Eni Business Model Canvas

Eni actively seeks key partnerships with investment funds and specialized firms to fuel the expansion of its renewable energy division, Plenitude, and its sustainable mobility venture, Enilive. These collaborations are crucial for accelerating growth and accessing vital capital and expertise.

A prime example is KKR's investment in Enilive, a move that injects significant capital into Eni's sustainable mobility efforts. Similarly, EIP's investment in Plenitude provides a substantial financial boost and brings specialized knowledge to Eni's renewable energy projects.

Eni's key partnerships are foundational to its operational success and strategic expansion, particularly in the energy transition. These alliances enable risk sharing, market access, and technological advancement across its diverse business segments.

Collaborations with national oil companies and international energy firms are critical for exploration and production ventures, as seen in projects in Mozambique and Cyprus. Furthermore, partnerships with technology providers and research institutions are vital for innovation in areas like carbon capture and biofuels. Strategic financial partnerships, such as those with KKR and EIP for Enilive and Plenitude respectively, provide essential capital for growth in sustainable energy.

Eni also relies on a robust supply chain network, including shipping companies and specialized equipment suppliers, to ensure efficient global operations. In 2024, these partnerships were crucial for maintaining LNG import volumes and supporting renewable energy infrastructure development.

Engagement with governmental and regulatory bodies is paramount for navigating legal frameworks and aligning with national energy strategies, ensuring operational continuity and compliance.

Eni's key activity of refining and marketing petroleum products involves transforming crude oil into essential fuels like gasoline and diesel, as well as lubricants, which are then distributed through its extensive network of service stations. This core operation is undergoing significant evolution, with Eni actively investing in converting its traditional refineries into advanced biorefineries.

In 2024, Eni continued its strategic shift towards sustainability, with its biorefineries playing a crucial role. For instance, the Venice biorefinery processed 1.1 million tonnes of feedstock in 2023, a figure expected to grow. This transition aims to produce biofuels and other bio-based products, aligning with the company's decarbonization goals and meeting growing market demand for greener alternatives.

Eni's core activities encompass the entire hydrocarbon value chain, from exploration and production to refining and marketing. The company is actively expanding its global gas and LNG portfolio, securing diverse supply sources and engaging in strategic trading to meet market demands. Eni is also transforming its refining operations, investing in biorefineries to produce biofuels and bio-based products, aligning with its decarbonization goals.

Eni's extensive infrastructure, encompassing a vast network of pipelines, refineries, and power plants, is a cornerstone of its integrated energy value chain. This robust physical asset base, including significant renewable energy facilities, is critical for the efficient extraction, processing, and distribution of energy resources.

In 2024, Eni continued to leverage its substantial refining capacity, operating several key complexes that processed millions of barrels of crude oil daily. The company's pipeline network, spanning thousands of kilometers, ensures the reliable transport of oil and gas, a vital component of its operational efficiency and market reach.

Furthermore, Eni's commitment to energy transition is reflected in its growing portfolio of power generation plants, which increasingly feature renewable sources like solar and wind. This diversification strengthens its ability to meet evolving energy demands and contributes to its sustainability goals, with significant investments in green energy projects throughout 2024.

Eni's proprietary technologies and research and development capabilities are crucial for its competitive edge. These resources enable efficient exploration, enhanced oil recovery, and innovation in sustainable energy solutions.

In 2023, Eni invested €1.2 billion in R&D, with a significant portion directed towards developing advanced technologies for challenging exploration and improving extraction from existing fields.

The company's focus on R&D also drives its energy transition strategy, including advancements in carbon capture and the development of renewable energy sources and sustainable chemicals.

Eni's integrated infrastructure, comprising pipelines, refineries, and power plants, is a vital physical asset. This network supports the entire energy value chain, ensuring efficient processing and distribution of resources, including a growing renewable energy portfolio.

As of 2024, Eni continued to operate substantial refining capacity, processing millions of barrels of crude daily, and maintained an extensive pipeline network spanning thousands of kilometers for reliable energy transport.

Eni, through subsidiaries like Versalis and Enilive, is a frontrunner in developing innovative and sustainable products. They offer advanced biofuels, such as those derived from vegetable oils and waste, and are expanding into sustainable chemicals and polymers. For instance, Enilive's bio-refineries produced approximately 3.7 million tonnes of biofuels in 2023, a significant increase from previous years, demonstrating their commitment to this sector.

These offerings directly address the increasing global demand for environmentally conscious alternatives across various industries. Eni's focus on electric mobility solutions, including charging infrastructure and battery services, further solidifies their position as a provider of sustainable solutions. In 2024, Eni announced plans to invest over €1 billion in its bio-refinery in Porto Marghera, Italy, to further enhance its sustainable product portfolio.

Eni provides a diverse energy mix, including oil, natural gas, LNG, and electricity, ensuring reliable energy security. This diversification is further strengthened by a strategic expansion of its LNG portfolio, as seen in 2024 with new supply agreements and infrastructure investments.

The company is a leader in decarbonization, investing in renewables like solar and wind, and advancing biorefining capabilities. Eni is also a key player in sustainable aviation fuels and carbon capture technologies, underscoring its commitment to environmental solutions.

Eni's value proposition centers on operational efficiency and disciplined capital allocation across both traditional and transition businesses. This focus yields tangible results, such as a 5% production cost reduction in upstream operations in 2024 and a 45% EBITDA margin in the first half of 2024.

Eni actively cultivates strong relationships with host countries and communities, contributing to local economies through job creation and procurement. In 2023, the company invested over €100 million in social responsibility projects, demonstrating a commitment to shared value.

Eni actively cultivates community relationships through dedicated social programs and environmental initiatives in its host countries. For instance, in 2023, Eni invested over €100 million in social and environmental projects, focusing on education, health, and sustainable development in operational areas.

These engagements are crucial for building trust and securing a social license to operate, demonstrating Eni's commitment to social inclusion. This approach fosters positive interactions and mutual understanding, vital for long-term operational success.

Eni's customer relationships span a broad spectrum, from highly personalized B2B interactions to widespread digital engagement with retail consumers. For its large industrial clients, dedicated account managers ensure tailored energy solutions and manage complex, long-term contracts, fostering deep partnerships. This approach was evidenced by substantial long-term gas supply agreements secured in 2024.

For retail customers, Eni leverages digital platforms like its website and mobile apps for account management and service access, enhancing convenience. By the end of 2023, over 80% of retail customers used online channels, with a 25% year-over-year increase in mobile app users, indicating a strong preference for self-service.

Beyond commercial ties, Eni builds trust through community engagement, investing significantly in social and environmental projects in its operational areas, with over €100 million allocated in 2023 for initiatives in education, health, and sustainable development.

Investor relations are maintained through transparent financial reporting, sustainability updates, and strategic presentations, ensuring stakeholders are informed. Eni's 2023 Integrated Report detailed progress in its decarbonization strategy and financial performance, with ongoing emphasis in 2024 on long-term value creation through investments in renewables and the circular economy.

Enilive's extensive retail service station network is a cornerstone of Eni's business model, acting as a primary touchpoint for customers. These branded stations are crucial for distributing fuels, lubricants, and a growing range of electric vehicle charging solutions directly to both individual consumers and businesses.

In 2024, Eni continued to expand its network, focusing on integrating new energy services. For instance, the company aimed to significantly increase its EV charging points across its Italian stations, reflecting a strategic shift towards sustainable mobility solutions.

Eni's channels are diverse, ranging from its upstream E&P operations delivering raw resources to its downstream refineries and biorefineries that create finished products. The Enilive retail network acts as a direct customer interface for fuels and EV charging, while wholesale and trading desks manage large-scale energy distribution. Digital platforms and direct sales for brands like Plenitude offer tailored energy solutions to homes and businesses.

Eni, through its Plenitude brand, is a key provider of gas and electricity to millions of households. In 2024, Plenitude continued to expand its customer base, focusing on renewable energy solutions for homes.

For individual motorists, Eni's Enilive brand offers a comprehensive suite of products and services. This includes traditional fuels, high-quality lubricants, and increasingly, electric vehicle charging solutions at its service stations across Europe.

Eni's diverse customer base extends to specialized industrial sectors, including chemicals and manufacturing, which depend on Eni's refined products and petrochemicals. The company also serves the automotive sector through its Enilive brand, offering fuels, lubricants, and expanding EV charging infrastructure.

Eni's logistics and distribution expenses are substantial, covering the transportation of crude oil, natural gas, LNG, and refined products. These costs are fundamental to their operations, ensuring energy reaches consumers and industrial clients.

In 2024, Eni's significant investments in maintaining and operating its extensive network of pipelines, storage facilities, and service stations directly contribute to these costs. For instance, the company's commitment to expanding its LNG infrastructure, including regasification terminals, adds to the capital and operational expenditures within this category.

Eni's cost structure is dominated by significant capital and operational expenditures in exploration and production, refining, and logistics. These are directly influenced by raw material costs, energy consumption, and investments in infrastructure and technology. For instance, in 2023, Eni's exploration and production capital expenditures reached €4.5 billion, underscoring the substantial investment required to secure and extract energy resources.

Research and development, particularly for the energy transition, also represents a considerable cost. In 2023, Eni invested €1.3 billion in R&D, focusing on areas like advanced biofuels, carbon capture, and renewable energy technologies. Personnel and administrative costs, supporting a global workforce of approximately 31,000 employees, are also a significant ongoing expense.

Eni's revenue from Liquefied Natural Gas (LNG) sales is experiencing robust growth, fueled by an expanding global portfolio and new supply agreements. This expansion is crucial as the world increasingly relies on LNG for energy security and diversification.

In 2023, Eni's upstream segment, which includes LNG production and sales, reported strong performance. While specific LNG revenue figures are often embedded within broader segment reporting, the company's overall strategy emphasizes increasing its LNG market share. For instance, Eni secured a significant agreement in 2023 to supply LNG to Germany, demonstrating tangible progress in its portfolio expansion.

Eni's revenue is also significantly boosted by its gas and power marketing operations. This segment involves the trading and sale of natural gas and electricity to a wide range of customers, including utilities, industrial users, and retail consumers. The company leverages its integrated value chain, from production to end-user delivery, to optimize these sales.

In 2024, Eni's Gas & Power segment has demonstrated resilience and strategic importance. For example, in the first quarter of 2024, Eni reported that its integrated G&M (Gas & Power Marketing) business achieved an adjusted operating profit of €1.75 billion, highlighting the substantial revenue generated from these activities and its contribution to the company's overall financial health.