Yahoo Finance ExxonMobil's (XOM) French Refinery Suspension Looms Amid Strike
ExxonMobil Corporation XOM, the U.S. energy major, has warned that it may be forced to halt production at its Gravenchon refinery in northern France if the current strike action continues, per a Reuters report. This news came amid workers blocking access to the site since last Friday, preventing the delivery of essential goods and materials required for the refinery's operations.
The labor dispute began last month when a group of workers initiated a strike in response to ExxonMobil's announcement that it would shut down the refinery's steam cracker and cease chemical production at the Port Jerome site later this year. The decision has sparked significant concern among the workforce, who see the shutdown as a threat to their jobs and the local economy.
According to a statement given to Reuters by ExxonMobil, the continued blockades are severely hampering the refinery's ability to function. The Gravenchon refinery, which plays a crucial role in France's energy infrastructure by accounting for approximately 20% of the nation's refining capacity, has already been struggling financially. ExxonMobil revealed that the site has reportedly incurred losses exceeding €500 million since 2018, rendering it uncompetitive in the current market.
The situation escalated with a renewed strike called on Friday, leading to the shutdown of some chemical manufacturing units, including the critical steam cracker. Despite the small number of workers involved in the strike, their actions have effectively halted operations at the site.
The potential suspension of operations at the Gravenchon refinery could have significant repercussions for the French oil supply chain, given its substantial contribution to the nation's refining capacity. The situation remains fluid, with both ExxonMobil and the striking workers showing no signs of backing down.
Zacks Rank & Key Picks
ExxonMobil currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Archrock Inc. AROC, SM Energy Company SM, and Sunoco LP SUN, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States, focusing on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
The Zacks Consensus Estimate for AROC’s 2024 EPS is pegged at $1.07. The company has a Zacks Style Score of A for Growth. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term shareholder value.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $6.63. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 60 days.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. SUN currently has a Value Score of A.
The Zacks Consensus Estimate for 2024 and 2025 earnings per unit is pegged at $7.29 and $7.17, respectively. The partnership has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
Sunoco LP (SUN) : Free Stock Analysis Report
SM Energy Company (SM) : Free Stock Analysis Report
Archrock, Inc. (AROC) : Free Stock Analysis Report
