Record-breaking energy sector on the Milan Stock Exchange: worth 250 billion

Rising commodity prices, the issue of energy security, the growing electrification linked to AI and the green transition, generous dividends, special transactions, and the increasing industrial and financial efficiency of smaller companies. This is the mix of factors that drove the energy sector on the Milan Stock Exchange to all-time highs in the first half of the year, resulting in a total market capitalisation of 250 billion euros, without the prospect of monetary tightening (which subsequently did indeed begin) by central banks having a significant impact on the rally.

As at 1 July – according to a survey carried out by CoMar, as part of the Financial Observatory chaired by Massimo Rossi – the 18 listed energy companies accounted for 21.6 per cent of the entire Milan stock exchange (compared with 20.9 per cent at the start of the year). This increase was the result of a 13.7 per cent rally in 2026, exceeding the +10 per cent recorded by the Italian stock market as a whole, which added 30 billion to the weighting of a sector that is now increasingly strategic, both in Italy and globally, particularly in light of the ongoing geopolitical shocks, ranging from the war in Ukraine to Trump’s raid on Venezuela, right through to the US-Iran conflict involving the blockade of the Strait of Hormuz – a situation that is far from being definitively resolved.

In absolute terms, the largest share is held by the major state-owned companies, starting with Enel and Eni, which, with 101 and 62 billion respectively, account for 8.8 per cent and 5.3 per cent of the entire Milan Stock Exchange, with Snam rounding off the top three – albeit some way behind – at 20.9 billion (1.8 per cent). It is clear, in any case, that all three are to be regarded, for various reasons, as crucial companies for Italy’s energy security, but also, at the same time, as attractive investment targets for both institutional investors and large funds as well as retail investors, thanks to their financial discipline and generous dividend policies. A2A, with around 7 billion, is the leading former municipal utility, although this description is perhaps an understatement as it is now, to all intents and purposes, the country’s second-largest electricity generation group.

Looking instead at the strongest performers, we find Eni (+22%), Enel (+12.5%) – as well as Terna (+12.2%), buoyed by the trend towards electrification – but Saipem stands out above all, with a surge of 80%. And here – according to experts – beyond the rally in crude oil prices, which has clearly also benefited Eni and the entire oil sector, the merger, now in its final stages, with Subsea 7, which has overcome the most significant antitrust hurdles, particularly the Brazilian one.

More generally, according to analysts and industry experts, the energy and utilities sector is currently driven by three factors. The first, as mentioned, is energy security, which has influenced ratings and valuation metrics. The second concerns artificial intelligence and data centres, although these mainly affect network operators and electricity generators: demand is rising, as are investments, and market multiples for the utilities sector are inevitably set to rise, even if the most significant effects in this regard have yet to be seen. Finally, there is the issue of the energy transition, which nevertheless has mixed consequences, because the new market design and the glut of renewables at certain times of the day create challenges that should not be underestimated for operators without a substantial customer base. This is why the second half of the year, provided the geopolitical instability in the Middle East is resolved, could see a renewed resurgence of extraordinary transactions involving ‘pure green’ operators, which would indeed have potential positive effects on share prices.