Saturday, October 24th, 2020
Home » Development » A clean energy company surpasses ExxonMobil in market cap

A clean energy company surpasses ExxonMobil in market cap

PortandTerminal.com, October 3, 2020

“Oil major once had the world’s biggest equity value but has been overtaken by green upstart”

NEW YORK – The Financial Times is reporting that NextEra Energy, the world’s largest solar and wind power generator, has surpassed ExxonMobil in its stock market valuation. It’s an incredible “sign-of-the-changing-times” development that reflects investors’ bets on a changing energy system and an uncertain outlook for oil demand. 

NextEra Energy, which is based in Florida, had a market capitalization of $138.6 bn in intraday trading on Friday, having gained more than two-thirds in the past two years, according to S&P Global Market Intelligence. 

ExxonMobil, a byword for Big Oil that was once the world’s biggest public company, has lost more than half its value since the start of the year.

ExxonMobil’s market capitalisation was $137.9bn, down from a peak of more than $500bn in 2007.  NextEra’s ascent and ExxonMobil’s decline reflect a collapse in oil consumption in the pandemic, the rise of renewable resources on the electric grid and investors’ desire for steady returns at a time of low interest rates. “We’re seeing just enormous demand for renewables right now,” Jim Robo, NextEra’s chief executive, said on Wednesday during an interview with a Wolfe Research analyst.

Valuation chart

Read the full Financial Times coverage of this historic valuation landmark by clicking here.

Other articles you may find interesting

Copyright © 2020 PortandTerminal.com

Check Also

Freight train seen through chainlink fence

CN Railway Revenue Drops 11% as Oil, Metals Shipments Plunge

BLOOMBERG, OCTOBER 21, 2020 Petroleum, coal, metals and automotive volumes all plunged by double-digit percentages …


ConocoPhillips to Concho for $9.7 Billion – Largest Deal Since COVID-19 Hit

PortandTerminal.com, October 19, 2020 Together, ConocoPhillips and Concho Resources will produce 1.5 million barrels a …