Eni presents the new 2023-2026 plan which is based, according to what emerges from the press release, on “Eni’s operational and financial performance track-record”, and which focuses on the following factors: “energy security and accessibility through geographical diversification and technological; reduction of emissions; leverage technology for today’s initiatives and for future innovation opportunities; value creation for shareholders”.
EBIT 2023 is expected at €13 billion, the second best result in 10 years after the record of 2022, confirming the quality of the business that Eni is building. 2023 CFFO (operating cash flow) before working capital is expected to be over €17 billion and over €69 billion over the life of the Plan”.
“Under constant scenario – reads the press release relating to the plan presented by Eni – the 2026 CFFO will be more than 25% higher than that of 2023, driven by E&P, the positive contributions of all sectors and the growth of the main businesses of Transition, Plenitude and Sustainable
Mobility. This implies an average annual growth per share of 12% over the 2023 constant scenario plan period.”
“The shareholder remuneration policy is simplified and enhanced, with 25-30% of the CFFO to be distributed in dividends and buybacks. The proposed dividend for 2023 is increased by 7% to €0.94 per share and the buyback is set at €2.2 billion”.
Thus the CEO of Eni, Claudo Descalzi:
“The Plan presented today confirms the strength and effectiveness of our strategy. In 2014 we embarked on a path of industrial and financial transformation that has progressively allowed us to create value even in difficult scenarios, guaranteeing security of supply and environmental sustainability. We have focused our exploration and production strategy mainly on gas, leveraging our productions and diversifying investments among different countries”.
Descalzi continues:
“This allowed us to implement our Plan aimed at replacing 20 billion cubic meters of Russian gas by 2025. We have transformed our downstream platform and invested significantly in technology to create and grow our energy transition businesses, with the aim of zeroing Scope 1,2 and 3 emissions. This allows us today to fully confirm our decarbonisation objectives, despite the current scenario of energy security and the need to cope with a strong demand for traditional energies”.
“Today – underlines the CEO of Eni – we can clearly outline what Eni will be like in 2030: our Upstream activities will no longer generate net emissions; our hydrocarbon production will consist mainly of gas; our biofuel capacity will exceed 5 million tons per year; our renewable energy capacity will exceed 15 GW. And our investments in the most revolutionary technology linked to the energy transition – magnetic confinement fusion – will soon materialize in the first industrial plant”.
“Finally – concludes Claudo Descalzi – we have profoundly strengthened the Company from a financial point of view through the optimization and rationalization of expenses, and this allows us today to present strong financial objectives: a significant CFFO ((operating cash flow) generated both from our traditional businesses and from the contribution of transition-related activities; a satellite business model that allows us to leverage our assets while freeing up additional resources for investments in the transition; and a very low level of debt. today it allows us to create growing value for our shareholders and to enhance the remuneration policy.”