Why is ExxonMobil doing so poorly in Trading vs competition? What are we missing?
Shell & others seem to be doing much better.
Is our new trading organization, combined with the newly minted midstream company set to turn our fortunes around in this space?
They are simply following Darren's "we zig when they zag" strategy. Everyone else is just focused on making money (zigging)
XOM is focused on doing the opposite (zagging). In fairness, if everyone else is making money, somebody has to provide the liquidity.
@ch since you seem to know so much, tell us what derivatives are involved and the positions? Calls, puts, futures, short or long positions? I trade options and your analogy makes no sense. Value of the house? WTF are you talking about? They reported mark to market losses, not gains. Let’s say XOM shorted oil futures. That would have been a horrible trade, and their futures are deep in the red (hence mark to market losses). The mark to market loss means those derivative positions lost value as of Mar 31st compared to Dec 31st. There is no spinning that as a positive. There is no “house” with a greater value than the derivatives.
@dg yep - promoting Texas A&M or people with same last names just because their dads worked in the company is never a good idea (I guess thats what you meant when you pointed bias in promotion).
Anything that this company does wrong can usually be traced back to the DEI policies. You can’t keep promoting incompetent people without having negative implications.
Same explanation that you guys didn’t want to hear about before. There are earnings reporting difference between US and the rest of the world. Most of the trading companies you reference are able to report their earnings using the non-US method.
House analogy again….
US: Asks you to report the debt from the mortgage but they don’t care about the value of the house until you sell it. You look like you are in debt until the house is sold.
Rest of world: Doesn’t require that you report the value of the mortgage until the house is sold. Only then do you report the two, as a netted value.
House = oil. Mortgage = derivatives.
That’s interesting we keep hearing about how do we compete with non O&G companies. Something called new horizons. Seems like some kind of gaslighting Pds dream.
This is not new
https://www.reuters.com/business/energy/exxon-retreated-oil-trading-pandemic-rivals-made-fortunes-2021-04-26/