Eni Pursues Differentiated Strategy With Satellite Model in Effort to Decarbonize

Eni’s strategy to achieve carbon neutrality in 2050 mirrors that of many peers as it seeks to invest in new low-carbon businesses. Although, its legacy hydrocarbon business will remain the primary earnings driver during the next decade like peers, it is differentiating itself with a satellite model by separating its business segments for potential public listing or outside investment. Although novel, we have our doubts this structure will be fully appreciated by the market as opposed to outright divestment and return of capital as others are doing.