Bunge (BG) & Chevron Acquire Argentina-Based Chacraservicios
Bunge Limited BG announced that it and Chevron Corporation’s CVX subsidiary, Chevron’s Renewable Energy Group Inc., acquired Chacraservicios S.r.l. from Adamant Group.
Based in Argentina, Chacraservicios was founded in 2003. It is focused on the cultivation of Camelina Sativa — a cover crop with high oil content that is beneficial to farmers, consumers and the environment.
Bunge is focused on expanding its lower-carbon-intensity feedstocks to meet the growing demand for renewable fuels.
The Chacraservicios acquisition brings a new oil source to Bunge and Chevron's global supply networks and assists the companies in meeting the growing demand. The companies plan on working on meal and oil-processing innovations.
Chevron is a global integrated energy company. It produces crude oil and natural gas, as well as transportation fuels, lubricants, petrochemicals and additives. Chevron also focuses on developing innovations that benefit it and the industry.
Bunge and Chevron intend to continue exploring opportunities to increase their participation in the development of next-generation, renewable fuels and advance a lower-carbon-energy future.
In the last reported quarter, BG reported adjusted earnings of $3.26 per share, missing the Zacks Consensus Estimate of $3.49. The company delivered revenues of $15.3 billion, missing the Zacks Consensus Estimate of $14.3 billion.
Price Performance
Shares of Bunge have gained 14.7% over the past year compared with the industry's 10.1% growth.
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Zacks Rank & Stock to Consider
Bunge currently carries a Zacks Rank of 3 (Hold).
Some better-ranked stocks from the basic materials space are L.B. Foster Company FSTR and Osisko Gold Royalties Ltd OR. FSTR flaunts a Zacks Rank #1 (Strong Buy) at present and OR has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
L.B. Foster has an average trailing four-quarter earnings surprise of 140.5%. The Zacks Consensus Estimate for FSTR’s fiscal 2023 earnings is pegged at 53 cents per share. The consensus estimate for 2023 earnings has been unchanged in the past 60 days. Its shares gained 11.7% in the last year.
The Zacks Consensus Estimate for Osisko Gold Royalties’ fiscal 2023 earnings per share is pegged at 47 cents. Earnings estimates have moved 6.8% north in the past 60 days. OR’s shares have gained 41.2% in the past year.
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