Strategic Plan 2023-2026

ENI Capital Markets Day graphics

How we respond to current challenges

Eni’s distinguishing approach enables to effectively tackle the challenges of the Energy Trilemma, achieving environmental sustainability but also pursuing energy security and affordability.

We recognise the need to be agile and flexible in responding to these challenges, keeping a sharp focus on our strategy to be effective both on near-term targets and on pursuing our long-term transformation and decarbonization, accelerating the path to net-zero.

Our model is based specifically on:

  • Energy mix diversification
  • Geographical diversification
  • Deployment of new technologies
  • Gas as a bridge energy source
  • New business and financing model
  • Fast time to market.
While the urgency of achieving environmental sustainability and changing the energy mix remains a priority on our path to Net Zero in 2025, it is now even clearer that it has to be pursued side-by-side with energy security and affordability.
Claudio Descalzi Chief Executive Officer

Our satellite model

In order to address cash allocation issue to strike the right balance between investments and returns, we have developed dedicated entities that are capable of independently accessing capital markets to fund their growth and to reveal the real value of each business.

Natural Resources: growing volumes and value while reducing breakeven and emissions

Natural Resources Division will deliver accretive growth with falling emissions, driven by our leading Exploration and integrated, fast-track projects.

The close attention to our value growth will also deliver a decrease in our Scope 1 & 2 net carbon footprint by 65% by 2025 versus 2018. We confirm Upstream to be Scope 1 & 2 net zero by 2030.

Our mid-stream gas has proved its resilience and will increasingly benefit from equity gas supply.

Gas is and will be a critical component in the European energy mix.

Energy Evolution: growing profitable new energy businesses

Energy Evolution division, which includes traditional and green refining and marketing, Versalis and Plenitude, represents a portfolio of solutions to meet decarbonised energy needs and to achieve our Scope 3 emissions targets.

We incorporated Eni Sustainable Mobility, combining bio-refining, bio-methane and the sale of mobility products and services. Our ambitious plan is to evolve this entity into a multiservice, multienergy company, generating and unlocking new value.

Plenitude is maturing and executing on its pipeline of Renewable projects, with over 7 GW of capacity by the end of 2026. We will also more than double our network of EV charging points to over 30,000 by the end of the Plan.

Financial strategy and capital returns

Our financial strength enables the execution of our business strategy, provides flexibility across the cycle, and deliver returns to our investors.

In a constant 2023 Scenario, we calculate underlying growth in CFFO to 2026 of over 25% or around € 5 billion versus 2023.

At constant conditions we foresee to generate over 13% average ROACE over 2023-2026, 7 percentage points higher than in 2010-2019. We are delivering top-line growth and improving our capital productivity.

Financial strengths. A stronger, more sustainable-linked balance sheet

We exited 2022 with the strongest balance sheet in our history. During 2022 we reduced debt including lease liabilities by €2.3bn and by €2bn ex-leases cutting leverage by 700 basis points.

We keep on aligning our financial tools to the strategic milestones designed in our decarbonization plan. Our new credit lines have been completely sustainable-linked since 2021 and all our new senior bond issuance is entirely sustainable.

Over the next 4 years, we strive to strength our Balance Sheet, with an average leverage pre IFRS of around 10-20%.

Shareholder distribution. Simplified and enhanced

Our excellent financial and strategic progress provides scope to enhance and simplify our remuneration policy. Going forward Eni intends to distribute between 25-30% of expected annual CFFO by way of a combination of dividend and share buyback.

For 2023 Eni announced:

  • an annual dividend of €0.94/share, a 7% increase versus 2022
  • a share buyback programme of €2.2 bln1, reflecting the expectations on scenario and the performance of the business.

Moreover, in conditions that exceed our scenario, we expect to apply 35% of incremental cashflow to additional buybacks, while in outcomes that don’t meet our scenario expectations in the first instance we would use balance sheet, timing and capex flexibility to meet our commitment.

1 Up to a maximum of €3.5 bln.

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