Yahoo Finance Eni (E) Triumphs in $600M LNG Arbitration Clash With Uniper
Eni SpA E has secured a major victory in a liquified natural gas (LNG) arbitration case against Uniper, with the latter being ordered to pay a substantial sum of €550 million, which is equivalent to approximately $600 million, per a Reuters report.
Uniper, Germany's largest gas trader, which was formerly part of E before its spinoff in 2016, acknowledged the outcome of the arbitration court's decision. The LNG contract in question had been executed prior to Uniper's separation from Eni and concluded its term last year.
The nature of the award, according to Uniper, involves the retroactive re-pricing of the long-term agreement. However, the specifics of the award were not disclosed.
Per the Reuters report, Uniper had already set expectations for its financial performance in the fiscal year 2023, citing adjusted earnings before interest and taxes in the range of €6-€7 billion and adjusted net profit between €4 billion and €5 billion. These projections were made in the context of lower-than-expected gas spot prices.
The company clarified that it anticipates no additional financial repercussions beyond the specified payment, but it concedes that the ruling will impact its annual financial results. Uniper is currently conducting a thorough analysis of the decision and is evaluating potential legal recourse.
Zacks Rank & Key Picks
E currently has a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Matador Resources Company MTDR, Liberty Energy Inc. LBRT and Oceaneering International, Inc. OII. While Matador Resources and Liberty Energy sport a Zacks Rank #1 (Strong Buy) each, Oceaneering International carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays.
MTDR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.89%.
Liberty Energy is a North American provider of hydraulic fracturing services to upstream energy operators. The company’s multi-basin presence offers an attractive upside opportunity compared with most of its peers. Liberty's strong relationship with high-quality customers provides revenue visibility and business certainty.
LBRT’s earnings beat estimates in three of the trailing four quarters and missed once, delivering an average surprise of 9.88%.
Oceaneering International is a leading provider of integrated technology solutions, active at all phases of the offshore oilfield lifecycle. Its strong relationship with high-quality customers provides revenue visibility and business certainty. OII is well-positioned to supply equipment for deep-water projects.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Eni SpA (E) : Free Stock Analysis Report
Oceaneering International, Inc. (OII) : Free Stock Analysis Report
Matador Resources Company (MTDR) : Free Stock Analysis Report
Liberty Energy Inc. (LBRT) : Free Stock Analysis Report
