I predict, they are packaging up Product Solutions nice and pretty. And they will sell it. They will keep upstream, carbon capture (because it makes them look good) and Litium. The rest goes bye bye. Keeping the profits high is their main goal now.
Thoughts?
OP the next one is ExxonMobil Corporation. It'll be a firesale. Nobody likes buy shlt.
And Upstream will be a shadow of its former self. Not a bright outlook. Sell, sell, sell and have no further. DWW will sc--w the next CEO.
I heard your sister got something to sell
Ya, downstream is done. So much capacity is coming online in Asia with low cost providers that Europe, Canada will not be competitive. US will only survive processing cheap West TX oil. After that (2030 ish), the US sites will be ready for sale also. The industry is dying faster than previously believed.
Did you guys see the earnings preview? Downstream is done. I heard the MC is going to become more aggressive on pending sales to get them off the books. So long Canada and Europe... Asia, you're next!
Don't listen to the downstream-er that thinks he/she is saving the company during downturn markets. Remember, they are the ones losing millions at various sites (see France announcement)!
Does it make sense to sell? Or would it make more sense to spin off?
From a shareholder perspective thinking it could be more value to spinoff as an independent, publicly traded company but I really have no clue.
Why would a corporation sell off the assets making billions and kept the company from going upside down completely during COVID?
The trend is to consolidate to large sites and sell the small less profitable ones not to sell everything
The Upstream ain’t too hot either; Qatar contracts come to an end over the next five years, Malaysia / Indonesia / Nigeria are on the chopping block; All we will have left by 2030 will be Permian, Guyana,Canada and PNG.
Sure aramco are sniffing for a global brand like mobil or esso…
The OPs theory has lots of merit.
Not a matter of if this happens, just how quickly. The upcoming US election may cause the company to pause momentarily, but as quickly as buyers are found and markets allow deals, pieces will be gone.
That's how you achiever Billions in cost savings... Check the charts folks; the fun is just starting.
@jba. Then why breakup a synergy site at Esso France - Gravenchon with the announcement that the Chemical site will be closed. This is the first step in closing the whole Port Jerome facility and convert the site to a terminal.
There seems to only one future for downstream. Sell assets to support Upstream and LCS a business which will never make money.
It would be the best thing to happen to Product Solutions.
Not gonna happen. Exxon makes its money by being integrated. Upstream without integration leaves literally BILLIONS of dollars of profits behind. Vanguard and BlackRock would not support a sale like that (unless of course they found someone willing to WAY overpay).
What about the Texas chemical plants? Sell? Reduce headcount? Consolidate? Eventually only have contract workers?