We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Eni (E) Considers 20% Stake Sale in Its Enilive Biorefining Unit
Read MoreHide Full Article
Eni SpA (E - Free Report) , a prominent player in the Italian energy sector, is considering the sale of a 20% stake in its Enilive biorefining unit, following a display of interest from potential buyers, per a Bloomberg report on Wednesday. The discussions are still in the preliminary stages, and Eni is evaluating various options for the unit, which has an estimated value of €10 billion.
Enilive's Operations and Financial Performance
The Enilive business includes biorefining and biomethane assets, along with mobility solutions. In the first quarter of 2024, Enilive reported an adjusted EBITDA of €250 million, marking a 27% increase from the prior-year reported figure. This highlights the unit's growth potential and viability for investors.
Market Context and Strategic Rationale
The potential sale aligns with Eni’s strategy to capitalize on the increasing interest in sustainable energy solutions and biofuels. Under the leadership of chief executive officer Claudio Descalzi, the company is implementing a "satellite model," which involves either listing divisions independently or seeking partnerships with external investors to foster its development. By leveraging the value of its Enilive unit, Eni aims to attract investors and enhance its focus on developing environmentally friendly technologies.
Future Plans for Eni's Divisions
In addition to the potential sale of a stake in Enilive, Eni is also planning to separate its carbon capture unit and Novamont biochemical subsidiary by 2027. These strategic moves are part of the company’s broader efforts to streamline its operations and focus on key growth areas.
Conclusion
Eni's consideration of selling a stake in its biorefining unit reflects the growing market interest in sustainable energy and the company’s strategic efforts to optimize its portfolio. With Enilive's solid financial performance and the anticipated split of other subsidiaries, Eni is positioning itself to capitalize on future growth opportunities in the energy transition landscape.
Marathon Petroleum's acquisition of Andeavor has expanded its foothold in the Permian Basin, creating an enviable retail and marketing portfolio. MPC’s emphasis on operational excellence, safety and environmental responsibility, coupled with investments in low-carbon initiatives, positions it well for sustainable growth and continued value creation for shareholders.
The Zacks Consensus Estimate for MPC’s 2024 EPS is pegged at $19.28. The company has a Zacks Style Score of A for Value. It has witnessed downward earnings estimate revisions for 2024 in the past 30 days.
SM Energy is set to expand its oil-centered operations in the coming years with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $6.60. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $5.07 and $4.47, respectively. The partnership has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Eni (E) Considers 20% Stake Sale in Its Enilive Biorefining Unit
Eni SpA (E - Free Report) , a prominent player in the Italian energy sector, is considering the sale of a 20% stake in its Enilive biorefining unit, following a display of interest from potential buyers, per a Bloomberg report on Wednesday. The discussions are still in the preliminary stages, and Eni is evaluating various options for the unit, which has an estimated value of €10 billion.
Enilive's Operations and Financial Performance
The Enilive business includes biorefining and biomethane assets, along with mobility solutions. In the first quarter of 2024, Enilive reported an adjusted EBITDA of €250 million, marking a 27% increase from the prior-year reported figure. This highlights the unit's growth potential and viability for investors.
Market Context and Strategic Rationale
The potential sale aligns with Eni’s strategy to capitalize on the increasing interest in sustainable energy solutions and biofuels. Under the leadership of chief executive officer Claudio Descalzi, the company is implementing a "satellite model," which involves either listing divisions independently or seeking partnerships with external investors to foster its development. By leveraging the value of its Enilive unit, Eni aims to attract investors and enhance its focus on developing environmentally friendly technologies.
Future Plans for Eni's Divisions
In addition to the potential sale of a stake in Enilive, Eni is also planning to separate its carbon capture unit and Novamont biochemical subsidiary by 2027. These strategic moves are part of the company’s broader efforts to streamline its operations and focus on key growth areas.
Conclusion
Eni's consideration of selling a stake in its biorefining unit reflects the growing market interest in sustainable energy and the company’s strategic efforts to optimize its portfolio. With Enilive's solid financial performance and the anticipated split of other subsidiaries, Eni is positioning itself to capitalize on future growth opportunities in the energy transition landscape.
Zacks Rank & Other Key Picks
E currently has a Zack Rank #2 (Buy).
Investors interested in the energy sector may look at some other top-ranked stocks like Marathon Petroleum Corporation (MPC - Free Report) , SM Energy Company (SM - Free Report) and Sunoco LP (SUN - Free Report) . While Marathon Petroleum sports a Zacks Rank #1 (Strong Buy), SM Energy and Sunoco carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Marathon Petroleum's acquisition of Andeavor has expanded its foothold in the Permian Basin, creating an enviable retail and marketing portfolio. MPC’s emphasis on operational excellence, safety and environmental responsibility, coupled with investments in low-carbon initiatives, positions it well for sustainable growth and continued value creation for shareholders.
The Zacks Consensus Estimate for MPC’s 2024 EPS is pegged at $19.28. The company has a Zacks Style Score of A for Value. It has witnessed downward earnings estimate revisions for 2024 in the past 30 days.
SM Energy is set to expand its oil-centered operations in the coming years with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $6.60. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $5.07 and $4.47, respectively. The partnership has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.