By Giulia Petroni

Eni SpA on Monday unveiled the financial and sustainability targets of its newly rebranded entity comprising retail, renewables and e-mobility activities ahead of its planned initial public offering next year.

The Italian oil-and-gas major said at its capital markets day that the entity, which will be named "Plenitude," plans to have an annual investment program of around 1.8 billion euros ($2.03 billion) through the 2022-25 period, funded by its cash flow and own borrowing.

The company is targeting earnings before interest, taxes, depreciation and amortization of EUR1.3 billion for 2025 from EUR600 million in the current year.

Cash flow from operations is expected to reach around EUR1 billion by 2025, while net debt will be around zero as of Jan. 1, 2022, according to Eni. Cash will be mainly allocated to accelerate growth investments, but will also allow shareholder distribution.

"The new entity fits into Eni's strategy and long-term commitment to be a decarbonized energy company with sustainability at its core," the Italian company said. "The decision also aligns with a supportive industry backdrop, with an increasing demand for renewables and green energy products for retail customers."

Plenitude plans to reach net zero by 2040, with all power sales fully decarbonized by 2030 and renewable generation expected to cover customer demand in 2040, according to Eni. It also aims to provide fully decarbonized gas by 2040.

The entity, which will count around 2000 employees operating across the power value chain, will be led by Stefano Goberti.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

November 22, 2021 10:08 ET (15:08 GMT)

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