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BASF (BASFY) & Vattenfall to Partner on Nordlicht Projects
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BASF SE (BASFY - Free Report) and Vattenfall are currently engaged in advanced and exclusive negotiations to form a strategic partnership for the German offshore wind farms Nordlicht 1 and 2. Under the proposed agreement, BASF would acquire 49% of the project shares. The companies have formalized their joint commitment by signing a Memorandum of Understanding.
The Nordlicht wind park zone is situated 85 kms north of the island of Borkum in the German North Sea. The zone comprises two distinct sites — Nordlicht 1, with a capacity of 980 megawatts, and Nordlicht 2, with a capacity of 630 megawatts. Vattenfall is responsible for the development and construction of the Nordlicht sites. Once operational, the combined output is estimated to be approximately 6 terawatt hours (TWh) per year, equivalent to the electricity consumption of 1.6 million German households.
Vattenfall intends to utilize its share of fossil-free electricity to supply its customers in Germany. At the same time, BASF will receive nearly half of the generated electricity to meet the energy needs of its chemical production sites across Europe, particularly in Ludwigshafen.
The transaction signing is anticipated in the first half of 2024, pending a final investment decision expected in 2025. Construction is scheduled to commence in 2026, with Nordlicht 1 and 2 expected to be fully operational in 2028.
BASF underscored the pivotal role of its collaboration with Vattenfall in achieving its Net Zero transformation, emphasizing the critical need for abundant and competitively priced renewable electric power. Nordlicht 1 and 2 are viewed by BASF as essential components driving its transformative efforts and furthering the reduction of CO2 emissions.
Vattenfall emphasized the significance of wind energy in advancing the cause of fossil freedom. The company stressed the imperative of close collaboration with industries to expedite energy transition. It takes pride in Nordlicht 1 and 2 playing a key role in the decarbonization of the European industry and providing German customers with electricity free from fossil fuels. This collaboration is a continuation of the companies' existing partnership, with BASF having previously acquired a stake in Vattenfall's offshore wind farm in the Netherlands in 2021.
In the past year, BASF’s shares have lost 2.5% compared with the industry’s 14.5% fall in the same period.
The consensus estimate for AXTA’s current-year earnings is pegged at $1.58, indicating year-over-year growth of 6.8%. AXTA beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 6.7%. The company’s shares have increased 27.2% in the past year.
The Zacks Consensus Estimate for ANDE’s current-year earnings has been revised 5.1% upward in the past 60 days. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.8% on average. The stock has rallied around 47% in a year.
The consensus estimate for Alamos’ current fiscal year earnings is pegged at 53 cents, indicating a year-over-year surge of 89.3%. AGI beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have surged 41% in the past year.
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BASF (BASFY) & Vattenfall to Partner on Nordlicht Projects
BASF SE (BASFY - Free Report) and Vattenfall are currently engaged in advanced and exclusive negotiations to form a strategic partnership for the German offshore wind farms Nordlicht 1 and 2. Under the proposed agreement, BASF would acquire 49% of the project shares. The companies have formalized their joint commitment by signing a Memorandum of Understanding.
The Nordlicht wind park zone is situated 85 kms north of the island of Borkum in the German North Sea. The zone comprises two distinct sites — Nordlicht 1, with a capacity of 980 megawatts, and Nordlicht 2, with a capacity of 630 megawatts. Vattenfall is responsible for the development and construction of the Nordlicht sites. Once operational, the combined output is estimated to be approximately 6 terawatt hours (TWh) per year, equivalent to the electricity consumption of 1.6 million German households.
Vattenfall intends to utilize its share of fossil-free electricity to supply its customers in Germany. At the same time, BASF will receive nearly half of the generated electricity to meet the energy needs of its chemical production sites across Europe, particularly in Ludwigshafen.
The transaction signing is anticipated in the first half of 2024, pending a final investment decision expected in 2025. Construction is scheduled to commence in 2026, with Nordlicht 1 and 2 expected to be fully operational in 2028.
BASF SE Price and Consensus
BASF SE price-consensus-chart | BASF SE Quote
BASF underscored the pivotal role of its collaboration with Vattenfall in achieving its Net Zero transformation, emphasizing the critical need for abundant and competitively priced renewable electric power. Nordlicht 1 and 2 are viewed by BASF as essential components driving its transformative efforts and furthering the reduction of CO2 emissions.
Vattenfall emphasized the significance of wind energy in advancing the cause of fossil freedom. The company stressed the imperative of close collaboration with industries to expedite energy transition. It takes pride in Nordlicht 1 and 2 playing a key role in the decarbonization of the European industry and providing German customers with electricity free from fossil fuels. This collaboration is a continuation of the companies' existing partnership, with BASF having previously acquired a stake in Vattenfall's offshore wind farm in the Netherlands in 2021.
In the past year, BASF’s shares have lost 2.5% compared with the industry’s 14.5% fall in the same period.
Image Source: Zacks Investment Research
Zacks Rank & Key Picks
BASF currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Axalta Coating Systems Ltd. (AXTA - Free Report) , sporting a Zacks Rank #1 (Strong Buy), and The Andersons Inc. (ANDE - Free Report) and Alamos Gold Inc. (AGI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for AXTA’s current-year earnings is pegged at $1.58, indicating year-over-year growth of 6.8%. AXTA beat the Zacks Consensus Estimate in three of the last four quarters and missed one, with the average earnings surprise being 6.7%. The company’s shares have increased 27.2% in the past year.
The Zacks Consensus Estimate for ANDE’s current-year earnings has been revised 5.1% upward in the past 60 days. ANDE beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 32.8% on average. The stock has rallied around 47% in a year.
The consensus estimate for Alamos’ current fiscal year earnings is pegged at 53 cents, indicating a year-over-year surge of 89.3%. AGI beat the Zacks Consensus Estimate in all of the last four quarters, with the average earnings surprise being 25.6%. The company’s shares have surged 41% in the past year.