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Eni (E) Considers Selling Stake in Bioplastic Firm Novamont
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Eni SpA (E - Free Report) is in talks with investment funds seeking to acquire a minority stake in its Novamont unit, per a Reuters report.
The potential agreement is projected to place a value of 1 billion euros (around $1.1 billion) on Novamont.
Novamont specializes in the manufacturing of bioplastics and was fully incorporated into Eni’s chemical division earlier this year. In October, Eni completed the acquisition of the remaining 64% stake in Novamont that was not previously under its ownership. The stake was purchased from private equity funds Investitori Associati II and NB Renaissance.
The divestment of the stake aligns with Eni’s strategy to bolster the sustainability of its entire chemical business. Eni is committed to bolstering growth of Novamont through an increased focus on the circular economy sector.
Bioplastics, in contrast to conventional plastics derived from fossil fuels, are produced from natural or renewable sources and are frequently biodegradable. Novamont boasts a portfolio of more than 1,400 patents and patent applications, with one of its key products being MATER-BI. This product line consists of biodegradable and compostable bioplastics made from starches, cellulose, vegetable oils and their various combinations.
The potential investors in this transaction may include Norway’s private equity fund, HitecVision, and the U.S. fund Blackstone. However, these discussions are in the early stages, and Eni has not made a final decision regarding the extent of the stake to be divested. Italian bank UniCredit is providing advisory support to Eni for this potential transaction.
Eni’s decision holds significance as it underscores the company’s dedication to sustainable practices and its strategic emphasis on broadening its footprint in the bioplastics industry. The move aligns with the growing global emphasis on environmentally friendly solutions, highlighting Eni’s commitment to contributing to sustainability efforts.
Murphy USA’s (MUSA - Free Report) unique high-volume, low-cost business model helps it retain high profitability, even in the fiercely competitive retail environment.
MUSA remains committed to returning excess cash to its shareholders through continued share buyback programs. As part of this initiative, the fuel retailer recently approved a repurchase authorization of up to $1.5 billion following the completion of the existing $1-billion mandate. The move underscores MUSA’s sound financial position and commitment to rewarding its shareholders.
The Williams Companies (WMB - Free Report) is a premier energy infrastructure provider in North America. WMB has a thriving deepwater transportation business. The company's deepwater portfolio includes a 3,500-mile natural gas and oil gathering and transmission pipeline, and is important for the company’s future cash flows.
Williams Companies’ debt maturity profile is in good shape, with its $4.5-billion revolver maturing in 2023. It is also paying its shareholders an attractive dividend yielding around 5%. Beside this, the company has a share repurchase program worth $1.5 billion, highlighting its commitment to shareholders.
Ecopetrol S.A. (EC - Free Report) operates across various segments of the oil and gas industry, including exploration, development and production of oil and gas, refining, transportation, and sale of petroleum products.
Ecopetrol has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The Zacks Consensus Estimate for earnings for EC’s 2023 and 2024 earnings is pegged at $2.32 per share and $2.41, respectively.
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Eni (E) Considers Selling Stake in Bioplastic Firm Novamont
Eni SpA (E - Free Report) is in talks with investment funds seeking to acquire a minority stake in its Novamont unit, per a Reuters report.
The potential agreement is projected to place a value of 1 billion euros (around $1.1 billion) on Novamont.
Novamont specializes in the manufacturing of bioplastics and was fully incorporated into Eni’s chemical division earlier this year. In October, Eni completed the acquisition of the remaining 64% stake in Novamont that was not previously under its ownership. The stake was purchased from private equity funds Investitori Associati II and NB Renaissance.
The divestment of the stake aligns with Eni’s strategy to bolster the sustainability of its entire chemical business. Eni is committed to bolstering growth of Novamont through an increased focus on the circular economy sector.
Bioplastics, in contrast to conventional plastics derived from fossil fuels, are produced from natural or renewable sources and are frequently biodegradable. Novamont boasts a portfolio of more than 1,400 patents and patent applications, with one of its key products being MATER-BI. This product line consists of biodegradable and compostable bioplastics made from starches, cellulose, vegetable oils and their various combinations.
The potential investors in this transaction may include Norway’s private equity fund, HitecVision, and the U.S. fund Blackstone. However, these discussions are in the early stages, and Eni has not made a final decision regarding the extent of the stake to be divested. Italian bank UniCredit is providing advisory support to Eni for this potential transaction.
Eni’s decision holds significance as it underscores the company’s dedication to sustainable practices and its strategic emphasis on broadening its footprint in the bioplastics industry. The move aligns with the growing global emphasis on environmentally friendly solutions, highlighting Eni’s commitment to contributing to sustainability efforts.
Zacks Rank & Key Picks
Eni currently has 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) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA’s (MUSA - Free Report) unique high-volume, low-cost business model helps it retain high profitability, even in the fiercely competitive retail environment.
MUSA remains committed to returning excess cash to its shareholders through continued share buyback programs. As part of this initiative, the fuel retailer recently approved a repurchase authorization of up to $1.5 billion following the completion of the existing $1-billion mandate. The move underscores MUSA’s sound financial position and commitment to rewarding its shareholders.
The Williams Companies (WMB - Free Report) is a premier energy infrastructure provider in North America. WMB has a thriving deepwater transportation business. The company's deepwater portfolio includes a 3,500-mile natural gas and oil gathering and transmission pipeline, and is important for the company’s future cash flows.
Williams Companies’ debt maturity profile is in good shape, with its $4.5-billion revolver maturing in 2023. It is also paying its shareholders an attractive dividend yielding around 5%. Beside this, the company has a share repurchase program worth $1.5 billion, highlighting its commitment to shareholders.
Ecopetrol S.A. (EC - Free Report) operates across various segments of the oil and gas industry, including exploration, development and production of oil and gas, refining, transportation, and sale of petroleum products.
Ecopetrol has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The Zacks Consensus Estimate for earnings for EC’s 2023 and 2024 earnings is pegged at $2.32 per share and $2.41, respectively.