We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Eni (E) to Divest Minority Stake in Plenitude Renewable Unit
Read MoreHide Full Article
Eni SPA (E - Free Report) is in talks with several investors to divest a minority stake in its renewable and retail business, Plenitude, per a report by Reuters.
Eni is planning to divest 5-15% of Plenitude. In 2022, Plenitude recorded an adjusted operating profit of €345 million. The renewable energy unit could be valued at more than €6 billion ($6.5 billion).
In 2021, Eni founded Plenitude to focus on renewable energy. Plenitude has a portfolio of 1.4 gigawatts (GW) of installed renewable energy capacity in operation. It plans to increase capacity to more than 6 GW by 2025 and 15 GW by 2030. Plenitude provides natural gas and energy to around 10 million customers.
Divestment of a minority stake in Plenitude would add value to the business, thereby creating the conditions for a future listing. Last year, Eni postponed an initial public offering of Plenitude due to adverse market conditions.
Eni continues to talk with investors over the potential sale of a minority stake in Plenitude. A new attempt to list Plenitude could be launched at the end of 2023 or, more likely, in 2024.
In February, Eni was in preliminary talks with Norway-based HitecVision to divest a stake in Plenitude. But the plan never materialized. HitecVision already collaborates with Plenitude in Norway’s offshore wind joint venture, Vaargroenn.
Last December, Plenitude entered an agreement to acquire Italy-based wind and solar developer PLT. The acquisition will add more than 400 megawatts of renewable energy assets to Plenitude’s portfolio, most of which are wind farms. The agreement is expected to support Plenitude’s growth and enhance its position in Italy and Spain.
Eni is leading the energy transition. The company has pledged to become carbon-neutral by 2050 due to the growing urgency from investors and environmentalists to curb climate change. The leading integrated energy player is banking on rising energy production from renewable sources.
Price Performance
Shares of Eni have outperformed the industry in the past three months. The stock has gained 6.8% compared with the industry’s 4.5% growth.
Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola. SDRL reported first-quarter 2023 earnings of 83 cents per share, beating the Zacks Consensus Estimate of 55 cents per share.
Seadrill has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The Zacks Consensus Estimate for SDRL’s 2023 and 2024 earnings is pegged at $2.93 and $4.01 per share, respectively.
PHX Minerals is an oil and natural gas mineral company. PHX Minerals posted first-quarter 2023 earnings of 11 cents per share, beating the Zacks Consensus Estimate of 7 cents per share.
PHX Minerals has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The Zacks Consensus Estimate for PHX’s 2023 and 2024 earnings per share is pegged at 30 cents and 55 cents, respectively.
Enterprise Products reported first-quarter 2023 adjusted earnings per limited partner unit of 64 cents, which beat the Zacks Consensus Estimate of 62 cents. This was primarily due to higher contributions from the Natural Gas Pipelines & Services business.
In the first quarter, Enterprise Products generated an adjusted free cash flow of $1,347 million against a negative free cash flow of $1,618 million in the year-ago quarter. EPD recorded a distributable cash flow of $863 million in the same time frame.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Eni (E) to Divest Minority Stake in Plenitude Renewable Unit
Eni SPA (E - Free Report) is in talks with several investors to divest a minority stake in its renewable and retail business, Plenitude, per a report by Reuters.
Eni is planning to divest 5-15% of Plenitude. In 2022, Plenitude recorded an adjusted operating profit of €345 million. The renewable energy unit could be valued at more than €6 billion ($6.5 billion).
In 2021, Eni founded Plenitude to focus on renewable energy. Plenitude has a portfolio of 1.4 gigawatts (GW) of installed renewable energy capacity in operation. It plans to increase capacity to more than 6 GW by 2025 and 15 GW by 2030. Plenitude provides natural gas and energy to around 10 million customers.
Divestment of a minority stake in Plenitude would add value to the business, thereby creating the conditions for a future listing. Last year, Eni postponed an initial public offering of Plenitude due to adverse market conditions.
Eni continues to talk with investors over the potential sale of a minority stake in Plenitude. A new attempt to list Plenitude could be launched at the end of 2023 or, more likely, in 2024.
In February, Eni was in preliminary talks with Norway-based HitecVision to divest a stake in Plenitude. But the plan never materialized. HitecVision already collaborates with Plenitude in Norway’s offshore wind joint venture, Vaargroenn.
Last December, Plenitude entered an agreement to acquire Italy-based wind and solar developer PLT. The acquisition will add more than 400 megawatts of renewable energy assets to Plenitude’s portfolio, most of which are wind farms. The agreement is expected to support Plenitude’s growth and enhance its position in Italy and Spain.
Eni is leading the energy transition. The company has pledged to become carbon-neutral by 2050 due to the growing urgency from investors and environmentalists to curb climate change. The leading integrated energy player is banking on rising energy production from renewable sources.
Price Performance
Shares of Eni have outperformed the industry in the past three months. The stock has gained 6.8% compared with the industry’s 4.5% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Eni currently carries a Zack Rank #2 (Buy).
Some other top-ranked players in the energy space are Seadrill Limited (SDRL - Free Report) , PHX Minerals Inc. (PHX - Free Report) and Enterprise Products Partners LP (EPD - Free Report) . While SDRL currently sports a Zacks Rank #1 (Strong Buy), PHX and EPD carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola. SDRL reported first-quarter 2023 earnings of 83 cents per share, beating the Zacks Consensus Estimate of 55 cents per share.
Seadrill has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The Zacks Consensus Estimate for SDRL’s 2023 and 2024 earnings is pegged at $2.93 and $4.01 per share, respectively.
PHX Minerals is an oil and natural gas mineral company. PHX Minerals posted first-quarter 2023 earnings of 11 cents per share, beating the Zacks Consensus Estimate of 7 cents per share.
PHX Minerals has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The Zacks Consensus Estimate for PHX’s 2023 and 2024 earnings per share is pegged at 30 cents and 55 cents, respectively.
Enterprise Products reported first-quarter 2023 adjusted earnings per limited partner unit of 64 cents, which beat the Zacks Consensus Estimate of 62 cents. This was primarily due to higher contributions from the Natural Gas Pipelines & Services business.
In the first quarter, Enterprise Products generated an adjusted free cash flow of $1,347 million against a negative free cash flow of $1,618 million in the year-ago quarter. EPD recorded a distributable cash flow of $863 million in the same time frame.