(Alliance News) - Eni Spa on Thursday reported a drop in quarterly earnings, as weaker oil prices and challenges in downstream operations weighed on results.

However, the Italian energy group maintained its full-year production guidance and confirmed shareholder distribution plans, helped by EUR2 billion in cost-saving measures.

Net profit attributable to shareholders for the three months to March 31 slipped 3% to EUR1.17 billion from EUR1.21 billion a year earlier.

Adjusted net profit fell 11% to EUR1.41 billion from EUR1.58 billion, while proforma adjusted earnings before interest and taxes declined 11% to EUR3.68 billion from EUR4.12 billion.

Despite the decline, Eni reaffirmed its full-year hydrocarbon production target of 1.7 million barrels of oil equivalent per day, assuming an average Brent crude price of USD65 per barrel.

First-quarter output fell 5% to 1.7 million boe/d, impacted by divestments and natural decline in mature fields.

Revenue from Eni's Exploration & Production unit held steady, with the segment generating EUR3.31 billion in proforma adjusted Ebit, down 2% year-on-year.

Meanwhile, earnings from the Global Gas & LNG Portfolio rose 34% to EUR473 million, supported by resilient gas margins and strong power generation.

Plenitude and Enilive, Eni's energy transition subsidiaries, posted Ebit of EUR241 million and EUR95 million respectively, down on a weaker biorefining environment.

Chief Executive Officer Claudio Descalzi said the group's flexibility, low cash breakeven, and high-quality asset base allowed it to manage macroeconomic uncertainty. "We remain financially disciplined and resolute on leveraging our competitive advantages… to deliver transformation and generate value for our shareholders," he said.

Eni confirmed a 5% increase in its dividend to EUR1.05 per share for 2025 and launched a EUR1.5 billion share buyback programme.

Gross capital expenditure in the quarter was EUR1.89 billion, while free cash flow totalled EUR1.5 billion. Net borrowings fell nearly EUR1.8 billion from year-end to EUR10.3 billion.

Looking ahead, the group expects EUR11 billion in cash flow from operations for 2025 and proforma leverage between 0.15 and 0.2, which stood at 0.12 in the first quarter.

By Eva Castanedo, Alliance News reporter

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