Published on 5 Mar 2024 on Zacks via Yahoo Finance

Bunge Global (BG) & Chevron to Build New Facility in Destrehan

Bunge Global SA BG, along with Chevron Corporation CVX, announced the approval of a final investment decision for the joint venture, Bunge Chevron Ag Renewables LLC, to develop a new oilseed processing plant. Building the new facility is a further step forward in BG's long-term strategy to scale up its capabilities for the renewable fuels industry while lowering carbon intensity.The processing facility intends to expand the joint venture’s scale and efficiencies, allowing the two companies to more effectively meet the growing market demand for renewable fuel feedstocks.The new plant will be close to the company's existing processing facility on the Gulf Coast in Louisiana. It has a flexible design that allows it to process soybeans as well as softseeds, including novel winter oilseed crops like winter canola and CoverCress. The factory will also serve the growing feed and protein markets by producing meal products.The plant is expected to be operational in 2026 and is likely to generate more than 150 construction jobs and 30 new positions.Bunge Chevron Ag Renewables focuses on producing renewable fuel feedstocks by combining BG's expertise in oilseed processing and farmer contacts with Chevron's expertise in renewable fuel production and marketing.BG reported fourth-quarter 2023 adjusted earnings of $3.70 per share, which surpassed the Zacks Consensus Estimate of $2.79. The bottom line improved 14% year over year. Net sales were $14.94 billion in the quarter under review, down 10.3% from the year-ago quarter. The top line beat the Zacks Consensus Estimate of $14.64 billion.

Price Performance

Shares of Bunge Global have lost 5.7% over the past year against the industry's growth of 0.6%.