ENI launches a more generous dividend policy by counting on oil prices that will remain at high levels. The Six-Legged Dog group has also launched a buyback of 1.1 billion euros which may increase in the presence of favorable scenarios on the Brent price front. The new 2022-2025 plan then places the accent on a tighter path towards decarbonization.
The total annual dividend increases to € 0.88 per share from the previous € 0.86. The size of the coupon is based on the reference price of Brent between $ 80 and $ 90 per barrel. News on the ex-coupon front: the dividend will be paid in four equal quarterly installments in September 2022, November 2022, March 2023 and May 2023. Eni will also launch a buyback program of 1.1 billion euros and will update its assessment of the buyback program scenario in July and October. In the presence of Brent price scenarios above $ 90 per barrel, Eni will proceed to increase purchases of treasury shares by an amount equal to 30% of the associated incremental Free Cash Flow.
ENI accelerates towards decarbonisation, -80% emissions by 2040
The 2022-2025 plan, presented today to the financial community by Claudio Descalzi, provides for the reduction of scope 1, 2 and 3 emissions by 35% by 2030 and by 80% by 2040 compared to 2018 levels (compared to the -25% and -65% of the previous plan); Scope 1 and 2 emissions will be cut by 40% by 2025 (compared to 2018 levels) and net zero emissions will be achieved by 2035, five years ahead of the previous plan; new targets also for scope 1 and 2 emissions relating to upstream: -65% by 2025 compared to 2018 in line with the confirmed target of net zero emissions by 2030.
30% of the investments of the Eni group will be dedicated to new energies by 2025, to then rise to 60% by 2030 and up to 80% by 2040.
The 2022-2025 Plan presented today by ENI provides for one in the upstream production with an average growth of 3% per year and equal to 1.7 million barrels equivalent per day in 2022; 1.66 Mboe / d in the first quarter of 2022; towards a plateau of approximately 1.9 Mboe / d in 2025. The gas component will grow progressively up to 60% by 2030 and over 90% after 2040 and at the same time oil will reduce in the medium and long term. Upstream capex expects approximately € 4.9 billion in 2022; 4.5 billion on average over the course of the plan (excluding entities valued using the equity method). In the upstream, the cumulative organic Free Cash Flow (post working capital) is indicated at approximately € 29 billion as part of the plan.
Ukrainian war, Eni responds with over 14 trillion cubic feet of additional gas resources
“The war in Ukraine is forcing us to see the world differently than we knew it. This is a humanitarian tragedy, which has generated new threats to energy security and which we must face without abandoning our ambitions for a just energy transition ”. So he expressed himself Claudio DescalziCEO of Eni, on the day of the presentation of the 2022-2025 plan.
“Our strategy has allowed us to be ready to face this challenge – adds Descalzi -. Our immediate response to the current crisis has been to use our established alliances with producing countries to source replacement sources of energy to be allocated to European needs. We are able to make over 14 TCF (trillion cubic feet) of additional gas resources available on the market in the short and medium term. These actions complement our commitment to developing new decarbonised products and services, which allow us to guarantee energy security and reduce emissions, offering our customers a wide range of decarbonised energy products and services “.