Exxon Mobil Corporation (XOM - Free Report) intends to invest more than $650 million for the upgrade of the largest refinery of crude in the United Kingdom — Fawley — according to the Financial Times.
Notably, in almost 30 years, ExxonMobil has never put in such a massive amount in the U.K. market.
Presently, Fawley has the capacity to process 270,000 barrel of crude every day and accounts for roughly 20% of the U.K.’s refining capacity, per Reuters. The upgrade will likely comprise the addition of a hydrogen plant along with a hydrotreater.
The investment decision, awaiting permission from ExxonMobil’s board of directors, reflects the company’s efforts to meet the mounting demand for premium fuels in Britain. The refinery upgrade will also lower the dependence on foreign diesel by Great Britain. Importantly, with the upgrade, Fawley will be able to produce ultra-low sulphur diesel by processing crude that is sourer and heavier, added Financial Times.
Headquartered in Irving, TX, ExxonMobil is the world’s best run integrated oil company. However, the stock has lost 3.9% in the past year, against the industry’s 8.1% rally.
The company currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space are TC PipeLines LP (TCP - Free Report) , Petroleo Brasileiro S.A. or Petrobras (PBR - Free Report) and Helix Energy Solutions Group, Inc. (HLX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
TC PipeLines has an average positive earnings surprise of 3.7% for the last four quarters.
Petrobras’ bottom line beat the Zacks Consensus Estimate in three of the trailing four quarters, the average being 10.4%.
Helix Energy’s earnings exceeded the consensus mark in three of the last four quarters, the average earnings surprise being 66.7%.
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