Eni to list or sell stake in new renewable unit: Update

adds date of merger, CFO comments

Italy's Eni is planning to list or sell a minority stake in a new business unit created by merging its retail and renewable energy activities.

The merger is due to take place in July. Eni said it will evaluate options to extract maximum value from the new entity in 2022. These include listing a minority stake on a stock exchange through an initial public offering (IPO), or selling or exchanging a minority stake. The move is part of Eni's "wider commitment to delivering value through the energy transition", the company said today.

The new business will aim to develop 5GW of renewables generation capacity by 2025. Eni currently has 1GW of capacity either already installed or sanctioned, and is targeting 15GW by 2030 as part of its objective to become carbon neutral by 2050. The merger will broaden the "direct offer of services, infrastructure and green energy to customers", Eni said.

The new business will mainly be an OECD player, chief financial officer Francesco Gattei said. But this will not be exclusive, as there are opportunities in countries such as Kazakhstan where Eni could be exposed to the generation side, he said.

Eni's retail activities cover the customer-facing side of its business, including selling refined oil products at service stations, and providing gas and power to household customers, small and medium-sized businesses, and residential accounts in Europe.

The firm expects to have over 11mn customers by 2025, up from around 10mn currently.

By Rowena Edwards