Exxon Mobil Explores Sale of Hong Kong Gas Stations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Should l Buy XOM?
Source: seekingalpha
- Sale Consideration: Exxon Mobil is exploring the sale of its 39 Esso-branded gas stations in Hong Kong, with potential proceeds estimated between $500 million and $600 million, as part of its global strategy to streamline retail operations.
- Market Pressures: This potential sale comes amid uncertainty in the retail fuel sector, particularly following the outbreak of war in the Middle East, which has intensified volatility in crude oil markets and impacted gas station operations.
- High Fuel Prices: Gasoline prices in Hong Kong are among the highest globally, averaging over $15 per gallon, while the local government is promoting a shift to electric vehicles, further complicating the outlook for traditional gas stations.
- Global Strategic Shift: Exxon Mobil is implementing a global asset streamlining strategy and has appointed advisors to manage the sale of retail operations in various markets, including France, New Zealand, and Hong Kong, demonstrating its adaptability to changing market conditions.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 148.910
Low
114.00
Averages
132.17
High
158.00
Current: 148.910
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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