ExxonMobil vs Petrobras
ExxonMobil and Petrobras are presented to show how this page compares business models, financial performance, and market context, helping readers understand differences in strategy, operations, and risk in a neutral, accessible way. Educational content, not financial advice.
ExxonMobil and Petrobras are presented to show how this page compares business models, financial performance, and market context, helping readers understand differences in strategy, operations, and ri...
Why It's Moving
ExxonMobil Powers Ahead with Q3 Earnings Strength and Dividend Boost Amid Energy Sector Resilience
- Q3 earnings hit $7.5 billion with $14.8 billion in operating cash flow, offsetting weaker crude and chemical margins through Permian and Guyana volume gains and cost savings.
- Fourth-quarter dividend rose 4% to $1.03 per share, returning $9.4 billion to shareholders in Q3 and highlighting financial discipline.
- Advanced eight of 10 key 2025 projects on track, plus $20B low-carbon push through 2030 in CCS and hydrogen, aligning with faster-than-expected emissions cuts.
Petrobras slides after contract delays and political-risk chatter; shareholder payout details add a twist
- Drilling and contract delays: Market reaction followed reports Petrobras is facing delays in awarding and starting certain drilling contracts, a development that trims near‑term production visibility and pushed shares lower as investors scaled back growth expectations.
- Geopolitical and sector spillover: Broader regional activity — including other oil majors’ dealings in nearby jurisdictions — amplified political and operational risk perceptions for Petrobras, reinforcing valuation compression despite decent underlying margins.
- Shareholder remuneration clarified: Petrobras issued market notices this week on the form and timing of remuneration tied to recent quarters, which supports dividend income narratives but also signals management’s focus on cash returns while capital projects are reprioritized.
ExxonMobil Powers Ahead with Q3 Earnings Strength and Dividend Boost Amid Energy Sector Resilience
- Q3 earnings hit $7.5 billion with $14.8 billion in operating cash flow, offsetting weaker crude and chemical margins through Permian and Guyana volume gains and cost savings.
- Fourth-quarter dividend rose 4% to $1.03 per share, returning $9.4 billion to shareholders in Q3 and highlighting financial discipline.
- Advanced eight of 10 key 2025 projects on track, plus $20B low-carbon push through 2030 in CCS and hydrogen, aligning with faster-than-expected emissions cuts.
Petrobras slides after contract delays and political-risk chatter; shareholder payout details add a twist
- Drilling and contract delays: Market reaction followed reports Petrobras is facing delays in awarding and starting certain drilling contracts, a development that trims near‑term production visibility and pushed shares lower as investors scaled back growth expectations.
- Geopolitical and sector spillover: Broader regional activity — including other oil majors’ dealings in nearby jurisdictions — amplified political and operational risk perceptions for Petrobras, reinforcing valuation compression despite decent underlying margins.
- Shareholder remuneration clarified: Petrobras issued market notices this week on the form and timing of remuneration tied to recent quarters, which supports dividend income narratives but also signals management’s focus on cash returns while capital projects are reprioritized.
Which Baskets Do They Appear In?
Americas-India Oil Axis
A carefully selected group of stocks capturing the growing energy corridor between the Americas and India. These companies, handpicked by our expert analysts, represent both oil producers in the U.S. and Brazil and the tanker companies transporting crude across these new, long-haul routes.
Published: July 14, 2025
Explore BasketOil's Ascent
WTI crude oil prices have climbed to their highest levels since April, creating promising opportunities in the energy sector. These carefully selected stocks are positioned to benefit directly from sustained higher oil prices, giving you access to potential growth in this important market.
Published: July 1, 2025
Explore BasketWhich Baskets Do They Appear In?
Americas-India Oil Axis
A carefully selected group of stocks capturing the growing energy corridor between the Americas and India. These companies, handpicked by our expert analysts, represent both oil producers in the U.S. and Brazil and the tanker companies transporting crude across these new, long-haul routes.
Published: July 14, 2025
Explore BasketOil's Ascent
WTI crude oil prices have climbed to their highest levels since April, creating promising opportunities in the energy sector. These carefully selected stocks are positioned to benefit directly from sustained higher oil prices, giving you access to potential growth in this important market.
Published: July 1, 2025
Explore BasketInvestment Analysis
ExxonMobil
XOM
Pros
- ExxonMobil has a strong market capitalization of approximately $484 billion, reflecting its status as a mega-cap company with significant scale.
- The company benefits from integrated operations across the oil value chain, allowing it to mitigate risks from crude price fluctuations through downstream activities.
- ExxonMobil demonstrates relative stability with lower volatility (around 5.71%) compared to some peers, supporting steadier performance.
Considerations
- ExxonMobil's stock price and market cap have declined nearly 10-13% over the past year, indicating recent challenges in growth or market sentiment.
- Its profitability and return metrics, such as return on assets, show weaknesses suggesting operational efficiency constraints in the current environment.
- The company’s valuation multiple (forward P/E around 13.14) is substantially higher than some peers offering potentially less margin of safety.
Petrobras
PBR
Pros
- Petrobras offers a compelling valuation with a very low forward P/E ratio near 3.64, providing a significant discount relative to ExxonMobil and other majors.
- The stock offers a high dividend yield exceeding 13%, supported by strong cash flow, attractive to income-focused investors.
- Despite challenges, Petrobras operates efficiently and benefits from exposure to global oil prices that currently provide margin protection.
Considerations
- Petrobras is exposed to high volatility due to its tight correlation with global oil prices and economic cyclicality, which can amplify downside risk.
- Government control and influence lead to frequent leadership changes and shifting policies, creating strategic and execution uncertainty.
- Currency risk stemming from exposure to the Brazilian real adds to the risk profile, complicating returns for international investors seeking dollar stability.
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