Eni has put a plan in place to two billion euros for revive Versalis, its chemical division, which has been in difficulty for some time (the last profit was recorded in 2017). The news was anticipated by Bloomberg, and the presentation of the details of the plan is expected in conjunction with the Quarterly accounts of October 25The project aims at a profound transformation, which will take five years and includes a transition from traditional chemicals to more sustainable and circular solutions, with greater added value. In addition to internal investments, Eni aims to tighten new partnerships e acquire companies strategic, as already happened with Tecnofilm and Crocco, active respectively in compounding and packaging from recycled materials.
The relaunch of Versalis: here is Eni's plan
One of the pillars of the plan is the development of the biochemistry, a sector that will see strong collaboration with Novamont, already active in renewable technologies. The intermediate objective is to return to profitability in 2026, with EBITDA breakeven expected as early as 2025. However, the path is complex and there is no shortage of immediate challenges: Eni itself has stated that in the short term it does not expect significant improvements in the economic performance of the chemical sector.
Another crucial aspect of the restructuring concerns the industrial plants by Versalis in Sicilia e Puglia, where a progressive decommissioning of the steam crackers is planned, units that transform hydrocarbons into ethylene, a key component for traditional chemistry. These plants currently supply sites in Northern Italy, but their closure will open the need to resort to imported chemicals based on fossil fuels.
The difficulties of Versalis
The market context is decidedly complex. The basic chemical industry is affected by excess production capacity and strong international competition, with competitors from China, United States e Middle East that are able to offer more competitive prices thanks to economies of scale and lower costs. It is no coincidence that the last year in which Versalis recorded a profit was 2017. Since then, the balance sheets they have always been at a loss, with the second quarter of 2024 marking a record deficit of 220 million euros, while operating losses rose to 390 million, more than double compared to the same period of 2023.
Eni had already taken note of Versalis' difficulties in 2023, evaluating the value of the shares at almost zero. Cash Generating Unit (Cgu) related to traditional chemistry. However, the company is determined to change course, focusing on the biochemistry sector and expanding into new markets, such as environmental remediation.
