Eni S.p.A. (NYSE:E) Q3 2024 Earnings Conference Call October 25, 2024 8:00 AM ET

Company Participants

Francesco Gattei - Chief Transition & Financial Officer
Adriano Alfani - Chief Executive Officer, Versalis
Guido Brusco - Chief Operating Officer, Global Natural Resources
Giuseppe Ricci - Chief Operating Officer, Industrial Transformation
Stefano Ballista - Chief Executive Officer, Eni Sustainable Mobility

Conference Call Participants

Josh Stone - UBS
Alessandro Pozzi - Mediobanca
Giacomo Romeo - Jefferies
Kim Fustier - HSBC
Biraj Borkhataria - RBC
Irene Himona - Bernstein
Matt Smith - Bank of America
Michele Della Vigna - Goldman Sachs
Peter Low - Redburn Atlantic
Massimo Bonisoli - Equita
Lydia Rainforth - Barclays
Henry Tarr - Berenberg
Paul Redman - BNP Paribas
Matt Lofting - JPMorgan

Operator

[Starts Abruptly] Chief Transition and Financial Officer. For the duration of the call, you will be in listen-only mode. However, at the end of the call, you will have the opportunity to ask questions. [Operator Instructions]

I'm now handing you over to your hosts to begin today's conference. Thank you.

Francesco Gattei

Thank you. Good afternoon, and welcome to Eni's third quarter and nine months 2024 results conference call.

Energy markets continue to be volatile and unpredictable, driven by a mixture of fundamentals, geopolitics, and speculative trading flows. Our focus is on maintaining resilient and competitive operating and financial performance, reinforcing our balance sheet while funding both investment into the business and attractive distributions to shareholders and progressing our strategy. In the third quarter, we clearly continued to deliver on all those objectives.

In Q3, we indeed reported resilient results, with pro forma adjusted EBIT of €3.4 billion and cash flow from operation of €2.9 billion, despite the deterioration in scenario across most of our main businesses. We also lowered debt and leverage well ahead of our original plan. I will speak in more detail on our results shortly.

Let me focus on strategic activity. We are executing at pace around a clearly defined portfolio of businesses. Those businesses are both Transition oriented and where Eni has clear competitive advantages and where we can generate competitive growth and returns.

Starting with the Transition satellites and Enilive specifically, we are delighted to have confirmed the investment by KKR into Enilive. The €2.9 billion investment for a 25% stake supports our growth and confirms the value already created. Similar to our Plenitude transaction earlier this year, it accesses a new pool of aligned capital more appropriate for the different growth and risk profile of the business. Furthermore, that growth is clear. In Q3, we sanctioned two biorefineries, South Korea and Malaysia, and confirmed that the construction work at Livorno will begin soon. And we will start our first biojet plant in Gela at the end of this year.