Boston, MA 07/07/2014 (wallstreetpr) – Exxon Mobil Corporation (NYSE:XOM) intends to increase its diesel capacity in Europe to meet the increase in demand for the product. As such, the company will invest $1 billion at its refinery at Antwerp, Belgium.
The facility converts fuel oil to products such as diesel. The company has invested $2 billion in the facility within the past 10 years, and a shortfall in industry capacity is pushing it to make additional investment at the plant to meet the demand and increase its revenue.
According to a company statement, the announced $1 billion investment at Antwerp is the first among several investment plans being evaluated in Europe to strengthen refineries.
The company is increasing the capacity of its refineries in Europe at a time when other energy groups have been abandoning the market because of market challenges. About 10,000 jobs have been cut in refineries in Europe over the past six years during which the industry’s capacity declined by almost 8 percent.
Daily output
The Antwerp refinery produces 320,000 barrels per day of diesel from high-sulfur oil. That capacity will go up following the announced investment. The development also signals how Exxon Mobil Corporation (NYSE:XOM) has found a formula to run a stable refinery business in Europe despite the challenges that have seen its peers exiting the region.
The output from the facility will be used in powering trucks and ships, especially in the northwest Europe where demand for transport fuels is high.
According to the incoming head of Exxon Mobile Refining and Supply Co., Jerry Wascom, the addition refinery investment in Europe will not only help the company meet the big demand but also continue delivering high quality products to their customers in the region.
Change in stock direction
The announcement by Exxon Mobil Corporation (NYSE:XOM) about the planned increase in refinery investment and evaluation for more investment opportunities in Europe have been greeted with positive reactions among investors. Shares of Exxon Mobil Corporation (NYSE:XOM) were up one percent on Friday, leading to more than 12 percent gain over the past one year.
