The Board of Eni, chaired by Lucia Calvosa has agreed to go ahead with the launch of a process for an Initial Public Offering (IPO) and listing of shares in Eni’s newly merged Gas&Power Retail and Renewables business.
This therefore settles the dust on the decision regarding its merged Gas&Power Retail and Renewables business. According to Eni, an IPO is the preferred route to grow the value of this essential and unique business. Based on the Company’s timelines, it plans to complete the transaction during 2022, subject to market conditions and it will retain a majority stake in the listed company.
In April 2021, Eni announced the start of a strategic project to define an industrial and financial plan for the Retail and Renewables business. This aimed to identify the option that maximised the value of this business, as part of the Company’s wider commitment towards energy transition and reaching net zero emissions.
In a press release statement dated October 7, 2021, Eni noted that apart from the transaction helping it grow its Retail and Renewables business, it also aims at providing investors with greater visibility of the value of the unit.
Accordingly, Eni’s Retail and Renewable business will be financially independent with its own balance sheet and an investment grade credit rating– allowing it to access debt at competitive costs and fund growth.
By announcing the launch of the project, Eni has merged its Retail and Renewables operations, expanded and de-risked the renewables pipeline through acquisitions. This has led to the establishment of Eni Retail and Renewables as the second largest Italian operator of EV charging points.
Eni’s Retail and Renewables business to help meet renewables capacity
This has brought the company a step nearer to its target, as it seeks to develop more than 6GW of renewables capacity by 2025 and over 15 GW by 2030. Additionally, its retail customer base is expected to grow from 10 million customers to over 15 million by 2030. Also, it estimates that it’s EV charging points will increase from 5,000 to more than 30,000 by 2030.
More broadly, Eni Retail and Renewables business EBITDA will grow from around €0.6 billion in 2021 to €1.2 billion in 2025.
Combining renewables production with a retail business creates cost synergies and stabilizes cash flow. This therefore helps to surmount the hedge between generation and retail sales, and creates opportunities to provide renewable power and services to customers, boosting returns on capital.
Per the statement, further updates on the business— including the new company name— will be made on the capital markets day on 22nd November, 2021.
Claudio Descalzi, CEO of Eni, commented: “We have committed to being a leader in producing and selling completely decarbonized products and an IPO of Eni’s Retail & Renewables business is an important step towards this goal. An IPO will unlock significant value, positioning the business for growth and helping both Eni and its customers reach net zero emissions”.
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