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Eni (E) Plans Stake Sales in Biofuel, Bioplastic Units

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Eni SpA (E - Free Report) , a leading global energy company, is eyeing the sale of minority stakes in its biofuel and bioplastic units by the end of this year, per a Reuters report. This strategic decision could potentially generate around €1.3 billion, marking a significant step in the company's efforts to expedite its energy transition.

Eni has initiated discussions with both financial funds and industrial investors to identify potential partners interested in acquiring stakes of up to 10% in its biofuel unit, Enilive. Simultaneously, the company is in talks with two potential buyers to offload up to 30% of its Novamont bioplastic business. Novamont, headquartered in Piedmont, is a leading producer of bioplastics worldwide and is owned by Eni through its Versalis chemical unit.

The potential sale of these stakes, if realized, could value the Novamont bioplastic business at around €1 billion, including debt. This move highlights Eni's commitment to diversifying its portfolio and increasing its focus on sustainable energy solutions.

Per the report, these divestment efforts are aligned with Eni's broader strategy of establishing separate entities, referred to as "satellite" companies, which can attract specialized investors. By doing so, Eni aims to secure funding for its sustainable ventures without compromising resources allocated to traditional oil and gas activities.

Zacks Rank & Key Picks

E currently has a Zack Rank #3 (Hold).

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

Murphy USA is a leading independent retailer of motor fuel and convenience merchandise in the United States.

The Zacks Consensus Estimate for MUSA’s 2024 EPS is pegged at $26.40. The company has a Zacks Style Score of B for Growth and B for Value. It has witnessed upward earnings estimate revisions for 2024 in the past seven days.

Global Partners is a leading operator of gasoline stations and convenience stores. Over the past 60 days, GLP has witnessed upward earnings estimate revisions for 2024 and 2025.

The Zacks Consensus Estimate for Global Partners’ 2024 and 2025 EPS is pegged at $3.90 and $4.47, respectively. GLP currently has a Zacks Style Score of A for Value.

Sunoco is among the biggest motor fuel distributors in the U.S. wholesale market in terms of volumes. By distributing more than 10 fuel brands via 10,000 convenience stores under long-term distribution contracts, the partnership will continue to generate stable cash flow. 

The Zacks Consensus Estimate for SUN’s 2024 EPS is pegged at $4.99. The company has witnessed upward earnings estimate revisions for 2024 in the past seven days.

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