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The ‘Skeletons’ in Big Oil’s Closet
  + stars: | 2023-05-16 | by ( Manuela Andreoni | ) www.nytimes.com   time to read: +1 min
For years after those projections, however, Exxon continued to publicly cast doubt on climate science and cautioned against moving away from burning fossil fuels. Since then, we’ve learned that other companies, including Shell, also knew about the dangers of fossil fuels and climate change. The result has been dozens of lawsuits by organizations and governments accusing Exxon, Shell and other companies of public deception. In 2021, a court found that Shell was liable for causing climate change and ordered the company to cut its emissions. The case used the company’s early knowledge of climate science as one of its central arguments.
Exxon Mobil headquarters in Spring, Texas Photo: Meridith Kohut for The Wall Street JournalExxon Mobil has reached a settlement with Indonesian villagers who sued the oil giant more than 20 years ago for alleged human-rights abuses by contract soldiers hired to guard the company’s operations in Aceh province. The settlement, announced in a court filing Monday, comes ahead of a widely anticipated trial that was scheduled to begin May 24. The villagers sued in U.S. court in 2001, alleging the soldiers committed atrocities including sexual assault, torture, and murder at or near ExxonMobil’s large natural gas operations in the Arun field.
Loop upgrades Meta to buy from hold Loop said it sees a "brighter revenue picture" for the social media giant. Morgan Stanley reiterates Exxon Mobil as overweight Morgan Stanley said it has "high confidence" in the oil and gas giant. We do think consensus estimates for 2023/24 remain too high but believe the buy-side is more aligned with our below-consensus views." Citi initiates AerCap as buy Citi said demand should remain attractive for the aviation leasing company. Deutsche Bank upgrades DuPont to buy from hold Deutsche said DuPoint is well positioned in an uncertain macro. "
Exxon Mobil is moving its global headquarters to this glass-dominated campus in Spring, Texas. Photo: Meridith Kohut for The Wall Street JournalAfter inhabiting a palatial executive suite known as the “God Pod” for more than 25 years, Exxon Mobil ’s top brass is downsizing to less-celestial chambers. In a part-symbolic, part-practical move for the oil company, Chief Executive Officer Darren Woods and his top lieutenants are packing up their Dallas-area offices for a move this summer to a C-suite now under construction at a campus outside Houston, according to people familiar with the matter. The new office is intended to be at least a bit more egalitarian and economical, in keeping with the company’s recent pledges to be leaner, the people said.
Final Trades: IBM, Exxon Mobil, Amylyx, and Home Depot
  + stars: | 2023-05-12 | by ( ) www.cnbc.com   time to read: 1 min
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFinal Trades: IBM, Exxon Mobil, Amylyx, and Home DepotThe final trades of the day with the Fast Money traders.
Scott Olson | Getty ImagesRepublican presidential hopeful Vivek Ramaswamy built his White House bid around urging companies to stay out of politics. The messages show Ramaswamy's firm actively engaged with GOP state leaders who have defended the fossil fuel industry and criticized environmentally conscious investment standards. Ramaswamy on Thursday defended the firm's engagement with GOP officials, saying bigger firms BlackRock, Vanguard and State Street have conducted similar practices with state officials across the country. Strive has become one of the more vocal opponents of ESG investing and has gained enough notoriety to challenge the likes of fossil fuel giant ExxonMobil . Ron DeSantis, have often attacked ESG investing standards and corporations that support social causes — an increasingly common refrain within the GOP.
Barclays initiates 10X Genomics as overweight Barclays said in its initiation of the gene sequencing biotech company that it has margin expansion opportunities for 10X. Barclays reiterates Apple as equal weight Barclays said in its analysis of Apple TV+ that "incremental content spend could take some cash away from buybacks." Goldman Sachs reiterates Chevron as neutral Goldman said it's waiting for an "upstream inflection" before getting positive on Chevron shares. Bank of America reiterates Virgin Galactic as underperform Bank of America said it still sees too much uncertainty for the spaceflight company. Bank of America reiterates Rivian as buy Bank of America saidit's standing by shares of the electric vehicle company after its earnings report on Tuesday.
Saudi Aramco on Tuesday reported $31.9 billion in net income for the first quarter, a drop of about 19 percent compared with the same period a year ago, mainly because of lower oil prices. But with oil prices still relatively robust, Saudi Aramco remains enormously profitable — its earnings were roughly comparable to the quarterly profits reported by Exxon Mobil, Chevron, Shell and BP combined — mainly because it produces enormous volumes of petroleum from giant fields in Saudi Arabia at relatively low cost. Aramco’s main owner, the Saudi government, recently orchestrated a cutback in production by the group of countries known as OPEC Plus. But Aramco is investing in expanding output, apparently shrugging off concerns that climate change risks might in the coming years crimp the market for fossil fuels. “We believe oil and gas will remain critical components of the global energy mix for the foreseeable future,” Amin Nasser, Aramco’s chief executive, said in a statement on Tuesday.
Shell shares were up 0.8% by 1242 GMT. "In Q1, Shell delivered strong results and robust operational performance, against a backdrop of ongoing volatility," Chief Executive Officer Wael Sawan said in a statement. Sawan, who took the helm in January, told reporters he was focused on narrowing a wide gap in the share performance of Shell and its European peers against their U.S. rivals. Lower natural gas prices in the quarter weighed on Shell's giant integrated gas business, with profits slumping 18% to $4.9 billion. Shell showed "strong operational performance in the quarter across all divisions with oil and gas trading playing a key role," Jefferies analyst Giacomo Romeo said in a note.
REUTERS/Dado Ruvic/IllustrationSummarySummary Companies Shell maintains dividend unchangedAnnounces $4 bln in share buybacksLONDON, May 4 (Reuters) - Shell (SHEL.L) on Thursday posted first-quarter net profit of $9.65 billion, topping analysts' forecasts, as strong earnings from fuel trading and higher liquefied natural gas (LNG) sales offset cooling energy prices. Lower natural gas prices in the quarter weighed on Shell's giant integrated gas business, with profits slumping 18% to $4.9 billion. Shell shares were up 2% by 0830 GMT. Reuters GraphicsPROFITS BEATShell reported adjusted earnings of $9.65 billion in the first quarter, exceeding a company-provided analyst forecast of $8 billion. That compared with earnings of $9.1 billion a year earlier and $9.8 billion in the fourth quarter of 2022, when Shell reported a record annual profit of $40 billion.
Exxon "engaged in a disingenuous attempt" to dilute its obligations under its environmental permit for Liza One, the project that inaugurated Guyana's oil production in 2019, High Court Justice Sandil Kissoon said in the ruling. Guyana's Environmental Protection Agency and the energy ministry so far has approved five offshore oil and gas projects submitted by the group. According to Kissoon's ruling, Exxon must furnish Guyanese authorities with a liability agreement from an insurance company by June 10, or the Liza One environmental permit will be suspended. The company "engaged in a course of action made permissible only by the omissions of a derelict, pliant, and submissive Environmental Protection Agency," the judge wrote. Exxon is reviewing the court decision and evaluating next steps, a company spokesperson said.
Final Trades: GDX, Aspen Technology, Exxon Mobil, Apple
  + stars: | 2023-05-04 | by ( ) www.cnbc.com   time to read: 1 min
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFinal Trades: GDX, Aspen Technology, Exxon Mobil, AppleThe final trades of the day with CNBC’s Melissa Lee and the Fast Money traders.
CALGARY, Alberta, May 4 (Reuters) - Canada's federal environment ministry on Thursday opened a formal investigation into a months-long tailings leak at Imperial Oil's (IMO.TO) Kearl oil sands mine in northern Alberta, signalling a potential prosecution. Tailings, a toxic mining by-product containing water, silt, residual bitumen and metals, have been seeping from Imperial's site since last May, angering local Indigenous communities who hunt and fish on the lands downstream from Canada's oil sands mines. The company first discovered discolored water on its Kearl site in May 2022 and informed the AER and some local Indigenous communities, but failed to update those communities when testing showed the water contained tailings. Canada's Tourism Minister Randy Boissonnault, one of only two Liberals lawmakers in Alberta, said the Kearl leak and poor communication was "simply unacceptable". "It's unjust for Indigenous communities that are living downstream to have questions about their drinking water table and the health of the natural environment."
SummarySummary Companies Shell, Equinor shares outperform sector indexRivals BP, Chevron, Exxon also beat expectationsOil and gas prices slumped in first quarterShell shares up 2.1%, Equinor up 2.7%LONDON/OSLO, May 4 (Reuters) - Energy giants Shell (SHEL.L) and Equinor (EQNR.OL) reported higher-than-expected first-quarter profits on Thursday, using the heft of their trading desks to offset lower oil and gas prices. The stronger-than-expected profits from the two companies follow forecast beating results from rivals Exxon Mobil (XOM.N), Chevron and BP over the past week. Shell's shares were up around 2.1% in early trading and Equinor shares rose around 2.7%, outperforming a European index of oil and gas companies (.SXEP) which was up around 1%. Benchmark Brent crude oil prices averaged $81 per barrel in the first three months of the year, down 16% from a year earlier and 7% from the fourth-quarter. Lower natural gas prices also weighed on Shell's giant integrated gas business, with profits slumping 18% on the quarter.
Sandra MacQuillan, Longtime Supply-Chain Leader, Dies
  + stars: | 2023-05-03 | by ( Liz Young | ) www.wsj.com   time to read: 1 min
Sandra MacQuillan started her career at Exxon Mobil, working in industrial engineering, sales, manufacturing and business development. Photo: Alexander GouletasSandra MacQuillan , a longtime supply-chain executive at some of the world’s largest consumer brands, has died after a long battle with cancer. She was 56. Ms. MacQuillan was most recently executive vice president and chief supply-chain officer for snack-food giant Mondelez International. She retired in November after about three years with the company and started a consulting business in the U.K., according to her LinkedIn profile.
First-quarter underlying replacement cost profit, the company's definition of net income, reached $4.96 billion, up from $4.8 billion in the fourth quarter of 2022 and above expectations of $4.3 billion in a company-provided survey of analysts. The profit reflects "an exceptional gas marketing and trading result, a lower level of refinery turnaround activity and a very strong oil trading result", BP said, noting the partial offset from lower oil and gas prices and refining margins. BP had reported a $6.25 billion profit in the first quarter of 2022. Benchmark Brent crude oil prices averaged $81 per barrel in the first three months of the year, down 16% from a year earlier and 7% from the fourth-quarter. BP's profit hit a record $28 billion in 2022 on soaring energy prices and market volatility which benefited its large trading business.
SummarySummary Companies Profit lifted by strong tradingBP to purchase $1.75 bln of sharesLONDON, May 2 (Reuters) - BP (BP.L) made a $5 billion profit in the first quarter of 2023, up from the previous three months on the back of strong oil and gas trading as the company pared back a share buyback programme. The profit reflects "an exceptional gas marketing and trading result, a lower level of refinery turnaround activity and a very strong oil trading result", BP said, noting the partial offset from lower oil and gas prices and refining margins. Benchmark Brent crude oil prices averaged $81 per barrel in the first three months of the year, down 16% from a year earlier and 7% from the fourth-quarter. BP's profit hit a record $28 billion in 2022 on soaring energy prices and market volatility which benefited its large trading business. The company had said in February it would repurchase $2.75 billion worth of shares over the next three months after buying $11.7 billion in 2022.
China’s Midea regains outbound deal appetite
  + stars: | 2023-05-02 | by ( ) www.reuters.com   time to read: +2 min
HONG KONG, May 2 (Reuters Breakingviews) - Midea (000333.SZ), a $58 billion Chinese white goods champion, made waves in Europe in 2016 when it bought German robot maker Kuka for nearly $5 billion. Seven years later, the company is eyeing Sweden’s home appliance brand Electrolux (ELUXb.ST), a complementary asset currently worth around $7 billion including debt. A successful tilt could mark the beginning of a revival in outbound M&A by Chinese firms after offshore deals touched a historic low of $29 billion in 2022, per EY estimates. To close the Kuka acquisition, Midea offered a 36% price premium and generous guarantees including leaving management in place until 2023. Nevertheless, it seems likely that more cash-rich Chinese companies like Midea, seeking to hedge weak domestic demand with overseas customers, will gingerly test cross-border M&A markets this year.
As recession fears keep flaring up again on Wall Street, investors can find safety in cheap, dependable, defensive stocks, according to UBS. The UBS playbook advises investors to stick to defensive stocks rather than the types of cyclical companies stocks that have benefited from high inflation. To be sure, investors have worried that defensive stocks have grown too expensive. But UBS pointed to several defensive groups that remain cheap, including telecom and insurance. Given this backdrop, here are some of UBS' cheap defensive stocks.
BP’s strategy risks pleasing no one
  + stars: | 2023-05-02 | by ( ) www.reuters.com   time to read: +2 min
Investors had cheered its February decision to walk back previously targeted 2030 oil and gas production cuts: BP’s shares rose 12% from Feb. 6 to Friday, compared with Shell’s (SHEL.L) 2%. BP’s shares subsequently fell 5% on Tuesday morning, wiping $6 billion off its market value, despite otherwise rosy earnings. Chief Financial Officer Murray Auchincloss pointed out that the decision was consistent with BP’s commitment to allocate 60% of 2023 surplus cash flow to share buybacks. CEO Bernard Looney is getting heat from both sides, with some investors pushing for faster decarbonisation and others willing him to pump more oil. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
DBS' safe profit haven nears its peak
  + stars: | 2023-05-02 | by ( ) www.reuters.com   time to read: +2 min
HONG KONG, May 2 (Reuters Breakingviews) - Top Singapore-based bank DBS (DBSM.SI) on Tuesday released first-quarter numbers that will make rivals envious. Expenses fell, meaning the bank used just 38% of its revenue to cover costs compared to 59% at JPMorgan (JPM.N). Net interest income already fell 1% last quarter from December. Meanwhile, as much as DBS still touts its status as a safe haven for those – especially rich Chinese people – who want to shield their money from trouble elsewhere, that advantage is also dimming. Absent other such calamities or Gupta being wrong about interest rates, this might be as good as it gets for DBS for now.
The end of cheap credit could hurry Japanese M&A
  + stars: | 2023-05-02 | by ( ) www.reuters.com   time to read: +2 min
Diversifying abroad looks attractive to many Japanese companies given weak home markets. The country's third-largest drugmaker by sales is paying a modest-looking 22% premium to Iveric's share price before the announcement. Analysts at Jefferies reckon those sales could top $85 million in its first year and peak at $2.4 billion annually by 2034. Regardless, even Warren Buffett has taken advantage of Japanese rates to funds deals inside Japan; domestic corporations looking abroad will as well. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Here are Monday's biggest calls on Wall Street: Morgan Stanley upgrades General Motors to overweight from equal weight Morgan Stanley said the auto giant's stock is oversold. Guggenheim initiates Endeavor as buy Guggenheim initiated the sports and entertainment company and says it's "well positioned." Morgan Stanley reiterates Tesla as overweight Morgan Stanley said Tesla's price cuts are the best measure of electric vehicle demand. Morgan Stanley upgrades Logitech to equal weight from underweight Morgan Stanley upgraded the stock mainly on valuation. Guggenheim upgrades Teradata to buy from neutral Guggenheim upgraded the software company based on positive channel checks.
NEW YORK, NEW YORK - APRIL 24: A person walks past a First Republic bank branch in Manhattan on April 24, 2023 in New York City. First Republic , JPMorgan Chase — First Republic shares and were halted after JPMorgan Chase acquired the ailing bank and most of its assets after regulators seized control. General Motors — The automaker gained 2% after Morgan Stanley upgraded General Motors to overweight from equal weight and called the stock oversold. — Regional bank stocks were volatile on Monday as investors reacted to the seizure and sale of First Republic Bank over the weekend. However, management said on the company earnings call Monday that demand for loans originating from the fourth quarter would see a lower monetization level due to higher interest.
Goldman Sachs thinks it's time to ease exposure to Exxon Mobil after the oil giant's massive multiyear run. The firm downgraded the oil giant's stock from buy to neutral on Monday, with a $125 per share price target, or 5.6% upside compared to Friday's $118.34 close. Goldman Sachs analyst Neil Mehta noted the firm upgraded Exxon in December 2020. That hot run makes Exxon today a less engrossing pick among oil stocks, he said. Still, Goldman remains optimistic on the overall forward outlook on oil prices.
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