Italian Eni considers listing of combined retail, renewable energy unit

Solar system in southern Italy. Author: Richard Allaway. License: Creative Commons, Attribution 2.0 Generic.

May 3 (Renewables Now) – Eni SpA (BIT:ENI) is considering options of listing or selling a minority stake in a new business entity that will cover the company’s retail and renewable energy activities, the Italian energy firm said on Friday.

The separation of the stake could take place in 2022, subject to market conditions.

Overall, the strategic evaluation covers “multiple options to extrapolate the maximum value from this new entity during the course of 2022,” the company said.

Eni added that the merger of the retail and the renewables businesses will broaden the direct offer of services and will foster value generation. The combined unit is expected to increase its overall earnings before interest, tax, depreciation and amortisation (EBITDA) to over EUR 1 billion (USD 1.2bn) in 2025 from EUR 600 million in 2021. The business should develop renewable generation capacity of over 5 GW by 2025.

According to Jefferies analysts cited by Reuters, the unit could be valued at EUR 9 billion, including debt.

(EUR 1.0 = USD 1.202)

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