NEW YORK (TheStreet) -- Shares of Chevron (CVX) - Get Report dipped 0.21% to $108.12 in afternoon trading Friday as a major refinery strike continued following the union's rejection of another contract offer.
The United Steelworkers (USW), which represents more than 30,000 oil workers in the U.S., told its members to reject a seventh labor contract offered by Royal Dutch Shell (RDS.A) . The offer was the first made by Shell since February 5 and was made on behalf of companies including Exxon Mobil (XOM) - Get Report and Chevron.
The offer "fails to improve safety" in any enforceable way, the USW told Bloomberg in a text message. The USW also told local units to be ready to join the strike "if called upon."
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Ray Fisher, a spokesman for Shell, told Bloomberg the company had no comment other than to say the two sides met.
More than 5,000 USW workers have walked out of a chemical plant, a co-generation complex, and nine U.S. refineries since February 1. These account for 13% of U.S. fuel capacity.
This is the largest strike at U.S. oil refineries since 1980, when a labor stoppage lasted three months.
Separately, TheStreet Ratings team rates CHEVRON CORP as a "hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHEVRON CORP (CVX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, disappointing return on equity and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CVX's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- CVX, with its decline in revenue, slightly underperformed the industry average of 20.6%. Since the same quarter one year prior, revenues fell by 22.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Net operating cash flow has decreased to $6,497.00 million or 37.83% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CHEVRON CORP's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: CVX Ratings Report