Eni: Is There a Liquidation Strategy for the Six-Legged Dog?

Eni: Government Decisions and Strategic Shifts

In recent months, the government’s choices regarding Eni have sparked discussions.
Just last May, the Ministry of Economy and Finance approved the sale of 2.8% of the majority shares, approximately 92 million shares, effectively putting them on the market.

Despite the revenue of 1.4 billion, many commentators have noted how a company that generates astronomical profits annually (and therefore dividends for the MEF) was being sold off.
This year, quarterly profits closed at 4.1 billion euros.

Continued Disinvestments and Strategic Focus

Aside from the positive financial results, the recent weeks have been filled with news of further divestments.
Enilive, a company wholly owned by the Eni group, has been in the spotlight.
It manages sustainable mobility projects, with over 5,000 charging stations for electric cars, hydrogen plants, bio-refineries, and biogas.
The enjoy brand, owned by the company, provides car-sharing services in major Italian cities, contributing to a turnover of almost 14 billion euros.
Eni has granted exclusive rights to the American fund KKR to acquire up to 25% of the group immediately, with the option to increase the stake by an additional 10% in the future.

Moreover, Eni’s strategic refocus includes the divestment of Plenitude, a company within the group that mainly deals with large-scale renewable energy projects and energy marketing for businesses and citizens.
Rumors of additional divestments have been confirmed by Descalzi, Eni’s CEO, indicating significant interest from major funds and other companies.

International Divestments and Financial Prospects

International divestments are also part of the strategy, such as the complete sale of the Nigerian Agip Oil Company (NAOC), fully owned by Eni and engaged in hydrocarbon production in Africa, to Oando, Nigeria’s leading energy company.
Descalzi, during the presentation of the company’s interim results, hinted at the possibility of exceeding the initially planned 8 billion from acquisitions and divestments by 2027, under the so-called ‘satellite strategy’ outlined in the industrial plan.

In essence, the government’s influence on an evolving Eni, which is progressively streamlining its operations, is diminishing.
This shift also impacts governmental leverage in terms of foreign and energy policy.
What may be termed as a ‘satellite strategy’ seems to translate to a liquidation strategy, signaling significant transformations within the company’s operational framework.

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