Chevron (CVX) stock is expected to garner retail attention on Friday after a report said that the company was planning to sell its stake in a Singapore refinery amid its efforts to trim costs.
According to a Reuters report, citing a source familiar with the matter, the company has appointed Morgan Stanley to evaluate the sale of its 50% stake in the Singapore Refining Company.
PetroChina, which owns the rest of SRC through its Singapore Petroleum Co Ltd unit, has the first right of refusal to purchase Chevron’s ownership interest, according to Reuters.
According to the report, other firms, including commodities giant Glencore, have also been offered the stake. Potential buyers have been asked to submit their bids in July.
The company is reportedly also checking the market appetite for selling other Asian assets, including terminal and fuel storage facilities in Australia and the Philippines.
The move comes amid Chevron’s efforts to cut costs and close the gap with larger peer Exxon. Chevron aims to reduce its workforce by 20% by 2026.
The ownership stake in the refinery could fetch hundreds of millions of dollars, according to the report, with some analysts saying it could be between $300 million and $500 million.
The SRC refinery has a crude processing capacity of around 290,000 barrels per day.
Retail sentiment on Stocktwits was in the ‘bullish’ (70/100) territory, while retail chatter was ‘high’ amid ongoing tensions in the Middle East.
Chervon stock has risen 1.9% this year.
The company is seeking to close its $53 billion deal for oil and gas producer Hess. However, an arbitration battle regarding Exxon’s claims over Hess Guyana assets has delayed the closing.