ENI begins listing process of its newly merged energy business

Italian multinational oil and gas company, ENI, has initiated plans to list its integrated Gas and Power retail and Renewable business with the launch of an Initial Public Offering (IPO).

According to ENI, the IPO is the preferred route to crystallize the value of its integrated Gas and Power retail and Renewable business and plans to complete the transaction in 2022.

“We have committed to being a leader in producing and selling completely decarbonized products, and an IPO of ENI’s Retail and Renewables business is an important step towards this goal.

Retail and renewables is an exceptional business, which combines a growing pipeline of renewable capacity with an attractive and increasing customer base, and is uniquely positioned to meet the opportunities presented by the energy transition.

An IPO will unlock significant value, positioning the business for growth and helping both ENI and its customers reach net-zero emissions,” said Claudio Descalzi, the Chief Executive Officer (CEO) of ENI.

ENI announced the start of a strategic project to define the industrial and financial plan of its integrated Gas and Power retail and Renewable business in April 2021.

This aimed to identify the option that maximised the value of this unique business as part of the company’s wider commitment to delivering value through the energy transition and reaching net-zero emissions.

The transaction will help ENI grow its Retail and Renewables business and provide investors with greater visibility of the value of the unit.

ENI’s integrated Gas and Power 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.

Since announcing the launch of the strategic project, ENI has merged its Retail and Renewables operations, expanded and de-risked the renewables’ pipeline through acquisitions, and established the business as the second-largest Italian operator of EV charging points.

The company is on target to develop more than 6GW of renewables capacity by 2025 and more than 15 GW by 2030, with its retail customer base growing from 10 million customers today to over 15 million over the same period, with EV charging points expected to increase from 5,000 to more than 30,000 by 2030.

The integrated Gas and Power Retail and Renewables business is expected to grow from around €0.6 bn in 2021 to €1.2 bn in 2025.

The business entity is uniquely positioned due to its integrated business model, size, diversification and growth profile.

According to ENI, combining renewables production with a retail business creates cost synergies, stabilizes cash flow given the hedge between generation and retail sales, and creates opportunities to provide renewable power and services to customers – boosting returns on capital.

ENI will retain a majority stake in the company when listed.

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