Eni's Green Transition Vision

In a groundbreaking statement to the Financial Times, Eni S.p.A. CEO Claudio Descalzi revealed the Italian energy giant's ambitious plan for its green businesses. By 2035, Eni anticipates that its renewable energy sectors will generate profits on par with its traditional oil and gas operations, with expectations to surpass them by 2040.

Current Financial Landscape

Despite the current dominance of oil and gas, which contributed €6.6 billion in operating profit according to the latest quarterly earnings, Eni's commitment to sustainability is unwavering. The company's green subsidiaries, Eniliver and Plenitude, focusing on biofuels and renewables, have already made a notable impact with €598 million in gross profits.

Strategic Growth and Investment

Descalzi emphasized the importance of balanced growth, cautioning against the risks of overexpansion. "Growth is important, but you can also have a bubble. To grow, you have to invest, and your free cash flow is always negative," he stated. However, he highlighted the strategic advantage of diversifying into green energy, which offers Eni a buffer against the volatility of the oil market.