We use cookies
to help provide you with a good experience on our website. By continuing to browse the website, you are agreeing to our use of cookies.

Eni mulls stake sale or IPO for new renewables unit

GO NET-ZERO
CARBON ENERGY

Eni mulls stake sale or IPO for new renewables unit

Eni has swung back to profits in Q1 as commodity prices improved, and announced plans for an IPO or stake sale in a new renewables unit. Source: EnergyVoice

The Italian operator reported pre-tax profits of £1.4billion, reversing a deficit of £1.99bn in the same period last year, despite being  “significantly impacted” by ongoing national lockdowns.

A “strengthened upstream environment” with Brent crude oil up some 21% from the corresponding quarter in 2020 bolstered Eni’s performance, describing the recovery on a year ago as “remarkable”.

Eni also pointed to improved performance in its chemicals and retails business segments.

Revenues reached £12.9bn, up 8% from £11.9bn in Q1 2020, while adjusted net profit more than quadrupled from £51m to £235m.

Production was down 4% on Q1 2020 to 1.7m boe per day, which Eni expects to average for the year, assuming certain OPEC cuts.

Meanwhile Eni announced plans for a stake sale or initial public offering of a new unit, formed by the “union” of its retail and its renewable energy activities.

The business will be focussed on delivering 5GW of capacity by 2025, offered to Eni’s customer base which is expected to reach 11million by that time.

EBITDa is expected to grow from 600m Euros in 2021 to more than 1bn Euros in 2025, Eni said.

Chairman Lucia Calvosa approved the launch of a new project to fully define the values and plans for the new entity, including how to “extrapolate maximum value” from it through a partial sale of IPO.

Relevant news

GO NET-ZERO
CARBON ENERGY
Orsted to link a huge offshore wind farm to ‘renewable’ hydrogen production
Orsted wants to construct a large-scale offshore wind farm in the North Sea and link it to so-called “renewable” hydrogen production.
CIS PETROCHEMICALS
Russia fights to keep course on carbon and renewables amid budget squeeze
Russia’s next phase of renewable energy development looks like it won’t be as well-funded by the state as planned. That said, the announced cuts could have been worse, and corporates are stepping up plans to mitigate carbon, reports NEO.
GO NET-ZERO
CARBON ENERGY
Lamprell forms renewables unit in strategic revamp
Lamprell is undertaking a strategic reorganisation of its business to increase its focus on renewables and the energy transition.
GO NET-ZERO
CARBON ENERGY
Our event partner Repsol goes greener with new plan
Repsol, a co-host partner of the virtual Go Net Zero Carbon Energy Summit.
GO NET-ZERO
CARBON ENERGY
BP to power Microsoft with renewable electricity
BP will supply renewable energy to Microsoft.
GO CIRCULAR
Eni, NextChem partner on circular gas, waste projects
Eni SpA and NextChem, have signed an agreement to develop industrial circular economy projects in their native Italy.