Should Eni's (BIT:ENI) New Indonesia Subsea Contract Shape Investors’ View on Its Asia Strategy?

• TechnipFMC announced it has secured a substantial integrated Engineering, Procurement, Construction, and Installation contract from Eni for the Maha deepwater project offshore Indonesia, marking Eni’s first deployment of Subsea 2.0 technology in the country and connecting the Maha field to the existing Jangkrik Floating Production Unit.
• This expansion highlights Eni’s commitment to innovative subsea technologies and reinforces its operational footprint in Southeast Asia's growing natural gas sector.
• We'll look at how the adoption of advanced subsea technology in Indonesia could influence Eni's investment narrative and future growth outlook.

AI is about to change healthcare. These 31 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

Eni Investment Narrative Recap

At its core, the Eni investment case is built around faith in the company’s ability to grow production through disciplined upstream expansion while balancing the energy transition and managing legacy business restructuring. The recent Maha deepwater contract in Indonesia highlights Eni’s push for technological innovation and growth in natural gas, but by itself is unlikely to move the needle on the single biggest short-term catalyst: the company’s pace of production growth and sustaining free cash flow. The most material risk, continued margin pressure and losses from Versalis, remains largely unaffected by this announcement.

The recent production guidance increase for 2025, with Eni forecasting a fourth quarter production run-rate of around 1.8 million barrels of oil equivalent per day, stands out as directly relevant to the Indonesian news. The Maha project supports this positive outlook for upstream production growth, reinforcing Eni’s confidence in its medium-term operational targets and underlining management’s focus on maximizing cash flow from core oil and gas projects.

In contrast, investors should not lose sight of persistent losses in the chemicals and downstream segment…

Read the full narrative on Eni (it's free!)

Eni is projected to generate €88.8 billion in revenue and €5.1 billion in earnings by 2028. This is based on a 0.7% annual revenue decline and an earnings increase of €2.8 billion from the current €2.3 billion.

Uncover how Eni's forecasts yield a €16.12 fair value, in line with its current price.

Exploring Other Perspectives

Simply Wall St Community members have shared three fair value estimates for Eni ranging from €15.95 to €22.10. While many see room for upside, the group’s risks around cash flow drag from legacy operations remain relevant for anyone assessing Eni’s performance potential.

Explore 3 other fair value estimates on Eni - why the stock might be worth just €15.95!

Build Your Own Eni Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Eni research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Eni research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Eni's overall financial health at a glance.

Interested In Other Possibilities?

The market won't wait. These fast-moving stocks are hot now. Grab the list before they run:

• These 11 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
• The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 27 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement.
• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com