Trade the ENI share!
ENI

Analysis before buying or selling ENI shares

Trade the ENI share!
BUY   SELL
77% of retail CFD accounts lose money - Plus500.com
 
Chart provided by Tradingview

Latest news

ENI's revenue and market capitalization

16/11/2021 - 14h17

In 2020, several sectors of activity were impacted by the coronavirus health crisis. The oil sector was also penalised by this pandemic. This impacted the financial performance of the Italian group Eni.

Elements to consider before selling or buying ENI shares

Analysis N°1

In particular, we know that the ENI group is currently trying to position itself on the LNG or Liquefied Natural Gas market, which can quickly become a source of growth for the company. Indeed, liquefied natural gas is one of the types of energy that are currently on the rise and is considered more valuable than some other energy products.

Analysis N°2

The ENI Group has a very significant cash flow, which will undoubtedly enable it to invest in the coming years in new resources for the future, as it is currently doing with liquefied natural gas, especially as its profits are also relatively stable.

Analysis N°3

ENI has also recently put a lot of emphasis on energy production from recycled products. However, given the current ecological context and its major global challenges, it is highly likely that these investments will soon bear fruit.

Analysis N°4

The group should be increasingly exposed to political threats which could thus have a negative influence on the costs of producing ENIs.

Analysis N°5

Still with regard to the future brakes on the growth of ENI's activities, we would like to stress once again the strong competition in its sector of activity, energy, which has some real mastodons likely to come and take over some of its market shares.

77% of retail CFD accounts lose money. This is an advert for trading CFDs on Plus500

General presentation of ENI

Before you begin your analysis of ENI's share price, you need to make sure you have the knowledge to understand how the company may be performing in relation to its industry. We therefore propose that you now discover a detailed presentation of this company with its main activities and sources of income.

The ENI SpA Group or Ente Nazionale Indrocarburi is an Italian company specialising in the energy sector. More specifically, the group is currently one of the European leaders in the oil and gas industry.

In order to better understand the activities of the ENI group, they can be divided into different divisions according to the share of turnover they generate and in this way:

  • Firstly, there is the purchase and sale of natural gas and the production of electricity with 65 billion m3 of natural gas and 25.3 Twh of electricity sold in 2020. The group also transports natural gas.
  • Refining and distribution comes second with 17.4 million tonnes of crude oil refined and 27.8 million tonnes of petroleum products sold in Europe. The group currently operates 3 refineries in Italy and runs a network of 5,369 service stations in Europe.
  • Energy services, including offshore drilling, engineering, construction and maintenance of hydrocarbon production facilities, petrochemical plants and refineries.
  • Hydrocarbon exploration and production activities.
  • Finally, there are the petrochemical activities with more than 4.3 million tons of petrochemicals sold in 2020 including ethylene, phenols, olefins, styrenics, polymers and elastomers.

The Eni Group currently employs 31,495 people and is listed on the Bolsa Italiana. It is also part of the Italian market's benchmark stock index, the FTSE MIB.

Analysis before buying or selling ENI shares
77% of retail CFD accounts lose money. This is an advert for trading CFDs on Plus500

The major competitors of ENI

If a good knowledge of ENI and its activities is important, so is a good knowledge of its business sector and therefore of its competitors in the market. Here is a quick overview of the group's main current competitors:

Enel

this company was formerly the Italian national electricity company and was privatised in 1999. It is now the main producer of electrical energy in Italy. The group has also become a multi-service group and is active in electricity but also in water and gas, while remaining a leader in electricity production worldwide.

Iberdrola

The Iberdrola SA group is a Spanish company active in the production, distribution and sale of electricity and natural gas, and is one of the ten largest electricity producers in the world and the world leader in wind power production. The group currently employs 35,637 people worldwide.

Engie

This French industrial group is the third largest in the energy sector in the world, excluding oil. It was formed by the merger of Gaz de France and Suez in 2008.

EDF

The EDF group for Eléctricité de France is a French electricity generation and supply company and is 80% owned by the French state. It is currently the leader in electricity generation in France and Europe and the second largest in the world in terms of installed capacity.

TotalEnergies

Finally, the group formerly known as "Total" is a global multi-energy company that produces a variety of energies including oil, natural and green gas, renewable energies and electricity. It is one of six supermajors and its activities include oil and gas production, extraction and sales, power generation and refining, and commercial distribution.


The major partners of ENI

Here are the main current partnerships set up by the ENI Group that you should be aware of.

Sonatrach

signed two agreements on petrochemicals on 26th January 2017 in Algiers. This is the first agreement linked to the elaboration of feasibility studies for world-class petrochemical projects in Algeria concluded with the company Versalis, a 100% subsidiary of the Italian Group ENI.

Total

Eni and Total have signed a licensing and R&D cooperation agreement that will allow the evaluation of the Eni Slurry Technology (EST), with a view to adapting it to Total's needs.

Fincantieri

In 2017, Eni announces that it has signed a cooperation agreement with the Italian shipbuilder Fincantieri for the development of natural gas-fired electrical installations.

77% of retail CFD accounts lose money. This is an advert for trading CFDs on Plus500
Positive factors for ENI shares
The factors in favour of a rise in the ENI share price:

If you plan to trade ENI's share price through CFDs, you should of course not rely solely on your intuition to take an online position. An effective strategy is based on a comprehensive understanding of a company's ability to gain and maintain investor confidence over the long term. To be able to anticipate the underlying trends of an asset such as ENI shares, it is therefore necessary first and foremost to be familiar with the strengths and weaknesses of this major energy group. To help you do this, we have chosen to list the strengths and weaknesses of this value here. Let's start, of course, with the advantages that this company has and that could support its future growth.

One of the ENI group's greatest assets is, of course, its very appreciable positioning on the world energy market. Indeed, the European group has succeeded in making its mark among the giants of this sector and is today, thanks to the quality and diversity of its services, one of the best known companies in this sector throughout the world.

Another major asset of the ENI Group is the way it manages the energy supply chain. In fact, in addition to being one of the world's largest oil and natural gas production companies, ENI is involved in the entire energy supply chain, from extraction to distribution, including refining and marketing. As a result, it depends on few subcontractors and intermediaries and can manage its distribution and marketing strategies independently.

But to achieve this positioning among the leaders of its market, the ENI group can rely on various assets. First of all, it should be noted that this company is one of the oldest to carry out this activity in Europe, which gives it a certain amount of experience in the face of competitors who arrived later in the sector. On the other hand, ENI tends to remain at the top of the ranking thanks to the development over time of its research and development capacities. In this way, it is able to solve any problems and face the changes taking place in the consumer society with greater serenity.

Negative factors for ENI shares
The factors in favour of a drop in the ENI share price:

First of all, we are going to raise here an important point to be aware of regarding the financial aspect of this group. Indeed, ENI has been facing for some years now certain financial problems that have been pointed out by analysts and penalised by the market. This concerns in particular the repercussions of the recent European financial crisis, which have of course had a direct impact on ENI's activities and contributed to a decrease in its level of profitability.

Analysts specialising in this market also point the finger at the poor quality of the ENI group's administration which, despite numerous changes in recent years, still has difficulty in managing production costs and the strategy for selling its energies and associated services. Indeed, the objectives set by the management are only rarely achieved, which naturally weighs on the morale of investors.

Still with regard to the weaknesses of this company, the more than disappointing results of certain branches of the group are also to be regretted. This mainly concerns the petrochemicals division, which for some years has been performing below expectations despite its importance in the distribution of the group's activities. The weight of this recession is of course significant on the group's overall results.

While the ENI Group benefits from total management of its energy supply chain and the services it provides, this asset can also prove to be a disadvantage as it reduces the amount of relationships with other major energy players in the world. This results in less visibility in certain areas and greater difficulty in penetrating certain markets internationally.

Finally, one will also note the disappointment of investors when the ENI group abandons some of its development projects, as was the case in the 1960s with the abandonment of the construction of an oil factory in England. This type of unpleasantness could indeed happen again and result in immediate sanctions on the stock market.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

What are the risk factors for ENI action?

Major risk factors for the ENI share price include, of course, fluctuations in the price of crude oil and natural gas, increased global competition, environmental and safety risks, exploration and production risks, uncertainties over natural gas reserves, political, social and economic instability, risks related to demand from industry and exchange rate risks.

What were the latest acquisitions and disposals of ENI?

In 2018, ENI sold to Qatar Petroleum a 35% interest in Area 1 offshore Mexico. The same year, it sold ç Mubadala Petroleum a 20% stake in the Nour North Sinai Offshore concession in Egypt. In 2017, ENI and KPM bought out the transfer of the subsoil rights of the Isatay block with a 50% takeover of the subsoil rights in the Caspian Sea.

What will be the dividend paid by ENI in 2020?

The ENI Group has announced a 3.5% increase in its dividend to be paid in 2020 with a remuneration of €0.89 per share, in line with its commitment to a progressive remuneration policy and the continuation of the buyback programme with a capital allocation of €400 million in 2020. Of course, you can follow these data and their evolution directly from the official website of this company and in the 'investors' section of it.

77% of retail CFD accounts lose money. You should consider whether you can afford to take the high risk of losing your money. This is an advert for trading CFDs on Plus500