E - Eni in advanced talks to sell minority stake in Plenitude CFO says

2023-07-28 13:02:31 ET

Eni ( NYSE: E ) is in advanced talks with a strategic partner to sell a minority stake in its Plenitude clean energy unit, CFO Francesco Gattei said Friday.

In the company's post-earnings conference call, Gattei said negotiations "will take time because there are lot of details that need to be agreed in terms of value, governance" to reach a final agreement.

While awaiting favorable market conditions, Eni ( E ) reportedly is in talks with several investors, including Switzerland's Energy Infrastructure Partners, over a potential sale of a minority stake in the unit.

Analysts had pointed to a value for Plenitude of ~€8B including debt, but Jefferies this week said theunit's value could run as high as €10B.

Eni ( E ) reported Q2 profit that fell from the year-earlier quarter, weighed by lower oil and gas prices, but beat analyst estimates.

Q2 adjusted operating profit fell 42% Y/Y to €3.38B, while revenues slid 38% to €19.59B.

Q2 hydrocarbon production rose 2% to 1.61M boe/day; for the full year, Eni ( E ) still expects production of 1.63M-1.67M boe/day, but it adjusted guidance for full-year capital spending to under €9B from its previous outlook for ~€9.2B.

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