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Eni’s satellite model: a distinctive approach

Finding the right balance between investments and returns through a unique organizational and financial strategy.

Our satellite model is based on creating separate entities that can independently access capital markets to finance their own growth and be suitable for specialised investors. In this way, we can accelerate the development of new high-potential businesses linked to the energy transition, while maintaining the solidity that characterises us in traditional activities, which are also part of a common decarbonization process. At the same time, each satellite company remains an integral part of Eni, from which it can continue to benefit in terms of technology, know-how and services. 

By being open to new investments, the satellite model allows us to reduce the capital absorption required to support new businesses, while safeguarding shareholder remuneration, which continues to be fed by the Free Cash Flow generated by traditional activities.

 

The recent sale of the Plenitude stake for example is the first step to support further investments and it highlighted the value already generated in this business but not reflected in Eni’s multiple. The company intends to replicate this model for Enilive, for Novamont biochemical activity and for CCUS. 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 free up more capital for the rest of the portfolio. Var Energi and Azule are very successful examples of business combinations that have allowed us to fuel upstream growth under a dedicated and focussed management structure in Norway and Angola. By combining two complementary upstream asset portfolios, the Ithaca transaction consolidates Eni's position in the UK, where we can see opportunities for growth and optimisation.

Satellites are the way we solve the energy transition equation, by managing new and traditional businesses and growing in both while ensuring continuity and security of sources, the availability of financing while pursuing all our business objectives.
Chief Financial Officer

Capital Markets Update 2024

On 14 March, Eni presented the Capital Markets Update 2024, and the video on demand is available.



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