis also includes setting up new industrial initiatives, consistent with Eni’s strategy across both biorefining, energy storage and potentially data center and artificial intelligence.

We have significantly strengthened our financial framework to support sustainable growth and shareholder returns.

We will continue to be selective and disciplined in our gross investment, which is aimed at delivering consistent growth and competitive returns and fueling our portfolio optionality and divestment plan.

Growth is an important and distinctive feature of our investment case. We expect to grow CFFO per share at over 14% annually through this decade, improve ROACE by approximately 6 percentage points to around 13% by 2030 and maintain financial leverage within an historically low range of 10-20%.

Alongside competitive top-line growth we are focussed on a material improvement in corporate level returns. This is driven by the multiple initiatives we have underway and have discussed including:

• The new phase of development in our Transition businesses;
• Continued disciplined investment;
• Portfolio high-grading and improved margin capture in Global Natural Resources;
• Our continuing corporate simplification and cost management actions along with the optimisation of our corporate structure. 

Our distribution policy confirms the progressive growth in shareholder value as we execute our strategy. We rank distribution as a top priority in our financial framework by allocating a percentage of the operating cashflow - a transparent link to our business performance. We expect to grow dividend over time while also improving its quality.
 

In February 2025 we raised the target distribution payout range to 35-40% of the annual CFFO, from 30-35% previously, by way of a combination of dividend and share buyback – reflecting the strategic, operational and financial advances Eni has made.

For 2025 Eni announced:

• an annual dividend of €1.05/share, a 5% increase versus 2024
• a share buyback programme of €1.5 bln, based on our CFFO expectations linked to performance of the business and scenario.

This is equivalent to a total distribution CFFO payout of 36%.
 

The share buyback is a flexible tool. We intend to use our financial flexibility in lower than planned scenario and any CFFO shortfall to deliver the target buyback. While in case of better than planned CFFO outcomes, we will allocate up to 60% of incremental cash to additional purchases. Additionally, if the disposal plan is more material than planned, we could decide to further increase the percentage of CFFO distribution.