El. En Spa Ord New

Good afternoon, ladies and gentlemen, and welcome to any 2025 fourth quarter and full year results conference call hosted by Mr. Claudio Descalzi, Chief Executive 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 by pressing star N1 on your telephone. I'm now handing you over to your host to begin today's conference. Thank you.

Thank you. Good morning, everyone. 2025 was a year of exceptional progress. We developed and executed our distinctive strategy, in many cases exceeding our original target. We will discuss in detail our update plan at the forecoming capital markets update in March, but I can say at this point that 2025 provides an excellent guide to what you should expect the future to hold for any. Last year's results proved the value of our consistent strategies, strong operational and financial performance, timely project delivery to support growth, and diversified investment for the short and long term to generate further value for investors. Specifically, looking in detail at the three main business pillars, the successes are compelling. First, global natural resources. We started up six major projects as planned. These supported an underlying production increase of 4%, well above our original full year guidance, and growth above 7% over the 2022-2025 period, leading among our peers. Project execution is a clear strength of ours, and both Agoginangola and Congo LNG are further examples of our leadership in time to market. In addition, we took FIDs on four major new projects, three of which are operated. driving a strong reserves replacement ratio of above 160%, meaning we currently have 500,000 bar per day of production under development, securing our medium-term outlook. At the portfolio level, we have also established a new platform of growth by creating our largest business combination with Petronas in Indonesia and Malaysia. and we are progressing our Argentina LNG project with YPF and XRG. Alongside our continued exploration success under PINSA long-term outlook, we discovered 900 million barrels of new resources in 2025, reaffirming our industry-leading track record. Now, over 10 billion barrels of resources discovered since 2014 at less than $1 per barrel from multiple geographies and different geological places. Our focus on value as well as volume is also emphasized by our continued action to valorize our resources through dual exploration, as we did in Indonesia with the business combination in Kodiwar and high-grade our portfolio through tail asset divestment. GGP is a business we have comprehensively transformed in the past few years, and notwithstanding its softer market, we delivered EBIT about 1 billion euros for a fourth consecutive year. Gas to Power was also a strong contributor in 2025, and together this result emphasizes the work underway to capture more margin from our equity production. Second are transition activities. They generate material growth and value creation and are important in diversifying and strengthening A&E's earnings. In a year that was not remarkable for market improvement, we proved the robustness of our integrated business models and we have been rewarded with strong earnings, 2 billion euros of EBITDA. and buy the validation from the market with a contribution of €5.8 billion from top private equity firms. These deals were completed at multiple around three times those of Eni Standalone, implying over €23 billion of enterprise value for these new business lines. We are locking in further growth with both Plenitude and EniLive. Plenitude expanded its renewable capacity by more than 40% in 2025 and will add 10% to its customer base in 2026 on closing the agreed Acer Energy acquisition. Enelive has three new biorefinery under construction and two more have recently reached FID, together representing a further net 2 million tonnes of annual capacity. And third, industrial transformation. Changes in the energy market bring challenges that we are successfully mitigating, but also opportunities. In this context, we are advancing the transformation of our traditional refineries. We have set out the decisive measures to address challenges in our chemical business that are the same impacting the entire European industry. In 2025, we accelerate these actions, closing the crackers at Brindisi and Priolo, three to six months earlier than planned. At the same time, we are transforming Versalis towards bio, circular and specialized products. The strategic and operational progress achieved in 2025 translates into exceptional financial delivery. Robust financial position is critical in managing the cycle, preserving its flexibility and delivering our strategy. Last year, CFA4 at €12.5 billion was €1.5 billion ahead of plan on a scenario-adjusted basis. Responding promptly to the more challenging scenario, we cut gross capital from a planned €9 billion to €8.5 billion, and we identified cash initiatives totaling €4 billion, raised from an initial €2 billion, including delivering €0.5 billion of savings. Net capex on a proforma basis was lower than €5 billion versus our initial expectation of €6.5 to €7 billion as we executed on more portfolio activity for better value. As a result, proforma gearing at year-end was 14%, with net debt down almost €3 billion over the year. These outcomes gave us the opportunity to raise our share buyback by 20% from 1.5 billion to 1.8 billion euro, achieving the unique combination in 2025 of both lowering debt and enhancing shareholder distribution. In Q4, Reform-adjusted EBIT was €2.9 billion, up 6% year-on-year, despite the lower oil price and weaker dollar. We reported excellent EMP results, with production up 7% year-on-year and 5% sequentially at 1.839 million barrels per day, underpinned by the positive impact of 2025 startups. Full-year production of 1.728 million barrels per day was 2% above our guidance for the year. GGP Q4 EBIT of 0.1 billion euros delivered on our raised full-year guidance of more than 1 billion euros despite relatively low volatile markets. Planged any live together delivered €2 billion of pro forma adjusted EBIT in the year and any live benefited from improved bio margins in the quarter, part of setting seasonally lower marketing. Refining return to profit in the quarter, all be held back by relatively low utilization rates, while chemicals continue to see a weak scenario, setting the early benefit of the restructuring underway. Q4 adjusted net profit was €1.2 billion, with a tax rate of 37%, as we adjusted to a full year rate of 44%, just below guidance. CFA4 in Q4 was €3 billion, representing excellent cash conversion again, helped by the material cash initiatives we undertook in the year. Full-year cash flow at €12.5 billion was €1.5 billion above our full-year guidance on a scenario-adjusted basis. Thanks to a release in working capital and our actions around the portfolio, we were able to fund our CapEx shareholder distributions, and other commitments, and also to significantly reduce debt. Gross organic capex in the quarter was 2.6 billion euro, taking the full year figure to 8.5 billion euro, 0.5 billion less than our original plan. Valorizations and portfolio activities have raised around 10 billion euro over the past two years. In 2025, we completed more than €6.5 billion in valorization and portfolio activity, which meant that, adjusting to a performer basis, net capex was lower than €5 billion, around €2 billion below our original plan. But 2025 is not a one-off year. For 2026, we expect... to limit our gross capex to around 7 billion euro and net capex at around 5 billion euro. We reduce net debts over 2025 by almost 3 billion, as we said, bringing gearing to 15% at the year end or 14% on pro forma basis. We can confirm that we expect performer gearing in 2026 to remain at historically low levels at between 10 to 15%. Our shareholder distribution details we have to revert to the CMU in March, but we can confirm a full funded attractive and growing dividend is our first priority. In the last five years, we have raised the dividend by an average of 5% per year, reflecting underlying growth and the reduction of sharing issues. At the same time, we have an additional tool of distribution via the buyback that reflects our policy of sharing cash flow, generation and upside. In 2025, for example, we raised the buyback by 20%. The third occasion in the past four years, we have increased distributions. In conclusion, 2025 was a clear outcome of any strategy in action. Looking ahead, we will update on our plan in March, but strategy remains unchanged. The choices we make in how we do business are driven by our industrial, technological and commercial strength and by a business model that has proven to perform in strong and soft market conditions. The upstream will grow organically at a sector-leading rate, leveraging our inspirational successes and our proven ability to fast-track time to market. while managing costs and delivering the value from our business combinations and partnerships. On the energy transition, we will deliver the programs outlined for Plenitude and Enelive, while developing CCS, fusion, battery storage and data centers for hyperscalers coupled with Blue Power, and exploring opportunities in critical minerals. Portfolio activity will again be material in 2026 as we continue to pursue disciplined capital alignment and value disclosure. In March, we will share with you the details that underpin this outlook and which support continued highly attractive investor returns. And now, the rest of any top managers are ready to take your questions. Thank you.

Thank you, this is the conference operator. Please press star and one for questions. First question is from Alejandro Vigil Santander.