Semiconductor Firm STMicroelectronics Pens Deal With ERG For Renewable Energy Supply In Italy
Portfolio Pulse from Lekha Gupta
STMicroelectronics NV (STM) has signed a fifteen-year Power Purchase Agreement with ERG to supply renewable energy to its Italian operations from 2024 to 2038. The deal involves the sale of approximately 250 GWh of renewable energy annually from Sicilian wind farms, contributing to STM's goal of becoming carbon neutral by 2027. STM recently reported Q3 FY23 revenue growth of 2.5% YOY to $4.43 billion, surpassing estimates, with an EPS of $1.16.
November 24, 2023 | 3:02 pm
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POSITIVE IMPACT
STM's 15-year renewable energy deal with ERG supports its carbon neutrality goals and may positively influence investor perception on sustainability. The company's strong Q3 earnings report could further bolster investor confidence.
The long-term renewable energy agreement demonstrates STM's commitment to sustainability, which is increasingly important to investors. The positive Q3 earnings report indicates operational strength, which, combined with the PPA, could lead to a short-term positive impact on STM's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100