Strategic Plan 2024-2027

Eni’s distinctive approach addresses the challenges and opportunities of the Energy market.

Our strategy aims at different objectives, of security, affordability and decarbonisation, and develops levers and business models that are tailored to the differing countries and industries, and it is economically sustainable.
 

Our approach is pragmatic and technologically neutral, pursuing a mix of solutions, prioritized on the basis of timing and deployment costs.
 

Our model preserves the competitiveness of the existing economic and industrial systems and supports current and future energy demand, while developing innovative technologies and optionality, capable of shaping the energy system of the future.

We are seizing industrial potential provided by the Energy Transition with a distinctive organisational and financial model.
 

Our satellite model reduces the capital absorption by new businesses preserving the free cash flow from traditional assets for the benefit of shareholder distribution.
 

Indeed, we can develop emerging activities autonomously, usually with third-party funding, accessing new pools of aligned capital and thereby highlighting value creation.
 

At the same time a satellite structure can also be applied in some upstream geographies, to access operational and financial synergies, maximise growth potential, and, of course, free up more capital for the rest of the portfolio.

Global Natural Resources will remain a dynamic and material value and cash generator for Eni, while delivering progressive decarbonisation.
 

We will follow a mainly organic strategy to develop our activities leveraging our highly distinctive exploration and market-leading fast track development to grow over the Plan.
 

The considerable optionality and flexibility of new projects also allow us to unlock value earlier and to de-risk investments via an increased relevance of portfolio management.
 

Then, we are expanding our existing trading activities so as to participate in the full gas value chain.
 

Finally, we are using existing infrastructure and depleted fields to capture and store CO2, both for ourselves and as a service for others.

Transition and Transformation integrates businesses that drive the Transition and reposition Eni towards higher growth and better valuations.
 

Enilive, Plenitude and biochemistry/Novamont provide a portfolio of business solutions to help customers to cut emissions and are ideal candidates for our Satellite model.
 

Enilive is rapidly developing a multi-energy, multiservice strategy to generate value in the sustainable mobility space. Our Biorefining activities are evolving into a high-performing, high-returning and globally relevant business.
 

Plenitude has delivered outstanding operational and financial growth. Its integrated business model is a critical and differentiating quality. The combination of renewables and our 10 mln clients provides valuable internal hedging.

Plenitude’s e-mobility growth will also leverage Enilive stations, while also continue developing partnerships with car manufacturers and large-scale retail across Europe.
 

Versalis is transforming and re-positioning, leveraging new platforms focused on specialized products, bio-based chemistry, and circularity solutions, where we can compete with a leading position.  

Eni financial framework supports the execution of a strategy that builds businesses with complementary risk and returns profile, increases resilience and flexibility across the cycle and delivers value to shareholders.
 

In 2024 we expect to generate more than 14 bln in Cash from operation. Over the course of the plan we also expect to grow CFFO in a constant scenario by around 30% or over €4Bln.
 

The growth in operating cashflow is delivered from all segments. It is worth highlighting that our 2 main Transition businesses of Plenitude and Enilive will account for 20% of the CFFO growth during the plan period, emphasising the emerging high quality diversification we see at Eni. 

Our investment and distribution plans are made in the context of maintaining balance sheet strength and flexibility.

During the Plan period our CFFO will average over €15 Bln per year and net capex will average around €7Bln implying a FCF that materially covers our distributions, and enhances balance sheet strength.
 

Our goal is to preserve Eni as a strong investment grade credit.
 

Leverage will range between 15-25% as we seek to balance a fundamentally conservative capital structure with flexibility and advantaged cost of capital.

Our distribution policy confirms the progressive growth in shareholder value related to our strategy. Our model is to continue to rank distribution as a top priority through a percentage of operating cashflow – a transparent link to our business performance.

Eni enhanced the payout which will target a distribution between 30-35% of expected annual CFFO, compared with the previous 25-30%, by way of a combination of dividend and share buyback.

For 2024 Eni announced:

• an annual dividend of €1.00/share, a 6% increase versus 2023
• a share buyback programme of €1.1 bln, reflecting the expectations on scenario and the performance of the business.

This is a flexible tool, with higher exposure to the upside. In fact, similar to 2023, we can confirm that in lower than planned scenario we will seek business outperformance and use financial flexibility to deliver the target buyback.
 

While, in the case of better than planned CFFO outcomes, we will now allocate up to 60% of incremental cash to our buyback, a material improvement versus last year when we indicated an upside of 35%.

In April, we raised the 2024 buyback by 45%, to €1.6Bln from €1.1Bln, with the continuing commitment to revisit in each of the remaining quarters to update on expected financial performance and the associated distribution.

Finally during 3Q call, in consideration of the disposal plan progressing ahead of our initial plan, we confirmed to further raise the 2024 share buyback (as announced in July). It is now expected at €2 bln, bringing total distributions close to around 38% of CFFO.