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Eni (E) to Put a Second FLNG Unit in Congo to Boost Production
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Eni SPA (E - Free Report) is progressing with its plans to increase natural gas exports from the Republic of Congo by deploying a second floating LNG (FLNG) unit.
Eni signed an agreement with China-based Wison Heavy Industry Co. Ltd to construct and install an FLNG unit with a capacity of 2.4 million tons per annum (MTPA). The FLNG unit will be installed at the shallow-water Marine XII block offshore the Republic of Congo.
The FLNG unit, which will be 380 meters long and 60 meters wide, will be anchored at a water depth of 40 meters. The new unit will be able to store more than 180,000 cubic meters of LNG and 45,000 cubic meters of LPG. Eni mentioned that the preliminary activities have already commenced, with LNG production expected to start sometime next year.
The facility will be the second FLNG deployed in the Republic of Congo. The first one is the 0.6-MTPA Tango FLNG, wherein LNG production is expected to start in 2023. Both units can produce up to 3 MTPA of LNG from the block by 2025.
Eni is the leading natural gas producer in Congo. The projects align well with the company’s strategy to leverage gas equity resources. The facility is part of the wider Marine XII gas valorization plan and is set to boost LNG production.
In August, Eni agreed to acquire Exmar group’s Export LNG, which owns the Tango FLNG vessel, to produce LNG in Congo. The company is also considering the possibility of additional FLNG projects off Mozambique.
Price Performance
Shares of Eni have outperformed the industry in the past three months. The stock has gained 39% compared with the industry’s 26.3% growth.
Helmerich & Payne Inc. (HP - Free Report) is a major land and offshore drilling contractor in the western hemisphere, having the youngest and most efficient drilling fleet. HP’s fiscal third-quarter 2022 adjusted profit of 27 cents per share beat the Zacks Consensus Estimate of 5 cents.
Helmerich & Payne is expected to see an earnings surge of 277.8% in 2022. HP boasts a strong balance sheet, carrying $542.3 million in long-term debt. The company’s debt-to-capitalization stands at just 16.6% compared with many of its peers that are hugely burdened with debts.
Liberty Energy Inc. (LBRT - Free Report) offers hydraulic fracturing services to onshore upstream energy companies across multiple basins in North America. LBRT’s third-quarter 2022 earnings per share of 78 cents beat the Zacks Consensus Estimate of 63 cents.
Liberty is expected to see an earnings surge of 298% in 2022. As of Sep 30, 2022, Liberty had $298 million of available liquidity, including $24 million cash on hand and supported by the revolving credit facility. LBRT’s debt-to-capitalization stands at just 15.2% compared with most peers hugely burdened with debts.
Patterson-UTI Energy (PTEN - Free Report) is one of the largest North American land drilling contractors, having a large, high-quality fleet of drilling rigs. PTEN’s third-quarter 2022 adjusted net profit of 28 cents per share beat the Zacks Consensus Estimate of 19 cents.
Patterson-UTI is expected to see an earnings surge of 128% in 2022. PTEN doubled its quarterly cash dividend to 8 cents per share from the previous 4-cent payout. PTEN also increased its share repurchase authorization to $300 million.
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Eni (E) to Put a Second FLNG Unit in Congo to Boost Production
Eni SPA (E - Free Report) is progressing with its plans to increase natural gas exports from the Republic of Congo by deploying a second floating LNG (FLNG) unit.
Eni signed an agreement with China-based Wison Heavy Industry Co. Ltd to construct and install an FLNG unit with a capacity of 2.4 million tons per annum (MTPA). The FLNG unit will be installed at the shallow-water Marine XII block offshore the Republic of Congo.
The FLNG unit, which will be 380 meters long and 60 meters wide, will be anchored at a water depth of 40 meters. The new unit will be able to store more than 180,000 cubic meters of LNG and 45,000 cubic meters of LPG. Eni mentioned that the preliminary activities have already commenced, with LNG production expected to start sometime next year.
The facility will be the second FLNG deployed in the Republic of Congo. The first one is the 0.6-MTPA Tango FLNG, wherein LNG production is expected to start in 2023. Both units can produce up to 3 MTPA of LNG from the block by 2025.
Eni is the leading natural gas producer in Congo. The projects align well with the company’s strategy to leverage gas equity resources. The facility is part of the wider Marine XII gas valorization plan and is set to boost LNG production.
In August, Eni agreed to acquire Exmar group’s Export LNG, which owns the Tango FLNG vessel, to produce LNG in Congo. The company is also considering the possibility of additional FLNG projects off Mozambique.
Price Performance
Shares of Eni have outperformed the industry in the past three months. The stock has gained 39% compared with the industry’s 26.3% growth.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
Eni currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Helmerich & Payne Inc. (HP - Free Report) is a major land and offshore drilling contractor in the western hemisphere, having the youngest and most efficient drilling fleet. HP’s fiscal third-quarter 2022 adjusted profit of 27 cents per share beat the Zacks Consensus Estimate of 5 cents.
Helmerich & Payne is expected to see an earnings surge of 277.8% in 2022. HP boasts a strong balance sheet, carrying $542.3 million in long-term debt. The company’s debt-to-capitalization stands at just 16.6% compared with many of its peers that are hugely burdened with debts.
Liberty Energy Inc. (LBRT - Free Report) offers hydraulic fracturing services to onshore upstream energy companies across multiple basins in North America. LBRT’s third-quarter 2022 earnings per share of 78 cents beat the Zacks Consensus Estimate of 63 cents.
Liberty is expected to see an earnings surge of 298% in 2022. As of Sep 30, 2022, Liberty had $298 million of available liquidity, including $24 million cash on hand and supported by the revolving credit facility. LBRT’s debt-to-capitalization stands at just 15.2% compared with most peers hugely burdened with debts.
Patterson-UTI Energy (PTEN - Free Report) is one of the largest North American land drilling contractors, having a large, high-quality fleet of drilling rigs. PTEN’s third-quarter 2022 adjusted net profit of 28 cents per share beat the Zacks Consensus Estimate of 19 cents.
Patterson-UTI is expected to see an earnings surge of 128% in 2022. PTEN doubled its quarterly cash dividend to 8 cents per share from the previous 4-cent payout. PTEN also increased its share repurchase authorization to $300 million.