Page 14 - EurOil Week 44 2021

EurOil ENERGY TRANSITION EurOil

Eni launches process to list

renewables arm

ITALY ITALY’S Eni has started the process of list- €1bn by 2023, according to the CEO.
ing its renewables and retail business, the Eni’s strategy contrasts starkly with those
The business is due to company announced on October 28, while of other European majors such as Royal Dutch
generate €600mn in European majors continue to resist such Shell and TotalEnergies. Activist investor Third
EBITDA in 2021. moves. Point has pushed for Shell to be broken up, cre-
CEO Claudio Descalzi said the group was ating one entity for its legacy oil and gas busi-
exploring several “possible projects,” in addition ness and another for its renewables and other
to listing its retail and renewable power division low-carbon activities. But the major said it
next year, in order to boost value. rejected this call.
“That is a way to create a more dynamic com- TotalEnergies CEO Patrick Pouyanne mean-
pany, a flexible company,” Descalzi said. “And while said on October 28 that it was “too early”
flexibility is essential, especially in an environ- for the major to consider spinning off its renew-
ment that is very volatile.” ables operations, as the segment could triple
Eni has said before that it intends to retain a in value by 2025. This is because TotalEnergies
majority stake in its renewables and retail busi- plans to nearly quadruple its renewable energy
ness after it is listed. But the business will be capacity to 35 GW by then. The company ear-
financially independent, with its own balance lier this year changed its name from Total to
sheet and its own credit ratings. TotalEnergies to reflect its shift towards cleaner
“Eni will remain focused on capital discipline energy.
to reduce our cash neutrality, the rapid deploy- “If we changed from Total to TotalEnergies,
ment of new technologies to speed up the exe- it’s not to spin off energies,” Pouyanne said on
cution of our decarbonisation plans, and on the October 28, according to Bloomberg. “It’s not
acceleration in establishing dedicated business at all the model that we have in mind. Doing it
vehicles as a key strategic element to focus our today is too early.”
growth and to highlight the full value of our All three majors intend to expand the role of
portfolio,” Descalzi said. natural gas in their business, while shifting away
The business due to be listed is forecast to from crude oil, demand for which they expect
generate €600mn in EBITDA in 2021, rising to will peak sooner. ™

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