The largest energy company by market capitalization in the world – Exxon Mobil Corp., revealed in an official statement today, that it intends to make a 1-billion-dollar investment in order to boost the diesel production at its Antwerp refinery.
According to the statement, cited by Bloomberg: “The investment addresses an industry shortfall in capability to convert fuel oil to products such as diesel” According to the announcement of the company, the expansion “is the first of several being evaluated to further strengthen strategic refineries in Europe to more successfully face the challenging industry environment.”
Exxon Mobil Corp. is seeking to meet increased demand for transport fuels in the northwest part of Europe. The refinery produces 320 000 barrels on a daily basis and will now convert high-sulfur oil to diesel used in ships and trucks.
As reported by the Wall Street Journal, the incoming president of Exxon Mobil refining & Supply Co. – Mr. Jerry Wascom said: “Our investments at this refinery, totaling more than $2 billion in less than a decade, will contribute to meeting the demand for fuels and finished products from our customers in Europe.”
Over the past ten years Exxon Mobil Corp. has spent 2 billion dollars on expansions in the refinery. On the other hand, other energy groups have been disposing of their refineries located in Europe due to the fact that during the past six years the industrys capacity has declined by 8%, which reflected in cutting 10 000 jobs over the period.
Exxon Mobil Corp. was 0.04% down to trade at 101.32 dollars per share in New York, but still, marking a one-year increase by 11.75%. According to data published by CNN Money, the 17 analysts offering 12-month price forecasts for Exxon Mobil Corp. have a median target of 102.00, with a high estimate of 115.00 and a low estimate of 85.00. The median estimate represents a +0.63% increase from the last price of 101.36.
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