Eni Considers Return to Oil and Gas Trading
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 18 2026
0mins
Should l Buy E?
Source: seekingalpha
- Market Re-entry: Eni CEO Claudio Descalzi indicated the company's consideration of re-entering the oil and gas trading sector to capture the substantial profits enjoyed by European rivals like BP, Shell, and Total, reflecting a keen awareness of market opportunities.
- Partnership Strategy: Eni is in preliminary discussions with several commodity trading houses, including Mercuria, to establish a joint venture aimed at enhancing its commercial capabilities, thereby gaining a competitive edge in the market.
- Attractive Positioning: Descalzi noted that despite Eni's cessation of trading in 2019, the volume of oil and gas it produces makes it an attractive partner for potential collaborations, indicating the company's intent to leverage partnerships to compensate for its commercial shortcomings.
- Industry Trends: While oil trading has yielded significant profits for firms like BP and Shell, both reported weaker performances in their trading units during the last three months of the previous year, highlighting market uncertainties and competitive pressures.
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Analyst Views on E
Wall Street analysts forecast E stock price to fall
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 48.330
Low
17.45
Averages
18.45
High
19.45
Current: 48.330
Low
17.45
Averages
18.45
High
19.45
About E
Eni SpA (Eni) is an Italy-based company engaged in the exploration, development and production of hydrocarbons, in the supply and marketing of gas, liquefied natural gas (LNG) and power, in the refining and marketing of petroleum products, in the production and marketing of basic petrochemicals, plastics and elastomers and in commodity trading. The Company's segments include Exploration & Production, Gas & Power, and Refining & Marketing. Its Exploration & Production segment engages in oil and natural gas exploration and field development and production, as well as LNG operations in over 40 countries, including Italy, Libya, Egypt, Norway, the United Kingdom, Angola, Congo, Nigeria, the United States, Kazakhstan, Algeria, Australia, Venezuela, Iraq, Ghana and Mozambique. Its Gas & Power segment engages in supply, trading and marketing of gas, LNG and electricity, international gas transport activities and commodity trading and derivatives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Future Production Outlook: Oil and gas production growth is expected to remain consistent with the 2025-2028 plan guidance, providing investor confidence and demonstrating the company's ongoing commitment to resource development.
- Capital Expenditure Plans: ENI anticipates gross capex of €7 billion and net capex around €5 billion, a strategic investment aimed at supporting future production growth and technological innovation.
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- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward and one downward revision, while revenue estimates experienced two upward and eight downward revisions, reflecting market divergence and uncertainty regarding the company's future performance.
- Market Competitive Strategy: ENI is weighing a return to oil and gas trading, aiming to compete with rivals' substantial profits, which could significantly impact its future profitability model and market positioning.
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