ENI beats everyone with good news. A buy not to be missed

Start of the week at full throttle for ENI which, after three consecutive downturns, is filling up with purchases today.

ENI sprints forward. Pink jersey in the oil sector

The title, after having left behind last Friday with a lunge of over six percentage points, today is climbing the slope with decision, showing evident relative strength compared to the Ftse Mib.

As we write, ENI is showing at 11.994 euros, with a 4.02% rally and over 13 million shares changed hands so far, against the average of the last 30 days of almost 19 million.

ENI runs with strong oil rally

The stock achieved the best performance in the oil sector on Piazza Affari, riding the mad rush of oil after last Friday’s tumble.
Black gold is in the last few minutes at 72.8 dollars, with a mighty 6.28% rally.

ENI sells 49.9% of the gas pipelines from Tunisia to Snam

Meanwhile, ENI is traveling with an extra gear in the wake of the latest news from the corporate front.
ENI and Snam signed an agreement for the sale to the second by the former of 49.9% of the investments in the international gas pipelines linking Algeria to Italy.

The onshore gas pipelines that extend from the border between Algeria and Tunisia to the Tunisian coast (the TTPC, 2 lines of 370 km with a capacity of 34.3 billion cubic meters) and the offshore gas pipelines that connect the Tunisian coast to Italy (the TMPC 5 155 km lines with a capacity of 33.5 cubic meters / year).

The transaction provides for the establishment of an Italian NewCo, of which ENI will continue to hold 50.1%, while the remaining 49.9% will be sold to Snam for an amount of 385 million euros.

The two companies will exercise joint control and consolidation using the equity method. The agreement also provides for an earn-in and earn-out mechanism based on the revenues of the target companies.

In 2020, the companies in question had generated a profit of 90 million euros. The deal is expected to close by the third quarter of next year.

ENI: the comment of Equita SIM

According to Equita SIM, the agreement allows for the synergistic enhancement of the respective competences of ENI and Snam on a strategic route for the security of natural gas supplies in Italy, favoring potential development initiatives in the hydrogen value chain from North Africa .

For ENI, the sale frees up additional resources to be dedicated to the energy transition process.
The volumes of gas imported from Algeria, including LNG, represented on average 10% of the volumes procured abroad.

ENI also owns the Greenstream gas pipelines from Libya and Blue Stream in a joint venture, from Russia via Turkey, for a total capacity of the two infrastructures of 24 billion cubic meters per year.

Equita SIM announces that its valuation of GGP (formerly LNG) assets is equal to 1 billion euros, while the implicit valuation of the deal for ENI gas pipelines alone is approximately 1.1 billion euros.

ENI under review by Banca Akros

The bullish view on ENI has been confirmed, which deserves a “buy” recommendation for the Milanese SIM, with a target price of 15 euros.

Banca Akros is also betting on the stock, which today reiterated the “buy” rating, with a target price of € 14.5 in the wake of the agreement with Snam.

Analysts speak of news and highlight that the agreement will allow ENI to free up resources and create synergies.

Trend-online Deputy Director, born in 1978.
After completing his studies at the Classical High School “Antonio Calamo” of Ostuni I entered the world of economics.
For about twenty years I have been dealing with Stock Exchange and Finance. After having worked as a financial promoter for several years, in 2005 I joined the Trend-online team as an editor, to later become deputy director of the cylinder head. Among other countless activities, I take care of maintaining relationships with all the experts, analysts and traders, consulted daily by Trend-online.

My motto is? “Life is like a mirror, if you look at it smiling it will smile at you”.

PREV China, not just electric cars: the sports bike that “threatens” the competition arrives
NEXT Home, inflation will push prices in all cities: here are the forecasts of 5 experts