Chevron Invites Bids to Divest 50% Stake in Singapore Refinery

Chevron Corporation CVX has reportedly begun the sale process for its 50% stake in Singapore Refining Company (“SRC”), inviting non-binding bids from potential buyers. Among those approached is PetroChina, which already owns the remaining 50% through its Singapore Petroleum Co Ltd unit and holds the first right of refusal.The move is part of the U.S. oil giant’s broader efforts of global restructuring and streamlining operations. Chevron has been optimizing its global portfolio by prioritizing core growth assets, aiming to cut costs and enhance profitability. Earlier this year, Chevron announced plans to lay off 15-20% of its employees to restructure operations.Global Restructuring in Singapore and BeyondLast month, Chevron divested its interest in Chevron Phillips Singapore Chemicals to Aster Chemicals and Energy, a joint venture between Chandra Asri and Glencore. The potential sale of the refinery would mark the second recent departure by a global energy major from Singapore’s refining sector, which faces higher operating costs due to a carbon tax that has impacted its competitiveness compared with other regions.The company’s restructuring is not limited to Singapore. Chevron is also assessing the market for other assets in Asia, including terminal and fuel storage facilities in Australia and the Philippines. Morgan Stanley has been appointed to oversee the sale process for these assets, including the SRC refinery.Taking a Look at Singapore Refining CompanySingapore Refining Company is a 50/50 joint venture between Chevron and China’s state-owned oil and gas major, PetroChina. With a crude processing capacity of 290,000 barrels per day, it is the smallest refinery in Singapore. The facility features seven shipping berths capable of accommodating very large crude carriers. Its fuel products are traded regionally and internationally, supported by a well-established distribution network across Singapore and Jurong Island.Growing Interest, High ValuationsGlobal trading house Glencore is among the entities reportedly invited to assess the refinery stake. Estimates suggest Chevron’s share in SRC could be valued between $300 million and $500 million. The sale process, with offers expected in July, comes at a time when energy majors are sharpening their focus on profitability and efficiency in a volatile market.CVX’s Zacks Rank & Key PicksHouston, TX-based Chevron is one of the largest publicly traded oil and gas companies that participates in every aspect related to energy, from oil production to refining and marketing. Currently, CVX has a Zacks Rank #3 (Hold).Investors interested in the energy sector might look at some better-ranked stocks like Global Partners LP GLP, Subsea 7 S.A. SUBCY and Gibson Energy Inc. GBNXF. While Global Partners and Subsea 7 currently sport a Zacks Rank #1 (Strong Buy) each, Gibson Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Global Partners is a Delaware limited partnership formed by affiliates of the Slifka family. GLP owns, controls or has access to one of the largest terminal networks of refined petroleum products in New England. The Zacks Consensus Estimate for Global Partners’ 2025 earnings indicates 17.84% year-over-year growth.Subsea 7 operates as an engineering, construction and services contractor to the offshore energy industry worldwide. The Zacks Consensus Estimate for Subsea 7’s 2025 earnings indicates 95.52% year-over-year growth.Calgary, Alberta-based Gibson Energy is an oil infrastructure company with its principal businesses consisting of the storage, optimization, processing and gathering of crude oil and refined products. The Zacks Consensus Estimate for GBNXF’s 2025 earnings indicates 36.76% year-over-year growth.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chevron Corporation (CVX): Free Stock Analysis Report Global Partners LP (GLP): Free Stock Analysis Report Subsea 7 SA (SUBCY): Free Stock Analysis Report Gibson Energy Inc. (GBNXF): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks