In an audio conference with analysts, Darren Woods clarified that ExxonMobil was in no hurry to sell its French operations, announced on April 11. He stressed the importance of finding a buyer who would offer a fair valuation for the assets concerned.
Sales project and potential partners
ExxonMobil plans to reduce its operations at Port-Jérôme-sur-Seine and sell several sites via its subsidiary Esso France to Rhône Energies, a Swiss consortium including Trafigura and Entara. The sites concerned include a refinery at Fos-sur-Mer and depots at Toulouse and Villette-de-Vienne.
Operating philosophy and future objectives
Woods explained that this move is part of a long-term strategy to concentrate operations on integrated sites capable of producing a diversified range of high-value products. This integration would reduce procurement costs and increase margins.
Europe’s economic and regulatory environment
Kathy Michaels, CFO of ExxonMobil, added that the investment environment in Europe was becoming more complex, citing increased energy taxes, new disclosure requirements and strict regulations on carbon footprint reduction. These factors make Europe a more demanding investment market.
ExxonMobil’s financial performance
For the first quarter, ExxonMobil reported sales of $83.08 billion, down 4% year-on-year, and net income of $8.22 billion, down 28.1%, impacted by reduced refining margins and lower natural gas prices.
ExxonMobil is taking a patient, strategic approach to the sale of its activities in France, seeking to maximize value in an increasingly regulated and taxed European context.
