Exxon Mobil reportedly just made between $3.4 billion and $3.6 billion by selling its Norwegian oil and gas production assets.
The sale of these assets to Var Energy AS is expected to increase the margins of the company’s struggling chemical and refining business.
When you look at Exxon’s performance during the third quarter, the company has not been doing so well recently. The oil giant is expected to have a relatively mediocre fourth quarter, as Exxon reported in a filing.
Exxon Mobil has been struggling to keep up with its competition over the last five years. As such, the company recently made some changes to its growth strategy. This performance issue has carried on for much of the last decade, as companies like Permian, BP, and Chevron have outpaced Exxon’s growth.
Growth was slowing for major oil companies for a few consecutive years. However, since 2018, the growth outlook for these companies has improved. Serious fluctuations in oil prices tend to have a disproportionate effect on growth in the industry when you compare it to other industries.
This most recent sale of Exxon’s Norwegian assets should help improve the company’s report for the fourth quarter. The report on those results are currently scheduled for January 31st.