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ExxonMobil to Acquire Petrochemical Plant in Singapore
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ExxonMobil Corporation (XOM - Free Report) recently announced that it is acquiring a massive petrochemical plant in Singapore from Jurong Aromatics Corporation Pte Ltd. at a discounted price. ExxonMobil refused to reveal the exact acquisition price.
The transaction is expected to be completed in the second half of 2017. The plant, which is located on Jurong Island in Singapore, is believed to be one of the largest in the world. The plant was built for $2.4 billion and has an annual production capacity of 1.4 million tons. It is likely to provide operational and logistical synergies for ExxonMobil’s neighboring integrated refining and petrochemical complex.
ExxonMobil's largest refining-petrochemical complex is in Singapore and it has a crude oil processing capacity of 592,000 barrels per day and two steam crackers. Acquisition of the Jurong aromatics plant will boost ExxonMobil’s aromatics production in Singapore to more than 3.5 million tons per year, including 1.8 million tons of paraxylene.
The aromatics chemical plant to be acquired by ExxonMobil was opened in 2014. Jurong Aromatics is struggling financially at present and is going through the U.S. equivalent of bankruptcy proceedings. The plant has been shut for the majority of its existence, only resuming operations in July.
The aromatics plant mainly produces paraxylene and benzene and the chemicals are known as aromatics because of their sweeter odor. Paraxylene is a chemical used to make polyesters and plastics, while benzene creates other chemicals, including gasoline additives. Per Jurong Aromatics, these are utilized for textiles and clothing, construction, tires, sports equipment and plastics.
ExxonMobil’s presence in Singapore dates back to over 12 decades and the company is one of the country’s largest international manufacturing investors. Singapore’s integrated petrochemical complex can process a wide range of feedstocks, from light gases to crude oil. Later this year, the complex will begin the phased start-up of new 230,000 ton per year specialty polymers facilities that will produce halobutyl rubber and performance resins for adhesive applications.
The projected increase in global demand for chemical products over the next 10 years of about 45%, or about 4% per year, is likely to be the driving force for ExxonMobil’s growth in Singapore. This is a faster than energy demand and economic growth.
Investor confidence on the ExxonMobil stock is reflected in its price chart. Shares of the company lost 0.5% in the last three months, while the Zacks categorized Oil & Gas – International Integrated industry registered a decrease of 6% in the same time span. ExxonMobil currently has a Zacks Rank #2 (Buy). Other stocks from the same space that warrant a look are SunCoke Energy, Inc. (SXC - Free Report) , Gran Tierra Energy Inc. (GTE - Free Report) and Canadian Natural Resources Limited Ltd. (CNQ - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SunCoke Energy posted a positive earnings surprise of 120.0% in the preceding quarter. The company beat estimates in two of the four trailing quarters with an average negative earnings surprise of 35.78%.
Gran Tierra Energy posted a positive earnings surprise of 105.88% in the year-ago quarter. It posted an average positive earnings surprise of 18.63% in the four trailing quarters.
Canadian Natural Resources posted a positive earnings surprise of 30.77% in the preceding quarter. It surpassed estimates in two of the four trailing quarters with an average negative earnings surprise of 275.46%.
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ExxonMobil to Acquire Petrochemical Plant in Singapore
ExxonMobil Corporation (XOM - Free Report) recently announced that it is acquiring a massive petrochemical plant in Singapore from Jurong Aromatics Corporation Pte Ltd. at a discounted price. ExxonMobil refused to reveal the exact acquisition price.
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The transaction is expected to be completed in the second half of 2017. The plant, which is located on Jurong Island in Singapore, is believed to be one of the largest in the world. The plant was built for $2.4 billion and has an annual production capacity of 1.4 million tons. It is likely to provide operational and logistical synergies for ExxonMobil’s neighboring integrated refining and petrochemical complex.
ExxonMobil's largest refining-petrochemical complex is in Singapore and it has a crude oil processing capacity of 592,000 barrels per day and two steam crackers. Acquisition of the Jurong aromatics plant will boost ExxonMobil’s aromatics production in Singapore to more than 3.5 million tons per year, including 1.8 million tons of paraxylene.
The aromatics chemical plant to be acquired by ExxonMobil was opened in 2014. Jurong Aromatics is struggling financially at present and is going through the U.S. equivalent of bankruptcy proceedings. The plant has been shut for the majority of its existence, only resuming operations in July.
The aromatics plant mainly produces paraxylene and benzene and the chemicals are known as aromatics because of their sweeter odor. Paraxylene is a chemical used to make polyesters and plastics, while benzene creates other chemicals, including gasoline additives. Per Jurong Aromatics, these are utilized for textiles and clothing, construction, tires, sports equipment and plastics.
ExxonMobil’s presence in Singapore dates back to over 12 decades and the company is one of the country’s largest international manufacturing investors. Singapore’s integrated petrochemical complex can process a wide range of feedstocks, from light gases to crude oil. Later this year, the complex will begin the phased start-up of new 230,000 ton per year specialty polymers facilities that will produce halobutyl rubber and performance resins for adhesive applications.
The projected increase in global demand for chemical products over the next 10 years of about 45%, or about 4% per year, is likely to be the driving force for ExxonMobil’s growth in Singapore. This is a faster than energy demand and economic growth.
Investor confidence on the ExxonMobil stock is reflected in its price chart. Shares of the company lost 0.5% in the last three months, while the Zacks categorized Oil & Gas – International Integrated industry registered a decrease of 6% in the same time span.
ExxonMobil currently has a Zacks Rank #2 (Buy). Other stocks from the same space that warrant a look are SunCoke Energy, Inc. (SXC - Free Report) , Gran Tierra Energy Inc. (GTE - Free Report) and Canadian Natural Resources Limited Ltd. (CNQ - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SunCoke Energy posted a positive earnings surprise of 120.0% in the preceding quarter. The company beat estimates in two of the four trailing quarters with an average negative earnings surprise of 35.78%.
Gran Tierra Energy posted a positive earnings surprise of 105.88% in the year-ago quarter. It posted an average positive earnings surprise of 18.63% in the four trailing quarters.
Canadian Natural Resources posted a positive earnings surprise of 30.77% in the preceding quarter. It surpassed estimates in two of the four trailing quarters with an average negative earnings surprise of 275.46%.
Sell These Stocks. Now.
Just released, today's 220 Zacks Rank #5 Strong Sells demand urgent attention. If any are lurking in your portfolio or Watch List, they should be removed immediately. These are sinister companies because many appear to be sound investments. However, from 1988 through 2016, stocks from our Strong Sell list have actually performed 6X worse than the S&P 500. See today's Zacks "Strong Sells" absolutely free >>