Q2 2026 Eni SpA Earnings Call

July 29, 2026

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Speaker #1: I'm so excited, and I just can't hide it. I'm about to lose control, and I think I like it. I'm so excited, and I just can't hide it.

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Speaker #1: No, no, no. I'm about to lose control and I think I like it. I'm so excited and I just can't hide it. No, no.

Operator 1: No, no. I'm about to lose control and I think I like it. I'm so excited, and I just can't hide it. Oh, whoa. I know, I know, I know, I know, I know I want you, I want you

Speaker #1: I know, I know, I know, I know, I know I want you. I want you. Good afternoon, ladies and gentlemen, and welcome to ENI's 2026 first half results conference call, hosted by Mr. Claudio Descalci, Chief Executive Officer.

Operator 2: Good afternoon, ladies and gentlemen, and welcome to Eni's 2026 H1 Results Conference Call hosted by Mr. Claudio Descalzi, Chief Executive Officer. For the duration of the call, you will be in listen-only mode. At the end of the call, you will have the opportunity to ask questions by pressing star and one on your telephone. I am now handing you over to your host to begin today's conference. Thank you.

Operator: Good afternoon, ladies and gentlemen, and welcome to Eni's 2026 H1 Results Conference Call hosted by Mr. Claudio Descalzi, Chief Executive Officer. For the duration of the call, you will be in listen-only mode. At the end of the call, you will have the opportunity to ask questions by pressing star and one on your telephone. I am now handing you over to your host to begin today's conference. Thank you.

Speaker #1: 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, then one. Over to your host to begin today's conference.

Speaker #1: Thank you.

Speaker #2: Thank you. Good morning. Good afternoon. for being with us today. Our second quarter and first half result clearly reflect our successful execution of the strategy.

Claudio Descalzi: Thank you. Good morning. Good afternoon for being with us today. Our Q2 and H1 result clearly reflect our successful execution of the strategy and the objectives we have consistently communicated. In Q2, ENI generated EUR 5.4 billion pro forma EBIT and EUR 2.3 billion net income, both doubling year on year. EUR 4.5 billion of cash flow from operation up over 60%. This growth significantly outpaced the increase in Brent prices over the same period, demonstrating the strength of our operating leverage and our ability to absorb a highly unfavorable foreign exchange environment. Looking at H1 of the year, we deliver a remarkable 40% year-on-year increase in pro forma EBIT. Reported gearing remained stable quarter on quarter, while pro forma gearing declined to 10%, reaching the lower end of our target range.

Speaker #2: And the objectives we have consistently communicated. In Q2, any generated 5.4 billion euro proforma EBIT and 2.3 billion euro net income both doubling year on year and 4.5 billion euro of cash flow from operation up over 60%.

Speaker #2: These growth significantly outpaced the increase in brand prices over the same period. Demonstrating the strength of our operating leverage and our ability to absorb highly unfavorable foreign exchange environment.

Speaker #2: Looking at the first half of the year, we delivered a remarkable 40% year-on-year increase in proforma EBIT. Reported gearing remained stable quarter-on-quarter, while proforma gearing declined to 10%, reaching the lower end of our target range.

Speaker #2: Overall, this performance reflects excellent operational execution effective capture of market opportunities and continued delivery of our consistent strategy. The first half of 2026 marked by the emergence of a new crisis in the Gulf has once again exposed our industry to extraordinary volatility.

Claudio Descalzi: Overall, this performance reflects excellent operational execution, effective capture of market opportunities, and the continued delivery of our consistent strategy. H1 2026, marked by the emergence of a new crisis in the Gulf, has once again exposed our industry to extraordinary volatility. ENI has demonstrated its ability to effectively mitigate external pressures. Our resilience is underpinned by a broad geographic diversification, strong operational efficiency, and the deployment of proprietary technologies. At the same time, our robust organic growth continues to be fueled by our outstanding exploration success and a deep pipeline of development opportunities. Most importantly, our growth is increasingly multidimensional. While Exploration & Production remains our highly competitive core business, we are rapidly scanning attractive growth platforms right across the energy value chain. Specifically, I would like to highlight three key pillars of our strategy. First, diversification.

Speaker #2: Yet, as demonstrated, is the ability to effectively mitigate external pressures. Our resilience is underpinned by broad geographic diversification, strong operational efficiency, and the deployment of proprietary technologies.

Speaker #2: At the same time, our robust organic growth continues to be fueled by our outstanding aspiration, success, and a deep pipeline of developing opportunities. Most importantly, our growth is increasingly multidimensional.

Speaker #2: While exploration and production remains our highly competitive core business, we are rapidly scanning attractive growth platforms right across the energy value chain. Specifically, I would like to highlight three key pillars of our strategy.

Speaker #2: First, diversification. We are well diversified across geographies, businesses, and technologies. While some of our operations have been affected by events in the Middle East, the overall impact has not been material.

Claudio Descalzi: We are well-diversified across the geographies, businesses, and technologies. While some of our operations have been affected by events in the Middle East, the overall impact has not been material. Actions taken in 2026 have further strengthened this diversification, increasing our exposure to Asia and South America, expanding our transition-related businesses, and opening new opportunities in trading activities, critical minerals, and stationary batteries. Second, growth. We continue to deliver a unique double engine of growth, combining industry-leading organic upstream production with a rapid parallel expansion in low carbon energy. Third, financial performance. We continue to generate outstanding financial results, with over 60% of our original plan targets already met year to date. Thanks to the fast time to market of our projects.

Speaker #2: Actions taken in 2026 have further strengthened this diversification increasing our exposure to Asian and South America, expanding our transition-related businesses, and opening new opportunity in trading activities critical minerals and stationary batteries.

Speaker #2: Second, growth. We continue to deliver a unique double engine of growth combining industry leading organic upstream production with a rapid parallel expansion in low carbon energy.

Speaker #2: Third, financial performance. We continue to generate outstanding financial results, with over 60% of our original planned targets already met year to date, also thanks to the fast time to market of our projects.

Speaker #2: Our satellite model is increasingly acknowledged as a material positive differentiator for Eni. It continues to de-risk the balance sheet, attracting third-party capital to fund our expansion across new technologies and geographies.

Claudio Descalzi: Our satellite model, increasingly acknowledged as a material positive differentiator for ENI, continues to de-risk the balance sheet, attracting third-party capital to fund our expansion across new technologies and geographies. Turning to upstream, we delivered an outstanding 8% year-on-year reported production growth. In H1 of the year, or 11% underlying, we fully offset Middle East volume losses thanks to the efficient execution of major operating projects, including Algaita-01 in Angola, Amoca in Mexico, Congo LNG Phase 2, as well as a strong contribution from Vår Energi. This growth is entirely organic and reflects investment and exploration successes achieved over several years. As discussed during Q1, our unique 2026 exploration performance has added over 1 billion barrel of new resources supported by credible development pathways.

Speaker #2: Turning to upstream, we delivered an outstanding 8% year on year reported production growth. In the first half of the year, over 11% underlining, we fully offset Middle East volume losses thanks to the efficient execution of major operative projects including Agogo, in Angola, Amoka in Mexico, Congo LNG phase two, as well as a strong contribution from Vor Energy.

Speaker #2: This growth is entirely organic and reflects investment and aspiration successes achieved over several years. As discussed during Q1, our unique 2026 aspiration performance has added over 1 billion barrels of new resources, supported by credible development pathways.

Speaker #2: This success is driven by key discoveries, including Algaita 01 in Angola, Muren South 1 in Côte d'Ivoire, two offshore gas discoveries near Bar Salam in Libya, the Denis discovery offshore Egypt, and the giant Galiga 1 gas condensate discovery in Indonesia.

Claudio Descalzi: This success is driven by key discoveries, including Algaita-01 in Angola, Murene South-1X in Côte d'Ivoire, two offshore gas discoveries near Bahr Essalam in Libya, the initial discovery offshore Egypt, and the giant Galiga-1 gas condensate discovery in Indonesia. We have further refreshed our future pipeline with new acreage position in Uruguay, Timor-Leste, and the Gambia. Furthermore, to secure our medium-term production capacity during the plan period, we have sanctioned three major projects. Baleine Phase 3 in Côte d'Ivoire, Geng North in Indonesia, and Cronos in Cyprus. Beyond these projects, we are shaping our global footprint through the blue build-up of two diversified regional clusters. In Asia, the Sierra Business combination, completed in June, created our largest satellite platform to date and established a leading player in the Pacific region. Initial production exceeded expectations, surpassing 300,000 barrels per day and backed by a 3 billion barrels reserves upside.

Speaker #2: We have further refreshed our future pipeline with new acreage position in Uruguay, Timor-Leste, and the Gambia. Furthermore, to secure our medium-term production capacity during the planned period, we have sanctioned three major projects.

Speaker #2: Balin phase three, in Côte d'Ivoire, Genk North in Indonesia, and Kronos in Beyond these projects, we are reshaping our global footprint through the blue buildup of two diversified regional clusters.

Speaker #2: In Asia, the CR business combination completed in June created our largest satellite platform to date and established a leading player in the Pacific region.

Speaker #2: Initial production exceeded expectations, surpassing 300,000 barrels per day and backed by a 3 billion barrel reserves upside. It has a clear path to approach 800,000 barrels per day by 2030.

Claudio Descalzi: It has a clear path to approach 800,000 barrels per day by 2030. In the Americas, we continue to advance significant opportunities in Argentina and Venezuela, which together with our existing position in Mexico and the United States, represent an increasingly important component of our upstream portfolio. In detail, in Venezuela, we are finalizing a negotiation for new contracts for Junín-5 and Corocoro. Simultaneously, we have finalized the gas export agreement for the giant Perla field. Collectively, our footprint in Venezuela unlocks an outstanding gross potential more than 5.5 billion barrels of recoverable resources. Meanwhile, in Argentina, our newly consolidated asset hold an exceptional 25 Tcf of gas, equivalent to 4.3 billion barrels of recoverable resources, plus an additional 500 million barrels of condensate, bringing total gross recoverable resources in the country to 4.8 billion barrels.

Speaker #2: In the Americas, we continue to advance significant opportunities in Argentina and Venezuela which together with our existing position in Mexico and the United States represent an increasingly important component of our upstream portfolio.

Speaker #2: In detail, in Venezuela we are finalizing a negotiation for new contracts for Kunin 5 and Coro Coro. Simultaneously, we have finalized the gas export agreement for the giant Perla field.

Speaker #2: Collectively, our footprint in Venezuela unlocks an outstanding gross potential of more than 5.5 billion barrels of recoverable resources. Meanwhile, in Argentina, our newly consolidated asset holds an exceptional 25 TCF of gas, equivalent to 4.3 billion barrels of recoverable resources, plus an additional 500 million barrels of condensate, bringing total gross recoverable resources in the country to 4.8 billion barrels.

Speaker #2: The new material initiatives in Argentina, Venezuela, East Asia, together with our African portfolio, provide absolute confidence in our long-term trajectory. As a result, we now expect production growth to be around 4% CAGR through 2030, while we are also developing unique visibility on a further wave of growth opportunities beyond 2030.

Claudio Descalzi: The new material initiatives in Argentina, Venezuela, East Asia, together with our African portfolio, provide absolute confidence in our long-term trajectory. As a result, we now expect production growth to be around 4% CAGR guidance through 2030, while we are also developing a unique visibility on a further wave of growth opportunities beyond 2030. Importantly, through portfolio high grading and strategic moves like our recently announced Mercuria joint venture, this volume growth will translate directly into cash flow, underpinning our primary target, growing our upstream free cash flow per barrel by more than 50% by 2030. Our Q2 results demonstrate Eni's ability both to capture favorable market conditions and to enhance underlying profitability. E&P delivered outstanding production growth and successfully captured the benefits of the market environment, with particular strong contributions from Norway and Congo.

Speaker #2: Importantly, through portfolio high grading and strategic moves like our recently announced Mercurio joint venture, this volume growth will translate directly into cash flow underpinning our primary target growing our upstream free cash flow per barrel by more than 50% by 2030.

Speaker #2: Our Q2 results demonstrate any stability both to capture favorable market conditions and to enhance underlining profitability. EMP delivered outstanding production growth and successfully captured the benefits of the market environment with particular strong contributions from Norway and Congo.

Speaker #2: GGP generated proforma EBIT of €0.47 billion, confirming better than expected performance and supporting a further increase in our EBIT guidance to over €1.4 billion.

Claudio Descalzi: GGP generated pro forma EBIT of EUR 0.47 billion, confirming better-than-expected performance and supporting a further increase in our EBIT guidance to over EUR 1.4 billion. We also see additional upside potential in the H2, supported by current pricing conditions and inventory replenishment dynamics. Plenitude and Eni together generated EUR 670 million pro forma EBITDA in the quarter, and EUR 1.12 billion in the H1, supporting an increase in full-year guidance to EUR 2.6 billion, compared with the original EUR 2.4 billion. Within transformation businesses, refinery utilization recovered following the major turnaround activities completed during the H1. Versalis also continued to reduce losses in line with the improvement plan, also supported by better market conditions. Contribution from associates benefited from supporting macroeconomic conditions and the consolidation of Sierra from June onwards.

Speaker #2: We also see additional upside potential in the second half supported by current pricing conditions and inventory replenishment dynamics. Plenty to the Eneli now together generated 670 million euro proforma EBITDA in the quarter and 1.13 billion euro in the first half supporting an increase in full year guidance to 2.6 billion euro compared with the original 2.4 billion euro.

Speaker #2: Within transformation businesses, refinery utilization recovered following the major turnaround activities completed during the first half Versalis also continued to reduce losses in line with the improvement plan also supported by better market conditions.

Speaker #2: Contribution from associates benefited from supportive microeconomic conditions and the consolidation of CR from June onward. The first-half tax rate of approximately 39% was below our full-year guidance, reflecting the impact of high-grading upstream production, the accounting impact of satellite, the transition toward a more sustainable and diversified overall income mix, and the benefit of our structuring and performance improvement initiatives.

Claudio Descalzi: The H1 tax rate of approximately 39% was below our full-year guidance, reflecting the impact of high grading upstream production, the accounting impact of Satellite, the transition toward a more sustainability diversified overall income mix, and the benefit of our restructuring and performance improvement initiatives. Cash Flow From Operations remains strong, supported by dividend contribution from associates and continued working capital improvement. Operational working capital generated a positive contribution in the quarter. Sorry. We continue to expect an overall reduction throughout 2026. Capital expenditure amounted to EUR 1.8 billion in Q2, we continue to expect approximately EUR 7 billion gross CapEx for the full year, while we also reduced the net figure to below EUR 5 billion. We paid the fourth and final quarterly dividend related to 2025, repurchased EUR 600 million shares since 2021. Outstanding shares have been reduced by around 18%.

Speaker #2: Cash flow from operations remains strong, supported by dividend contributions from associates and continued working capital improvement. Operational working capital generated a positive contribution in the quarter, and we continue to expect an overall reduction throughout 2026.

Speaker #2: Capital expenditure amounted to 1.8 billion euro in Q2 and we continue to expect approximately 7 billion euro of gross capex for the full year while we also reduce the net figure to below 5 billion euro.

Speaker #2: We paid the fourth and final quarter dividend related to 2025 and repurchased 600 million euro of shares since 2021 21 outstanding shares have been reduced by around 18%.

Speaker #2: In light of the raised guidance for Q4 to €15 billion, we now expect to repurchase €3.4 billion of shares in the 2026 program.

Claudio Descalzi: In light of the raised guidance for CFFO to EUR 15 billion, we now expect to repurchase EUR 3.4 billion of shares in the 2026 program, representing a combined yield to our investor of around 10%. Pro forma gearing at the quarter end remained at 10%, the lower end of our target range, we expect the quarter gearing to converge toward that level by year-end. In conclusion, the combination of our upstream positioning and growth outlook, our integration across the entire energy value chain, the increasing value creation from our transition businesses, and our strong financial foundations position us competitively in a world that has entered a new energy paradigm. This is confirmed by the revised guidance for most of our businesses that translates into an increased distribution. Underlying oil and gas production growth is now seen exceeding 5% above the upper end of the previous range.

Speaker #2: Representing a combined yield to our investor of around 10%. Proforma gearing at the quarter end remain at 10% the lower end of our target range and we expect reported gearing to co converge toward that level by year end.

Speaker #2: In conclusion, the combination of our upstream positioning and growth outlook our integration across the entire energy value chain the increasing value creation from our transition businesses and our strong financial foundations position us competitively in a world that has entered a new energy paradigm.

Speaker #2: This confirmed by the revised guidance for most of our businesses that translate in an incre in an into an increased distribution. Underlying oil and gas production growth is now seen exceeding 5% to both the upper end of the previous range GGP proforma EBIT is raised to over 1.4 billion euro plus 40% compared with the initial level any proforma adjusted EBITDA is revised up by 18% at 1.3 billion euro and at the revised scenario of 85% dollar per barrel brand adjusted CFFO is expected at 15 billion euro the turning a higher buyback of 3.4 billion euro.

Claudio Descalzi: GGP pro forma EBIT is raised to over EUR 1.4 billion, +40% compared with the initial level. Enilive pro forma adjusted EBITDA is revised up by 18% at EUR 1.3 billion. At a revised scenario of 85% dollar per barrel Brent, adjusted CFFO is expected at EUR 15 billion, determining a higher buyback of EUR 3.4 billion. The new buyback represents 127% increase over the initial guidance of EUR 1.5 billion at the budgeted cash flow. The potential special dividend related to oil price above $90 per barrel or gas price and Certified Emission Reductions margin. More than 50% of the original budget assumptions will be determined in the last quarter. In this environment, Eni is in one of the strongest positions in its history. That concludes my remarks, together with my colleagues from Eni management team, I am ready to take your questions. Thank you.

Speaker #2: The new buyback represents a 127% increase over the initial guidance of €1.5 billion at the budgeted cash flow. The potential special dividend, related to an oil price above $90 per barrel or gas price and CERM margin more than 50% of the original budget's assumptions, will be determined in the last quarter.

Speaker #2: In this environment, Eni is in one of the strongest positions in its history. That concludes my remarks, and together with my colleagues from the Eni management team, I'm ready to take your questions.

Speaker #2: Thank you.

Speaker #1: Thank you. This is the conference operator. Please press *1 for your questions and *2 to remove yourself from the question queue.

Operator 2: Thank you. This is the conference operator. Please press Star and One for your questions, and Star Two to remove yourself from the question queue. I now leave the floor to Mr. Jon Rigby for the Q&A session.

Operator: Thank you. This is the conference operator. Please press Star and One for your questions, and Star Two to remove yourself from the question queue. I now leave the floor to Mr. Jon Rigby for the Q&A session.

Speaker #1: I now leave the floor to Mr. John Rigby for the Q&A session.

Speaker #3: Thank you, and thank you, everybody, for attending. We're going to go through this in polling order again. I ask you to keep your questions to two, if that's okay, and we'll aim to finish the call around the top of the hour.

Jon Rigby: Thank you. Thank you everybody for attending. We're going to go through this in polling order again to ask you to keep your questions to 2, if that's okay, and we'll aim to finish the call around the top of the hour. We'll start with Alejandro Vigil at Santander. Alex.

Jon Rigby: Thank you. Thank you everybody for attending. We're going to go through this in polling order again to ask you to keep your questions to two, if that's okay, and we'll aim to finish the call around the top of the hour. We'll start with Alejandro Vigil at Santander. Alex.

Speaker #3: we'll start with Alejandro Vigil at Santander. Alex.

Speaker #4: Yes. thank you for taking my questions. The first question is about the guidance about production definitely this year looks very strong also with the CR consolidation.

Alejandro Vigil: Yes. Thank you for taking my questions. The first question is about the guidance about the production. Definitely this year looks very strong also with the Sierra consolidation. If you can give us some numbers about the outlook of 2030 of production, just to have some indication of the range of potential volumes that year. The second question is about the European natural gas market. You mentioned that in the guidance for Global Gas & LNG Portfolio, you are not including any upside from the current situation. If you can elaborate about how you see the H2 of the year. Thank you.

Speaker #4: If you can give us an numbers about the the the outlook of 2030 of production just to have some indication of the range of potential volumes that year.

Speaker #4: And the second question is about the European natural gas market. You mentioned that in the guidance for global gas and LNG you are not including any upside from from their current situation.

Speaker #4: If you can elaborate about how you see this second half of the year. Thank you.

Speaker #3: Thank you. for production outlook I think I I think I widow will take over for the question and where is where is that okay is there Christian is there for for gave you an update on the gas in the second half as you asked yeah so on on production of course you notice that we have improved our guidance in 2026 originally we we provided a range of three to 4% growth underlying which now we increase to 5% and this is coming for from higher contribution from some country like Libya Mexico Kazakhstan and of course the anticipation of the business combination in Sara while for the 2030 we have also provided I mean a stronger support to our originally provided guidance and you have noticed that we have accelerated some major FID we have included some project which initially were beyond 2030 and that we have now anticipated to the 20 to the 2030 plan.

Claudio Descalzi: Thank you. For production outlook, I think Guido will take over for the question. Cristian is there for give you an update on the gas in the H2 as you asked.

Guido Brusco: Yeah. On production, of course, you notice that we have improved our guidance in 2026. Originally we provided a range of 3% to 4% growth underlying, which now we increased to 5%. This is coming from a higher contribution from some country like Libya, Mexico, Kazakhstan and of course, the anticipation of the business combination in Sierra. While for the 2030, we have also provided a stronger support to our originally provided guidance. You have noticed that we have accelerated some major FID. We have included some project which initially were beyond 2030 and that we have now anticipated to the 2030 plan.

Speaker #4: So just to give some more color on on our production if we look at all the projects that were in the in our slide we have 54 projects they're coming from our organic growth so our aspiration is something that is coming from the aspiration we perform in the last 10 years and most of these projects are really in a very advanced some we talk the FID some are really in execution but most of them are with the POD done so that is going to give the 4% widow said by 2030 and is going to confirm a a solid growth also after 2030 so when it comes to the gas market scenario for the second half I would say our scenario is currently in line with the forward curves as you can see but I think we can say that the situation is fairly fragile given the the geopolitical situation and the let's say delaying the replenishment of the European storage so we think that depending clearly on the on the evolution of the situation we we we we can see upside potential in terms of volatility and flat price numbers when it comes to the second half and I think the idea is that we are ready clearly with our assets to get to take advantage of that situation that's it.

Claudio Descalzi: Just to give some more color on our production. If we look at all the projects that were in our slide, we have 54 projects. They're coming from our organic growth. Our exploration clearly is something that is coming from the exploration we performed in the last 10 years. Most of these projects are already in a very advanced, some we talk the FID, some are really in execution, but most of them are with the POD done. That is going to give that 4% Guido said by 2030, is going to confirm a solid growth also after 2030.

Guido Brusco: When it comes to the gas market scenario for the H2. I would say our scenario is currently in line with the forward curves, as you can see. I think we can say that the situation is fairly fragile given the geopolitical situation and the, let's say, delay in the replenishment of the European storage. We think that depending clearly on the evolution of the situation, we can see upside potential in terms of volatility and flat price numbers when it comes to the H2. I think the idea is that we are ready, clearly with our assets to take advantage of that situation.

Claudio Descalzi: That's it.

Speaker #3: Thanks, Alex. We're going to now move on to Biraj Bakatari at RBC. Biraj, are you there?

Jon Rigby: Thanks, Alex. We can now move on to Biraj Borkhataria at RBC. Biraj, are you there?

Speaker #5: the first just on Venezuela which you touched on in your initial remarks there were some reports recently that the government had presented new terms to the industry I'm just wondering if you thought those were sufficient to drive investment beyond 2027 and 28 and more on the oil side than the gas side.

Biraj Borkhataria: The first was just on Venezuela, which you touched on in your initial remarks. There were some reports recently that the government had presented new terms to the industry. I'm just wondering if you thought those were sufficient to drive investment beyond 2027 and 2028, I'm thinking more on the oil side than the gas side. The second question is just on refining. The strength in the downstream has been the big theme this quarter. I know you don't have a huge amount of exposure to this, but I just noticed your indicator was down quarter-on-quarter. I guess, we're looking at the cracks on the screen, which are very strong. Could you just help me understand why you're not able to take advantage of that and how we should think about that going to the H2? Thank you.

Speaker #5: and then the second question is just on refining the strength in the downstream has been a big theme this quarter. I know you don't have a huge amount of exposure to this but I just noticed your your indicator was down quarter on quarter I guess we're looking at the cracks on the screen which are very strong so could you just help me understand you know why you're not able to take advantage of that and how we should think about that kind of going to the second half.

Speaker #5: Thank you.

Claudio Descalzi: Si. Venezuela, now if maybe Guido can complement what I'm going to say. Venezuela, we are in negotiation. Very open, clear, and transparent, very good negotiation. We are discussing very well, with the minister, with PDVSA. Clearly also with our American partners, we have a big potential, as we said. We have one of the best block in five. We have Corocoro. We have Perla, for which we already signed a contract. That has been very quick. A couple of months ago, we signed a contract for export. That is very good because it's going to complement our domestic production, that give even more breadth and more space for future investment. As you know, we already developed most of the infrastructure for the second phase, we can really go fast for the second phase and then put in place a floating LNG for export.

Speaker #4: So Venezuela now if maybe widow can complement what I'm going to say Venezuela we are in negotiation very very open clear and transparent very good negotiation we are discussing very well with the minister with Peter Veza clearly also with our American partners and you know we have big potential as we said we have one of the best block in five we have a we have a quarter quarter we have parallel for which we already signed a contract that has been very very very quick in a couple months ago we signed a contract for export that is is very good because it's going to complement our domestic production and that give even more more breath and more space for future investment as you know we already developed all the most of the infrastructure for the second phase so we can really go fast for the second phase and then put in place the floating LNG for export so up to now Venezuela is responding very well clearly we are going to negotiate a contract that allow us to make investment we have to remember the history of this country it's not that we forgot what we had in the past so we we we are prudent but I think that what happened until now is encouraging us to go to go ahead with our Venezuela partner with Peter Veza in and the minister just to talk about Sam I like that maybe Francesco say something about Sam and then if there is anything to add for Venezuela or in general for downstream also Pino can add something and Stefano Balista if there is something for the biofuel refineries.

Claudio Descalzi: Up to now, Venezuela is responding very well. Clearly, we are going to negotiate a contract that allow us to make investments. We have to remember, the history of this country. It's not that we forgot what we had in the past. We are prudent, but I think that what happened until now is encouraging us to go ahead with our Venezuelan partner, with PDVSA, and the minister. Just to talk about CIRM, I like that maybe Francesco say something about CIRM, if there is anything to add for Venezuela or in general for downstream, Pino can add something, and Stefano Ballista, if there is something for the biofuel refineries.

Francesco Gattei: Yes. About our benchmark refining margin, clearly this benchmark is a nominal value that is representing a status, that is a normalized status of the market. It takes account of the crudes that are generally imported in our refineries, taking account of the freight costs that are normally assumed for this transportation and for these logistic events. The situation that we faced since March are completely out of norm. The CIRM that you can read on a just generic way is not the actual margin that we are able to capture because there are some factors of discount, mainly higher freight cost, higher logistic cost, differential of crudes that are not matching the original crudes that were included in the formula, different yields.

Speaker #4: Yes about our benchmark refining margin clearly this benchmark is let's say a nominal value that is representing a status that is normalized status of the market so it takes account of the crudes that are generally imported in our refineries taking account of the freight cost that are normally assumed for this transportation and for this logistic events the situation that we faced since March are completely let's say out of norm so the term that you can read on adjust generic way is not the actual margin that we are able to capture because there are some factors of discount mainly higher freight cost higher logistic cost differential of crudes that are not matching the original crudes that were included in formula different hills and also there is some hedging let's say factors that weighted because we covered a small portion of the of the throughput during during the quarters because we take advantage of the of the of the scenario clearly the spike that occurred in the last month is so let's say material that has limited this this opportunity in general you have to consider that what you read as an average on a nominal term to be converted in our actual figure will be with a discount of two three dollar per barrel

Francesco Gattei: Also there is some hedging, let's say, factors that weighted because we covered a small portion of the throughput during the quarters because we take advantage of the scenario. Clearly, the spike that occurred in the last month is so, let's say, material that has limited this opportunity. In general, you have to consider that what you read as an average on a nominal CIRM, to be converted in our actual figure will be with a discount of EUR 2, EUR 3 per barrel.

Guido Brusco: Okay. It's very clear. The fundamental is, in any case, that we have completed all the turnaround in Q1 and some Q in Q2, in Q2. We are very able to maintain the maximum capacity in Q3. That it means with this current margin, a lot of rise.

Speaker #1: Okay it's it's very clear the the fundamental is in any case that we have completed all the turnaround in the first and some queue in the second queue in second quarter and so we are very able to maintain the maximum capacity in the third coup and that it means with this current marging a lot of residents if I may I'd like

Claudio Descalzi: Guido.

Guido Brusco: If I may, I'd like to complement with some operational information. On the gas business, Venezuela, of course. On the gas business, as you know, in March, we have signed a sustainability agreement on cargo on Cardón IV. PDVSA is honoring this agreement, so is providing cargo to pay the current gas invoices. On the other hand, we are preparing a plan of development for Perla to export gas, the filing of this POD is imminent. On the oil business, as Claudio said, we are at the very final stage of the negotiation, we have also prepared ourself, and we are ready to mobilize, as soon as we sign this contract, rigs, to exploit the resources there and make use of the spare capacity that the facilities in Venezuela have to increase production, of course.

Speaker #4: to complement with some operational information on on the gas business Venezuela of course on the gas business as you know in March we have signed a sustainability agreement on carbon four and the and Peter Veza is honoring this agreement so he's providing cargo to pay the current gas invoices on the other hand we are preparing a plan of development for for Perla to export gas and the filing of this POD is is imminent on the on the oil business as Claudio said we are at the very final stage of the negotiation and we have also prepared ourselves and we are ready to mobilize as soon as we we sign this contract rigs to exploit the the resources there and make use of the spare capacity that the facilities in in Venezuela have to to to increase production of course

Biraj Borkhataria: Thank you.

Speaker #5: Thank you all. Thanks, Garage. We're now going to move to Josh Stone at UBS. Josh?

Jon Rigby: Thanks, Biraj. We're now going to move to Josh Stone at UBS. Josh.

Josh Stone: Yeah. Thanks, Jon, and good afternoon. Two questions, please. Firstly, on CapEx, thanks for the project list on slide six. It's useful. If I understand correctly, you want to develop these new projects without increasing spending. It sort of brings up the question of which bridge projects are falling off the list. I noticed in your release there was some impairment related to a slowdown in more marginal fields. Maybe anything around the sort of which fields are more marginal, which geographies are more marginal to make room for these new projects would be useful. Thanks. Then second question on chemicals. The losses clearly narrowed this quarter, but you're still losing money. Maybe just talk about the trend of earnings, what you're seeing for margins in chemicals, and how much of the improvement could be attributed to self-help versus the wider macro. Thank you.

Joshua Stone: Yeah. Thanks, Jon, and good afternoon. Two questions, please. Firstly, on CapEx, thanks for the project list on slide six. It's useful. If I understand correctly, you want to develop these new projects without increasing spending. It sort of brings up the question of which bridge projects are falling off the list. I noticed in your release there was some impairment related to a slowdown in more marginal fields. Maybe anything around the sort of which fields are more marginal, which geographies are more marginal to make room for these new projects would be useful. Thanks. Then second question on chemicals. The losses clearly narrowed this quarter, but you're still losing money. Maybe just talk about the trend of earnings, what you're seeing for margins in chemicals, and how much of the improvement could be attributed to self-help versus the wider macro. Thank you.

Speaker #6: Yeah thanks John and good afternoon two questions please firstly on capex and thanks for the project list on slide six it's useful if I understand correctly you want to develop these new projects without increasing spending so it sort of brings up the question of what which which projects are falling off the list and I noticed in your release there was some impairment related to a slowdown and more marginal fields so maybe anything around the sort of which fields are more marginal which geographies are more marginal to make room for these new projects would be useful thanks and then second question on on chemicals the you know losses clearly narrowed this quarter but yeah still still losing money maybe just talk about the trend of earnings what you're seeing for margins in chemicals and how much of the improvement could be attributed to to self-help versus the wider macro thank you

Claudio Descalzi: For CapEx, it's true, we are growing. Also we demonstrate in the last couple of years that we are growing without increasing CapEx. That means that it comes from at least two factors. One, that we are very effective and efficient in developing fields. In the last project, I think in the last 10 projects that we developed, I talk about last project, we respect not just the timing, but also the budget. We never exceed our budget. That is a very critical point in the upstream, especially when you develop deep offshore or floating LNG or other stuff that you're able to respect time and budget. Secondly, as you know, we create a different kind of economic model.

Speaker #7: So for for capex so it's true we are we are we are growing and also we demonstrate in the last couple of years that we are growing without increasing capex that means that it comes from at least two factor one that our we are very effective at the fee in efficient in developing field so in the last project I think in the last 10 projects that we developed I I talk about last project we respect not the time not just the timing but also the budget so we never exceed our budget that is a very a very critical point in the upstream especially when you develop deep offshore or floating LNG or other stuff that you're able to respect time and budget secondly are we as you know we create a different kind of economic model so satellite model through which we the consolidate and through the growth component and the growth component and the value component they have production they can justify them they they investment without really creating additional burden on our on our balance sheet and that allow us to go faster and keep a very a very clean or light balance sheet that allow us to be to expand or increase our remuneration forestry for example that is as you know is our priority that what we demonstrate in the last couple of years so it's not a question to delete or write off as you sell marginal field remember we never write off marginal fee we we farm out through a M&A process that was very successful through which we we got we got got some good income but I think that's the reason the two principle reason is what I I said I tell you I told you so I don't know if you want to whether to add something otherwise I I give the ball I pass the ball to Adriano to talk about chemicals and chemical trend and how we're going to do sure future

Claudio Descalzi: Satellite model, through which we consolidate and through the growth component and the value component, they have production, they can justify the investment without really creating additional burden on our balance sheet. That allows us to go faster and keep a very clean or light balance sheet that allow us to expand or increase our remuneration policy, for example. That is, as you know, is our priority, and that what we demonstrate in the last couple of years. It's not a question to delete or write off a cell marginal field. We never write off marginal field. We farm out through a M&A process that was very successful, through which we got some good income. I think that's the reason, the two principal reason is what I tell you. I don't know if you want to, Guido to add something.

Claudio Descalzi: Otherwise, I give the ball, I pass the ball to Adriano to talk about chemicals and chemical trend and how we're going to do.

[Company Representative] (Versalis): Sure

Adriano Alfani: Sure

Claudio Descalzi: in the future.

[Company Representative] (Versalis): Josh, thanks for the question. As you were describing the question, the result in thermochemical is improving quarter-over-quarter. In Q2 compared to the same quarter of last year, we have seen a major improvement in the range of three digit, above three digit. We need to make a distinction between what is transformation and what is a scenario that also as you ask. In thermal transformation, we are performing in line with the what we say to the market, that respect that on yearly basis, we have in the ballpark of EUR 250 million. If you see right now the trajectory of result of the transformation, we are a little above 10% above this target of EUR 250. Right now, we estimate more in the range of EUR 280, 300 million. Part is also scenario.

Adriano Alfani: Josh, thanks for the question. As you were describing the question, the result in thermochemical is improving quarter-over-quarter. In Q2 compared to the same quarter of last year, we have seen a major improvement in the range of three digit, above three digit. We need to make a distinction between what is transformation and what is a scenario that also as you ask. In thermal transformation, we are performing in line with the what we say to the market, that respect that on yearly basis, we have in the ballpark of EUR 250 million. If you see right now the trajectory of result of the transformation, we are a little above 10% above this target of EUR 250. Right now, we estimate more in the range of EUR 280, 300 million. Part is also scenario.

Speaker #1: Josh thanks for the question as you well describe in the question the result in thermochemical is improving quarter over quarter in the second quarter compared to the same quarter of last year we have seen a major improvement in the range of three digit above three digit we need to make a distinction between what is transformation and what is a scenario that also as you ask in thermal transformation we are performing in line with the what we say to the market that we expect that on yearly base we have in the ballpark of 250 million and if you see right now the trajectory of result of the transformation we are a little above 10% above this target of 250 right now we estimate more in the range of 280 300 million part is also scenario we have seen an improvement in the scenario in the second half you need to consider the net impact of the scenario because you know that we are energy intensive or feedstock intensive so of course whatever you have seen in term of increase of feedstock energy we of course is higher cost for us but we have seen also a shortage in the market not an increase of demand this is something that we should ground as a scenario there is no increase of demand but is a shortage of product because for six eight weeks due to the Ormut's closure we have not seen import from Middle East but after eight eight weeks we have seen an increase of import of US so whatever party was not coming from Middle East has been replaced so we are now back to the starting point but for sure in the second quarter we have seen an improvement of the scenario to the last part of your question how much is this trajectory going forward is based on what we declared to the market we expect to continue to improve performance due to transformation of the improvement on yearly base for coming years is a 50% transformation 50% this new platforms more or less

[Company Representative] (Versalis): We have seen an improvement in the scenario in H2. You need to consider the net impact of the scenario because you know that we are energy intensive or feedstock intensive. Of course, whatever we have seen in terms of increase of feedstock energy, we, of course, is higher cost for us. We have seen also a shortage in the market, not an increase of demand. This is something that we should ground as a scenario. There is no increase of demand, but there's a shortage of product because for 6, 8 weeks, due to the Hormuz closure, we have not seen import from Middle East. After 8 weeks, we have seen an increase of import of US. Whatever probably was not coming from Middle East has been replaced. We are now back to the starting point.

Adriano Alfani: We have seen an improvement in the scenario in H2. You need to consider the net impact of the scenario because you know that we are energy intensive or feedstock intensive. Of course, whatever we have seen in terms of increase of feedstock energy, we, of course, is higher cost for us. We have seen also a shortage in the market, not an increase of demand. This is something that we should ground as a scenario. There is no increase of demand, but there's a shortage of product because for 6, 8 weeks, due to the Hormuz closure, we have not seen import from Middle East. After 8 weeks, we have seen an increase of import of US. Whatever probably was not coming from Middle East has been replaced. We are now back to the starting point.

[Company Representative] (Versalis): For sure, in Q2, we have seen improvement of the scenario. To the last part of your question, how much is this trajectory? Going forward is based on what we declare to the market. We expect to continue to improve performance due to transformation of the improvement on a yearly basis for coming years is a 50% transformation, 50% is new platforms, more or less.

Adriano Alfani: For sure, in Q2, we have seen improvement of the scenario. To the last part of your question, how much is this trajectory? Going forward is based on what we declare to the market. We expect to continue to improve performance due to transformation of the improvement on a yearly basis for coming years is a 50% transformation, 50% is new platforms, more or less.

Jon Rigby: Great. Thanks, Adriano. Thanks, Josh. We are now going to move to Alessandro Pozzi at Mediobanca. Alessandro?

Alessandro Pozzi: Yep. Thank you for the questions. The first one, for Claudio, in going back to production, of course, you have a lot of production coming through to 2030. If you add all the other opportunities that you have in Cyprus, additional upside in Indonesia, Argentina, and Venezuela, it looks like the potential for underlying growth is very large, even beyond 2030. Of course, there is always a need for disposal, but putting disposals aside, what could be the potential underlying growth of the portfolio that you have today looking into, let us say, middle of next decade? The second one, kind of follow on disposals. Can you give us an update on the disposal that you expect in the upstream, maybe Indonesia as well? There is a bit more to be sold there. Also on the scope of the agreement with Ares in the upstream. Thank you.

Claudio Descalzi: Thank you for your question. Clearly, next year we are going to have an update, what we said now, and I just said, is that the expectation up to 2030 is 4% growth. After 2030, maybe can be better than that. For sure, I don't think that there is another company that has more than 54 projects for start up, ready, organic, with very low cost. We are going to see. Clearly, we have to understand what is the situation. It is very difficult to talk about the end of the year with this kind of volatility, with all is happening. It is hard to talk about 2027, also if we are really solid and we don't scare anything. Clearly, if we are to talk in five, six, seven years, what is going to happen? I think that we are in a situation where the world needs more energy.

Claudio Descalzi: That is clear. There is an energy race among the big champions, the big countries, for different reasons. Demography, clear, but also, we talk about hyperscale data center, AI, and the growth rate as the industry, and a lot of countries are demonstrating. We need energy. Now we understood that we need oil and gas. That is clear. We are really well-placed to give an answer to this call, this big call about oil and gas. We've never been so strong. Inside the industry, in term of number of projects and geographies, because when I talk about 54 new projects, we are talk about at least 13 or 14 different countries. Diversification is a key word. Diversification. That means that we don't have all the eggs in the same basket. Each country is very rich in term of future growth.

Claudio Descalzi: I can tell you, we are in a good position. We are in a good position in a world that needs, They need energy. They are hungry for energy, starving for energy. Eni is really in a very strong position, never been so strong. Disposal. I think that I give the floor to Francesco to talk about the status of our disposal.

Francesco Gattei: Clearly, the plan for this year is almost completed. As you mentioned, we are in advanced stage for the last, separate. That is the Indonesia 10%, that has already entered the last stage. We have completed a number of deals, and that are pending the closing. We have done the Nigeria onshore disposal. We are running the increase of capital Plenitude with the consequence in term of balance sheet. We announced that this deal related to infrastructure. There are various activities. For the coming years, we will continue to maximize the valorization of our portfolio. Our portfolio is continuing, is a living animal, is added opportunity through exploration, through business development, business combination.

Francesco Gattei: This means that there's opportunity to valorize part of that, to reduce exposure to areas or regions that are no more core, or eventually also to improve the valuation of a transformation business. I think that we proved that I remember the analysts were considering last year as the top of our disposal plan. I think that also we proved that this year we have new ideas to put on the table. This will continue in the coming years, but will be part of the next four-year plan.

Alessandro Pozzi: What is the parameter of the infrastructure deal?

Francesco Gattei: The infrastructure deal is a partnership that is working on a generic, is not a specific set of assets. Infrastructure, you know that the upstream business has many kinds of infrastructures. The idea is not to build or to identify a geography, a field, or something that is well defined, but is a generic description of a broader portfolio and creating a financial synthetic element that simulate the cash flow related to that infrastructure. This is the way that we, let's say, created, that has a potential to extract more value from infrastructure that has a fixed return, why we would like to invest in double digit, high double digit return on our upstream assets.

Alessandro Pozzi: All right. Thank you very much.

Jon Rigby: Thanks, Alessandro. We're going to move to Ahmed Ben Salem at Oddo. Are you there?

David Brown: Yeah. Hi. Thank you for taking my question. Hello. You mentioned the possible extraordinary dividend review in Q3. What would trigger that decision? If cash flow remains strong, would buyback still be your preferred way of returning excess cash to shareholders? Thank you.

Ahmed Salem: Yeah. Hi. Thank you for taking my question. Hello. You mentioned the possible extraordinary dividend review in Q3. What would trigger that decision? If cash flow remains strong, would buyback still be your preferred way of returning excess cash to shareholders? Thank you.

Francesco Gattei: We have set the rules for the excess dividend. The rules are, if we are assuming, in a full year, the $90 Brent scenario. Currently, we are at 91. We are in the money for the excess dividend distribution. If you assume the 50% increase of refining margin, $9 is the trigger, and we are well above that number. We assume it is a 50% on the 36 EUR/MWh, that was the budget for TTF, and 54 means the 50% increase. We will be above the 54 on average, and currently we are probably in the range of 47, 48. There will be an extra dividend. If we want to say simulate with the current level of year-to-date price, there is an extra dividend.

Francesco Gattei: We will see in September how the market will evolve, which our expectation for the end of the year, and clearly how the company has performed in terms of cash generation.

Claudio Descalzi: Yes. What we said, just to specify, that in October.

Francesco Gattei: Yes

Claudio Descalzi: we had to take the decision.

Francesco Gattei: Yes.

Claudio Descalzi: We're going to pay the extra dividend in Q4, so by December.

Francesco Gattei: That's it.

Claudio Descalzi: Just to remember what is going to happen is not.

Francesco Gattei: Yes. Just another element. If we are clearly in that situation where there is an extra dividend, you have to consider there is probably also an extra buyback, because if we enter in a higher price, there will be a ceiling up to EUR 4 billion, but we are currently at EUR 3.4 billion. We saturate the 60% Cash Flow From Operations distribution up to the limit. Yes.

Jon Rigby: Great. Thanks, Francesco. Thanks, Ahmed. We're going to move to Michele Della Vigna at Goldman Sachs. Michele?

Michele Della Vigna: Thank you. Again, congratulations on the strong results. Two questions. First, I wondered if you had any comment on the situation in Kazakhstan around the enforcement of this EUR 5 billion environmental fine on Kashagan. Secondly, could you shed a bit more light on this Mercuria Eni global trading Joint Venture, what you expect it could contribute in the coming years, and whether effectively GPP becomes part of the Joint Venture? Thank you.

Michele Vigna: Thank you. Again, congratulations on the strong results. Two questions. First, I wondered if you had any comment on the situation in Kazakhstan around the enforcement of this EUR 5 billion environmental fine on Kashagan. Secondly, could you shed a bit more light on this Mercuria Eni global trading Joint Venture, what you expect it could contribute in the coming years, and whether effectively GPP becomes part of the Joint Venture? Thank you.

Claudio Descalzi: Okay. I think for both Kazakhstan and Mercuria, Guido will go on to answer, and maybe I can add something, but I'm sure that Guido will cover completely the two questions.

Francesco Gattei: Okay, let's start on arbitration, on this ongoing arbitration. Of course, first of all, let me clarify that the operator and all the shareholders in support, the operations have been conducted in compliance with the law of Kazakhstan. NCOC had all the permits required to do so. That's an important element that we always have to underline. However, the Republic of Kazakhstan, through various instrumentalities and agencies, had continued to pursue this sulfur fine, and has also commenced some enforcement steps, despite, we have to say, there is, under the commercial arbitration, under the PSA, which is ongoing, there was a restraining order from an international tribunal prohibiting the Republic to take any measure to enforce the fine, and during the arbitration, of course. Of course, the operator is continuing to challenge this sulfur fine.

Francesco Gattei: Including, of course, an investment treaty arbitration, which is currently ongoing also. The situation is of course ongoing. At the moment, they made some steps, but at the moment, they are on hold on any other kind of enforcement. This is the current situation on Kazakhstan. As far as the trading, clearly this is part of our transformation of the trading business. The trading business initially was more a kind of a business service provider in our corporation, then we became more a marketplace player, again within the company. The third and last step was to merge with a pure trader to combine the best of the two worlds.

Francesco Gattei: To combine the variety, the diversified set of industrial assets, the structured supply portfolio of a corporate like Eni, very well diversified, as Claudio said, both in term of business and geographies, with the operational flexibility, the systems of a pure player. Of course, it is a 50/50 JV, and we expect in the long term, that this JV and the trading activity will help to raise and lift our ROACE by 1 or 2 percentage points. This is Yeah. Of course, the cash flow per barrel and the overall result of the company.

Michele Della Vigna: Thank you.

Michele Vigna: Thank you.

Jon Rigby: Very good. Thanks, Michele. We're going to now move to Fergus Neve at Rothschild & Co Redburn. Fergus?

Fergus Neve: Brilliant. Thank you very much for taking my questions. Two questions, please. Just first on Enilive, where the results were particularly strong this quarter, and it was great to see that feed through to the guidance upgrade. Could you just give us some color on the relative split of the results between the marketing business and the biofuels business this quarter? Perhaps also comment on how your biofuel margins have been looking so far in Q3. Secondly, just following up from the earlier refining question. The assumption in the scenario for the CIRM has stepped up quite a bit for H2 for the overall number in the full year.

Fergus Neve: I just wondered if you could give us some color on where the new kind of adjusted CIRM is sat or has been tracking so far in July, and perhaps some thoughts on how much of an uplift that might give to the business moving forward, in H2. Thanks.

Claudio Descalzi: Okay. The first question for Stephen and the second one for Pino. Stephen and Pino as well.

[Company Representative] (Enilive): Yes. No, thank you for the question. The quarter has been very strong and result has been driven by a step up of the biorefinery performance. In term of overall result out of the EUR 375 million EBITDA adjusted, as a rough number is around 35% to 40% contribution from the biorefinery. This has been driven, yes, by the scenario improvement, significant scenario improvement, but also actually by a very strong performance from the asset. If you look to the available asset, Chalmette and Gela in this quarter, overall utilization rate has been above 90%. On top, we put in place several optimization levers in order to extract all the value available. Moving forward, situation, it is going to proceed in that direction. Rational is given by the fact that this market scenario is underpinned by an increased demand.

Stefano Ballista: Yes. No, thank you for the question. The quarter has been very strong and result has been driven by a step up of the biorefinery performance. In term of overall result out of the EUR 375 million EBITDA adjusted, as a rough number is around 35% to 40% contribution from the biorefinery. This has been driven, yes, by the scenario improvement, significant scenario improvement, but also actually by a very strong performance from the asset. If you look to the available asset, Chalmette and Gela in this quarter, overall utilization rate has been above 90%. On top, we put in place several optimization levers in order to extract all the value available. Moving forward, situation, it is going to proceed in that direction. Rational is given by the fact that this market scenario is underpinned by an increased demand.

[Company Representative] (Enilive): Demand for 2026 is foreseen around 20 million tons versus the 16 million of 2025. This is due by the rollout of new regulation in Europe with the Renewable Energy Directive we got just a few days ago, Spain, again, confirming target, moving from energy content to GHG reduction and banning double counting. On top in US, where we got in April a confirmation on the new target from the Environmental Protection Agency. Even if we look at the market as a whole, we saw that the flows from US to Europe are pretty much dropping. This is because the value of both market is quite relevant and strong given what I said. This is another strong signal moving forward.

Stefano Ballista: Demand for 2026 is foreseen around 20 million tons versus the 16 million of 2025. This is due by the rollout of new regulation in Europe with the Renewable Energy Directive we got just a few days ago, Spain, again, confirming target, moving from energy content to GHG reduction and banning double counting. On top in US, where we got in April a confirmation on the new target from the Environmental Protection Agency. Even if we look at the market as a whole, we saw that the flows from US to Europe are pretty much dropping. This is because the value of both market is quite relevant and strong given what I said. This is another strong signal moving forward.

[Company Representative] (Eni): Okay. About the CIRM, what we are seeing now in July is a very high level above $30 per barrel. That should remain very bullish in the next months because the combination of many factors, first of all, the storage is very low for all the product. There is a low refining capacity in operation. We are in the driving season. The crack spread that we are seeing in gasoil, but also in gasoline are very high. There is also some premium to import product. What we expect in the next months is a very bullish period. We are gaining of this because we are anticipating the shutdown of Sannazzaro and Milazzo refinery. They are the two main capacity and conversion refinery that we have.

Giuseppe Ricci: Okay. About the CIRM, what we are seeing now in July is a very high level above $30 per barrel. That should remain very bullish in the next months because the combination of many factors, first of all, the storage is very low for all the product. There is a low refining capacity in operation. We are in the driving season. The crack spread that we are seeing in gasoil, but also in gasoline are very high. There is also some premium to import product. What we expect in the next months is a very bullish period. We are gaining of this because we are anticipating the shutdown of Sannazzaro and Milazzo refinery. They are the two main capacity and conversion refinery that we have.

[Company Representative] (Eni): The third refinery, Taranto, has planned the shutdown for maintenance in September, but we are moving this shutdown for a couple of months in order to gain all the period.

Giuseppe Ricci: The third refinery, Taranto, has planned the shutdown for maintenance in September, but we are moving this shutdown for a couple of months in order to gain all the period.

Fergus Neve: Brilliant. Thanks a lot.

Jon Rigby: Thanks, Pino. We're now going to move to Paul Redman at BNP Paribas. Paul.

Paul Redman: Yeah. Hi everyone. Thank you very much for your time. I had one question on strategy. That was just around the 320 service stations you've recently acquired in Europe. I just want to understand the strategic rationale for buying fuel stations today. Also, what the impact could be on earnings from the deal. Secondly, you guide to underlying improvement in your Cash Flow From Operations of EUR 700 million this year. I wanted to ask what are the key drivers of that underlying improvement? Thank you.

[Company Representative] (Eni): About the acquisition in Central Europe, mainly Germany and Denmark, this is part of a strategy of expanding our Enilive marketing activity. Enilive has already exposure to marketing in the country, in Germany. That is the second country as a number of station. We thought this is a good opportunity to buy a second tier brand that could be improved in terms of valorization, thanks to our clearly branding, possibility to add shopping and convenience stores, and benefiting also of local logistics support from our Germany refinery participation. We have two participation in two plants in Germany. The contribution, this is an asset that has generating the range of EUR 40 to 50 million for EBITDA. In term of Cash Flow From Operations improvement

Giuseppe Ricci: About the acquisition in Central Europe, mainly Germany and Denmark, this is part of a strategy of expanding our Enilive marketing activity. Enilive has already exposure to marketing in the country, in Germany. That is the second country as a number of station. We thought this is a good opportunity to buy a second tier brand that could be improved in terms of valorization, thanks to our clearly branding, possibility to add shopping and convenience stores, and benefiting also of local logistics support from our Germany refinery participation. We have two participation in two plants in Germany. The contribution, this is an asset that has generating the range of EUR 40 to 50 million for EBITDA. In term of Cash Flow From Operations improvement

About the acquisition in in Central Europe, mainly Germany and Denmark. This is part of the strategy of expanding, uh, our live marketing activity. Any live has already uh exposure to Marketing in in the in the country in Germany that is the second uh is the second country as a number of station. Uh, we so so this is a good opportunity to buy a second Tire brand, that could be could be improved in Us in term of valorization. Thanks to our clearly branding possibility to add a shopping and convenience stores. And the benefiting also of local Logistics support from our Germany, Refinery participation. We have 2 participation in 2, plants in in Germany.

Francesco Gattei: Is related to all the improvement that we mentioned during this conference. Production growth, upstream production growth, cash flow per barrel related to that growth, opportunity and growth generated by GGP, and Enilive benefit improvement that we mentioned through scenario and plant availability. All these elements are the major contributor of the cash flow revised guidance.

Paul Redman: Thank you very much.

Contributor, the major contributor to the cash flow revised guidance.

Thank you very much.

Jon Rigby: Thanks, Paul. We're going to now move to Naisheng at Barclays. Naisheng?

[Analyst] (Barclays): Thanks, Jon. Good afternoon, all. Two questions, please. First one is on downstream. Both Enilive and Plenitude continue to improve profitability, and outlook has improved too, especially on Enilive. I wonder, does this change your view or your partner's strategic view over those business? My second question is on upstream. You have a very busy upstream growth pipeline. 54 organic growth projects, as you mentioned. Could you talk about what Eni has done right to progress them in time and under budget? Are you worried about future CapEx cost inflation, please? Thank you.

Naisheng Cui: Thanks, Jon. Good afternoon, all. Two questions, please. First one is on downstream. Both Enilive and Plenitude continue to improve profitability, and outlook has improved too, especially on Enilive. I wonder, does this change your view or your partner's strategic view over those business? My second question is on upstream. You have a very busy upstream growth pipeline. 54 organic growth projects, as you mentioned. Could you talk about what Eni has done right to progress them in time and under budget? Are you worried about future CapEx cost inflation, please? Thank you.

Thanks, Paul. We're going to now move to Nash at Barclays. Nash?

Good afternoon, all. Two questions, please. The first one is on Downstream, both Enilife and Plenitude continue to improve profitability, and the outlook has improved too. Especially on Enilife, I wondered, does this change your view or your partners’ strategic view over those businesses? And my second question is on Upstream. You have a very busy Upstream growth pipeline—54 organic growth projects, as you mentioned.

Could you talk about what Emi has downright to progress on in time and under budget? Are you worried about future Capas cost inflation, please? Thank you.

Francesco Gattei: On the view about the Enilive and Plenitude, I think that this business confirm the model. The way we generated, we created this business that are putting together renewable content and transition content, plus retailer, and therefore marketing outcome. This reinforce the possibility to navigate through the cycles. You saw in this business, different cycle up and down because sometimes there are improvements, then there is a slowdown, et cetera. Through the combination of these two elements, we are able to manage, in any case, this kind of trend. We have a stronger balance sheet in each of them, so we have the possibility to use the generation of cash on one side of the retailer in order to supply the growth of the renewable side.

On The View about the in live and planet planet, I think that uh this business confirms the model, the the way we generate we created this business that are putting together. Uh renewable content and the transition content plus uh uh retailer and therefore marketing, uh outcome this reinforced, the possibility to navigate through the cycles, you saw

Francesco Gattei: Therefore, I think this is a confirmation that what we set up in the last four or five years related to these two businesses, and the partnership that recognize the value of that is effective and working. This also help us to have a faster view towards a potential IPO that is a final goal for each of them. On our pipeline of project, a couple of things. First of all, we proved in the past, as Claudio said, that we've been able to manage a project within cost and within budget. We've been able also to run multiple project. Just to remind, last year, we've started up five major projects. We demonstrated that we are able to handle quite a large number of projects because of our fast-track model, which is designed for that.

In the in this business. Uh, different cycle up and down because uh uh sometimes there are improvements and there is a Slowdown Etc. But through the combination of these 2 elements, we are able to manage in any case, this kind of trend, we have a stronger balance sheet in each of them. So we have the possibility to use the generational cash on 1 side of the retailer in order to supply the growth of the renewable side and uh and therefore I think this is a confirmation that what we set up in the last 4 or 5 years related, to these 2 businesses and the partnership that recognize the value of that is is is, is is effective and working. This also helped us to have a faster view towards a potential IPO. That is the final goal for each of that.

Francesco Gattei: It's designed to run parallel activity, is designed also to have quite a high degree of on-hand features. We have an engineering company into the corporation, which is helpful in this kind of projects. As far as concerning inflation, you are right. The inflation was already in the region of 3% to 4%, 2026 to 2025. After the Middle East conflicts, the range is becoming more 4% to 6% because of course, cost of the fuel and the dislocation of the market. To ensure cost discipline and schedule reliability across the project on top of this designed fast-track model, we have also an integrated procurement strategy, which allowed us to expand the supply chain into new frontier market, strengthen strategic partnership through master framework agreement, and also applying some refined tendering approach.

On on our pipeline of project. Um, I mean, a couple of things. Uh, first of all, uh, we proved in the past as Cloud. You said that we've been able to manage, uh, a project within cost and within, uh, budget and we've been able also to run multiple projects just to remind the last year with started up 5 major projects. So uh, we demonstrated that we are able to handle uh quite a large number of projects because of our FasTrack model which is designed for that is designed to run parallel activity uh is designed also uh to have a

Quite a high degree of on hand, uh, features. Uh, we have a an engineering company into the, uh, into the corporation, which is helpful in this kind of, uh, in this kind of, uh, uh, projects.

As far as concern, the inflation, uh, you are, right? I mean, the inflation, uh, specially after the inflation was already in the, in the region of 3 to 4%, 2025 2026 to 2025. And, uh, after the Middle East conflicts, the, the, uh, the, the range is, is becoming more 4 to 6% because of the, of course, uh, cost of the fuel and this location of the of the market. Uh, but to to ensure cost discipline and schedule reliability across the the project on top of this designed FasTrak model, we have also an integrated procurement strategy, uh, which allowed us to expand the supply chain into New Frontier Market.

Francesco Gattei: Consider that most of the contract for the project we are talking about are already locked in before the crisis of the Middle East.

[Analyst] (Barclays): Very helpful. Thank you.

Naisheng Cui: Very helpful. Thank you.

Strengthened strategic partnership through Master framework agreement and also applying some refined, uh, tendering approach, consider that most of the contract for the the project we are talking about are already locked in, uh, before the the crisis of the, of the Middle East.

Claudio Descalzi: I want to add something about what Willow said, because we are in this situation today because strategically, we built the company in that way. When 15 years ago, everybody were outsourcing, we insourced. It was against the mainstream, against the trendy situation of 20, 15 years ago. People prefer to reduce risk going through M&A. We decide to insource. We decide to create an engineering company. We decide to be specialized in the exploration. We decide to be specialized in the development, becoming the main contractors, and moving the different package. When you talk about cost, to be able to contain cost, you must have the skills to control your activities. In each single step, if you are not able to control your activity

That's very helpful, thank you. With that, I want to ask something about what will happen, because, you know, we are in this situation today because, strategically, we built...

The company in that way.

When 15 years ago, everybody were Outsourcing we insourced.

Was it, was it gained the mainstream again against the trendy situation or 2015 years ago?

How to reduce risk going through m&a.

But we decide to insource, we decide that we decide to create an engineering company, we decide to be specialized in in the in in the year in the aspiration. And then we decide to be special in the development became in the main contractors and moving the different package. So, when you talk about cost,

To be able.

To contain cost, you must have.

The skills to control your activities.

In each single step.

Claudio Descalzi: You can use the best model you want. You are not able to control your cost. If you build your project, you are able. If you build your company with this purpose, you are able to do that. Not only we demonstrated, but was our strategy. When we present this kind of strategy more than 15, 16 years ago, people was surprised because we were not following the trend in exploration, in everything. Right now, I think that we are in the best position to not just find new exploration resources, but be able to develop, be able to control our costs, be able to give the right guidance to our contractors.

If you are not able to control your activity, you can use the best, uh, model you want. You are not able to control your cost. If you beat your project, you are able, if you build your company with this purpose, you are able to do that.

And not only was it demonstrated, but it was also a strategy.

And when we presented this kind of strategy, more than 15 or 16 years ago, people were surprised because we were not following the trend in aspiration and everything.

But now, I think that we are in the best position.

[Analyst] (Barclays): That's very helpful. Thanks, Claudio.

Naisheng Cui: That's very helpful. Thanks, Claudio.

To not just uh find new aspiration resources, but be able to develop be able to control our cost, be able to give the right guidance to our contractors.

It's very helpful South Claudio.

Jon Rigby: Thanks, Naisheng. I'm conscious I said we'd close at the top of the hour, but I'm going to take my contingency and go to 3:10 PM. We may not get around to everybody who's asking questions, so I apologize for that, and you can follow up later. We're now going to move to Henry Tarr at Berenberg. Henry?

Thanks, Nash. Um, I'm conscious I said we'd close at the top of the hour, but I'm going to take my contingency and go to 3:10. We may not get around to everybody's questions, so I apologize for that and you can follow up later. Um, we're now going to move to Henry Tar at Berenberg. Henry,

Henry Tarr: Hi there, and thanks for taking my questions. I have two. One is, you have several projects obviously underway currently in the UAE and in Qatar. Is there any indication of the impact so far of the Hormuz disruption on these projects? I guess following on from the cost question. Secondly, the sites in transformation, I guess costs have been running at EUR 50 million a quarter through H1. Is that a sensible indication for H2? Thank you.

Um, hi there, and thanks for taking my questions. Um, I have 2, um, 1 is you have, um, several projects obviously underway currently in the UAE, and in Qatar, um, is there any indication of the impact? So far of the hormones destruction on these projects, I guess, sort of following on, um, from the cost, uh, question and then, secondly, um, the sites in transformation. Uh, I guess costs have been running at sort of 50 million, a quarter through the first half. Is, is that a sensible, uh, indication for the second half? Thank you.

Francesco Gattei: On the first one, the answer is very short. There's no impact on the project. Most of the activity, the manpower, and material were already in country, and so it's progressing. This is both in Qatar and of course, in UAE. Yes, about the sites in transformation, this is already a flat trend, a steady quarterly trend that we instead we expect them to decline in the next years because clearly you reduce the amount of activity that have to be transformed.

On, on the first 1, the the answer is very short is no no impact on on the, on the project most of the activity, the Manpower and material were already in country and so is progressing. Uh, uh, and this is both in, uh, in uh, in Qatar and in, uh, and of course, in UAE,

Yes, about the sites in transformation, this is a already a flat Trend. A steady quarterly Trend that we instead we expect them to decline in the next year. So because clearly you reduce the amount of activity that have to be transformed.

Jon Rigby: Thanks, Henry. I'm going to move now to Al Simon at Citigroup. Al?

Al Simon: Thanks, Jon. Can I just return to the question on Venezuela? Can you give us some clue about what you're looking in terms of the ways of protecting your investment? Clearly, there's big potential, but there's also quite a big investment. Is it a service agreement or a PSC? What sort of fiscal structure is it? I had a second question, which actually is on fusion. I saw this quarter you signed this fusion fuels agreement in the UK. Obviously, you've got CFS starting up in Boston next year. Can you talk about what you think the next couple of years in fusion looks like? Should we be getting very excited about it? Thank you.

Alastair Syme: Thanks, Jon. Can I just return to the question on Venezuela? Can you give us some clue about what you're looking in terms of the ways of protecting your investment? Clearly, there's big potential, but there's also quite a big investment. Is it a service agreement or a PSC? What sort of fiscal structure is it? I had a second question, which actually is on fusion. I saw this quarter you signed this fusion fuels agreement in the UK. Obviously, you've got CFS starting up in Boston next year. Can you talk about what you think the next couple of years in fusion looks like? Should we be getting very excited about it? Thank you.

Thanks, Henry. I'm going to move now to Alzheimer's City Group. Al,

Thanks, John. Can I just return to the question on Venezuela? I mean, um, you know, can you give us some clue about what you're looking for in terms of the ways of protecting your investment? I mean, clearly there's big potential, but there's also quite a big investment. So there's a service agreement or PSC—what sort of fiscal structure is it? And then, um, I had a second question, which was actually because of all the old fusion. Um, I saw this quarter you signed this Fusion Fuels agreement in the UK. Obviously, you've got CPS CFS starting up in Boston next year.

Um, can you talk about what you think? The next couple of years and fusion looks like should should be getting with be getting very excited about it.

Thank you.

Francesco Gattei: For Venezuela, I think that we already said before that is a different kind of contract, it's more likely a PSC or something like that. Let's talk about Cardón IV, because Cardón IV is the main topic. Perla, no problem, we can export. Corocoro is good. It's good, can give a contribution, but it's small. The big contributor, we talk about really a big contribution, because it's almost five or six billion gross recoverable resources, is coming from this field. This field is mainly a drilling, because it's a shallow reservoir, 1,000 feet. You can imagine what we do or what people do in the Lower 48 in Permian, very fast drilling, and then you recover. You invest, you recover. You invest, you recover.

Francesco Gattei: It's not really a standard upstream project, where you have to invest for four or five years or three years, whatever you want, and then you start recovering. You have a lot of inactive capital and big exposure. In this case, it's more operating spending. The structure of the business is really give you a protection because it's a very fast recover. Clearly, you have to invest, yes. You have to continue investing. The depletion rate is not the same, or the Permian is much better. The drainage area is quite good. It's very heavy, that continue to produce also for some time without a big depletion. But the contract from one side is not in principle. Clearly, we are not going to invest with the oil contract. From the other side, the kind of E&P project that protect you from exposure in your capital.

Uh, so you can imagine what we do or what uh, people do in the, the law 48 in permanent. So, very fast, really? And then you cover you recover. So you invest you recover, you invest. Your car is not really a standard, a standard Upstream, uh, project where you have to invest for 4, or 5 years or 3 years, what you want and then you start recovering. So you have a lot of inactive capital and big exposure. In this case is more, no operational, operating sorry, operating spending. So that is already. So, the, the structure of the business is really a, a give you a protection because it's a very fast recovery. Let's invest, yes, you have to continue investing. Uh, the deprecation rate is not the same or the permit is much, is much better. I mean, they the drainage area is quite good, so they can. Also, if it's very heavy, that continue to

to produce also, uh, for sometimes, without a, a big depression, but we are so the Contra from 1 side,

Francesco Gattei: I know you want to say something. No. Okay. Talking about fusion, Lorenzo, that is our Director Technology, R&D, and he's in charge of fusion. Maybe he can spend some word.

Clearly, we are not going. We are going. We are not going to invest with the the whole contract and from the other side they they kind of uh EMP project that that protect you from uh from exposure. You know, in your copies. I know I know. I want to say something uh no. No. Okay. So uh uh

Lorenzo Fiorillo: Yeah. Thank you. Thank you, Claudio. Just to provide you an update for CFS, the activity is going very well. We are at final stage of construction. We are physically assembling the machine.

Lorenzo Fiorillo: We are more than 75% of advancement, we are very confident by next year, beginning of 2028, machine will be ready, then we will start up the commissioning to reach the positive Q greater than one. Concerning the activity in UK, we have signed an agreement with the UKAEA, which is the nuclear agency. We are building a machine, a plant to treat the tritium. We are in the range of the 30% advancement. Recently, like you correctly said, we create a private company called CREvolution. With the aim to commercialize these technologies to become also an opportunity for industrial purpose. Activities are going very well in this direction.

Talking about Fusion lorento. That is our directory ahead of our uh, all the tech technological um, Services R&D and is in charge of fusion, maybe we can spend some work. Yeah, thank you. Thank you. Claudia. Just to give you provide you an update for CFS the activities going very well. We are at final stage of construction. We are physically assembling the machine we are more than 75% of, uh, advancement. So we are very confident by next year. Beginning of 2028 machine will be ready and then we will start up the commissioning to reach the positive, Q greater than 1. Let's say concerning the activity in UK, we have signed an agreement with the, the Yuca, which is the nuclear agency. We are building a machine plant to, to treat the this the treat team. We are the range of the 30% of advancement. And recently, like you currently said, we create a, a private company called agree over with him to commercialize this Technologies. And so to, to become also an opportunity for an

Industrial industrial purpose, so activities that are going very, very, very, very well in this direction.

Jon Rigby: Thanks, Lorenzo. Thanks, Al. We're going to now move, I think this will have to be the last question to, I apologize to those who are waiting. Maybe we can talk to you later. This will be to Matt Lofting at J.P. Morgan. Matt.

Thanks, Lorenzo. Thanks, Al. We're going to now move—and I think this will have to be the last question—to Matt Lofting at JP Morgan. Matt, I apologize to those who are waiting. Maybe we can talk to you later. So this will be to Matt Lofting at JP Morgan. Matt?

Matt Lofting: Thanks, Jon. Congratulations to you all on a very strong update this morning. I wanted to just ask you about Latin America, as a portfolio hub. You talked about Venezuela earlier, but when you look at the continent as a whole, it looks like it's becoming increasingly important to the diversification strategy and growth profile that you've talked about over the last hour or so. Can you just expand there in terms of the extent to which that's becoming more significant to Eni as you look forward to 2030 plus, and how you think about best structuring investments in that part of the world in order to optimize investment paybacks? Thank you.

Thanks John. Um, congratulations to you all on on a very strong um, update this morning. Um, I wanted to just ask you about Latin America, um, as a

Portfolio Hub. You talked about Venezuela earlier. But when you look at the continent as a whole, it looks like it's becoming increasingly important to the um, diversification strategy and growth profile that that you've talked about over the last hour or so. Um, so you can just expand their in terms of the extent to which that's becoming more significant to eni, as you look forward to 2030 plus and how you think about best structuring investments in in in that part of the world, in order to optimize um investment paybacks. Thank you.

Guido Brusco: Yeah. As we already said also in the capital market update back in March, if you look at the production distribution at 2030, South America will play a significant role in our share of production. Mainly from, of course, Argentina, Venezuela, but also Mexico. In Mexico, we are running at 95,000 barrel of oil equivalent per day, and we are the largest international producer. The asset in Venezuela, we have described already. Claudio gave some interesting features. On Argentina, we are talking of a world-class basin, 25 Tcf, 500 million of condensate, which makes 4.8 billion barrel of oil to be recovered. We have an estimated production at peak at around 550,000 barrel of oil equivalent, of which 200 liquids and the remaining is LNG for export. This is, I would say, the inventory of the reserves already discovered and to be developed.

Yeah, uh, as uh, as we already said, also in the capital market update back in March. Uh, if you look at the, uh,

Production distribution at 2030, South America will will play a significant role in, uh, in in our, in our share of of production. Uh, mainly from, of course, Argentina Venezuela but also, uh, Mexico in Mexico. We are uh,

Guido Brusco: We are also expanding our exploration portfolio. We have acquired blocks in Uruguay, which is a very, I would say, promising basin, and soon we will update you also on our plans in Uruguay. As far as the financial structure on Venezuela, Claudio already said, which will be our setup. In Argentina, we are in partnership with YPF, the national oil company, and XRG. This will be an incorporated venture which will manage all the value chain from the upstream to the midstream up to the export. The export is on an equity-like basis from at least the two international shareholders.

And this is the, uh, I would say, the inventory of the reserves already, uh, discovered and to be developed.

Claudio Descalzi: Thank you. I want just to add something in perspective. We talk about energy race. We have to increase production and find energy. The situation is quite different, respect what happened 10 years ago, five years ago only, or maybe 10 years ago. We have Russia. We have all the Gulf. Now, what was certain, few years ago now is no more certain. We lost some country where we can go there and buy energy. Russia. Okay? They produce. They still produce, but we are not now these O2, Qatar, two other. In the future, we are going to have again, I hope so, in any case, we need more energy. The race to energy now is different because there is no country where you can go there and buy energy. You have to go there and explore. You have to go there and develop.

We are also expanding our uh, exploration portfolio. Uh, we have a, we are we have acquired blocks in, uh, in ruai, which is a very, uh, I would say promising, uh, Basin and, uh, and soon, we will update you also on our plans in uh, in otherwise, as far as the, the financial structure. Uh, uh, on on Venezuela Claudio already said, which will be our our setup in Argentina. Uh, we, uh, we are in partnership with ypf the national oil company and the xrg. And this will be an incorporated, uh, an incorporated Venture, which will manage all the value chain from the Upstream to the to the Midstream up, to the up to the export. The export is on an equity on Equity, like basis. Uh from from all the from uh, at least the 2 International shareholders.

Thank you. With one, just for something, from a prospective point of view.

Um, we talk about energy race, so we really, we have to increase, uh, increase production, increase, and find energy. The situation is quite different, uh, compared to what happened, you know, 10 years ago, 5 years ago, only—or maybe 10 years ago, we had Russia, we had...

All the goals. Now, what was certain few years ago now is no more shared and uh, you know, we lost some country where we can go there and buy energy,

Russia. Okay. They produce

Claudio Descalzi: You have to go there and put in production. Then you can have your energy. Not just diversification. If you say that we need just diversification, you are superficial. You must have the skill to go there and find your resources and stay on the value chain. That is very, is different paradigm. The world is changing. It's no more a question of buying stuff and sell stuff. We are not in the commercial just trading. You must be in the industrial situation where you are able to explore, develop, and produce. This is something going back to the basics, maybe, yes, but that is the situation of today. Diversification is not enough. You must do the work from the beginning to the end if you want to win this energy race. Thank you very much.

They still produce, but we are not nowadays or to katar to other in the future. We are going to have again. I hope so. But in any case, we need more energy and the race to energy now is different, because is, there is no country where you can go there and buy energy, you have to go there and explore, you have to go there and develop you have to go there and put in production and then you can have your energy. So not just diversification, you know, if you say that we need, just diversification, you are superficial. You must have the skill to go there and find your resources and stay on the value chain.

So that is very is different paragraph line. So there was, this changing is no more a question of buying stuff and sell stuff. We are not in the, you know, in the commercial or just trading you must.

Be in the industrial.

Situation where you're able to explore the well and produce.

This is something going back to the basics. Maybe. Yes. But that is a situation of today. Diversity diversification is not enough.

You must do the work from the beginning to the end. If you want to win this energy rise,

Thank you very much.

Jon Rigby: Thank you, Matt, for that question. I'm going to wrap the Q&A up right now. Again, apologies to those who weren't able to ask a question. Do please follow up with the investor relations team. I'm going to say good luck for the rest of the reporting season, and please do enjoy a nice holiday period, and we look forward to seeing you in September. Bye.

Thank you, Matt, uh, for that question. Um, I'm going to wrap, uh, the Q&A up right now, so again, apologies to those who weren't able to ask a question, do please follow up with the investor relations team. Um, I'm going to say good luck for the rest of the reporting season, and please do enjoy a nice holiday period, and we look forward to seeing you in September.

Bye.

Operator 2: Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.

Operator: Ladies and gentlemen, thank you for joining. The conference is now over, and you may disconnect your telephones.

ladies and gentlemen, thank you for joining the conference is now over and you may disconnect your telephone

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