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.