Eni rebrands energy transition business, gears for 2022 IPO

Italian oil and gas company Eni SpA (BIT:ENI) on Monday presented the official plan for listing a minority stake in its recently merged renewables, retail and e-mobility business, to be operated under the Plenitude brand.

Eni Plentitude will encompass all of the group's business dealing with the production of power from renewable energy sources, retail activities, the sale of energy solutions and the creation of a charging network for electric vehicles (EVs).

The initial public offering (IPO) of the rebranded entity is aimed at providing the parent company with free capital to deliver returns to its shareholders and fund initiatives related to the energy transition. The transaction will be completed in 2022, leaving Eni with a majority stake in Plentitude.

“The IPO of Plenitude is a cornerstone of our decarbonization strategy and key to our ongoing transformation. It is the first step in creating an industrial and financial entity to reduce our Scope 3 emissions, and aligns to our wider commitment to delivering value through energy transition,” said Eni’s CEO Claudio Descalzi.

The Italian group merged its retail and renewables operations in order to generate cost synergies from banding together green energy production with retail supply operations. The combined business is expected to more than double its earnings before interest, taxes, depreciation and amortisation (EBITDA) to EUR 1.3 billion (USD 1.47bn) in 2025 from about EUR 600 million in 2021. Its cash flow from operations (CFFO) is seen to reach EUR 1 billion by the same year.

For renewables, Plenitude will aim at EUR 400 million of EBITDA by 2025 and CFFO of around EUR 300 million in 2025. Some EUR 5.9 billion will be channelled during the 2022-2025 period into the business to back a goal for 6 GW of installed renewable capacity by 2025. The target for 2030 is at least 15 GW.

The EV charging points of Plentitude are anticipated to top 31,000 by 2030. Currently, the division is the second-largest operator in Italy with around 6,500 charging points.

(EUR 1.0 = USD 1.128)

Choose your newsletter by Renewables Now. Join for free!