(Alliance News) – Eni Spa on Thursday unveiled its Business Plan to 2026, which focuses on energy security and accessibility through geographic and technological diversification; emissions reduction; leveraging technology for today’s initiatives and future innovation opportunities; and shareholder value creation.
On financial strategy, Eni notes that its financial strength enables the company to execute its business strategy, provides flexibility and ensures returns to its investors.
Based on Eni’s scenario assumption: the company expects a 2023 Ebit of EUR13 billion, the second best result in 10 years after the record 2022.
CFFO 2023 before working capital is expected to be more than EUR17 billion and more than EUR69 billion over the Plan period. Under a constant scenario, CFFO 2026 will be more than 25 percent higher than in 2023, driven by E&P, positive contributions from all sectors, and growth in the key transition businesses, Plenitude and Sustainable Mobility. This implies an average annual growth per share of 12 percent over the 2023 constant scenario plan period.
Average ROACE is projected at 13 percent over the 2023-2026 period at constant 2023 scenario, up 7 percentage points from the 2010-2019 average, while Capex 2023 is expected to be around EUR9.5 billion and EUR37 billion over the Plan period. In USD, and at constant inflation, this represents a 15 percent increase over the previous Plan, due to new opportunities and the expansion and acceleration of existing Upstream projects characterized by high returns. “These projects generate significant value and will continue to do so well after the end of the Plan,” the company explained in a note.
Spending on zero and low-carbon activities will amount to about 25 percent of group investments.
Leverage is expected to be between 10-20 percent over the Plan period, “confirming the discipline in capital and cost management and the quality of the company’s portfolio.”
As for Plenitude, Eni’s company that integrates renewables, customer energy solutions, and an extensive electric vehicle charging network, this is developing its pipeline of renewable projects and has reached its 2022 target of more than 2 GW of installed capacity.
Plenitude plans to realize over 7 GW of installed capacity by the end of 2026 and more than double its network of electric vehicle charging points to 30,000 by the end of the Plan.
After achieving its target of more than EUR600 million in pro forma Ebitda in 2022, the company plans to triple this figure to EUR1.8 billion in 2026.
The integration of the retail business, with more than 11 million customers by 2026, renewable energy and electric mobility presents significant synergies from an operational perspective, as well as ensuring diversification and financial resilience.
With the expansion of its decarbonized product and service offerings, Plenitude’s growth is expected to continue to be significant, supported by more than 11 GW of projects and opportunities.
Finally, the 2023 annual dividend is raised to EUR0.94 per share, a 7 percent increase over 2022. Eni will continue to pay it in four equal quarterly installments, in September 2023, November 2023, March 2024, and May 2024.
Eni trades down 3.5 percent at EUR13.62 per share.
By Claudia Cavaliere, Alliance News reporter
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