Ingevity (NGVT) Inks Renewable Energy Project for US Locations
Ingevity Corporation NGVT has signed a renewable product purchase agreement (RPPA) with a subsidiary of NextEra Energy Resources, LLC, to make offsetting renewable energy to mitigate Scope 2 emissions associated with its manufacturing locations in the United States.
Ingevity will receive 85 megawatts of capacity at a new NextEra Energy Resources solar site, which will be constructed in North Texas as part of the agreement. The project will provide Texas with a large sustainable energy source owing to Ingevity's commitment to it and NextEra Energy Resources' extensive experience in creating and generating renewable energy.
By 2050, Ingevity intends to reduce its greenhouse gas (GHG) emissions and attain carbon neutrality for absolute GHG emissions from manufacturing operations. Ingevity's commitment to sustainability includes decarbonization through increased usage of renewable energy in its operations and collaboration with renewable energy providers such as NextEra Energy Resources to expand the quantity of renewable energy accessible in the United States.
The collaboration between Ingevity and NextEra Energy Resources to build a solar facility in the U.S. locations with high energy demand is a natural progression of the company's sustainability profile and a key component in its drive to become carbon neutral, NGVT noted. The solar facility is anticipated to be completely operational by the end of 2025, according to NextEra Energy Resources and Ingevity.
Shares of NGVT have lost 35.1% over the past year against 1.2% rise of its industry.
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The company’s adjusted earnings of $1.41 per share for the second quarter were in line with the Zacks Consensus Estimate. Revenues rose 14.7% year over year to $481.8 million in the quarter, missing the Zacks Consensus Estimate of $483.5 million.
The company, on its second-quarter call, adjusted its sales guidance for 2023 to $1.6-$1.7 billion and adjusted EBITDA outlook to $390-$420 million.
Ingevity Corporation Price and Consensus
Ingevity Corporation price-consensus-chart | Ingevity Corporation Quote
Zacks Rank & Key Picks
Ingevity currently carries a Zacks Rank #5 (Strong Sell)
Better-ranked stocks in the basic materials space include Carpenter Technology Corporation CRS, Denison Mine Corp. DNN and Veritiv Corporation VRTV.
Capenter Technology currently carries a Zacks Rank #1 (Strong Buy). The stock has rallied roughly 48.7% in the past year. CRS beat the Zacks Consensus Estimate in three of the last four quarters while meeting in one. It delivered a trailing four-quarter earnings surprise of 9.8%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
Denison Mines currently carries a Zacks Rank #1. The stock has gained roughly 14.6% in the past year. DNN beat the Zacks Consensus Estimate in three of the last four quarters while meeting once. It delivered a trailing four-quarter earnings surprise of 75%, on average.
Veritiv currently carries a Zacks Rank #2 (Buy). The stock has rallied roughly 21.9% in the past year. VRTV beat the Zacks Consensus Estimate in three of the last four quarters. It delivered a trailing four-quarter earnings surprise of 6%, on average.
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