Exxon Mobil Corporation’s XOM Esso oil refinery workers in Fos-sur-Mer went on strike for higher wages amid rising inflation, per a report by Reuters.
The move is being made as the France government is facing pressure to bring inflation under control by helping customers deal with high commodity prices through increased rebates.
The strike would result in a shutdown of the refinery units. The process to shut them down has already started. Notably, ExxonMobil did not reveal any details on the strike’s impact on production.
Higher inflation implies that the purchasing capacity of the workers’ income is declining. Hence, the workers’ expectations for higher wage are increasing. Wage negotiations are planned for September, but the workers union representative wants management to also commit to a bonus.
Developed in 1965, the Esso refinery was one of the leading industrial establishments for Fos-sur-Mer.The Fos site has a refining capacity of 7 million tons per year. This corresponds to 10% of France’s capacity.
Russia’s invasion of Ukraine raised the cost of living, as an increase in oil and natural gas prices have hiked heating bills.The continuing effects of supply-chain disruptions were also responsible for the price surge. It is to be seen whether inflation will continue to rise or begin to shrink.
Headquartered in Irving, TX, ExxonMobil is one of the leading integrated energy companies in the world. In order to capitalize on the mounting demand for clean energy, XOM is making efforts to create more efficient fuels, while reducing emissions.By 2030, the company plans to reduce greenhouse gas emissions by 40-50% in its upstream business.
ExxonMobil currently carries a Zack Rank #3 (Hold). Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Alberta-based Suncor Energy, Inc. SU is Canada’s premier integrated energy company. In 2021, SU reduced net debt by almost C$4 billion and returned it to shareholders through dividends and share repurchases.
Suncor’s robust liquidity position allows it to sustain its dividend, even if oil prices stay lower for longer. Suncor recently hiked its dividend by 12% to 47 Canadian cents per share (after doubling it previously) and increased the buyback authorization to roughly 10% of its public float.
Imperial Oil Limited IMO is one of the largest integrated oil companies in Canada. IMO’s debt-to-capitalization of 18.9% is quite conservative versus 32.1% for the sub-industry to which it belongs.
Imperial Oil remains strongly committed to returning money to investors via dividends. The company’s board of directors approved a hike in quarterly dividend payment. The new payout of 34 Canadian cents is 26% above the prior dividend. Further, Imperial Oil revised its existing share repurchase policy to buy up to 4% of outstanding common shares.
Matador Resources Company MTDR is among the leading oil and gas explorers in unconventional resources in the United States. MTDR has hedging deals for 2022 oil and gas production in place, which will help it navigate through any weak price environment.
Matador has a strong focus on returning capital to shareholders. MTDR recently announced a quarterly cash dividend of 10 cents per share, which doubled from the cash dividend of 5 cents initiated last year.
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