Why are so many people saying XOM is gonna sell of chemicals and F&L facilities? Chemicals is extremely profitable right now. These claims don’t make sense to me, XOM being more diversified compared to other majors has always been a good hedge when upstream goes south. Does anyone have more info on this?
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EM has a plan of which assets it wants to own and which it wants to sell. It is all about what businesses it wants to be in 15 yrs from now. It won't sell all of chemicals, or refining, or production, but it will sell some. The signals are clear - just look at the current investment plans. Sites or businesses with little or no investment are going away. Sites/businesses with significant investment plans are keepers.
This is the energy transition. EM sifting to more chemicals and lubes, less fuels. Transition will take 15+ years.
It is worth observing that this is not new. Look back at how many assets have been divested since 1999. At that time we had twice as many refineries and chemical plants, but lower capacity. Now we have fewer plants, but they are bigger and more efficient. I predict that 15 yrs from now EM will have ~10 manufacturing sites, all bigger than they are today, but making less fuels.
Sell it all to the government.
before the cummuniss take it for free.
I think XOM will sell off the majority of their US assets. They like to operate in 3rd world countries where they can bribe the government and get away with things they can’t in the US. I wouldn’t be surprised if the higher ups don’t funnel money back to themselves through the 3rd world governments.
Now I might be either simple folk or oblivious to the way things are. But if it's as profitable as you think and a strong line of business, then it wouldn't make sense to sell it. But if they did, it would be the id--tic thing to do. But that makes sense because management is a bunch of id--ts according to this board.
That was just my 2c
They could only go so far with Chemicals. Sell them at high would be profitable to Exxon. Anything to protect their divendends and bonus from the higher up
Not much a hedge, when they can't even cover the dividend themselves.
Sell high.
That's discord?
If you are going to remake yourself, you get a nose job and tighten the turkey neck.
Not like it's sieg heil or crazy talk.
The layoffs have passed and this site is now full of trolls sowing discord.
When you have to go to "Pawn Shop" for future. The future doesn't look so bright, does it?
EM is under pressure to reduce debt. Anything goes - assets, head-counts...
@juu+1cZBMv5n Right on!
Santoprene sale ring a bell?
@OP It doesn't make any sense at all. This is why EM will do it. LOL
Chemicals is beaucoup cash on the barrelhead.
That's what? 10 years of dividends up front.
CS&I seems to be integrating them even more tightly, in hopes of making them harder to break apart
They won’t sell them as a whole, but if you’re looking for the best time to sell something, when it’s making loads of money is when you can also get the best deal on it as a seller. So if you were going to sell small chunks here or there, now may be the time. Reinvest the cash in emerging business opportunities or in areas with long term growth that are currently cheap that nobody wants.