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ExxonMobil Eyes $1B Deal for Singapore Esso Fuel Stations

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Exxon Mobil Corporation (XOM - Free Report) is reportedly considering selling its petrol stations in Singapore, a move that could generate around $1 billion, according to a Bloomberg news report. The U.S. oil major operates 59 stations in the country under the Esso brand, as per the company's website.

XOM's Strategy to Reallocate Capital

The reported sale aligns with ExxonMobil's strategy to reallocate capital toward areas with higher growth potential. The divestiture has already attracted interest from industry players and investment funds. However, ExxonMobil has not commented on the report.

ExxonMobil’s Legacy in Singapore

ExxonMobil has operated in Singapore for more than 130 years. In addition to its retail network, the company maintains a refining complex, a lubricant plant, a fuels terminal and an LPG bottling plant in the region. Despite the possible sale of its fuel retail network, ExxonMobil’s integrated operations in Singapore continue to play a significant role in its global supply chain.

If finalized, the sale would mark ExxonMobil's second recent divestiture in Southeast Asia. In July, the company sold its Malaysian oil and gas assets to Petronas, marking its exit from Malaysia's upstream sector, where it was once a dominant producer.

This strategic pivot highlights ExxonMobil's focus on optimizing its portfolio while navigating evolving energy market dynamics.

XOM’s 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 Smart Sand, Inc. (SND - Free Report) , FuelCell Energy (FCEL - Free Report) and Nine Energy Service (NINE - Free Report) , each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Smart Sand is a low-cost producer of high-quality Northern White frac sand, an ideal proppant for hydraulic fracturing and various industrial applications. The company provides proppant and other logistics services for several companies in the oil and gas industry. With sustained oil and gas market demand, SND is expected to see growing demand for its services, reflecting a positive outlook.

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, thereby reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position it for growth in the long run.

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