Eni could spin off new retail-renewable energy business

  • As per a Reuters report, Eni (NYSE:E) could be looking to spin off its new retail and renewable energy division next year.
  • The business, which includes renewable power generation and energy sales to customers, reportedly could be worth €8B-€10B.
  • Eni could list a minority stake to raise money to bankroll its energy transition; the new unit will be up and running by June, and then the most likely option would be to spin it off and list 20%-30% sometime next year, according to the report.
  • Spinning off Eni 's new division could more than double its trading multiples and provide scope to raise €2B-€3B of debt away from Eni 's balance sheet to fuel growth in its renewables business.
  • Eni failed to generate the cash flow needed to cover its dividend in the latest quarter.

    Eni fundamentals

    Investors in Eni can expect a huge dividend payment. Based on the recent analysts' consensus the stock now has one of the highest dividend returns of the Italian market. Analysts expect a dividend of 56 cents per share. The dividend yield is then 5.48 percent. The average dividend yield of the oil & gas producers equals a moderate 1.21 percent.

    Historical dividend returns Eni

    Over the current book year the total revenue will be 58.96 billion euros (consensus estimates). This is rather significant more than 2020's revenue of 43.99 billion euros.

    Historical revenues and results Eni plus estimates 2020

    aandelenanalyse

    The analysts expect for 2021 a net profit of 1.95 billion euros. For this year the majority of the analysts, consulted by press agency Thomson Reuters, expects a profit per share of 55 cent. Based on this the price/earnings-ratio is 18.58.

    Based on the current number of shares Eni 's market capitalization equals 36.51 billion euros. The Eni stock was the past 12 months quite unstable. Since last March the stock is even 36 percent higher. This year the stock price moved between 6 and 10 euro.

    Historical stock prices Eni2007-2021

    stock analysis eni

    Click here for dividend Eni. At 13.51 the stock trades 0.12 percent higher at 10.22 euros.

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