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Eni (E) Signs MoU With Sonangol for Decarbonization Efforts

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Eni SpA’s (E - Free Report) CEO Claudio Descalzi signed a memorandum of understanding (MoU) with Sonangol in order to expand the scope of understanding between the two companies. They plan to do so by conducting research on the agribusiness value chain and other decarbonization matters, such as energy transition minerals and innovation ecosystem.

Per the terms of the MoU, Eni and Sonangol will work in tandem to identify and assess opportunities in the energy transition field. Their efforts will also include assessment of agro-industrial supply chains for the generation of low-carbon fuels, valorization of residual biomass and the use of green ammonia for agro-industrial applications.

The companies will also evaluate agribusiness potential, including research to support synergies across national agricultural food and bioenergy value chains. They will do so with an eye on improved seeds and biotechnologies, mechanization, fertilizers and logistics services.

Other potential areas of cooperation include energy transition minerals, innovation ecosystem, development of innovative technologies and digital solutions in the fields of energy transition and agribusiness. Eni and Sonangol will do so by lending support to the environment of start-ups and small medium enterprises.

The MoU supports Sonangol's decarbonization strategy to invest in and implement energy projects that employ greener sources. It is also in line with Eni's vision to play a significant role in the overall decarbonization process.

In accordance with the terms of the Paris Climate Change Agreement and the Sustainable Development Goals, the MoU further strengthens Eni's objectives by encouraging dependence on renewable energy sources and other low-carbon energy vectors and technologies.

Zacks Rank & Key Picks

Eni currently carries a Zack Rank #3 (Hold).

Some better-ranked stocks for investors interested in the energy sector are Sunoco LP (SUN - Free Report) , Murphy USA Inc. (MUSA - Free Report) and Dril-Quip, Inc. (DRQ - Free Report) . While both Sunoco and Murphy USA sport a Zacks Rank #1 (Strong Buy), Dril-Quip carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Sunoco, a distributor of motor fuel to approximately 10,000 convenience stores, has a stable business model with sustainable and predictable cash flows. For this year, SUN has witnessed an upward earnings estimate revision in the past 30 days.

Murphy USA, a leading retailer of gasoline, operates stations close to Walmart supercenters and sells low-cost, high-volume fuel. MUSA, with more than 1,700 stores, witnessed an upward earnings estimate revision for 2023 in the past seven days.

Dril-Quip is a leading provider of highly engineered equipment, service and innovative technologies that are being employed in the energy sector. DRQ’s balance sheet has zero debt, highlighting a sound financial position.

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