What is in Eni’s 2024-2027 strategic plan
Eni presented the 2024-2027 strategic plan. Here are goals and numbers
Eni, the oil company controlled by the Ministry of Economy, today presented the new strategic plan for the period 2024-2027. CEO Claudio Descalzi guaranteed that Eni will become “even more profitable, better diversified and with more solid fundamentals, enhancing remuneration to shareholders. In conclusion, we believe that the energy transition can be achievable if it generates adequate and sustainable returns."
ENI'S PROMISES IN THE PERIOD 2024-2027
Eni's objective is to adapt to the ongoing energy transition, which involves a gradual detachment from fossil fuels, while maximizing the value and skills of its traditional business segment, namely oil and gas .
Eni promises financial discipline, "robust" economic returns (also through "selective" mergers and acquisitions) and the development of new activities linked to the ecological transition but "characterised by a high profitability profile". Compared to the previous strategic plan, in the period 2024-2027 the company will reduce investments but increase remuneration to shareholders through dividends.
THE NUMBERS ON INVESTMENTS, CASH FLOW AND MORE
Eni expects to generate free cash flow of approximately 13.5 billion euros in 2024 and 62 billion over the entire plan to 2027.
Net investments will amount to 27 billion in total, for an annual average of 7 billion: compared to the strategic plan concluded in 2023, the drop will be 20 percent. The portfolio management activity will make a net cash contribution of approximately 8 billion euros by 2027.
Eni expects to achieve corporate cost reductions of 1.8 billion euros within the time frame of the strategic plan.
THE EMISSIONS
Eni has confirmed the objective of reducing Scope 1 (direct), Scope 2 (indirect: linked for example to the power supply of the company's buildings) and Scope 3 (indirect: linked to the supply chain and consumption of products) emissions: -35 percent by 2030, -80 percent by 2040 and net zero by 2050.
CARBON CAPTURE, BIOREFINING AND PLENITUDE
Eni states that carbon capture and storage technologies – which allow the sequestering of CO2 emissions generated by industries that are difficult to electrify, such as steel and chemicals – are "a growth factor in the company's energy transition path", which plans to reach 2030 with a CO2 injection capacity of over 15 million tons per year.
The Callisto Mediterranean CO2 Network project for carbon capture and storage – developed by Eni, Snam and the French company Air Liquide, between Ravenna and Marseille – has been included in the list of projects of common European interest and will be able to access the Connecting Europe fund Facility.
As for biorefining capacity – which allows agricultural crops and food waste to be exploited to produce fuels equivalent to fossil fuels but with a potentially lower carbon footprint -, Eni expects a doubling by 2026 to three million tonnes per year, which will rise to five million by 2030. “Eni's agribusiness will grow to represent more than 35% of the feedstock processed in Eni's Italian biorefineries by 2027,” the company states.
As for Plenitude, the subsidiary company that deals with the sale of gas and electricity, Eni has an EBITDA target of 2 billion euros in 2027 (i.e. more than double compared to last year). This year the installed capacity from renewable sources will be 4 gigawatts; by 2027 it will instead exceed 8 GW.
THE DIVIDEND FOR 2024
For 2024 Eni has proposed a dividend of 1 euro per share.
– Read also: How Eni's accounts are doing
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/energia/eni-piano-strategico-2024-2027/ on Thu, 14 Mar 2024 15:30:33 +0000.