|Bid||55.10 x 800|
|Ask||55.12 x 800|
|Day's range||54.72 - 55.16|
|52-week range||53.86 - 83.24|
|Beta (3Y monthly)||1.12|
|PE ratio (TTM)||12.52|
|Forward dividend & yield||2.31 (4.24%)|
|1y target est||82.00|
LONDON/SINGAPORE (Reuters) - Italian oil major Eni , China's overseas energy unit PetroChina and two trading houses are vying to supply liquefied natural gas (LNG) to Pakistan in one of the largest tenders ever worth billions of dollars, two sources familiar with the matter said on Friday. The 240-cargo 10-year tender, which is likely to be worth from $5 billion (£3.99 billion) to $6 billion according to Reuters calculations and the estimates of another source based on current market conditions, was issued last month and closed on Thursday. Pakistan is expected to be a significant growth driver in global LNG demand, with Wood Mackenzie estimating the country will need 25 million tonnes a year as domestic supplies dwindle and its economy grows.
Chinese oil refiners want changes to tax laws on the consumption and sale of fuel oil in order to start producing low-sulphur marine fuel when new global clean fuel rules start in 2020, four executives at Chinese oil companies said this week. China's central government must waive a 1,218 yuan ($177.11) per tonne consumption tax and offer rebates of the 13% value-added tax currently levied on fuel oil to allow the country's refiners to economically produce the very low-sulphur fuel oil (VLSFO) needed to meet the rules, officials at China Chemical and Petroleum Corp, PetroChina and China National Offshore Oil Co said.
If the plan to modify Chevron's (CVX) Kitimat facility to an 'all-electric' design materializes, the project will boast the lowest emission intensity among all large-scale LNG projects in the world.
While China's efforts to increase output may offset production decline from aging oilfields, it is not likely to reduce its dependence on foreign oil and gas imports.
(Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.PetroChina Co. looks cheap on many levels, perhaps none more so than comparing it to the value of its reserves beneath the Earth’s surface.By plotting its enterprise value against reserves, China’s state-run oil and gas champion is the cheapest among global energy firms tracked by Sanford C. Bernstein & Co. Its shares have sunk 14% in Hong Kong this year to trade almost at the lowest since 2005. That’s despite a 19% gain in crude prices.“With PetroChina’s current assets and asset quality, even with modest valuation methods, the H-share price should be easily doubled from current levels,” Jefferies Group LLC analyst Laban Yu said by phone. “There is no valuation method that can validate the current share price.”That’s a sentiment shared by most analysts. The stock has drawn 20 buy ratings and only one sell. The consensus of more than 25 forecasters sees prospects for PetroChina to surge 42% over the next year, according to data compiled by Bloomberg.“In theory, oil companies should never trade below their proven reserves value,” Bernstein analysts including Neil Beveridge said in a May 22 report. With PetroChina trading below that metric, it raises the question of how much lower it can get, Bernstein said.To truly unlock its potential requires a major jolt, such as a breakup of its assets or a management mindset shift to put the needs of shareholders on par with national service, analysts say. If PetroChina existed in the U.S., it would be worth about four times more than its current price of HK$4.20, according to Jefferies.$1 TrillionBeijing-based PetroChina was formed in 1999 after its parent China National Petroleum Corp. transferred most of its major upstream assets inherited from the former oil ministry. The company listed in Hong Kong a year later and in Shanghai in 2007, becoming the world’s first trillion-dollar company.As oil prices tumbled, PetroChina suffered more than its international peers. Its current market value of $169 billion makes it the fourth largest oil major after Exxon Mobil Corp., Royal Dutch Shell Plc and Chevron Corp. Confidence was also hurt by a corruption scandal in 2013 that led to the imprisonment of a few board members, including former chairman Jiang Jiemin.Oil companies typically trade at a premium to their reserve value to reflect the growth potential from those resources, according to Bernstein. PetroChina is a “noticeable outlier” among 25 global energy companies assessed, which is based on the value of proven reserves under current prices among other factors. Bernstein estimates PetroChina’s reserves are worth $208.7 billion.Lagging PeersPart of what ails PetroChina is endemic to the oil industry: back when oil prices were high, it piled up debt in chase of production growth. Return on capital, a popular measure of efficiency in oil companies, dropped from double-digit percentages in the 2000s to single digits in recent years.Its return on equity of 4.3% is at the bottom 5% of global integrated oil and gas companies, while its operating margin of 5.09% is lower than 65% of the majors, data compiled by Bloomberg show.“They pursued a strategy of volume growth at the expense of returns,” Beveridge said in a phone interview. “That’s obviously led to massive loss in shareholder value.”PetroChina also suffers from troubles specific to it being the nation’s top supplier. It is under pressure to increase spending this year, a good chunk of it on old or high-cost fields, after President Xi Jinping called for higher domestic oil and gas production. It also consistently loses money from reselling imported natural gas locally at lower, state-regulated prices -- a problem that has intensified amid booming consumption.Industry OverhaulReform could be around the corner. The Chinese government plans to combine the pipeline resources of PetroChina and its two other state-owned peers into a national operator. This could unlock value for PetroChina if those assets are worth more than what the company has them booked for, Beveridge said.The pipeline spinoff will provide clarity for investors as well as a short-term share price boost, Daiwa Capital Markets Hong Kong Ltd. analysts including Dennis Ip said in a note Monday that initiates coverage of PetroChina with an outperform rating.The government is also revamping the upstream industry to make it easier for foreign companies to invest, and forcing producers to drill or lose exploration rights, according to Yu. That may push PetroChina to sign more production-sharing agreements, form joint ventures or spin off some other assets, Yu said.Beveridge highlighted Russia’s Gazprom PJSC as an example of how value can be unlocked when executives address shareholders’ needs. The company boosted dividends in May and followed that up by promising senior management changes. Its share price has jumped by more than 50% since.“Fundamental reform of the company, management and incentive schemes that are more focused on return-type metrics, that’s what’s needed to turn around the company,” Beveridge said. “If you do something positive for the shareholders, then you can start to unlock the upside.”(Updates shares throughout story.)To contact the reporters on this story: Dan Murtaugh in Singapore at firstname.lastname@example.org;Aibing Guo in Hong Kong at email@example.comTo contact the editors responsible for this story: Ramsey Al-Rikabi at firstname.lastname@example.org, Jasmine Ng, Charlie ZhuFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The acquisition of Alberta gas properties from Shell (RDS.A) is likely to allow Pieridae to use the output as Goldboro LNG feedstock.
Two bipartisan bills have been introduced over the last few months aimed at going after Chinese companies that don’t comply with auditing rules in the U.S.
SINGAPORE/YANGON (Reuters) - China National Petroleum Corp is planning to open dozens of petrol stations in Myanmar, the first major foreign investor to enter the fast-growing Southeast Asian fuel market, as the state giant expands its retail oil business, company officials said. The investment, which could eventually reach tens of millions of dollars, follows a new strategy to tap overseas retail margins as China's domestic fuel market is saturated. The move follows a similar but larger investment in Brazil, where CNPC's global trading and refining unit bought 30% of a leading Brazilian fuel dealer last year.
Iraq will soon finalize a large-scale, long-term deal for the development of oil fields in the South with Exxon and PetroChina. The 30-year contract will involve investments of US$53 billion and potential returns for Baghdad of as much as US$400 billion over its lifetime
Iraq oil minister Thamer Ghadhban said on Wednesday he expects his ministry to sign an initial deal with Exxon Mobil and PetroChina "very soon", but did not give a specific date. "We have managed to take a step forward in resolving some lingering issues in the deal," Ghadhban said at an oil ministry event. Once the talks end, the initial deal will be studied by the ministerial energy committee before referring it to cabinet for approval, Ghadhban added.
BAGHDAD (AP) — Iraq is planning a $53 billion megaproject with global energy giants ExxonMobil and PetroChina to use seawater from the Persian Gulf to boost oil production, Prime Minister Adel Abdul-Mahdi announced Tuesday.
Iraq is close to signing a $53 billion, 30-year energy agreement with Exxon Mobil and PetroChina, Prime Minister Adel Abdul Mahdi said on Tuesday, denying any link between the mega-project and U.S. permission for Iraq to do business with Iran. Iraq expects to make $400 billion over the 30 years the deal will be in effect, the prime minister said. The southern mega-project involves the development of the Nahr Bin Umar and Artawi oilfields and raising production from the two fields to 500,000 barrels per day (bpd) from around 125,000 bpd now, Abdul Mahdi said.
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April 30 (Reuters) - Zhenhai Petrochemical Engineering Co Ltd: * SAYS IT EXPECTS TO WIN SINOPEC'S (NOT PETROCHINA'S) BIDS WITH TOTAL INVESTMENT AT ABOUT 2.06 BILLION YUAN ($305.62 million) Source text ...
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SINGAPORE/SHANGHAI (Reuters) - PetroChina said on Monday its first-quarter net profit edged up 1 percent from a year earlier as a weaker refined fuel business offset strong growth at its exploration and production segment. The state-controlled giant, Asia's largest oil and gas producer, said net profit in the January-March period was 10.255 billion yuan ($1.52 billion), versus 10.15 billion a year ago. Total revenue grew 8.9 percent during the period to 591 billion yuan, the firm said in a filing to the Hong Kong Stock Exchange.
Jul.15 -- Neil Beveridge, senior analyst at Sanford C. Bernstein, discusses the value of PetroChina and his outlook for the company. He speaks on “Bloomberg Markets: Asia.”