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ExxonMobil (XOM) Plans to Further Expand Singapore Facility

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Exxon Mobil Corporation (XOM - Free Report) recently announced its intention of making a final investment decision by 2019 for the expansion of its Singapore refinery, an integrated manufacturing facility. The multi-billion-dollar project will enhance the facility’s lubricant and clean fuel output.

The project is expected to enable ExxonMobil to address the rising demand for its products in the Asia-Pacific region and stay ahead of competitors. Moreover, the project will help the company to introduce a new high-viscosity base stock using advanced technology. The base stocks or base oils are widely used for blending purposes in lubricants, which are finally used in different kinds of oil engines.

ExxonMobil intends to use improved technology for transforming byproducts of lower-value into higher-value products that will make the company’s refinery operations more efficient. The company expects production from the project to commence in 2023. Financial details of the project are yet to be disclosed. Notably, last year the company decided to expand its Singapore refinery’s EHCTM Group II base stocks production, which is expected to be commissioned in the beginning of 2019. Also, in 2015, the company expanded production in the Singapore facility, thereby enhancing its hydrocarbon fluid output.

The latest expansion plan of ExxonMobil will help to raise its low-sulphur marine fuels output, which will also fulfill 0.5% sulphur cap given by the International Maritime Organization.

Price Performance

Headquartered in Irving, TX, ExxonMobil is involved in upstream, midstream and downstream activities. Over the past year, the stock has declined 0.5% against the 16.9% collective rally of the industry.

Zacks Rank and Stocks to Consider

Currently, ExxonMobil carries a Zacks Rank #3 (Hold). Investors interested in the Energy sector can opt for some better-ranked stocks like CNOOC Limited (CEO - Free Report) , Delek US Holdings, Inc. (DK - Free Report) and HollyFrontier Corporation (HFC - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Hong Kong-based CNOOC is an integrated energy company. The company’s top line for 2018 is anticipated to improve 64.4% year over year, while its bottom line is expected to increase 124.3%.

Brentwood, TN-based Delek is an energy company. The company’s top line for 2018 is likely to improve 39.2% year over year, while its bottom line is expected to increase 326.19%.

Dallas, TX-based HollyFrontier is an independent refining company. For 2018, its bottom line is likely to be up 153.5%. In the last four reported quarters, the company delivered an average positive earnings surprise of 41.3%.

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