EXXON MOBIL Leaves Sakhalin-1 as Oil Production Reaches 65% of Full Capacity
January 17, 2023
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Exxon Mobil ($NYSE:XOM) is a multinational oil and gas company based in the United States. On Monday, Reuters reported that oil production at Russia’s Sakhalin-1 offshore project is back up and running, with output reaching 140,000 to 150,000 barrels per day. This is approximately 65% of the project’s full capacity of around 220,000 barrels per day, which is expected to be achieved within the next 3-4 weeks. This increase in production comes after previous operator Exxon Mobil left the project, causing production to decline. The project is located in the Sea of Okhotsk off the coast of Sakhalin Island in Russia. It produces both oil and natural gas, with the majority of its production coming from oil.
Exxon Mobil’s departure from the Sakhalin-1 project was part of a larger trend of foreign companies exiting Russia’s energy sector due to increasing geopolitical risks and a lack of attractive returns. This has resulted in a decline in foreign investment in the Russian energy sector, with some analysts predicting that the sector will continue to remain under pressure in the coming years. Despite this decline in foreign investment, the Sakhalin-1 project has managed to increase its production levels to 65% of its full capacity. It is expected that full production of around 220,000 barrels per day will be achieved within the next 3-4 weeks. This will provide much needed relief to Russia’s energy sector, and could help to attract more foreign investment in the future.
Market Price
On Monday, EXXON MOBIL stock opened at $111.6 and closed at $108.5, down by 1.9% from previous closing price of 110.5, despite news sentiment being mostly positive. This was due to the company announcing that it was leaving the Sakhalin-1 oil project as production has reached 65% of full capacity. Production has been steadily rising over the years, with the peak of 65% being reached in the past few months. With production reaching full capacity, the company has made the decision to leave the project and focus on other opportunities. The company is now looking to capitalize on other opportunities that can offer similar success to the Sakhalin-1 project.
The company is also looking to expand its operations into other markets, such as the Middle East and Africa. The decision to leave the Sakhalin-1 project will be beneficial for EXXON MOBIL in the long run, as it will free up resources to focus on new projects that can offer greater returns. This will ensure that the company stays competitive in the ever-changing global energy market. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Exxon Mobil. More…
| Total Revenues | Net Income | Net Margin |
| 386.82k | 51.86k | 13.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Exxon Mobil. More…
| Operations | Investing | Financing |
| 76.3k | -11.5k | -38.14k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Exxon Mobil. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 370.15k | 177.11k | 42.55 |
Key Ratios Snapshot
Some of the financial key ratios for Exxon Mobil are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.0% | 54.3% | 18.5% |
| FCF Margin | ROE | ROA |
| 15.4% | 24.6% | 12.1% |
VI Analysis
EXXON MOBIL has a high health score of 10/10, making it a strong and safe choice for investors. This is due to its strong cashflows and low debt, positioning it well to ride out any crisis without facing bankruptcy. The company has also been classified as a ‘gorilla’, due to its stable and high revenue or earning growth. This is likely to be driven by its competitive advantage and attractive market position. Investors looking for dividend income may find EXXON MOBIL attractive, as the company has profitable and sustainable dividend payments. It is also a good choice for those looking for growth, as the steady earnings growth from its competitive advantage makes it a strong choice for capital appreciation. Asset investors may also find the company a good choice as there is potential to benefit from its strong market position and low debt. Finally, EXXON MOBIL is also attractive to profitability investors, offering both stability and potential growth in earnings. More…
VI Peers
The oil and gas industry is a highly competitive sector. The largest oil companies in the world, Exxon Mobil Corp, Chevron Corp, BP PLC, and Hess Corp, are all vying for market share. These companies have different strengths and weaknesses, and each is trying to outmaneuver the others in order to gain an advantage.
– Chevron Corp ($NYSE:CVX)
Chevron is an American energy company with a market cap of 313.46B as of 2022. Chevron is engaged in every aspect of the oil, natural gas, and geothermal energy industries, including exploration, production, refining, marketing, and transportation. Chevron also has interests in chemicals, mining, and power generation. Chevron’s return on equity was 16.97% as of 2022.
– BP PLC ($LSE:BP.)
HSBC Holdings plc is a British multinational banking and financial services holding company headquartered in London, United Kingdom. It is the world’s fourth-largest bank by total assets and the largest in Europe with total assets of US$2.374 trillion. HSBC traces its origin to a hong in Hong Kong, and its present form was established in London by the Hongkong and Shanghai Banking Corporation to act as a new group holding company in 1991. The last surviving member of the Hong Kong banking conglomerate, The Hongkong and Shanghai Banking Corporation Limited, was renamed HSBC Holdings plc in May 1999.
As of March 2018, HSBC is organized into four business groups: Commercial Banking, Global Banking and Markets, Retail Banking and Wealth Management, and HSBC Holdings. HSBC has a dual primary listing on the Hong Kong Stock Exchange and London Stock Exchange, and is a constituent of the Hang Seng Index and the UK FTSE 100 Index. As of 6 July 2012, it had a market capitalization of £102.7 billion, the second-largest company listed on the London Stock Exchange, after Royal Dutch Shell. It has secondary listings on the New York Stock Exchange, Euronext Paris, and the Bermuda Stock Exchange.
In 2015, HSBC was investigated by the US Senate for allegedly facilitating money laundering for drug cartels and terrorist groups. The allegations date back to 2002 and HSBC’s involvement with Mexican drug lord Osiel Cárdenas Guillén. On 11 December 2015, HSBC agreed to pay US$1.256 billion to settle the charges.
– Hess Corp ($NYSE:HES)
Hess is a leading international independent energy company engaged in the exploration and production of crude oil and natural gas. Hess has a market cap of $37.9 billion as of 2022 and a return on equity of 29.47%. The company has a long history of success in the oil and gas industry, and its operations are primarily focused in the United States, the United Kingdom, Norway, Denmark, Malaysia, and Indonesia. Hess is committed to providing its shareholders with value through a combination of strong operating performance, disciplined capital management, and a commitment to sustainable development.
Summary
EXXON Mobil is a large multinational oil and gas company with operations around the world. Recently, the company has left its Sakhalin-1 project to focus on other endeavors. This decision was made as the oil production at Sakhalin-1 reached 65% of full capacity. Investors should take note of this news as it may indicate a shift in the company’s focus and potential opportunities to invest in.
Additionally, current news sentiment towards the company is mostly positive, so investors should consider this when assessing their potential investment. EXXON Mobil has a long-standing history of being a reliable and profitable company, so it is worth keeping on the radar for potential investment options.
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