ENI’s path towards a future from industry leader in the energy transition will pass through Plenitude. TheRetail and Renewable units, destined for listing on Piazza Affari in 2022, will in fact be called Plenitude as announced by Eni’s CEO, Claudio Descalzi, during today’s Capital Markets in Milan.
The new company integrates renewables, retail and electric mobility aims at 31 thousand electric charging points and 15 million customers. Leading it will be Stefano Goberti. Eni has determined that the IPO is the best solution to highlight the value of the business and intends to complete the transaction in 2022 based on market conditions. The new entity, reads a note from ENI, is part of Eni’s strategy and long-term commitment to be a energy company decarbonised and focused on sustainability. The decision is also in line with a favorable industrial scenario, with the growth in demand for renewable energy and green energy products for retail customers. The valuation of Plenitude, according to what Bloomberg reported last month, could be between 12 and 15 billion euros. In the intentions of ENI there would be the listing by summer 2022 with on the market up to 30% of the capital.
Plenitude was born with already a portfolio of renewable energy plants in operation equal to 1.2 GW at the end of 2021 and is the second largest platform for electric mobility in Italy with about 2,000 employees. The strategy aims to ensure that the retail business contributes to finance renewable energy and electric mobility projects.
Desclazi: quotation Plenitude cornerstone of our decarbonisation strategy
“Plenitude’s IPO is a cornerstone of our decarbonisation strategy and a fundamental step in Eni’s ongoing transformation. It is the first step in the creation of an industrial and financial entity aimed at reducing Scope 3 CO2 emissions, and is part of our broader commitment to create value through the energy transition ”. Thus Claudio Descalzi, Eni’s CEO, commenting on the details of the new company into which the retail and renewable businesses will converge. “The energy transition is first of all a technological challenge – adds Descalzi -. Eni’s development and rapid implementation of proprietary technologies has created a competitive advantage in our sector. Today, to enhance our technological solutions and unleash their full potential, we are creating independent business vehicles, such as Plenitude, with fully optimized financial structures. This company will attract new capital, release value and accelerate the energy transition. Eni will retain a majority stake in Plenitude and will support the new vehicle with proprietary technologies, engineering and project management skills. Through the IPO, we aim to free up more resources to offer greater returns to our shareholders and to have additional capital for the energy transition ”.
100% decarbonised energy to all retail customers
Plenitude at the sustainability target level will aim to reach the net zero emissions target by 2040, providing 100% decarbonised energy to all customers. In electricity, B2C sales will be completely decarbonised as early as 2022 and, by 2030, all sales will be decarbonised. Generation from renewables is expected to cover customer demand in 2040. In gas, customers will have supply contracts with Scope 3 emissions zeroed by offsetting, with the aim of supplying 100% decarbonised gas by 2040.
Financial targets
In terms of financial targets, the new entity aims at an Ebitda more than doubled from 0.6 billion in 2021 to 1.3 billion in 2025. It is the main financial target for Plenitude, the new retail and renewable division of ENI. Cash flow from operations (CFFO) is estimated to be around € 1 billion by 2025.
The growth will be driven by an average annual investment plan of € 1.8 billion over the period 2022 – 2025, mainly focused on renewable activities that will attract over 80% of total spending. During the plan period, the generation of positive cash flows and the issuance of debt will largely cover the planned investment needs. Net debt will be close to zero on January 1, 2022.
Renewables: target over 6 GW of installed capacity by 2025
On renewables, Plenitude’s objective is to exceed 6 GW of renewable installed capacity by 2025, supported by a pipeline of well-identified projects, to then reach over 15 GW of installed capacity by 2030. Again with regard to renewables, Plenitude aims to break-even in 2021, aiming for € 0.4 billion EBITDA by 2025 and a CFFO exceeding € 0.3 billion in 2025. An investment plan of 5.9 billion is expected in the period 2022 – 2025, balanced and well diversified internationally and among the various technologies.