Eni S.p.A. (E): history, ownership, mission, how it works & makes money

A Brief History of Eni S.p.A. (E)

Foundation and Early Years

Eni S.p.A. was established in 1953 as an energy company in Italy. Initially named Ente Nazionale Idrocarburi, the company was formed to manage and coordinate the nation’s oil and gas resources.

Major Milestones

• The company became publicly traded on the Milan Stock Exchange in 1992.
• In 1995, it acquired the participation in the North Sea gas fields.
• Acquisition of Agip in 2003 solidified Eni's position in the European energy market.

Global Expansion

Eni expanded its operations internationally, with significant investments in Africa, Norway, and Russia. The company emphasized exploration and production activities to enhance its global footprint.

Recent Financial Performance

Strategic Initiatives

Eni has increasingly focused on sustainability and reducing carbon emissions. The company aims to achieve net zero emissions by 2050, with a strategy to invest €8 billion in renewables by 2025.

Market Position

As of 2023, Eni ranks among the top 10 oil and gas companies globally, with a market capitalization of approximately €52 billion.

Key Operational Areas

• Exploration & Production
• Gas & Power
• Renewables

Recent Developments

In 2023, Eni announced a new gas discovery off the coast of Egypt, expected to significantly increase its production capabilities.

A Who Owns Eni S.p.A. (E)

Ownership Structure

As of October 2023, Eni S.p.A. is primarily owned by the following stakeholders:

Major Shareholders

The significant shareholders influencing Eni S.p.A. include:

• Ministero dell'Economia e delle Finanze (MEF)
• BlackRock, Inc.
• The Vanguard Group, Inc.
• Fidelity Investments
• State Street Corporation

Shareholder Influence

The Government of Italy, through the MEF, plays a crucial role in strategic decision-making within Eni. The ownership stake of 30.3% allows for a significant influence in corporate governance.

Market Capitalization

As of the latest data available in October 2023, Eni S.p.A. has a market capitalization of approximately €50.2 billion.

Stock Performance

Eni's stock price has experienced considerable fluctuations, with the stock trading at approximately €12.45 per share in October 2023. This reflects a Year-to-Date (YTD) change of around +12%.

Recent Financial Highlights

For the second quarter of 2023, Eni reported:

• Revenue: €20.9 billion
• Net Income: €3.1 billion
• EBITDA: €5.4 billion
• Total Assets: €103.4 billion

Dividend Policy

Eni S.p.A. has consistently paid dividends, with a proposed dividend of €0.88 per share for the fiscal year 2023.

Strategic Partnerships

Eni has established strategic partnerships with various international companies and governments, focusing on energy production, exploration, and sustainability initiatives.

Eni S.p.A. (E) Mission Statement

Corporate Mission

Eni S.p.A. is committed to being a leading integrated energy company, focused on sustainability and innovation in oil and gas exploration, production, and distribution. The Company aims to provide energy solutions that are affordable, sustainable, and accessible to all.

Core Values

• Integrity: Commitment to ethical business practices and transparency.
• Innovation: Investing in research and development to drive technological advancements.
• Sustainability: Focus on reducing environmental impact and supporting community development.
• Safety: Ensuring the safety of employees, contractors, and local communities.

Strategic Objectives

Eni’s strategic objectives align with its mission, aiming for:

• Leadership in energy transition.
• Operational excellence in upstream and downstream activities.
• Maximizing value for shareholders and stakeholders.
• Strengthening partnerships and collaboration on global energy initiatives.

Financial Performance

As of 2022, Eni reported the following financial figures:

Global Presence

Eni operates in more than 60 countries worldwide, supported by a diverse workforce of over 30,000 employees.

Environmental Commitment

Eni has set specific targets for reducing carbon emissions:

• Reduction of Net Carbon Emissions: 25% by 2030.
• Investment in Renewable Energy: 15 billion EUR by 2025.
• Carbon Neutrality Goal: Achieve carbon neutrality by 2050.

Recent Initiatives

Eni has launched several initiatives to align with its mission:

• Innovation Hubs: Establishing R&D centers focused on clean technologies.
• Partnerships: Collaborating with universities and tech companies to develop sustainable solutions.
• Community Engagement: Supporting local initiatives aimed at education and health in operating regions.

Challenges and Opportunities

The energy sector faces various challenges, including:

• Regulatory changes.
• Market volatility in oil and gas prices.
• Technological disruption.

However, opportunities exist in:

• Expanding renewable energy portfolios.
• Utilizing digital technologies for operational efficiency.
• Enhancing collaborations with industry stakeholders.

How Eni S.p.A. (E) Works

Overview of Eni S.p.A.

Eni S.p.A. is an Italian multinational oil and gas company, with operations across the entire energy sector. As of 2022, Eni reported revenues of approximately €85.2 billion and a net profit of around €10.1 billion. The company is headquartered in Rome, Italy, and is listed on the Milan Stock Exchange under the ticker symbol E.

Business Segments

• Exploration and Production
• Gas and Power
• Refining and Marketing
• Renewables and Energy Solutions

Exploration and Production

Eni's exploration and production segment is a core area of its operations, contributing significantly to overall revenue. In 2022, Eni produced around 1.8 million barrels of oil equivalent (boe) per day. The company holds a portfolio of exploration licenses in around 40 countries.

Gas and Power

The gas and power segment represents a substantial part of Eni's business, with Eni being one of the largest importers of natural gas in Europe. In 2022, Eni’s natural gas sales reached approximately 72 billion cubic meters, with a market share of around 12% in the European market.

Refining and Marketing

Eni operates a network of refineries across Italy and other countries, processing crude oil into finished petroleum products. In 2022, Eni’s refining capacity was approximately 600,000 barrels per day. The marketing segment includes over 4,000 retail service stations in Italy.

Financial Performance

The financial performance of Eni is illustrated in the following table:

Environmental Initiatives

Eni has made significant commitments towards sustainability and reducing its carbon footprint. The company aims to reach net-zero emissions by 2050. In 2022, Eni invested approximately €1.8 billion in renewable energy projects, focusing on solar, wind, and biofuels.

Research and Development

Eni allocates a portion of its budget to research and development, with €600 million invested in innovative technologies in 2022. The company focuses on enhancing energy efficiency and developing new energy solutions.

Global Presence

Eni's operations span the globe, with significant presence in Africa, the Middle East, and the Americas. The company is involved in over 70 exploration projects worldwide. The approximate breakdown of production by region in 2022 is as follows:

Conclusion

Eni S.p.A. operates with a diversified portfolio across various energy sectors, emphasizing sustainable practices and innovation. The company's financial performance in recent years reflects resilience and adaptability in a changing energy landscape.

How Eni S.p.A. (E) Makes Money

Exploration and Production

Eni S.p.A. derives a significant portion of its revenue from the exploration and production of oil and natural gas. In 2022, Eni reported an average daily production of approximately 1.78 million barrels of oil equivalent (boe).

Refining and Marketing

The refining and marketing segment is another key revenue driver for Eni. In 2022, the company processed approximately 24.3 million tonnes of crude oil. This segment generated revenues of around 16.2 billion € during the same year.

Renewable Energy

Eni has been increasing its investment in renewable energy. In 2022, Eni's renewable power generation capacity reached approximately 2.6 GW, contributing to revenues of around 1.2 billion €.

Natural Gas and Power Sales

Eni also generates income through the sale of natural gas and electricity. In 2022, natural gas sales amounted to 82 billion cubic meters (bcm), contributing revenues of approximately 19.6 billion €.

Financial Performance

Eni's total revenues for the fiscal year 2022 amounted to approximately 94.9 billion €, representing a notable increase compared to previous years due to higher oil prices and effective management strategies.