Yahoo Finance Bunge (BG) Inks Deal to Buy Fuji Oil's Refinery in Louisiana
Bunge Limited BG announced that it signed a deal with Fuji Oil New Orleans, LLC to acquire Fuji Oil's newly built, port-based refinery in IMTT's (International-Matex Tank Terminals) Avondale Terminal in Louisiana. The acquisition aligns with Bunge's long-term strategy of expanding its value-added oils business by growing its presence across North America.
Bunge expects to expand its existing customer base following the acquisition of the multi-oil refining capabilities of the cutting-edge facility. It will gain a scalable, complementary port-based footprint that will allow it to connect North America food, feed, and fuel customers to global markets.
The company intends to significantly increase the current capacity of the facility, developing job opportunities for the local community. Operations at this facility are expected to begin in the second quarter of 2023.
The completion of the deal is subject to customary closing conditions. Financial details of the transaction have not yet been disclosed.
Bunge has been benefiting from efforts to drive operational performance, portfolio optimization and focus on cost management. In the last reported quarter, BG reported adjusted earnings of $3.24 per share, beating the Zacks Consensus Estimate of $3.19. However, the company's revenues of $16 billion lagged the Zacks Consensus Estimate of $18 billion.
The Zacks Consensus Estimate for the company’s 2023 earnings is pegged at $11.83 per share, indicating a decline of 14.9% from the prior year’s reported figure. BG has a trailing four-quarter average surprise of 15.4%, on average.
Price Performance
Shares of Bunge have lost 20% over the past year compared with the industry's fall of 17.4%.
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Zacks Rank & Stocks to Consider
Bunge currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Olympic Steel Inc. ZEUS, Steel Dynamics STLD, and Alamos Gold Inc. AGI. ZEUS and STLD currently flaunt a Zacks Rank #1 (Strong Buy), and AGI carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Olympic Steel’s fiscal 2023 earnings per share is pegged at $3.50. Earnings estimates have moved 61% north in the past 60 days. ZEUS has a trailing four-quarter earnings surprise of 26.2%, on average. Its shares have gained 34.6% in the past year.
The Zacks Consensus Estimate for Steel Dynamics’ earnings per share is pegged at $15.42 for 2023. Earnings estimates have been revised 32.8% upward in the past 60 days. STLD has a trailing four-quarter average surprise of 11.2%, on average. The company has gained 27.1% in a year.
The Zacks Consensus Estimate for Alamos Gold’s earnings per share is pegged at $0.44 for 2023. Earnings estimates have been revised 12.8% upward in the past 60 days. AGI has gained 50% in a year.
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Steel Dynamics, Inc. (STLD) : Free Stock Analysis Report
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