Eni Boston Consulting Group Matrix

Eni's Carbon Capture and Storage (CCS) business, exemplified by its operational Ravenna CCS project in Italy and UK ventures, positions it as an early leader in a burgeoning decarbonization sector. This strategic focus is highlighted by ongoing discussions to divest a substantial stake to Global Infrastructure Partners (BlackRock) for $1.2 billion, underscoring the segment's significant valuation and growth potential.

The company's commitment is further solidified by its plan to establish a new CCUS satellite company in 2025, reinforcing its leadership in this critical environmental technology.

Stars in the BCG matrix represent business units with high market share in high-growth industries. Eni's Plenitude, Enilive, Carbon Capture and Storage (CCS), Congo LNG project, and strategic acquisitions like Neptune Energy and Ithaca Energy all exhibit characteristics of Stars. These segments are experiencing significant growth and Eni holds a strong position within them.

Plenitude's renewable capacity grew to 4.5 GW by early 2025, with ambitious plans to exceed 8 GW by 2027, demonstrating its Star status in the renewable energy sector. Enilive's focus on HVO biofuels and increasing SAF production, backed by KKR's investment, also points to a high-growth, high-share market. Eni's CCS business, with projects like Ravenna CCS and planned new ventures, is positioned to lead in the expanding decarbonization market.

The Congo LNG project, which shipped its first cargo in February 2024, is a key Star, bolstering Eni's position in growing gas export markets, particularly for Europe. Strategic acquisitions, such as Neptune Energy for approximately $4.9 billion in 2023, added around 130,000 boe/d net production, solidifying Eni's presence in high-growth upstream segments and creating dominant positions in key regions like the UK North Sea.

Eni's refining and marketing segment, including its over 5,000 Enilive stations across Europe, remains a significant cash generator. Despite facing some market pressures in 2024, this segment boasts a substantial market share, ensuring a steady, albeit variable, flow of income.

The company's strategic pivot towards biorefining is designed to bolster future earnings and environmental credentials. This move leverages Eni's existing infrastructure, positioning it to capitalize on evolving market demands for more sustainable fuel options.

Eni's mature upstream oil and gas operations are prime examples of cash cows, consistently generating substantial operating cash flow. This segment, which saw a 3% rise in oil and gas output in 2024, is fundamental to Eni's financial stability.

The Global Gas & LNG Portfolio (GGP) is another key cash cow, delivering robust economic results with a proforma adjusted EBIT of €1.1 billion in 2024. Its established trading operations and extensive infrastructure ensure stable cash generation.

Plenitude's retail gas and power sales, serving over 10 million customers, also function as a cash cow. The predictable earnings from this mature market presence provide a reliable income stream, underpinning Eni's overall financial strength.

Eni's divestment of non-core upstream assets, including its sale of permits in Congo to Perenco in March 2024 for an undisclosed sum, exemplifies a strategic shift. This move, alongside disposals in Nigeria and Alaska, signals a focus on optimizing its portfolio by shedding lower-performing or less strategically aligned assets.

Eni's basic chemicals segment, primarily operated by Versalis, represents a significant challenge within the company's portfolio, fitting the description of a 'Dog' in the BCG Matrix. This division has accumulated substantial losses, with nearly €7 billion lost over the past 15 years, including €3 billion in the last five years alone. Operating in a shrinking European market, Eni is actively reducing its exposure to basic chemicals, planning to phase out certain plants to curb ongoing financial drains.

The refining and chemicals division, including traditional refining assets, is also under pressure. In the fourth quarter of 2024, this segment reported a proforma adjusted EBIT loss, impacted by weak crack spreads, lower throughput, and high energy costs. This underperformance suggests these assets may require strategic repositioning, transformation, or divestment as Eni focuses on its biorefining initiatives.

Legacy petroleum marketing infrastructure, particularly those not adapted for sustainable mobility, also falls into the 'Dog' category. With declining demand for fossil fuels and increasing electric vehicle adoption, these assets have low growth potential and a shrinking market share. Eni's strategic pivot towards Enilive's sustainable mobility solutions underscores a move away from these conventional fuel station models.

Older, less efficient exploration blocks with marginal discoveries or high development costs also represent 'Dogs'. These areas, often mature fields with declining production or complex geology, offer limited potential for profitable returns. Eni's strategy to focus upstream investments on significant, high-potential projects implicitly involves pruning these less promising ventures to improve capital efficiency and overall portfolio performance.

Eni is actively developing agri-feedstock supply chains to support its biorefining operations, with a target of over 35% of Italian biorefining throughputs by 2027. This initiative places Eni within a rapidly expanding market for sustainable raw materials, driven by increasing demand for biofuels and bio-based products.

While Eni's strategic focus on agri-feedstocks is clear, its direct market share and operational footprint within the agricultural production segment itself are likely in early stages. Building a substantial and reliable supply requires significant investment in cultivation, logistics, and potentially partnerships with agricultural producers.

Question Marks in Eni's portfolio represent areas with low current market share but high growth potential, demanding significant investment. These are ventures where Eni is establishing a foothold in nascent or rapidly evolving sectors, requiring careful strategic decisions to convert them into future Stars or Stars. Failure to invest adequately or a misjudgment of market dynamics could see them become Dogs.

Eni's exploration in new frontiers like Namibia, its push into advanced bio-jet fuel (SAF), and its investments in hydrogen and battery technologies all fit the Question Mark profile. These are high-risk, high-reward propositions that are crucial for Eni's long-term growth and diversification strategy, reflecting the company's commitment to future energy landscapes.

The strategic acquisitions by Plenitude, such as Acea Energia, also fall into the Question Mark category. While aiming to expand market presence, these new customer bases require substantial investment for integration and development, representing potential future growth engines for the company.

The success of these Question Marks hinges on Eni's ability to allocate capital effectively, manage technological risks, and adapt to evolving market conditions. For instance, the global green hydrogen market's projected growth to approximately $150 billion by 2030 underscores the potential upside for Eni's hydrogen ventures.