Benzinga - by Zacks, Benzinga Contributor.
Exxon Mobil Corporation's (NYSE: XOM) trading staff rallied outside its Brussels office last week, protesting against the relocation of the trading floor to London, per a Bloomberg report.
Approximately 50 employees voiced their concerns over hundreds of job reductions that have occurred over the past three years. Among them, about a fifth are trading floor personnel who face potential job losses if they decline relocation, according to union representatives. The protest highlighted the stakes for approximately 37 trading jobs that are at risk.
Earlier this year, ExxonMobil urged its Belgian traders to relocate to the U.K. as part of a broader initiative to consolidate trading operations under a new global division. While the company frames this move as an expansion in trading activities, employees remain skeptical, citing dissatisfaction with the terms offered.
Hans Christiaens, the permanent secretary for BBTK, a Belgian socialist trade union, stressed the importance of the protest, highlighting the necessity for people to grasp that the current situation is unsustainable.
Despite the mounting discontent, ExxonMobil maintains its stance, asserting compliance with workplace laws and regulations. However, the company's approach has drawn criticism for its avoidance of formal negotiations mandated by the "Renault Law" designed to address significant job losses.
Per the report, ExxonMobil's statement contends that the Renault law does not apply to its relocation plan, a stance likely to intensify the standoff between management and protesting employees.
Over the past three years, more than 300 ExxonMobil employees, constituting a third of the Brussels workforce, have left their positions. Trading-floor departures would further deplete employee numbers by 6%.
In response to the protest, ExxonMobil issued a statement emphasizing its commitment to engage with employees directly while discouraging participation in demonstrations. The company asked the employees to attend an internal meeting instead, cautioning against making statements that could misrepresent its position.
Zacks Rank & Key Picks XOM currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like Hess Corporation (NYSE: HES), EOG Resources Inc. (NYSE: EOG) and Valero Energy Corporation (NYSE: VLO). While Hess sports a Zacks Rank #1 (Strong Buy), EOG Resources and Valero Energy carry a Zacks Rank #2 (Buy) at present.
Hess operates primarily in two areas — the Bakken shale and the Stabroek project offshore Guyana. It is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. HES has a Growth Score of B at present.
The Zacks Consensus Estimate for 2024 and 2025 EPS is pegged at $9.17 and $11.08, respectively. The company has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
EOG Resources, an oil and gas exploration company, boasts attractive growth prospects, top-tier returns and a disciplined management team, leveraging highly productive acreages in prime oil shale plays like the Permian and Eagle Ford.
The Zacks Consensus Estimate for EOG's 2024 EPS is pegged at $12.21. The company has a Zacks Style Score of B for Value and Growth each. It has witnessed upward earnings estimate revisions for 2024 in the past seven days.
Valero Energy is a premier refining player with a presence across North America and the Caribbean. Its diverse network favors robust refining margins, utilizing cost-effective crude for more than half of its needs.
The Zacks Consensus Estimate for VLO's 2024 EPS is pegged at $18.02. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2025 in the past 30 days.
To read this article on Zacks.com click here.