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Eni SpA (E) - $25 value - yours FREE >>
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Eni SpA (E) - $25 value - yours FREE >>
Range Resources Corporation (RRC) - $25 value - yours FREE >>
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Eni (E) to Divest Minority Stake in Newly Merged R&R Business
Eni SPA (E - Free Report) announced that it will divest a minority stake of its recently-merged Gas & Power retail and renewable (R&R) businesses, following the boards’ approval to start an Initial Public Offering (“IPO”) process.
The company cited that an IPO was the best way to crystallize the value of the business, which will unlock significant value. It will position the business for long-term growth and help the company achieve net-zero emissions. Eni will keep a majority stake in the unit.
The unit is planned to develop more than 6 gigawatts (GW) of renewable capacity by 2025 and more than 15 GW by 2030. Its retail customer base is expected to increase to more than 15 million by 2030 from 10 million customers currently, with EV charging points rising from 5,000 to more than 30,000. The latest transaction would allow Eni to raise €2-€3 billion and double its R&R EBITDA to €1.2 billion in 2025.
Eni aims to be a leader in producing and selling decarbonized products. The IPO of the R&R business is a crucial step toward achieving the goal. The latest transaction will help Eni to expand its R&R business and provide investors with greater visibility on the unit’s value. The company expects to complete the transaction in 2022, subject to market conditions.
Company Profile & Price Performance
Headquartered in Rome, Italy, Eni is one of the leading integrated energy players in the world.
Shares of the company have outperformed the industry in the past three months. The stock has gained 12.5% compared with the industry’s 6.4% growth.
Zacks Rank & Other Key Picks
Eni currently flaunts a Zack Rank #1 (Strong Buy).
Some other top-ranked players in the energy space are Equinor ASA (EQNR - Free Report) , Royal Dutch Shell plc and Range Resources Corporation (RRC - Free Report) , each currently sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, the Zacks Consensus Estimate for Equinor’s 2021 earnings has been raised by 27.5%.
Shell’s earnings for 2021 are expected to increase 17.6% year over year.
Range Resources’ earnings for 2021 are expected to rise 56.4% year over year.