Italian energy leader Eni has unveiled its strategic plan for 2024-2027, emphasising a balanced approach between traditional business development and acceleration towards a low-carbon future. CEO Claudio Descalzi outlined the plan, highlighting a shift towards reduced capital expenditure (-20% compared to the previous plan) and increased shareholder returns.
Key Takeaways:
- Shareholder Focus: Eni will increase dividends, with the proposed 2024 dividend rising by over 6%. Share buybacks will also be increased.
- Investment Strategy: Net investments totalling 27 billion euros will prioritise traditional business maximisation and high-yield energy transition initiatives.
- Portfolio Management: A streamlined approach includes targeted divestments (primarily non-core assets) and potential acquisitions for a net cash contribution of 8 billion euros.
- Production Growth: Upstream production is expected to grow 3-4% annually, while post-divestment growth will average 2%.
- Gas Business: The Gas division is expected to generate 800 million euros in 2024, with the potential for significant upside if market conditions improve.
- Carbon Capture and Storage (CCS): A major priority for Eni, with capacity growth and a focus on its Ravenna project, a cornerstone of its low-carbon strategy in Italy.
- Enilive: Eni's biorefining subsidiary anticipates significant growth, with the potential to exceed 5 million tons per annum by 2030. Retail service station rebranding and expansion of non-oil activities will also drive growth
- Plenitude: Eni's renewable energy arm will see substantial growth with installed capacity exceeding 8 GW by 2027 and over 15 GW by 2030. Electric vehicle charging points will double by 2027
- Versalis: Eni's chemicals division will shift focus towards specialized, sustainable products and embrace circular economy principles. The aim is to achieve break-even EBITDA by 2025 and profitability by 2026
Descalzi's Vision
CEO Descalzi underscored Eni's commitment to a profitable and sustainable energy transition with solid fundamentals, aiming to boost shareholder value. The plan's emphasis on efficiency and focused investment signals Eni's commitment to navigating the challenges of the shifting energy landscape strategically and responsibl
