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Eni aims to offer 'blue power' for data centres

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Group ups shareholders reward in new plan

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Fourth-quarter profit hit by lower energy prices, weak

refining,

biofuels

(Retops with new business plan in paragraphs 1-11)

By Francesca Landini

MILAN, Feb 27 (Reuters) - Italy's Eni said on

Thursday it would expand its low-carbon activities as part of

its 2025-2028 strategy, creating a new company for its carbon

capture and storage activities, and offering power for data

centres.

The state-controlled group said it would add the two new

businesses to its renewable and retail unit, Plenitude, and its

biofuel division Enilive.

It confirmed the target of net zero carbon emissions for its

upstream business by 2030 but did not mention specifically its

previous targets for reduction of indirect Scope 3 emissions.

Eni's announcement came a day after British rival BP

said it would scale back its investments on renewables.

"We expect demand for power from data centres in Europe and

Italy could triple between now and 2030 ... To support this

development Eni enjoys significant advantages in key areas," CEO

Claudio Descalzi said in a strategy presentation.

Eni said it could offer data centres so-called blue power

energy from gas-fired plants paired with CCS technology to

reduce carbon dioxide emissions.

A new company bringing together all of Eni's CCS activities

will be created this year, Descalzi said.

A strategy based on setting up separate entities - or

satellites - and opening them up to minority stakeholders has so

far allowed Eni to raise funds to invest both in the energy

transition and its traditional oil and gas business.

INCREASED DISTRIBUTION

Eni said it planned net capital expenditure of 7 billion

euros ($7.29 billion) a year in 2025-2028 and expected its

leverage - which measures total debt in relation to equity - to

average around 16% over the period, after raising around 20% in

2023.

The group said it would distribute between 35% and 40% of

its cash flow from operations to shareholders, up from 30%-35%

indicated last year.

This increase would translate this year into a 5% rise in

the dividend to 1.05 euros per share, and a share buyback

initially set at 1.5 billion euros.

For the fourth quarter, the energy group reported a 46%

slide in adjusted net profit to 892 million euros, due to lower

energy prices and weakness at its refining, biofuel and

chemicals divisions.

The energy group also said it signed a memorandum of

understanding with Malaysia's state energy firm Petronas to

create a joint venture for some upstream assets in Indonesia and

Malaysia.

($1 = 0.9608 euros)