We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ExxonMobil (XOM) to Shut Down Australia Refinery Amid Losses
Read MoreHide Full Article
Exxon Mobil Corporation (XOM - Free Report) plans to shut down its Altona refinery, located 13 kilometers west of Melbourne in the Australian state of Victoria.
The 72-year old facility will be transformed into an import terminal as the refinery has been struggling with low demand for fuel. Notably, ExxonMobil stated that the terminal would ensure the constant and steady supply of fuel for Victoria.
The oil giant added that the transition is expected to commence in around six months. Till then, the refinery, which serves nearly 50% of Victoria's refined fuel needs, will remain in service. The facility has a refining capacity of up to 14.5 million liters per day and is plenty to fill more than 330,000 cars.
The refinery significantly contributes to Victoria’s fuel supply chain, and the local and state economy. It offers several job opportunities and produces refined fuel products for industrial customers. However, the closure of the Altona refinery is likely to trim more than 300 positions that the facility employees.
As the coronavirus-led lockdowns and restrictions on international travel resulted in falling fuel demand, the refining sector was struggling with unprecedented losses. In fact, fellow international oil major BP Plc (BP - Free Report) unveiled its decision to close the Kwinana facility, which is its only remaining refinery in Australia, by April. As a result, ExxonMobil decided to close the refinery as it was no longer economically feasible.
The Australian government offered a $1.8-billion fuel security package to the refineries to overcome the budgetary shortfalls and secure the future of the country’s shrunken refining sector. However, per media reports, ExxonMobil declined the offer. The refinery, which opened in 1949, is crucial to the industrial hub of Victoria and its closure is expected to not affect the Australian fuel stockholdings.
Company Profile & Price Performance
Headquartered in Irving, TX, ExxonMobil is one of the leading integrated energy companies in the world.
Notably, the company’s shares have outperformed the industry in the past three months. The stock has gained 38.1% compared with the industry’s 20.7% growth.
Zacks Rank & Other Stocks to Consider
The company currently flaunts a Zack Rank #2 (Buy).
Some other top-ranked players in the energy space are PDC Energy, Inc , currently sporting a Zacks Rank #1 (Strong Buy), and Enerplus Corporation , carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
PDC Energy’s earnings for 2021 are expected to increase 165.9% year over year.
Enerplus’s earnings for 2021 are expected to surge 1066.7% year over year.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
ExxonMobil (XOM) to Shut Down Australia Refinery Amid Losses
Exxon Mobil Corporation (XOM - Free Report) plans to shut down its Altona refinery, located 13 kilometers west of Melbourne in the Australian state of Victoria.
The 72-year old facility will be transformed into an import terminal as the refinery has been struggling with low demand for fuel. Notably, ExxonMobil stated that the terminal would ensure the constant and steady supply of fuel for Victoria.
The oil giant added that the transition is expected to commence in around six months. Till then, the refinery, which serves nearly 50% of Victoria's refined fuel needs, will remain in service. The facility has a refining capacity of up to 14.5 million liters per day and is plenty to fill more than 330,000 cars.
The refinery significantly contributes to Victoria’s fuel supply chain, and the local and state economy. It offers several job opportunities and produces refined fuel products for industrial customers. However, the closure of the Altona refinery is likely to trim more than 300 positions that the facility employees.
As the coronavirus-led lockdowns and restrictions on international travel resulted in falling fuel demand, the refining sector was struggling with unprecedented losses. In fact, fellow international oil major BP Plc (BP - Free Report) unveiled its decision to close the Kwinana facility, which is its only remaining refinery in Australia, by April. As a result, ExxonMobil decided to close the refinery as it was no longer economically feasible.
The Australian government offered a $1.8-billion fuel security package to the refineries to overcome the budgetary shortfalls and secure the future of the country’s shrunken refining sector. However, per media reports, ExxonMobil declined the offer. The refinery, which opened in 1949, is crucial to the industrial hub of Victoria and its closure is expected to not affect the Australian fuel stockholdings.
Company Profile & Price Performance
Headquartered in Irving, TX, ExxonMobil is one of the leading integrated energy companies in the world.
Notably, the company’s shares have outperformed the industry in the past three months. The stock has gained 38.1% compared with the industry’s 20.7% growth.
Zacks Rank & Other Stocks to Consider
The company currently flaunts a Zack Rank #2 (Buy).
Some other top-ranked players in the energy space are PDC Energy, Inc , currently sporting a Zacks Rank #1 (Strong Buy), and Enerplus Corporation , carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
PDC Energy’s earnings for 2021 are expected to increase 165.9% year over year.
Enerplus’s earnings for 2021 are expected to surge 1066.7% year over year.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
AccessZacks Top 10 Stocks for 2021 today >>