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Eni (E) Announces Closing of St. Bernard Biorefinery JV
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Eni SPA’s (E - Free Report) subsidiary, Eni Sustainable Mobility, and PBF Energy Inc. (PBF - Free Report) closed their partnership on the St. Bernard Renewables LLC joint venture (JV) project.
St. Bernard Renewables is an operating biorefinery in Louisiana, which is co-located with the United States-based refiner PBF Energy’s Chalmette Refinery. PBF has contributed its industrial expertise to the biorefinery.
Per the deal, Eni is committed to making capital reimbursements and contributions of $835 million to PBF Energy. Of the total, $431 million was paid at closing.
Eni will pay the rest once the pre-treatment unit commences, which is technically complete and expected to start soon. The Italian oil giant will pay an additional $50 million, depending on the project's performance.
The St. Bernard Renewables biorefinery will primarily produce renewable hydrotreated vegetable oil (HVO diesel), with a production capacity of 306 million gallons per year. It is also expected to reach a processing capacity of 1.1 million tons of raw materials per year, along with pretreatment capabilities.
Since 2014, Eni has been producing HVO biofuel at its Venice and Gela bio-refineries using its Ecofining technology. The company has been converting its refineries in Italy to produce biofuels to become carbon-neutral by 2050.
The project increases Eni’s biorefining capacity to 1.6 million tons from 1.1 million tons. The company expects to reach 3 million tons per year (Mtpy) and exceed 5 Mtpy by 2025 and 2030, respectively.
The biorefinery will benefit from PBF Energy and Eni’s strengths and expertise. The JV will operate as an independent entity for the procurement of raw materials and product distribution. Notably, PBF Energy’s operations and ownership of the Chalmette refinery will not be affected.
The JV is a significant step for PBF Energy and shows its commitment to contributing diversified sources of energy to the global mix, while lowering the carbon intensity of its operations and manufactured products.
Price Performance
Shares of Eni have outperformed the industry in the past year. The stock has gained 17.2% compared with the industry’s 15.2% growth.
Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola. SDRL reported first-quarter 2023 earnings of 83 cents per share, beating the Zacks Consensus Estimate of 55 cents.
Seadrill has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for SDRL’s 2023 and 2024 earnings per share is pegged at $2.93 and $4.01, respectively.
Evolution Petroleum is an independent energy company. EPM reported first-quarter 2023 earnings of 42 cents per share, beating the Zacks Consensus Estimate of 17 cents.
Evolution Petroleum has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for EPM’s 2023 and 2024 earnings per share is pegged at $1.11 and $1.05, respectively.
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Eni (E) Announces Closing of St. Bernard Biorefinery JV
Eni SPA’s (E - Free Report) subsidiary, Eni Sustainable Mobility, and PBF Energy Inc. (PBF - Free Report) closed their partnership on the St. Bernard Renewables LLC joint venture (JV) project.
St. Bernard Renewables is an operating biorefinery in Louisiana, which is co-located with the United States-based refiner PBF Energy’s Chalmette Refinery. PBF has contributed its industrial expertise to the biorefinery.
Per the deal, Eni is committed to making capital reimbursements and contributions of $835 million to PBF Energy. Of the total, $431 million was paid at closing.
Eni will pay the rest once the pre-treatment unit commences, which is technically complete and expected to start soon. The Italian oil giant will pay an additional $50 million, depending on the project's performance.
The St. Bernard Renewables biorefinery will primarily produce renewable hydrotreated vegetable oil (HVO diesel), with a production capacity of 306 million gallons per year. It is also expected to reach a processing capacity of 1.1 million tons of raw materials per year, along with pretreatment capabilities.
Since 2014, Eni has been producing HVO biofuel at its Venice and Gela bio-refineries using its Ecofining technology. The company has been converting its refineries in Italy to produce biofuels to become carbon-neutral by 2050.
The project increases Eni’s biorefining capacity to 1.6 million tons from 1.1 million tons. The company expects to reach 3 million tons per year (Mtpy) and exceed 5 Mtpy by 2025 and 2030, respectively.
The biorefinery will benefit from PBF Energy and Eni’s strengths and expertise. The JV will operate as an independent entity for the procurement of raw materials and product distribution. Notably, PBF Energy’s operations and ownership of the Chalmette refinery will not be affected.
The JV is a significant step for PBF Energy and shows its commitment to contributing diversified sources of energy to the global mix, while lowering the carbon intensity of its operations and manufactured products.
Price Performance
Shares of Eni have outperformed the industry in the past year. The stock has gained 17.2% compared with the industry’s 15.2% growth.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Eni currently carries a Zack Rank #3 (Hold).
Some better-ranked players in the energy space are Seadrill Limited (SDRL - Free Report) and Evolution Petroleum Corporation (EPM - Free Report) . SDRL and EPM currently sport a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Seadrill is a market-leading international driller with strong exposure in key strategic basins like the U.S. Gulf of Mexico, Brazil and Angola. SDRL reported first-quarter 2023 earnings of 83 cents per share, beating the Zacks Consensus Estimate of 55 cents.
Seadrill has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for SDRL’s 2023 and 2024 earnings per share is pegged at $2.93 and $4.01, respectively.
Evolution Petroleum is an independent energy company. EPM reported first-quarter 2023 earnings of 42 cents per share, beating the Zacks Consensus Estimate of 17 cents.
Evolution Petroleum has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 60 days. The consensus estimate for EPM’s 2023 and 2024 earnings per share is pegged at $1.11 and $1.05, respectively.