Eni's Financial Outlook

By Francesca Landini

MILAN (Reuters) – Italian energy group Eni expects 2.5 billion euros ($2.7 billion) in net proceeds from additional disposals to be completed next year, according to Chief Transition & Financial Officer Francesco Gattei.

The group announced that U.S. investment group KKR will acquire 25% of its biofuel unit Enilive for 2.9 billion euros, as part of Eni's strategy to spin off high-growth businesses to fund its efforts to reduce greenhouse gas emissions.

Gattei stated, "We will have a cash-in of 3.6 billion euros this year and expect additional disposals next year, with around 2.5 billion euros cash-in."

He mentioned Eni could sell a second stake in Enilive, likely less than 10%. Previous sources indicated U.S. funds Stonepeak and Apollo were in talks regarding this sale.

Eni is also engaging with several potential buyers for a stake in its carbon capture and storage (CCS) business. Gattei noted, "We are currently talking with five, six investors interested in taking a stake in our CCS business."

Moreover, Eni may sell a second stake in its retail and renewable unit Plenitude and its bio-plastic company Novamont. Sources reported that Apollo and Norway's private equity fund HitecVision are interested in the second stake in Plenitude after Swiss asset manager Energy Infrastructure Partners acquired 7.6% in the unit earlier in March.

Gattei also mentioned Eni's negotiations to find a partner for developing a recent upstream discovery, without providing further details.

On Friday, Eni's shares rose 1.4% following the announcement of an increased share buyback program worth 2 billion euros, backed by better-than-expected third-quarter results.

($1 = 0.9231 euros)