Back to top

Image: Bigstock

Eni's (E) Versalis Acquires Full Ownership of Finproject

Read MoreHide Full Article

Eni SPA’s (E - Free Report) chemical company, Versalis, recently inked a deal to acquire the remaining 60% of the Marche, Italy, based industrial group Finproject. In July, 2020, Versalis had bought 40% of Finproject, which operates in the compounding sector and produces ultralight products.

The subsidiary of Eni exercised the purchase option, the transaction of which is likely to close in the fourth quarter of this year. The move is anticipated to make Versalis a major player in the high-performance formulated polymers spectrum. Products from Finproject are used for making consumer goods. It markets the ultralight expanded materials under the XL EXTRALIGHT® brand.

The acquisition will strengthen Versalis’ position in the volatile chemical industry. It is likely to boost the company’s global market reach. Integrating Versalis’ innovative technological solutions to Finproject’s prospects will enable the company to serve sectors like renewable energy, construction, automotive, and fashion and designing. Renewable and recycled raw materials are used in Finproject, which is in line with Eni’s drive toward a sustainable and circular economy.

Eni’s petrochemical product sales are improving. In fact, it increased 12% year over year to 1.14 million tons for the second quarter of 2021. As demand for energy products is expected to further rise in the second half of 2021 and beyond, the Finproject buyout is likely to enable Eni to generate higher profits from chemicals.

Price Performance

Eni’s shares have increased 59.8% in the past year compared with the industry’s rise of 50.7%.

Zacks Investment Research
Image Source: Zacks Investment Research

Zacks Rank & Other Key Picks

The company currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the energy space include Cheniere Energy, Inc. (LNG - Free Report) , Kinder Morgan, Inc. (KMI - Free Report) and Royal Dutch Shell plc (RDS.A - Free Report) , each having a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Cheniere Energy’s bottom line for 2021 is pegged at $2.98 per share, indicating a massive improvement from the year-ago loss of 34 cents.

Kinder Morgan’s bottom line for 2021 is expected to rise 47.7% year over year.

The consensus mark for Shell’s earnings for 2021 stands at $5.07 per share, indicating a major increase from the year-ago figure of $1.24.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Royal Dutch Shell PLC (RDS.A) - free report >>

Eni SpA (E) - free report >>

Cheniere Energy, Inc. (LNG) - free report >>

Kinder Morgan, Inc. (KMI) - free report >>