Eni SpA (E - Free Report) recently inked an accord with General Electric (GE - Free Report) to create a more diversified renewable energy portfolio.
The development in this front will enable the companies to generate electricity on a larger scale from onshore and offshore wind, solar power, hybrid gas-renewable projects, waste-to-energy developments to name a few, by emitting lower carbon.
We note that the deal is in sync with Eni’s aim of broadening its portfolio of renewable energy through mergers and acquisitions. In other words, the company – which has been working in renewable energy space ever since 1980 – is looking for synergies through mergers and acquisitions to create more value for shareholders in the coming years.
Rome, Italy-based Eni, along with its consolidated subsidiaries, is engaged in oil and gas, electricity generation, petrochemicals, oilfield services and engineering industries. Last month, the company reported third-quarter 2016 adjusted loss from continuing operations of 31 cents per American Depository Receipt/ADR, substantially wider than the Zacks Consensus Estimate of loss of 9 cents and the year-earlier quarter loss of 16 cents. The underperformance mainly stemmed from lower gas sales and weak commodity prices.
Presently, the company has a Zacks Rank #3 (Hold), implying that it will perform in line with the broader U.S. equity market over the next one to three months.
Some better-ranked players in the energy sector include Ultra Petroleum Corp. (UPLMQ - Free Report) , Diamondback Energy Inc. (FANG - Free Report) and Helix Energy Solutions Group, Inc. (HLX - Free Report) .
Ultra Petroleum is likely to witness year-over-year earnings growth of 425.8% in the current year. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Diamondback Energy beat the Zacks Consensus Estimate in each of the last four quarters with an average beat of 74.13%. It has a Zacks Rank #1.
Helix Energy posted an average positive earnings surprise of 56.42% in the last four quarters. The company has a Zacks Rank #2 (Buy).
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