Eni 3Q23 Results | Climate Transition Analysis
Eni has an outwardly progressive transition strategy but suffers the same barriers as its peer, TotalEnergies, in reconciling its oil and gas ambitions with its emissions targets.
Its aggressive production growth strategy may indicate a material reliance on offsets through FY30.
Eni’s low carbon capex was 8% of group capex in 3Q23.
For FY23 YTD, Eni has allocated 7% of group to low carbon. This compares to a European peer average of 13% (Shell and BP ex. 3Q23).
Key findings
Eni appears to be on track for its low carbon targets, achieving 83% (2.5 GW) of its 3GW renewable capacity target for FY23, targeting 7 GW by FY26. Biorefining reached an estimated capacity of 1.48 Mt pa, up 59% from 3Q22 and halfway to its 3 Mtpa FY25 target.
3Q23 oil and gas production was 1.64 M boe/d, up 4% on 3Q22, and the company confirmed its 3%-4% CAGR production target to FY26.
Eni’s aggressive production growth strategy may indicate a material reliance on offsets to achieve absolute emissions targets. Upstream scope 1 & 2 targets are used as KPIs for sustainability-linked bonds, with offsets driving ~60% of reductions between FY18-22.