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Eni Restructures Business to Unlock Satellite Value and Boost Growth
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Eni SpA (E - Free Report) , Italy’s leading oil and gas company, has announced a major reorganization of its business to drive growth across its main units, accelerate the reformation of its chemical division, and integrate upstream and trading operations. The new structure, approved by Eni's board of directors, should enhance operational efficiency while supporting the company’s efforts toward sustainable energy transition.
According to Eni, one of the key goals of this overhaul is to unlock value in its satellite companies, including Plenitude and Enilive, through new partnerships and potential public listings. Its "satellite strategy" focuses on developing separate entities that operate with a degree of independence while still contributing to the group's overall objectives. These satellite companies specialize in different sectors, allowing Eni to maintain flexibility and capitalize on growth opportunities in specific areas. The newly approved structure will emphasize this strategy, helping the company optimize the value of its satellite units.
Three New Structures to Lead Eni’s Transformation
Under the new plan, Eni will be reorganized into three key areas, each led by a chief operating officer (COO) reporting directly to CEO Claudio Descalzi. The Transition and Financial area will be overseen by COO and CFO Francesco Gattei. This division will guide Eni's financial strategy while supervising the renewable energy-focused unit Plenitude and biofuel producer Enilive. Both satellite companies are expected to play pivotal roles in Eni's efforts toward transitioning to more sustainable energy solutions.
COO Guido Brusco will take charge of the newly renamed Global Natural Resources unit, which will include Eni’s power generation and marketing operations, as well as its oil trading activities. This division will focus on integrating these operations to capture more value across the supply chain while also ensuring efficient delivery of Eni’s projects in upstream oil and gas.
The third pillar of the reorganization will be led by COO Giuseppe Ricci, who will manage the Industrial Transformation unit. This division will spearhead the restructuring of Eni's chemical business, Versalis, with a focus on innovation and sustainable practices. It will also oversee the transformation of E’s downstream refining activities and manage its remediation business, Eni Rewind.
E’s Strategic Focus on Decarbonization and Value Creation
The reorganization is intended to help Eni accelerate its transition toward decarbonization and maximize value creation across its various operations. CEO Claudio Descalzi highlighted that the new structure will enable the company to meet its strategic goals more efficiently, particularly in the areas of renewable energy and sustainable industrial practices.
Alongside the restructuring, Eni also announced that both Gattei and Brusco have been appointed as general managers, further strengthening the leadership team tasked with overseeing this new phase of the company’s development.
This reorganization marks a pivotal moment in Eni’s journey toward becoming a leader in the energy transition. Eni’s leadership is confident that the new structure will boost the company’s operational excellence and long-term growth.
MPLX derives stable fee-based revenues from long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.
The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.29. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB’s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.
The Zacks Consensus Estimate for CLB’s 2024 EPS is pegged at $0.95. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
VAALCO Energy is an independent energy company involved in upstream business operations, with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
The Zacks Consensus Estimate for EGY’s 2024 EPS is pegged at $0.65. The company has a Value Score of A. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
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Eni Restructures Business to Unlock Satellite Value and Boost Growth
Eni SpA (E - Free Report) , Italy’s leading oil and gas company, has announced a major reorganization of its business to drive growth across its main units, accelerate the reformation of its chemical division, and integrate upstream and trading operations. The new structure, approved by Eni's board of directors, should enhance operational efficiency while supporting the company’s efforts toward sustainable energy transition.
According to Eni, one of the key goals of this overhaul is to unlock value in its satellite companies, including Plenitude and Enilive, through new partnerships and potential public listings. Its "satellite strategy" focuses on developing separate entities that operate with a degree of independence while still contributing to the group's overall objectives. These satellite companies specialize in different sectors, allowing Eni to maintain flexibility and capitalize on growth opportunities in specific areas. The newly approved structure will emphasize this strategy, helping the company optimize the value of its satellite units.
Three New Structures to Lead Eni’s Transformation
Under the new plan, Eni will be reorganized into three key areas, each led by a chief operating officer (COO) reporting directly to CEO Claudio Descalzi. The Transition and Financial area will be overseen by COO and CFO Francesco Gattei. This division will guide Eni's financial strategy while supervising the renewable energy-focused unit Plenitude and biofuel producer Enilive. Both satellite companies are expected to play pivotal roles in Eni's efforts toward transitioning to more sustainable energy solutions.
COO Guido Brusco will take charge of the newly renamed Global Natural Resources unit, which will include Eni’s power generation and marketing operations, as well as its oil trading activities. This division will focus on integrating these operations to capture more value across the supply chain while also ensuring efficient delivery of Eni’s projects in upstream oil and gas.
The third pillar of the reorganization will be led by COO Giuseppe Ricci, who will manage the Industrial Transformation unit. This division will spearhead the restructuring of Eni's chemical business, Versalis, with a focus on innovation and sustainable practices. It will also oversee the transformation of E’s downstream refining activities and manage its remediation business, Eni Rewind.
E’s Strategic Focus on Decarbonization and Value Creation
The reorganization is intended to help Eni accelerate its transition toward decarbonization and maximize value creation across its various operations. CEO Claudio Descalzi highlighted that the new structure will enable the company to meet its strategic goals more efficiently, particularly in the areas of renewable energy and sustainable industrial practices.
Alongside the restructuring, Eni also announced that both Gattei and Brusco have been appointed as general managers, further strengthening the leadership team tasked with overseeing this new phase of the company’s development.
This reorganization marks a pivotal moment in Eni’s journey toward becoming a leader in the energy transition. Eni’s leadership is confident that the new structure will boost the company’s operational excellence and long-term growth.
E’s Zacks Rank & Key Picks
E currently has a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like MPLX LP (MPLX - Free Report) , Core Laboratories Inc. (CLB - Free Report) and VAALCO Energy, Inc. (EGY - Free Report) . While MPLX currently sports a Zacks Rank #1 (Strong Buy), Core Laboratories and VAALCO Energy carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
MPLX derives stable fee-based revenues from long-term contracts, with minimal exposure to commodity-price fluctuations. The partnership’s robust capital expenditure forecast for 2024, along with significant expansion initiatives, underscores its commitment to sustainable growth.
The Zacks Consensus Estimate for MPLX’s 2024 EPS is pegged at $4.29. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Core Laboratories, an oilfield services company, has a deep portfolio of sophisticated, proprietary products and services that positions it to take advantage of the growing maturity in the global hydrocarbon reserve base. CLB’s expanding international upstream projects indicate a positive trajectory for revenues and profitability, especially as oil demand continues to rise globally.
The Zacks Consensus Estimate for CLB’s 2024 EPS is pegged at $0.95. The company has a Value Score of B. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
VAALCO Energy is an independent energy company involved in upstream business operations, with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
The Zacks Consensus Estimate for EGY’s 2024 EPS is pegged at $0.65. The company has a Value Score of A. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.