Edin. New It Share Discussion Threads

[pj84] 10/11/2023 00:02

This super-cheap oil stock is the toast of the world’s top ‘value’ investors

When a stock suddenly becomes more popular with the best-performing fund managers in the world, it’s worth a closer look.

This is what has happened to Eni, the Italian oil and gas giant, which has surged to a top AAA rating from Citywire Elite Companies, which rates stocks on the basis of their backing by the world’s top professional investors.

Seven of these fund managers – each among the top-performing 3pc of the 10,000 equity fund managers tracked by the financial publisher Citywire – own shares in Eni, which has climbed from the lowest + rating to AAA status in the past month.

What unites these investors, apart from their strong performance, is their style of “value” investing. Examine Eni in more detail and it’s clear why its shares are particularly appealing to them.

Even in an oil and gas sector where low valuations are the norm, Eni stands out for the cheapness of its shares. Compared with eight of its largest oil and gas rivals, Eni’s shares trade on the lowest price-to-earnings ratio of 6.6 times expected profits over the next 12 months. Its forecast dividend yield of 6.2pc, based on the expected dividend and the current share price, is meanwhile the highest.

By historic standards too, the shares’ valuation looks low. Valued according to forecast earnings, sales and free cash flows, the shares are trading towards the bottom of their 10-year range. But unlike many shares on rock-bottom valuations, Eni has been a very good investment over recent years. It is not a “falling knife”.


In sterling terms, since hitting a lockdown low almost exactly three years ago, the shares have clocked up a 200pc total return. Better-than-expected third-quarter results at the end of last month are cause for further optimism, even as rivals such as BP have disappointed.

Industry trends also look supportive. The American oil and gas “supermajors” ExxonMobil and Chevron, rated AAA and AA respectively by Citywire Elite Companies, both announced major deals last month. ExxonMobil is buying the shale group Pioneer Natural Resources for $60bn (£49bn) while Chevron has struck a $53bn deal to acquire the oil producer Hess. This may prove just the start of a long-anticipated wave of consolidation that could spread to Europe.

Eni’s acquisition record is less extravagant; the Italian government’s 30pc stake is a limiting factor. But a $4.9bn deal announced in June to buy Neptune Energy looks strategically sound. The takeover, which should complete early next year, will help Eni achieve a target of producing 60pc of output from gas by 2030. As gas produces fewer carbon emissions than oil, the European Commission has designated it a transition fuel, which will help underpin long-term demand.

Increasing gas production will also mean that Eni’s liquified natural gas (LNG) business becomes less reliant on third-party supplies, the risk of which has been brought home by Russia’s invasion of Ukraine.

Another opportunity for investors lies in potential divestments and in particular the mooted flotation of its green energy arm, Plenitude. Original plans for a listing were delayed last year as investors turned from hot to cold on renewable energy companies. Now Eni is considering selling a stake in the division before potentially floating it next year.

If successful, this could prove particularly beneficial for shareholders. That’s because one explanation for Eni’s low valuation is investors’ preference for oil companies that stick to their fossil-fuel roots and hand back excess cash to shareholders via dividends and share buybacks rather than spending it on expensive renewable energy projects.

Eni’s valuation of Plenitude suggests the bar is set low for the flotation to deliver value for shareholders. Outside investors could put a higher price on the business, which is working towards ambitious targets. Eni aims to increase renewable energy production from 2.2 gigawatts last year to 15 gigawatts by 2030 and 60 by 2050 and treble Plenitude’s earnings on the “Ebitda” (earnings before interest, tax, depreciation and amortisation) measure by €1.8bn by 2026.

While Eni is increasing spending, raising a four-year investment plan from €28bn to €37bn this year, those commitments are unlikely to threaten returns to shareholders. Net debt remains comfortably inside the target range of 10pc to 20pc of net assets, while Eni is committed to annual dividend increases and will continue to buy back shares with spare cash. Buybacks reduced the share count by 6pc in the 12 months to the end of September.

These cash returns should help support the shares, while Eni’s low valuation should mean it won’t take much to send them higher.

[waldron] 08/11/2023 15:25

Eni Nears $800 Million Sale of Renewables Unit Stake to EIP

Alberto Brambilla and Tommaso Ebhardt, Bloomberg News

(Bloomberg) -- Eni SpA is nearing an accord with Energy Infrastructure Partners AG to sell just under 10% of its Plenitude renewables unit for around €750 million ($800 million), according to people familiar with the matter.

Plenitude is set to be valued at about €8 billion in the deal, which could be announced by the end of this month, said the people, asking not to be named discussing private information. Talks are in the final stages but a definitive decision has not yet been reached, they said.

Italian oil and gas major Eni entered into talks with EIP, a Zurich-based fund, on a potential deal earlier this year, as it sought a partner for the unit in the run-up to a future stock market listing. Plenitude sells energy to households and businesses, produces renewable power, and runs electric-vehicle charging stations. It serves about 10 million retail clients across Europe, operating in 15 countries globally.

Read More: Eni Boosts Full-Year Guidance as Profit Beats Estimates

The sale of a stake could help Eni lock in the unit’s value while giving it more cash for investments, paving the way for an initial public offering as soon as next year. Eni Chief Executive Officer Claudio Descalzi acknowledged in late September that talks were ongoing with potential suitors for a stake in Plenitude.

Representatives for Eni and EIP both declined to comment.

Energy Crisis

The plan to list Plenitude was postponed last year with Europe in the throes of an energy crisis, but Eni still aims to proceed with the listing on the Euronext Milan exchange when market conditions permit, likely in 2024, Descalzi has said.

The current valuation for the unit is higher than the €6 billion to €7 billion the state-controlled energy firm considered setting for it in mid-2022, people familiar with the matter said at the time.



Milan-based Plenitude, which is targeting around €900 million in Ebitda for this year, was set up to pool Eni’s energy retailing and renewables businesses.







--With assistance from Tiago Ramos Alfaro and Paula Doenecke.

[grupo guitarlumber] 24/10/2023 11:59

Eni
15.572 +0.88%

[grupo guitarlumber] 24/10/2023 11:56

Upcoming events on Eni S.p.A



26/10/2023 Q3 2023 Earnings Release

26/10/2023 Q3 2023 Earnings Call

[adrian j boris] 24/10/2023 07:27

Eni Reaches Heads of Terms with UK for HyNet CCS
by Rocky Teodoro
|
Rigzone Staff
|
Tuesday, October 24, 2023

The heads of terms agreement deal with key terms and conditions for the economic, regulatory, and governance model for the transportation and storage of carbon dioxide at HyNet North West.


Eni SpA has reached an agreement in principle with the United Kingdom (UK) Government’s Department of Energy Security and Net Zero (DESNZ) regarding the HyNet North West industrial carbon capture and storage (CCS) cluster.

The heads of terms agreement deal with key terms and conditions for the economic, regulatory, and governance model for the transportation and storage of carbon dioxide at HyNet North West, which aims to become the world’s first asset-based regulated CCS business, providing CCS for companies in the North West of England and North Wales. The principles pave the way for the completion of definitive agreements in the coming months, Eni said in a news release.

Eni is the carbon dioxide transport and storage operator of the HyNet North West consortium, which targets transforming one of the country’s most energy-intensive industrial districts into one of the world’s first low-carbon industrial clusters by supporting the decarbonization of industries such as cement, energy, and chemicals.

HyNet North West is expected to be operational by the middle of the current decade with a storage capacity of approximately 4.5 million metric tons of carbon dioxide per year in the first phase, according to the news release. The project has the potential to remove approximately 10 million metric tons annually after 2030 and is pegged to make a major contribution to the UK’s target of storing 20 million to 30 million metric tons of carbon dioxide annually by 2030.

“CCS will play a critical role in energy transition, cutting safely emissions from industries that currently don’t have the technology to do so another way”, Eni CEO Claudio Descalzi said. “Today’s agreement is a significant step towards establishing a significant new industry for the country. The Heads of Terms outline a regulated model that can help the CCS industry achieve scale and provide the certainty needed for private sector investment. This kind of close cooperation with the public sector will be critical to developing the kind of groundbreaking projects we need to address the climate challenge”.

Aside from the CCS aspect, the HyNet project also includes building the infrastructure to produce, transport, and store low-carbon hydrogen across the North West and North Wales, according to the project’s website. Hydrogen will be manufactured in the North West at the Stanlow Manufacturing Complex by EET Hydrogen. The low-carbon hydrogen production plant will supply local industry with locally produced hydrogen, which will be transported by underground pipelines. HyNet partners INOVYN are repurposing salt caverns in the Northwich area of Cheshire, which currently store natural gas, to store 35,000 metric tons of hydrogen.

Eni said it is planning a second UK CCS hub to decarbonize the Bacton Energy Hub and the Thames Estuary region, adding that it has been granted a license to store carbon dioxide in the depleted Hewett gas field in the Southern North Sea. Together, HyNet North West and Bacton can store 500 million metric tons of carbon dioxide, the company said.

Eni said it intends to repurpose some of its existing depleted fields, which currently store gas, into carbon dioxide storage hubs “to decarbonize both its own and third parties' industrial activities at a competitive cost and with fast time to market”. The company aims to achieve a total annual storage capacity of 30 million metric tons of carbon dioxide by 2030 through projects under development not only in the UK but also in Italy, Libya, Australia, and Egypt.

To contact the author, email [e-mail]

[la forge] 21/10/2023 14:42

Borsa Italiana 11:44:59 2023-10-20 am EDT





15.40 EUR -0.35%

[grupo guitarlumber] 15/10/2023 08:24

Borsa Italiana 11:44:59 2023-10-13 am EDT


Eni S.p.A


15.50 EUR +1.32%

[florenceorbis] 02/10/2023 15:32

Eni Makes Significant Offshore Gas Discovery in Indonesia
October 02, 2023 at 08:16 am


By Adria Calatayud

Eni has made a significant natural-gas discovery in an offshore project in Indonesia, which the company said has potential to contribute to the creation of a new production hub.

The Italian energy company said Monday that preliminary estimates from the Geng North-1 exploration well in the North Ganal production sharing contract indicate a total discovered volume of 5 trillion cubic feet.

Eni operates the North Ganal block and holds a 50.22% participating interest, with Neptune Energy and Agra Energi I Pte as partners with stakes of 38.04% and 11.74%, respectively. Eni said completion of its recent deal to buy Neptune Energy will strengthen its position in the project.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

10-02-23 0315ET

[ariane] 20/9/2023 07:58

Eni, Lukoil, and SNPC ink LNG sale and purchase agreement in a ‘significant milestone’ for Congo’s energy development



September 19, 2023, by Ajsa Habibic

Société Nationale des Pétroles du Congo (SNPC), Eni Congo, and Lukoil have signed a long-term contract for the purchase and sale of LNG with Eni SPA, marking an advancement in the LNG Marine XII project.


According to SNPC, the contract was signed on September 14, 2023, and will run for a period of 20 years.

Energy advocacy group African Energy Chamber (AEC) expressed its support for the contract stating it marks a “significant milestone in the Republic of Congo’s energy sector development, showcasing a dedication to harnessing natural gas potential for both domestic and international advantages”.

Involving an investment of nearly $5 billion, the LNG Marine XII project represents a pioneering initiative for the Republic of Congo.

It will leverage the natural gas resources within the Marine XII permit in two distinct phases. The maiden LNG carrier is set to sail from Congolese shores in December 2023, signaling the launch of the first phase with an export capacity of 0.6 million tons per annum (mtpa). The subsequent phase, planned for 2025, will elevate this capacity to 2.4 million metric tons per year, ultimately reaching an annual LNG export of 3 million tons.

In April 2023, Eni also demonstrated its commitment to advancing gas projects in the Republic of Congo through the Congo LNG project, aiming for an annual output of 3 million tons by 2025. This initiative involves deploying two floating LNG (FLNG) plants to process gas from existing and future fields. The FLNG facilities, boasting production capacities of 0.6 mtpa and 2.4 mtpa, are scheduled for operation in 2023 and 2025.

“The recent contract signing represents a monumental stride forward in unlocking the vast potential of natural gas resources in the Republic of Congo. The Chamber stands resolutely behind these efforts, which not only bolster the energy security of the nation but also contribute significantly to the economic growth and prosperity of the African continent as a whole. We commend the collaborative efforts of SNPC and the Ministry of Hydrocarbons for creating an enabling environment for this momentous endeavor,” stated NJ Ayuk, Executive Chairman of the AEC.

[sarkasm] 15/9/2023 12:01

Eni teams up with LG Chem to set up new biorefinery in South Korea

Using Eni's Ecofining technology, the biorefinery will be designed to process around 400,000 tonnes of bio-feedstocks annually.


The companies plan to complete the facility at the integrated petrochemical complex in Daesan, South Korea, by 2026. Credit: Tasos Mansour/Unsplash.

Eni Sustainable Mobility, a unit of Italian oil and gas company Eni, has partnered with chemicals company LG Chem to set up a new biorefinery.

The proposed facility is to be built at the chemical company’s Daesan chemical complex 80km south-west of Seoul, South Korea.

Under the partnership, the companies are assessing the economic and technical viability of the facility, leveraging their respective industry expertise.

A final investment decision for the project is expected by 2024, with plans to complete the facility at the integrated petrochemical complex by 2026.

Eni said the prospective biorefinery hopes to cater to the rising demand for fuels and plastics made using low-carbon technologies that are more environmentally friendly.

Using Eni’s Ecofining technology, the biorefinery will be designed to process around 400,000 tonnes of bio-feedstocks annually.

It will produce a variety of commodities such as bio-naphtha, hydrotreated vegetable oil and sustainable aviation fuel.

Developed in collaboration with Honeywell-UOP, the Ecofining technique is used to convert biologically derived raw materials into biofuel.

Eni said it will supply the South Korean biorefinery with sustainable feedstock that is mostly based on leftovers and waste products from the production of vegetable oils, used cooking oil, and vegetable oils from drought-resistant crops grown on degraded, semi-arid or abandoned soils.

Currently, the Italian oil and gas company operates two biorefineries at home in Porto Marghera, Venice and Gela, Sicily.

In June this year, Eni Sustainable Mobility formed a joint venture with PBF Energy by acquiring a 50% stake in the St. Bernard Renewables biorefinery.

Based in Louisiana, US, the bio-refinery also uses the Ecofining technology.

Earlier this month, Eni reached an agreement to sell Nigerian Agip Oil Company (NAOC) to Oando.

NAOC is engaged in onshore oil and gas exploration and production in Nigeria.

[la forge] 09/9/2023 08:25

Borsa Italiana - 11:44:59 2023-09-08 am EDT


Eni S.p.A


14.80 EUR +0.39%

[ariane] 30/8/2023 07:57

Eni starts production from Baleine oil and gas field in Côte d’Ivoire


By NS Energy Staff Writer 29 Aug 2023

According to Eni, the offshore Baleine field is currently the largest hydrocarbon discovery in the Ivorian sedimentary basin with an estimated 2.5 billion barrels of oil and 3.3 trillion cubic feet of associated gas in place, which will be developed in multiple phases


Eni has achieved the start of production of oil and gas from the Baleine field in the waters of Côte d’Ivoire, just under two years after making the hydrocarbon discovery in September 2021.

The milestone for the Italian energy company comes less than 18 months after taking the final investment decision (FID) on the African oil and gas project.

Eni CEO Claudio Descalzi said: “The first oil from Baleine is a milestone in Eni’s operations. Stemming from an extraordinary exploration success, we have achieved an industry-leading time-to-market of under two years from the declaration of commercial discovery.

“This outcome expresses the core principles of our strategy, encompassing Africa’s pioneering net-zero project, accelerated development, local gas supply, and the promotion of a just transition”.

According to Eni, currently, Baleine is the largest hydrocarbon find in the Ivorian sedimentary basin. The company is partnered with Ivorian state-owned national oil and gas company PetroCi in the offshore oil and gas field that is spread over the CI-101 and CI-802 blocks.

The Baleine field will see a multi-phase development to exploit the estimated 2.5 billion barrels of oil and 3.3 trillion cubic feet of associated gas in place. The project involves the development of the oil discovery made in the CI-101 block in 2021 and the Baleine East discovery made in July 2022 in the CI-802 block.

During the initial phase, production is carried out using the Baleine floating production storage and offloading (FPSO) unit. Formerly called FPSO Firenze, the vessel has been refurbished and upgraded to handle up to 15,000 barrels per day (bbl/d) of oil and approximately 25 million cubic feet per day (Mscf/d) of associated gas.

Phase 2 of the Baleine field development is anticipated to commence by the end of next year. It is expected to boost field production to 50,000bbl/d of oil and around 70Mscf/d of associated gas.

The objective of the third development phase will be to raise the output to 150,000bbl/d of oil and 200Mscf/d of gas.

All the gas produced from the Baleine field during the initial phase of development as well as the subsequent phases will be transported onshore via a newly built pipeline. This infrastructure will allow Côte d’Ivoire to fulfil its domestic electricity market requirements, enhance energy accessibility, and reinforce its position as a regional energy hub for neighbouring nations, said Eni.

[waldron] 28/8/2023 13:58

Eni Begins Oil And Gas Production Offshore Cote d’Ivoire
By Tsvetana Paraskova - Aug 28, 2023, 7:00 AM CDT

Italy’s energy major Eni said it started on Monday oil and gas production from an offshore field in Cote d’Ivoire in West Africa less than two years after the discovery.

Production at the Baleine field, currently the largest oil and gas discovery in Ivorian sedimentary basin, started via a refurbished and upgraded Floating Production Storage and Offloading (FPSO) unit capable of handling up to 15,000 barrels per day of oil and around 25 Mscf/d of associated gas. With a second and third phase of development, the field will see production rise to 150,000 bpd of oil and 200 Mscf/d of gas, the Italian company said.

The gas production from the Baleine field will be delivered onshore through a newly constructed pipeline, enabling Cote d’Ivoire to meet its domestic electricity market demands, facilitate energy access, and strengthen its role as a regional energy hub for neighboring countries, Eni noted.

Europe and Eni are also increasingly betting on Africa to import large volumes of pipeline gas and LNG to replace pipeline gas supply from Russia, which was Europe’s top gas supplier before the Russian invasion of Ukraine.

Eni has been particularly active in securing more natural gas supply for Europe from Africa and has fast-tracked projects in Africa to meet Europe’s gas demand in the absence of Russian pipeline deliveries.

In April, Eni launched the construction works for the first natural gas liquefaction project in the Republic of the Congo, which is expected to supply LNG to Europe.

Early this year, Eni’s chief executive Claudio Descalzi told the Financial Times in an interview that Europe should look to Africa for a “south-north” energy axis that would deliver gas from Africa to the EU.

At the announcement of the 2022 results in February, Descalzi said, “During the year, we were able to finalize agreements and activities to fully replace Russian gas by 2025, leveraging our strong relationships with producing states and fast-track development approach to ramp-up volumes from Algeria, Egypt, Mozambique, Congo and Qatar.”

By Tsvetana Paraskova for Oilprice.com

[grupo guitarlumber] 19/8/2023 08:25

Borsa Italiana - 11:44:59 2023-08-18 am EDT




Intraday chart for Eni S.p.A 5-day change 1st Jan Change



14.03 EUR +0.43%

Heres to a promising and positive forthcoming week

[waldron] 16/8/2023 20:16

Analysts' Consensus

Mean consensus
OUTPERFORM

Number of Analysts
24

Last Close Price
14.01EUR

Average target price
16.39EUR
Spread / Average Target
+16.97%

[waldron] 16/8/2023 20:15

Eni bought back own shares for more than EUR44 million
Today at 08:02 am


(Alliance News) - Eni Spa reported Wednesday that it purchased 3.2 million of its own ordinary shares between Aug. 7 and Aug. 11.

The shares were taken over at an average unit price of EUR13.8733, for a total value of EUR44.2 million.

As of today, the company holds 85.5 million treasury shares, or 2.5 percent of its share capital.

Eni's stock is down 0.6 percent at EUR13.93 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

Comments and questions to [e-mail]

[waldron] 16/8/2023 20:14

Borsa Italiana - 11:44:59 2023-08-16 am EDT



13.93 EUR -0.60%

[waldron] 15/8/2023 10:58

Eni prolongs BW Offshore FPSO’s assignment off Nigeria



August 15, 2023, by Melisa Cavcic

Italian-headquartered oil and gas giant Eni has awarded another short-term contract extension to BW Offshore for one of its floating, production, storage, and offloading (FPSO) vessels, which is carrying out operations on a field located offshore Nigeria.


BW Offshore has inked a short-term extension for the FPSO Abo with Nigerian Agip Exploration, a subsidiary of Eni, enabling the FPSO to work on the Abo field until 31 August 2023. The previous contract extension expired on 14 August 2023. The FPSO owner is engaged in divestment dialogues for this FPSO, which were previously expected to close in 1H 2023.

The license entails three fields – Abo, Abo North and Okodo – eight producing wells, two water injectors, and two gas injectors. These wells are tied back to the FPSO Abo. Agip is the operator with 85 per cent working interest, while Oando Energy Resources holds the remaining 15 per cent.

Located in the OML 125 license some 40 kilometres off the Nigerian coast on the western edge of the Niger Delta, at a water depth of 550 to 1,100 metres, the Abo field covers an area of 1,983 km² (490,010 acres). It contains light sweet crude oil, typically 39° to 41° API, and natural gas.

The Abo FPSO comes with a storage capacity of 930,000 barrels of oil, an oil treatment capacity of up to 45,000 bopd, a water injection capacity of 30,000 bopd, and a gas compression capacity of 48,4 mmscfd. This FPSO has been working on the Abo field with Eni’s Agip since the start of production in 2003.

BW Offshore is putting the wheels into motion to expand the niche oil and gas segment by redeploying existing FPSOs and divesting non-core assets. The firm already sold multiple FPSOs, including Sendje Berge, Espoir Ivoirien, BW Athena, BW Opportunity, Cidade de São Vicente, and BW Joko Tole. In addition, the FPSO operator expects the recycling of the FPSO Petróleo Nautipa late in 2023.

[adrian j boris] 13/8/2023 08:56

Mean consensus
OUTPERFORM


Number of Analysts
23


Last Close Price
14.05EUR


Average target price
16.45EUR
Spread / Average Target
+17.11%

High Price Target
19.50EUR
Spread / Highest target
+38.81%


Low Price Target
13.50EUR
Spread / Lowest Target
-3.90%