* Eni to merge renewable and retail businesses
* Eni targets capex of 7 bln euros/yr to 2024
* Shares rise 2.3% vs flat European oil & gas index
(Adds graphic)
By Stephen Jewkes and Agnieszka Flak
MILAN, Feb 19 (Reuters) - Italian energy group Eni
on Friday raised its ambition to cut greenhouse gas emissions,
vowing to become net carbon neutral by 2050, as it seeks to keep
up pace in an industry under pressure from investors to go
green.
Like its peers, Eni is stepping up plans to transition to
cleaner fuels as governments around the world ratchet up green
deals to tackle the climate crisis and electrify economies.
"We commit to the full decarbonisation of all our products
and processes by 2050," Chief Executive Claudio Descalzi said.
"Our plan is concrete, detailed, economically sustainable and
technologically proven."
Eni shares accelerated after the plan was unveiled, rising
2.3% by 1324 GMT versus a flat European oil and gas index
.
In an update to a clean-up drive announced last year, Eni
said it would cut absolute emissions by 25% by 2030 from 2018
levels and by 65% by 2040.
Eni's plans come just days after newly-appointed Italian
Prime Minister Mario Draghi has put climate change at the heart
of his plans for Italy and has said his government intends to
boost renewable energy and green hydrogen production.
Eni, which makes most of its earnings from oil and gas, said
the 2050 decarbonisation goal would be reached by growing output
from bio-refineries, raising renewable capacity, deforestation
initiatives, carbon capture and other green projects.
"This is a target, not an aspiration," Descalzi told
analysts during a presentation of the plan, adding that
management's salaries would be tied to that.
The world's top oil and gas companies have set varying
targets to reduce greenhouse gas emissions from their operations
and the use of the products they sell.
Royal Dutch Shell vowed to eliminate net carbon
emissions by 2050, raising its ambition from previous targets,
as its oil output declines from a 2019 peak, while Total
rebranded as part of a push to diversify and grow renewable
power and electricity production.
Eni said it would merge its renewable and retail businesses
to grow its customer base in synergy with its green ambitions.
Unveiling shorter-term targets to 2024, Eni said production
would rise 4% per year, with spending on upstream activities of
around 4.5 billion euros per year.
Eni plans to spend an overall 7 billion euros per year over
the next four years, with over 20% of that allocated to green
projects and the merged renewable and retail business.
Eni said it would again base its dividend policy on the
price of Brent, saying the floor of 0.36 euros per share would
start at an annual Brent scenario of $43 a barrel, two dollars
lower than the previous level.
The company will buy back shares for 300 million euros if
Brent reaches $56 a barrel, and more should prices go higher.
Earlier on Friday, Eni posted a better-than-expected adjusted
net profit for the fourth quarter on firmer oil prices after
what Descalzi said had been "a year like no other in the history
of the energy industry" sent full-year profits
tumbling.
"We will never forget this exceptional year marked by the
most unexpected and disruptive crisis we have ever seen,"
Descalzi said.
($1 = 0.8271 euros)
(Additional reporting by Stefano Bernabei; Editing by Edmund
Blair and David Evans)
