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| Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
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| Edin. New It | LSE:ENI | London | Ordinary Share | GB00B084LP54 | ORD 1P |
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| 0.00 | 0.00% | 62.00 | 0.00 | 00:00:00 |
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| - | O | 0 | 62.00 | GBX |
Edin. New It (ENI) Share Charts1 Year Edin. New It Chart |
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| Date | Time | Title | Posts |
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| 12/11/2024 | 21:45 | ENI S.P.A. Italian OIL Company | 494 |
| 21/1/2006 | 07:30 | Edinburgh New Income | - |
| 19/3/2003 | 19:52 | Enic - Large buys or sells? | 3 |
| 21/3/2002 | 18:11 | Enic not yet tracking AU. | 21 |
| 07/12/2000 | 15:11 | Undervalued with the rise in AU. | 4 |
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Posted at 25/10/2024 07:48 by maywillow Eni Cuts Profit Guidance on Weakening Oil-Price OutlookBy Alberto Brambilla October 25, 2024 at 2:23AM EDT (Bloomberg) -- Eni SpA lowered profit guidance for the year, reflecting a worsening oil-price outlook, even as third-quarter earnings beat analyst estimates. Europe’s energy companies are reporting results for a period marked by lower crude prices and narrower margins for refining and chemical products. Eni reduced its forecast for full-year proforma adjusted earnings before interest and taxes to €14 billion ($15.2 billion) from previous guidance of about €15 billion. Quarterly adjusted net income edged above estimates at €1.27 billion. Although energy companies around Europe and elsewhere braced for weaker profits in the quarter, there’s so far no sign they’ll curtail returns to investors. Eni confirmed plans to raise its 2024 share buyback to €2 billion. “Lower guidance was widely expected, as management had $86 a barrel for Brent for 2024 — too high compared to year-to-date average and prevailing oil prices,” Mediobanca analyst Alessandro Pozzi said in a note. Benchmark Brent crude is currently trading around $75 a barrel in London. Earlier this week, Eni signed a deal with KKR & Co. to sell a minority stake in its biorefining unit, Enilive. It’s seeking funds to finance clean-energy projects, a move that includes asset disposals and spinoffs. The company said Friday its €8 billion asset-sale plan to 2027 is “proceeding faster than expected,” with half of the disposals coming from the exploration and production business. “In upstream, we continue our divestment program, and are also in the final stages of evaluating options to monetize recent material discoveries via our dual exploration model,” Chief Executive Officer Claudio Descalzi said. Eni also plans to spend about €2 billion to overhaul its aging chemicals business in Italy as part of a shift toward lower-carbon options, the company said Thursday, confirming an earlier Bloomberg report. The shares traded up 1.1% at 9:10 a.m. in Milan on Friday. Eni “continues to deliver on its strategic objectives, and the nudge-up in distributions is likely to be welcomed by investors,” RBC Europe Ltd. analysts said in a note. (Updates with analyst comments starting in fifth paragraph, shares in 11th) |
Posted at 21/10/2024 07:39 by gibbs1 Eni Rebrands French Energy Unit, Launches New Customer Modelby Paul Anderson | Rigzone Staff | Monday, October 21, 2024 | 2:57 AM EST Eni said the rebranding is in line with its business model integrating renewables production, the sale of energy and energy solutions, and a network of charging points for EVs. The Italian energy major Eni S.p.A. has renamed Eni Gas and Power France to Plentitude, Eni’s renewable energy arm. The company said in a media release that the rebranding is in line with its business model integrating renewables production, the sale of energy and energy solutions, and a network of charging points for electric vehicles. “Plenitude, a name that represents our comprehensive global vision and energy in continued regeneration, marks today a further step in the evolution of its activities in France. After Italy, Spain, and Portugal, we are very proud to present also in the French market our brand that expresses a clear mission, rooted in innovation and growth, to build together with our customers a future in which energy becomes synonymous with trust, sustainable development, and progress, accompanying them on the path towards energy transition”, Giorgia Molajoni, Digital, Information Technology & Communication Director of Plenitude, said. With the rebranding, Eni said Plenitude is launching a new customer service model and a technology platform. This new approach aims to provide customers with a more personalized and engaging experience, focusing on their individual energy needs and supporting their transition to renewable energy sources. By offering certified renewable electricity, Eni said Plenitude is demonstrating its commitment to sustainability and customer satisfaction. Furthermore, Eni said Plentitude is focusing on strengthening its presence in the French renewables sector. The company operated 120 megawatts-peak (MWp) of photovoltaic installed capacity and has a further 700 MW of new solar and wind projects under development. Additionally, Plenitude is expanding its electric vehicle charging infrastructure with the "On the Road" network. This network will include fast and ultra-fast charging stations, making it easier for French customers to charge their electric vehicles. Additionally, the "Plenitude On the Road" app will provide access to over 400,000 charging points across Europe, offering customers a wider range of charging options. To contact the author, email andreson.n.paul@gmai |
Posted at 30/9/2024 14:25 by waldron NEWSEni Highlights Methane Reduction Achievements in Report by Rocky Teodoro | Rigzone Staff | Monday, September 30, 2024 | 10:10 AM EST Eni reported that its direct methane emissions more than halved over the past six years. Italy’s Eni S.p.A. has published its first dedicated Methane Report 2024, which details its actions to reduce methane emissions across its operations and how the company shares this expertise with others in the sector. The report is a “milestone that underscores the company’s commitment to transparency and reducing global methane emissions,” Eni said in a news release. Eni said it believes that natural gas has a role in the energy transition pathway to 2050 because of its affordability, reliability, versatility, and low carbon content compared to other fossil fuels. Targeting to cut methane leakage in the natural gas value chain, it has developed monitoring and mitigation technologies, used them in the field, and implemented “an increasingly reliable reporting system aligned with international best practices”. The company said it is targeting near zero methane emissions by 2030. In line with the evolving international guidelines defined by the Oil & Gas Methane Partnership 2.0, Eni said it uses the best available technologies on the market, most of which exploit methane optical characteristics (light absorption in the infrared spectrum) to assess its concentration in the air and to compute the emitted flow rate using local weather data. Eni reported that its direct methane emissions more than halved over the past six years, and that it was able to achieve a 95 percent reduction in fugitive methane emissions and an 86 percent reduction in methane intensity across its upstream operations in 2023 since 2014. From 2022 to 2023, Eni also reduced methane emissions in its upstream business by 20 percent. It added that its upstream methane intensity of 0.06 percent places the company among the leaders in the industry. Eni is a founding member of the UNEP Oil & Gas Methane Partnership (OGMP), the Oil and Gas Climate Initiative (OGCI), and Methane Guiding Principles (MGP) and actively participates in expert groups with international organizations, institutions, nonprofit organizations, academia and industry associations, such as IPIECA and IOGP. The company stated that these collaborations have helped define the scale of the methane emissions issue with increasing accuracy, develop best practices for monitoring, reporting, and verification, and foster the deployment of new technologies for monitoring and abatement of emissions across the sector. Eni is a signatory of the Oil & Gas Decarbonization Charter (OGDC), a milestone initiative launched at COP28 that will help align the sector towards transparent and concrete actions to reduce emissions, including methane and flaring. The company has signed collaboration agreements with national oil companies (NOCs), including EGAS, Sonatrach and SOCAR, aimed at sharing its industry-leading experience in methane management to enable methane reduction across the sector. Eni CEO Claudio Descalzi said, “We are proud to publish the Methane Report 2024, which highlights Eni’s role as a pioneer in the implementation of methane management approaches”. “Our strong focus on methane emissions abatement, coupled with the application of new technologies has positioned Eni as an industry leader and significantly reduced our methane emissions over the past decade. We are now pleased to apply our own learnings in partnership with others in the sector and supply chain, to help deliver meaningful methane reductions across the oil and gas value chain. As we look to the future, our commitment remains firmly fixed on delivering our target of near-zero methane emissions by 2030,” Descalzi added. To contact the author, email rocky.teodoro@rigzon |
Posted at 27/8/2024 07:58 by sarkasm Eni Gets Indonesia Approval for New Gas Production Hubby Jov Onsat | Rigzone Staff | Tuesday, August 27, 2024 | 3:08 AM EST Eni Gets Indonesia Approval for New Gas Production Hub Indonesian authorities approved Eni's development plan for the offshore Gehem and Geng North fields, which includes the building of a new production hub with a gas output capacity of about two Bcfd. Indonesian authorities have approved Eni SPA’s development plan for the offshore Gehem and Geng North fields, which includes the building of a new production hub with an output capacity of about two billion cubic feet a day of gas and 80,000 barrels of oil per day of condensates. The new production hub, called the Northern Hub, targets five trillion cubic feet (Tcf) of gas and 400 million barrels of condensates in Geng North, as well as 1.6 Tcf of gas in nearby Gehem, Eni said in a statement on its website. Geng North was discovered last year under the North Ganal PSC. Gehem meanwhile came under Eni when the Italian government-controlle Along with the approval of the Geng North and Gehem plans, the government also approved Eni’s development plan for the Gendalo and Gandang fields, which would be tied back to existing infrastructure. Gendalo and Gandang are under the Ganal block, which is separate from the North Ganal block. Eni simultaneously secured a 20-year extension to the Indonesia Deepwater Development (IDD) gas project, which consists of the Ganal and Rapak blocks. The Ganal, North Ganal, Makassar Straits and Rapak blocks sit in the Kutei Basin off the coast of East Kalimantan province. The province is on the Indonesian side of Borneo, an island shared with Brunei and Malaysia. Eni holds 82 percent operating stakes in the Ganal and Rapak blocks, raised from 20 percent after the Chevron acquisitions. China’s state-owned China Petroleum and Chemical Corp. (Sinopec) is a co-venturer holding the remaining 18 percent interests through its Indonesian subsidiaries. In the other block bought from Chevron, the Makassar Straits PSC, Eni holds a 72 percent operating stake with Sinopec and Indonesia’s state-owned PT Pertamina (Persero) as partners owning 18 percent and 10 percent respectively. In the North Ganal block, Eni holds an 83.3 percent operating stake with Singaporean company Agra Energi Pte. Ltd. as co-venturer holding the remaining 16.7 percent. The Northern Hub plan includes flowlines and a new floating production and storage facility. Processed gas would be transported onshore to the Santan Terminal and the East Kalimantan pipeline network. Some of the gas would be liquefied at the Bontang facility while some would be delivered to the domestic market. The condensates would be carried by shuttle tankers, Eni said. Meanwhile Gendalo and Gandang would be tied back to the Jangkrik floating production unit, targeting combined gas reserves of two Tcf. “The development of Gendalo&Gendang will allow to extend Jangkrik’s gas production plateau, which nears 750 mmscf/d [million standard cubic feet per day], by at least 15 years”, Eni said. “Eni is also planning to conduct a drilling campaign in the next 4-5 years to assess the significant near-field exploration potential within the Eni-operated blocks in the Kutei Basin, amounting to over 30 Tcf of gas and largely de-risked following the Geng North discovery”, it added. Eni chief executive Claudio Descalzi said, “The approval of the Northern Hub and Gendalo&Gandang Plans of Development by the Indonesian Authorities marks a crucial milestone towards the FID [final investment decision] of both gas projects, in line with our decarbonization and energy security strategy”. The new production hub “grants us today a strong leadership in a world-class basin, close to existing facilities and to very important markets”, Descalzi added. Indonesia currently contributes 95,000 barrels of oil equivalent to Eni’s production, according to the company. To contact the author, email jov.onsat@rigzone.co |
Posted at 25/7/2024 10:44 by adrian j boris Eni negotiating sale of up to 25% stake in biofuel unit Enilive to KKREni is seeking a valuation of between €11.5bn ($12.46bn) and €12.5bn for Enilive, which focuses on biorefining and biomethane production. July 24, 2024 Eni has entered an exclusivity agreement with investment company KKR for the potential sale of a minority stake in its biofuel unit, Enilive. The deal, which could see KKR acquiring between a share of between 20% and 25%, is currently in the due diligence phase. This move aligns with Eni’s satellite model strategy to attract investment and drive growth of its new businesses. Eni is seeking a valuation of between €11.5bn and €12.5bn for Enilive. While the finalisation of the transaction is contingent upon definitive documentation, both Eni and KKR are actively negotiating the terms. Eni also indicated that the interest from financial investors might lead to a further sale of an additional 10% stake in Enilive. |
Posted at 19/7/2024 23:48 by la forge africabusinesscommun19-07-2024 Hits: 409 By Bob Koigi | Channel: tech Eni launches a new venture for the development of quantum computing Eni and ITQuanta have agreed to form a joint venture, Eniquantic1, with the aim of developing an integrated hardware and software quantum machine2 capable of solving complex problems (mathematical optimisation, modelling and simulation, artificial intelligence) and initiating specific and significant quantum computing applications to support the energy transition. In developing its technological roadmap, Eniquantic will benefit from the computational power of Eni's HPC (High Performance Computing) supercomputers both to explore possible integrations between quantum and classical architectures and to test the effectiveness of algorithms that simulate the principles of quantum computing on energy-related use cases directly relevant to Eni, such as: energy generation and storage, for improving the production efficiency of energy resources, in particular for renewable energy; simulation and modelling of the behaviour of matter using molecular dynamics and quantum mechanics techniques for the discovery of new high-performance materials to be applied to the development of new energy sources, such as magnetic confinement fusion; carrying out and processing advanced analyses of complex systems to improve and optimize operational activities across the entire value chain, such as the trading of energy and other commodities. The new venture Eniquantic will leverage Eni's operational and industrial excellence and the know-how of the start-up ITQuanta, which includes among its founders internationally recognised experts in atomic physics, information and quantum computation. With this project, Eni strengthens its leadership in high-performance computing for industrial use and asserts itself as a highly innovative company. The establishment of Eniquantic, the second venture launched as part of Eniverse's (Eni's corporate venture builder) initiatives, fits into the company's strategy aimed at enhancing in-house skills and technological solutions, whether proprietary or third-party, to create new high-potential entrepreneurial initiatives. www.eni.com |
Posted at 16/7/2024 22:12 by waldron Eni to Form Quantum Computing JV Focused on Energy Systemsby Jov Onsat |Rigzone Staff | Tuesday, July 16, 2024 | 1:30 PM EST Eni and ITQuanta agreed to form a JV to develop an integrated hardware and software quantum computing system that would improve how energy systems, from production to market trading, work. Eni SPA and startup ITQuanta have agreed to form a joint venture (JV) to develop an integrated hardware and software quantum computing system that would improve how energy systems, from production to market trading, work. The end product, a full-stack quantum computing machine, would be “capable of solving complex problems (mathematical optimization, modeling and simulation, artificial intelligence) and initiating specific and significant quantum computing applications to support the energy transition”, Eni said in a statement. The JV is called Eniquantic. “Full-stack quantum computing integrates all hardware, software, firmware, and cloud portal components, which were developed by applying quantum physics principle… The quantum computer uses the microscopic properties of matter to perform complex operations, exponentially increasing the computing power achievable by traditional computers today”, Eni said. “In developing its technological roadmap, Eniquantic will benefit from the computational power of Eni's HPC (High Performance Computing) supercomputers both to explore possible integrations between quantum and classical architectures and to test the effectiveness of algorithms that simulate the principles of quantum computing on energy-related use cases directly relevant to Eni”, the company said. In energy generation and storage, the quantum computing system would improve energy production efficiency, particularly renewable energy production, according to Italian government-controlle Eniquantic would also be involved in the “simulation and modeling of the behavior of matter using molecular dynamics and quantum mechanics techniques for the discovery of new high-performance materials to be applied to the development of new energy sources, such as magnetic confinement fusion”. The JV also aims to optimize operations across the entire energy value chain, including energy trading. Eni will initially own 94 percent of Eniquantic’s shares, the remaining six percent by ITQuanta. Prof. Massimo Inguscio of ITQuanta has been appointed chair of Eniquantic. Eni’s Dario Pagani has been named chief executive. Eniquantic is the second venture under Eniverse, a subsidiary of Eni tasked with building corporate ventures. Eniverse, launched August 2022, aims to scale up the adoption of technological solutions, which can be from its portfolio or outside parties. The first Eniverse venture was Enivibes, aimed at expanding the market reach of the proprietary Eni Vibroacoustic Pipeline Monitoring System (e-vpms). “The technology is designed and developed by Eni to perform real-time analysis and monitoring activities on new or existing pipelines, both for hydrocarbon and water transportation, through an innovative vibroacoustic wave system that detects external interference, such as break-in attempts or accidental pipeline impacts, and flow variations, maximizing the efficiency of transportation systems”, Eni said March 30, 2023, announcing the formation of Enivibes. “This innovative solution, thanks to the installation of high-sensitivity acquisition stations, enables rapid and localized interventions” “Enivibes represents an important step forward in achieving the ambitious goal of launching five new startups by 2025, by leveraging the portfolio of technologies, internal skills and assets of Eni and its innovation ecosystem”, Eni added. To contact the author, email jov.onsat@rigzone.co |
Posted at 09/7/2024 15:31 by grupo Eni Makes Another Discovery in Sureste Basin Offshore Mexicoby Jov Onsat | Rigzone Staff | Tuesday, July 09, 2024 | 9:40 AM EST Eni SPA announced Monday another discovery in its 50 percent owned Block 9 in the Sureste Basin offshore Mexico. “The preliminary estimates indicate a discovered potential of around 300-400 million barrels equivalents (Mboe) of oil and associated gas in place”, the Italian government-controlle The discovery well, Yopaat 1 EXP, was drilled in a water depth of 525 meters (1,722.4 feet) in mid-deepwater in the Cuenca Salina part of the basin. Yopaat 1 EXP, which sits about 63 kilometers (39.1 miles) off the coast, reached a total depth of 2,931 meters (9,616.1 feet). The rig encountered 200 meters (656.2 feet) of net pay of hydrocarbon-bearing sands in the Pliocene and Miocene sequences, Eni said. Eni’s co-venturer in Block 9 is Spain’s Repsol SA, which owns the remaining half. In the Sureste Basin, Eni had already found potential commercial wells in Blocks 7 and 10. “The overall estimate of resources in place currently exceeds 1.3 billion barrels of oil equivalent which allows Eni to advance with the studies towards a potential future ‘Hub’ development, including the discoveries and other prospects present in the area, in synergy with the infrastructures located nearby”, it said. Last year Eni announced the Yatzil 1 EXP discovery in Block 7. It pegged the well’s potential resources at 200 MMboe. Located 65 kilometers (40.4 miles) off the coast in mid-deepwater in Cuenca Salina, Yatzil 1 EXP was drilled in a water depth of 284 meters (931.8 feet). It reached a total depth of 2,441 meters (8,008.5 feet). Net pay sands stood over 40 meters (131.2 feet) long with “good quality” oil in the Upper Miocene sequences. “Yatzil-1 EXP is the second commitment well of Block 7 and the eight successful one drilled by Eni in the Sureste Basin”, the integrated energy company said in a press release March 17, 2023, noting Yatzil 1 EXP sits just 25–30 kilometers (15.5–18.6 miles) away from other discoveries. With the Block 9 discovery announced Monday, Eni has now encountered nine successful wells in Sureste. In Block 7, Eni holds a 45 percent interest. Scotland’s Capricorn Energy PLC owns 30 percent while Mexico’s Citla Energy SAPI de CV has the remaining 25 percent. In Block 10, Eni has found two successful wells. In 2021 it announced Sayulita 1 EXP as an oil find, putting the volume of potential resources, based on preliminary estimates, at 150–200 MMboe. The well sits around 70 kilometers (43.5 miles) off the coast in Cuenca Salina in a water depth of 325 meters (1,066.3 feet), just 15 kilometers (9.3 miles) away from the earlier Saasken oil discovery in the same block. The Sayulita well showed 55 meters (180.4 feet) of net pay of “good quality” oil in the Upper Miocene sequences after being drilled to a total depth of 1,758 meters (5,767.7 feet). “The successful result, that comes after the 2020 discovery well Saasken 1 EXP, confirms the value of the asset and opens the potential commercial outcome of Block 10 since several other prospects located nearby may be clustered in a synergic development”, Eni said in a news release August 2, 2021. The Saasken discovery, announced February 17, 2020, was estimated to hold a potential 200–300 barrels of oil. It sits 65 kilometers off the coast and was drilled in a water depth of 340 meters (1,115.5 feet). The discovery well yielded 80 meters (262.5 feet) of net pay of good-quality oil after reaching a total depth of 3,830 meters (12,565.6 feet). Eni owns a 65 percent stake in Block 10. Russia’s Lukoil PJSC holds 20 percent while Capricorn has the remaining 15 percent. Eni holds rights in five other exploration and production blocks in Sureste. Of the total eight blocks in the basin where Eni is a participant, seven are operated by the company, making Eni the “main foreign operator” in Mexico, according to the company. To contact the author, email jov.onsat@rigzone.co |
Posted at 21/5/2024 05:10 by grupo guitarlumber NEWSEni Gets $210MM Funding to Grow Biofuels Production in Kenya by Jov Onsat | Rigzone Staff | Monday, May 20, 2024 | 11:26 AM EST Eni secured $210 million in financing from the Italian government and the World Bank to grow its production of mainly oilseed-based biofuels in Kenya. Image by HPS-Digitalstudio via iStock Eni SPA has secured $210 million in financing from the Italian government and the World Bank to grow its production of mainly oilseed-based biofuels in Kenya. The International Finance Corp. (IFC), the World Bank’s private sector arm, is contributing $135 million while the Italian Climate Fund is chipping in $75 million, according to a joint press release by Eni and the two backers. The investments were announced at the Africa CEO Forum last week in Rwanda’s capital Kigali. The new support will help Italian government-controlle “The project will also work with farmers, providing inputs, mechanization, logistics, certification, and training to help them produce oilseeds, which are grown on degraded land not suitable for food production and/or grown in rotation with food crops, helping enhance soil fertility”, the news release stated. Eni chief executive Claudio Descalzi said in a statement, “By partnering with IFC and the Italian Climate Fund, Eni further enhances its agrifeed stock projects in Kenya, expanding its reach to up to 200,000 small-scale Kenyan farmers over the next five years, and strengthens the country’s integration in the biofuels value chain”. “This cooperation fits with Eni’s model to leverage public-private partnerships to support communities, generate long-term value, and create virtuous, lasting alliances with African countries”, Descalzi added. IFC managing director Makhtar Diop was quoted as saying, “This project marks the dawn of a new industry for Kenya, an industry where Kenya could become a world leader”. Eni noted world biofuel demand has climbed nearly six percent annually in the last five years driven by the transport sector. Using data from the International Energy Agency’s World Energy Outlook 2022 report, Eni said, “In a net zero by 2050 scenario, the use of biofuels in transportation is expected to more than double to 9 percent by 2030”. “While production of sustainable biofuels is currently more expensive than traditional fuels, costs are expected to fall as more capacity is built up and technology advances. This new investment will support these efforts”, Eni added. Eni, which claims to be the first company to convert traditional refineries into biorefineries through two projects in Italy, plans to expand its biorefining capacity from 1.65 million metric tons per annum (MMtpa) as of 2023 to over five MMtpa by 2030. Eni has pledged to go carbon dioxide-neutral by 2050, and the “development of biofuels is one of the Eni’s Just Transition drivers based on the circular economy”, as stated in Eni’s 2022 annual report on its net zero progress. Besides funding, IFC will provide advisory services for the development of the advanced biofuel value chain in the Eastern African country “including through the promotion of good agricultural practices and the professionalization of farmer aggregators”, Eni said. Eni plans to replicate its Kenyan biofuels campaign in other countries in Africa. It said it will work to obtain International Sustainability and Carbon Certification for all its biofuel feedstocks. To contact the author, email jov.onsat@rigzone.co |
Posted at 10/11/2023 00:02 by pj84 This super-cheap oil stock is the toast of the world’s top ‘value’ investorsWhen a stock suddenly becomes more popular with the best-performing fund managers in the world, it’s worth a closer look. This is what has happened to Eni, the Italian oil and gas giant, which has surged to a top AAA rating from Citywire Elite Companies, which rates stocks on the basis of their backing by the world’s top professional investors. Seven of these fund managers – each among the top-performing 3pc of the 10,000 equity fund managers tracked by the financial publisher Citywire – own shares in Eni, which has climbed from the lowest + rating to AAA status in the past month. What unites these investors, apart from their strong performance, is their style of “value” investing. Examine Eni in more detail and it’s clear why its shares are particularly appealing to them. Even in an oil and gas sector where low valuations are the norm, Eni stands out for the cheapness of its shares. Compared with eight of its largest oil and gas rivals, Eni’s shares trade on the lowest price-to-earnings ratio of 6.6 times expected profits over the next 12 months. Its forecast dividend yield of 6.2pc, based on the expected dividend and the current share price, is meanwhile the highest. By historic standards too, the shares’ valuation looks low. Valued according to forecast earnings, sales and free cash flows, the shares are trading towards the bottom of their 10-year range. But unlike many shares on rock-bottom valuations, Eni has been a very good investment over recent years. It is not a “falling knife”. In sterling terms, since hitting a lockdown low almost exactly three years ago, the shares have clocked up a 200pc total return. Better-than-expected third-quarter results at the end of last month are cause for further optimism, even as rivals such as BP have disappointed. Industry trends also look supportive. The American oil and gas “supermajors&r Eni’s acquisition record is less extravagant; the Italian government’s 30pc stake is a limiting factor. But a $4.9bn deal announced in June to buy Neptune Energy looks strategically sound. The takeover, which should complete early next year, will help Eni achieve a target of producing 60pc of output from gas by 2030. As gas produces fewer carbon emissions than oil, the European Commission has designated it a transition fuel, which will help underpin long-term demand. Increasing gas production will also mean that Eni’s liquified natural gas (LNG) business becomes less reliant on third-party supplies, the risk of which has been brought home by Russia’s invasion of Ukraine. Another opportunity for investors lies in potential divestments and in particular the mooted flotation of its green energy arm, Plenitude. Original plans for a listing were delayed last year as investors turned from hot to cold on renewable energy companies. Now Eni is considering selling a stake in the division before potentially floating it next year. If successful, this could prove particularly beneficial for shareholders. That’s because one explanation for Eni’s low valuation is investors’ preference for oil companies that stick to their fossil-fuel roots and hand back excess cash to shareholders via dividends and share buybacks rather than spending it on expensive renewable energy projects. Eni’s valuation of Plenitude suggests the bar is set low for the flotation to deliver value for shareholders. Outside investors could put a higher price on the business, which is working towards ambitious targets. Eni aims to increase renewable energy production from 2.2 gigawatts last year to 15 gigawatts by 2030 and 60 by 2050 and treble Plenitude’s earnings on the “Ebitda” (earnings before interest, tax, depreciation and amortisation) measure by €1.8bn by 2026. While Eni is increasing spending, raising a four-year investment plan from €28bn to €37bn this year, those commitments are unlikely to threaten returns to shareholders. Net debt remains comfortably inside the target range of 10pc to 20pc of net assets, while Eni is committed to annual dividend increases and will continue to buy back shares with spare cash. Buybacks reduced the share count by 6pc in the 12 months to the end of September. These cash returns should help support the shares, while Eni’s low valuation should mean it won’t take much to send them higher. |
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