Back to top

Image: Bigstock

Eni (E) Forms JV With Red Rock to Bid in ScotWind Leasing

Read MoreHide Full Article

Eni SPA (E - Free Report) recently announced that it has joined forces with Scottish offshore wind energy developer Red Rock PowerLimited, creating a 50-50 joint venture (JV). The JV partnership is expected to make a bid in the upcoming offshore wind leasing round in Scotland.

The JV is expected to have the support of transmission company, Transmission Investment, in making a bid in the upcoming round, named ScotWind. Transmission Investment’s experience in grid infrastructure is expected to enrich the JV’s ability to maximize its potential in generating wind power in Scotland, which will likely expand the local electricity sector.

In a similar move, France’s energy major TotalEnergies SE (TTE - Free Report) joined a consortium called Offshore Wind Power Ltd last month to make a bid in ScotWind. Scotland has permitted an offshore capacity of 5.6 gigawatts at the moment, of which 1 gigawatt is only operational. It has plans to boost offshore wind power capacity to around 11 gigawatts by 2030. The last date for submitting bids is Jul 16.

The move from Eni is expected to boost the renewables portfolio and is in line with its ultimate target of having 60 gigawatts of installed capacity by 2050. By this time period, it plans to become a carbon neutral company. It is expected to reach the ambitious goal of installing 4 gigawatts of capacity in 2024 and 15 gigawatts in 2030.

Last week, it signed a deal with Glennmont Partners and PGGM Infrastructure Fund to acquire the entire stakes in a portfolio of 13 onshore wind farms in Italy. The total production capacity of the portfolio of wind farms is estimated at 315 megawatts.

Price Performance

Eni’s shares have increased 7.8% in the past six months compared with 10.2% rise of the industry.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Key Picks

The company currently has a Zacks Rank #3 (Hold). Some better-ranked stocks from the energy space include Energy Transfer LP (ET - Free Report) and Magellan Midstream Partners, L.P. , each having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Energy Transfer’s profits for second-quarter 2021 are expected to surge 84.6% year over year.

Magellan Midstream’s bottom line for 2021 is expected to rise 7.2% year over year.


Unique Zacks Analysis of Your Chosen Ticker


Pick one free report - opportunity may be withdrawn at any time


Eni SpA (E) - $25 value - yours FREE >>

Energy Transfer LP (ET) - $25 value - yours FREE >>

TotalEnergies SE Sponsored ADR (TTE) - $25 value - yours FREE >>

Published in