Eni (E) Acquires Solar Konzept Greece Amid Clean Energy Plan
With the acquisition, Eni (E) extends its renewable energy footprint to Greece as it aims to reach carbon neutrality by 2050.
Eni E, through its retail gas and power division Eni gas e luce, acquired Solar Konzept Greece (“SKGR”) from Solar Konzept International for an undisclosed amount.
The acquisition marks Eni’s entry into the renewable electricity generation market of Greece. Eni extends its renewable energy footprint to the country as it aims to reach carbon neutrality by 2050.
SKGR has a development platform for photovoltaic plants in Greece. Its portfolio involves a pipeline of projects at various development stages. The portfolio of projects is said to have a capacity of nearly 800 megawatts. The projects will constitute the basis for further development in the country.
Eni gas e luce, which will be renamed as Plenitude, has been contributing to the Greek retail energy market since 2000. The company has about 500,000 retail customers in the country. Eni gas e luce owned an operating renewable energy portfolio, with a capacity of 1.2 gigawatts (GW) at 2021-end. It aims to increase the capacity to more than 6 GW by 2025 and 15 GW by 2030.
Eni focuses on capitalizing on the mounting demand for renewables and green energy products. The company focuses on creating more value through energy transition. Notably, the latest acquisition is part of Eni’s plans to expand its renewable capacity along with vertically integrated activities in the power retail business. The agreement fits well with Eni’s goal of being a leader in the production and marketing of decarbonized products.
Company Profile & Price Performance
Headquartered in Rome, Italy, Eni is one of the leading integrated energy players in the world.
Shares of Eni have outperformed the industry in the past six months. The stock has gained 30.9% compared with the industry’s 26.9% growth.
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Zacks Rank & Key Picks
Eni currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Patterson-UTI Energy, Inc. PTEN is one of the largest North American land drilling contractors, having a large, high-quality fleet of drilling rigs. The company’s technologically advanced ‘Apex’ rigs are the key to its success. Patterson-UTI’s proprietary design makes the rigs move faster than conventional ones, drill quicker and more efficiently than conventional ones, and allows for a safer operating environment.
Patterson-UTI’s long-term debt is around $902 million. Importantly, the company's debt-to-capitalization at the end of the third quarter was 34.3%, quite conservative versus 39.4% for the sub-industry to which it belongs. Apart from low leverage for its industry, PTEN has ample liquidity with cash and cash equivalents of $956 million, and $600 million available under the revolving credit facility. Also, the company has a comfortable debt maturity profile with no major debt outstanding until 2028.
Transocean, Inc. RIG, based in Switzerland, is the world’s largest offshore drilling contractor and leading provider of drilling management services. Despite the struggles with the coronavirus-induced price and demand slump, Transocean's backlog of $7.1 billion reflects steady customer demand, and offers earnings and cash flow visibility.
RIG reported revenue efficiency of an impressive 98.1% in the third quarter of 2021. This is an indication of a minimal loss of revenues due to downtime and Transocean’s superior efficiency in translating its industry-leading backlog into cash.
PetroChina Company Limited PTR is the largest integrated oil company in China. PetroChina is one of the largest producers of crude oil and natural gas in the world. The company’s natural gas business offers lucrative growth prospects in the coming years as China moves from coal to natural gas.
PetroChina currently has a Zacks Style Score of A for both Value and Momentum. In the first six months of 2021, PTR's upstream segment posted an operating income of RMB 30.9 billion, nearly tripling from the year-ago profit of RMB 10.4 billion.
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