Italy`s Eni to divest retail-renewable energy stake

Italy`s Eni to divest retail-renewable energy stake

Several European energy companies, including Spain’s Repsol (REP.MC), strive to uncover parts of their renewables business to accumulate money to reduce debt and pay for the shift away from oil and gas.

Eni announced in a statement it intended to list or sell a minority stake in the business that combines renewable energy and retail energy sales next year, verifying a Reuters report from March.

Analysts at Jefferies said that the business, which has 10 million customers and intends to grow green power generation to over 5 gigawatts by 2025, could be worth 9 billion euros ($10.89 billion), including debt.


Eni declared its improved net profit jumped nearly five times to 270 million euros ($327 million) as firmer oil prices offset lower production.

The result was under an analyst consensus of about 440 million euros because of low gas prices and refining margins. Cash flow from operations decreased 12% to 1.6 billion euros.

At 0822 GMT, Eni shares were below 1.4%, while the European oil&gas index (.SXEP) was up 0.05%.

Epidemic lockdowns throttled fuel demand last year, inspiring energy groups like Eni to rein in investments and returns.

But Europe’s energy companies have this year posted improved earnings supported by higher oil prices.

The group established its full-year production target of around 1.7 million barrels of oil equivalent a day and stated it would be investing approximately 6 billion euros this year.

Eni maintained its share buy-back program was supposed to resume with a Brent reference price of at least $56.

($1 = 0.8267 euros)

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