Eni SpA E, the Italian energy giant, is accelerating its asset divestment strategy. UBS analysts predict €3 billion in additional sales by the end of 2025. This milestone will bring Eni’s total asset sales to €8 billion, fulfilling its strategic goal two years ahead of schedule. The company has already completed disposals worth €5.9 billion.
Eni's divestment strategy focuses on rebalancing its portfolio, with nearly half of the proceeds expected from selling stakes in its units and the other half from upstream activities, such as energy exploration and production. The remaining assets for potential sale include stakes in Ivory Coast operations, upstream interests and its biofuel and bioplastic unit, Novamont. The company is also in discussions to sell a stake in its planned carbon capture and storage division, aligning with its sustainability goals. The swift progress in sales could make Eni a "victim of its own success," with UBS warning that delays in the remaining sales could tilt risks to the downside.
Chief executive officer Claudio Descalzi is steering Eni through a transformative phase, emphasizing energy transition initiatives. This strategy includes a "satellite model," which involves spinning off divisions and inviting external investments, potentially culminating in public listings.
As part of this approach, Eni is negotiating with investors to sell a stake in its new carbon capture and storage (CCS) division. The CCS unit is one of the company’s flagship initiatives to reduce carbon emissions and align with global climate goals.
Eni plans to unveil its updated 2025-28 strategic roadmap on Feb. 27, highlighting the next phase of its energy transition and growth agenda. The company’s commitment to reducing hydrocarbon reliance while advancing renewable energy projects positions it at the forefront of Europe’s energy transition landscape.
E currently has a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Sunoco LP SUN, TechnipFMC plc FTI and Oceaneering International, Inc. OII. While Sunoco presently sports a Zacks Rank #1 (Strong Buy), TechnipFMC and Oceaneering carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes more than 10 fuel brands, ensuring a stable revenue stream. Sunoco is poised to benefit from the strategic acquisitions aimed at diversifying its business portfolio.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. It focuses on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.
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