Last week, renewable energy company NextEra Energy surpassed petroleum giant ExxonMobil in terms of valuation. Even though it did not last long, it proves that cleaner energy sources continue to grow recently.
More Valuable Energy Company
NextEra has become more valuable than energy king Exxon, CNN Business reports. At that time, NextEra had the highest market capitalization, at $138.3 billion, of all energy and utility companies in the US. On Monday, however, Exxon’s market value turns higher than NextEra by a billion dollars. Meanwhile, NextEra remains more valuable than Chevron.
The clean energy revolution just hit another major milestone https://t.co/xebz8PsuvO
— CNN Business (@CNNBusiness) October 7, 2020
Exxon or NextEra?
Forbes reported that Exxon has a declining market value, largely due to the depressed energy demand during the current health crisis. The energy giant entered the year worth over $300 billion. However, with just a few months before 2020 ends, Exxon’s value dropped by half to about only $140 billion. Although, even prior to the pandemic, the fossil fuel behemoth has encountered declining overall worth since more than a decade ago.
On the other hand, NextEra, a huge wind and solar energy company, stood strong even amid the COVID-19 crisis.
However, revenues for NextEra still pales in comparison to Exxon’s. Last year alone, the petroleum behemoth raked in $255 billion in revenues. Meanwhile, NextEra only saw $19.2 billion in revenues. Still, the renewable company has a share price of $287, compared to Exxon at $33.
Cleaner Energy Sources
Reports say that NextEra’s topping of Exxon, albeit quick, just proves how renewable and cleaner energy sources have gained traction in recent years. Moreover, alternative energy has become more favorable among investors. According to a Raymond James analyst, Pavel Molchanov, in an email to CNN Business: “Investor sentiment on clean tech stocks is the best it has ever been.”
Even Dow Jones Industrial Average has removed nine-decade member Exxon to its list last August. Later on, the Norwegian asset management firm Storebrand also divested stocks of Exxon. The private money manager reasoned out its new green policy, which would move Storebrand away from companies with revenue dependent on coal or oil sands.