In today’s briefing:
- Exxon Mobil Corporation: The Pioneer Expansion & The Expansion of ExxonMobil’s Guyana Operations! – Major Drivers
- China Bluechemical Ltd (3983.HK) – Fertiliser Pricing on the Up
- Phillips 66: Potential For Expanded Flexibility With Trans Mountain Pipeline & Other Major Developments
- LyondellBasell Industries: A Tale Of Improved Seasonal Demand and Customers’ Downtime!
- NOV Inc.: Strong International Activity in Production and Midstream Business! – Major Drivers
- Olin Corporation: A Story Of A Decent Economic Recovery and Demand Uptick! – Major Drivers
- Chevron Corporation: Improving Productivity in the Permian Basin & 5 Pivotal Growth Drivers
- TotalEnergies SE: Can They Capitalize On The LNG Market Opportunities in Asia & The US? – Major Drivers
- Crown Holdings Inc.: Will The Management Focus on Value over Volume Bear Fruit? – Major Drivers
- Kumba Iron Ore (KIO SJ): Net Cash Iron Ore Player With High ROCE
Exxon Mobil Corporation: The Pioneer Expansion & The Expansion of ExxonMobil’s Guyana Operations! – Major Drivers
- ExxonMobil’s latest performance paints a promising picture, powered by strategic decisions, cost-saving measures, and a focus on long-term growth avenues.
- In Q1 2024, ExxonMobil delivered $8.2 billion in earnings and $14.7 billion in cash flow, demonstrating ongoing efforts to enhance the company’s earnings power.
- The company made big strides in cost savings, achieving $10.1 billion in Q1 compared to 2019, on track to reach their goal of $15 billion in savings by 2027.
China Bluechemical Ltd (3983.HK) – Fertiliser Pricing on the Up
- A play on higher food and energy prices going forward
- Natural Gas moving up from multi-year lows will support fertiliser prices going forward
- A Low valuation with a solid balance sheet lowers the risk
Phillips 66: Potential For Expanded Flexibility With Trans Mountain Pipeline & Other Major Developments
- Phillips 66 reported its first-quarter earnings for fiscal 2024, emphasizing progress in strategic areas, despite some obstacles encountered during the quarter.
- Mark Lashier, President and CEO, noted strong crude utilization rates during the quarter.
- However, maintenance work limited the company’s ability to produce higher-value products, impacting the results.
LyondellBasell Industries: A Tale Of Improved Seasonal Demand and Customers’ Downtime!
- The latest LyondellBasell earnings showcased several key trends and indicators that provide a comprehensive understanding of the company’s performance and future prospects.
- On the positive side, LyondellBasell has made promising strides in improving safety metrics for its workers, leading to an impressive rate of just one injury per two million hours worked.
- The operational excellence shown by this metric, as well as continued enhancements to LyondellBasell’s core business, has the potential to lead to consistent long-term growth.
NOV Inc.: Strong International Activity in Production and Midstream Business! – Major Drivers
- NOV Inc.’s Q1 2024 financial results showed that revenues reached $2.16 billion, a 10% increase compared to Q1 2023, despite a decline in earnings per share from the previous year.
- NOV reported a net income of $119 million or $0.30 per fully diluted share.
- The reduced earnings per share were attributed to a higher effective tax rate and reduced income from the company’s joint venture.
Olin Corporation: A Story Of A Decent Economic Recovery and Demand Uptick! – Major Drivers
- Olin Corporation’s Q1 2024 earnings indicated a positive long-term outlook for the company, though there are some elements that investors should monitor.
- The company is currently demonstrating an investment-grade balance sheet alongside strong performance across its portfolio.
- CEO Kenneth Lane emphasized his commitment to Olin’s operating model and value-focused commercial approach.
Chevron Corporation: Improving Productivity in the Permian Basin & 5 Pivotal Growth Drivers
- Chevron Corporation recorded a strong first quarter of 2024, delivering its ninth successive quarter with adjusted earnings exceeding $5 billion and a return of capital employed (ROCE) above 12%.
- The company also posted a more than 10% growth in production compared to the same quarter last year.
- Chevron returned $6 billion in cash to shareholders in Q1 2024, marking its eighth consecutive quarter of returning over $5 billion.
TotalEnergies SE: Can They Capitalize On The LNG Market Opportunities in Asia & The US? – Major Drivers
- TotalEnergies, in its Q1 2024, demonstrated firm progress in implementing its two-pillar strategy.
- First, oil and gas production, most notably in Liquid Natural Gas (LNG), aims to responsibly address rising demand through ongoing development.
- Second, investments in integrated power for the future hold the promise of achieving net cash positive status by 2028.
Crown Holdings Inc.: Will The Management Focus on Value over Volume Bear Fruit? – Major Drivers
- Crown Holdings, known for its metal packaging technology and serving a wide array of sectors, including beverage packaging, food, personal care and household products, provided a robust first quarter performance of 2024 that showcased several positives as well as negatives for the company.
- As per the latest earnings call transcript, the company announced earnings per diluted share of $0.56, a decrease from the prior year quarter when it was $0.85.
- The adjusted diluted earnings per share were $1.02, lower than the $1.20 in the last year’s quarter.
Kumba Iron Ore (KIO SJ): Net Cash Iron Ore Player With High ROCE
- Kumba Iron Ore (KIO SJ) is a net cash iron ore pure play on high-grade lump iron ore with a high ROCE of>30%.
- The stock trades at 6.4x PE/3.8x EV-EBITDA FY24e and a >9% dividend yield, assuming it meets its base dividend commitment of 15.9 bn ZAR.
- The key risks are the finite mine life of 15 years, which the company will look to extend with capital commitment, and country risk premia as currency depreciation eats returns.
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