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Energy Minerals

PetroChina Co. Ltd.

Company Background

PetroChina is a Hong Kong-listed subsidiary of the mainland's state-run China National Petroleum Corp., known as CNPC. The parent company has played a leading role in China's oil industry and energy strategy since the Ministry of Petroleum Industry became CNPC in 1988. The CNPC chairman has power equivalent to Chinese government cabinet members.

 

PetroChina's core businesses are development and production of crude oil and natural gas. It is one of the world's largest oil companies. Its domestic rivals include state-owned enterprise China Petrochemical, also known as Sinopec.

 

Zhou Yongkang, a disgraced former member of the Chinese Communist Party's Politburo Standing Committee, worked at CNPC. Under Chinese President Xi Jinping's anti-corruption drive, the government cracked down on senior officials at PetroChina.

 

PetroChina has aggressively expanded its business in Sudan, Libya, Iraq, Syria and other war-torn or dangerous areas, where major U.S. and European companies hesitate to invest. After entering into such markets, however, many projects have failed amid worsening public security. The company has recently scaled down its resource investment, in line with China's "new normal" of slower growth under Xi.

 

A big challenge for PetroChina is transparency. The company took on 60% of CNPC's total assets when it went public. CNPC accounts for slightly more than 80% of PetroChina's outstanding shares. PetroChina's management does not appear to be influenced by shareholders.

 

Business Summary

PetroChina Co. Ltd. engages in the petroleum related products, services and activities. It operates through the following business segments: Exploration and Production; Refining and Chemicals; Marketing; Natural Gas and Pipeline; and Head Office and Other. The Exploration and Production segment involves exploration, development, production, and marketing of crude oil and natural gas. The Refining and Chemicals segment focuses on the refining of crude oil and petroleum products, production and marketing of primary petrochemical products, derivative petrochemical products, and other chemical products. The Marketing segment includes marketing of refined products and the trading business. The Natural Gas and Pipeline segment comprises transmission of natural gas, crude oil, and refined products and the sale of natural gas. The Head Office and Other segment relates to cash management and financing activities, the corporate center, research and development, and other business services supporting the operating business segments of the Group. The company was founded on November 5, 1999 and is headquartered in Beijing, China.

Financial Highlights

Dec 2019 HKDUSD
Revenue2,666.78B340,359.83M
Gross Profit296,566.78M37,850.57M
Operating income146,822.90M18,738.88M
Income before tax107,705.05M13,746.30M
Net income51,799.57M6,611.13M
EBITDA393,300.06M50,196.56M
Diluted EPS0.280.03
Dividends Per Share0.150.02
Total Assets3,057.02B392,338.17M
Total liabilities1,441.42B184,992.89M
Total equity1,376.04B176,601.92M
Operating cash flow397,443.39M50,725.37M
Currency in HKDCurrency in USD

Historical Data

 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 1,944.09B 1,725.32B 2,159.94B 2,632.37B 2,666.78B
Gross Profit 245,518.15M 184,007.22M 225,278.58M 352,386.87M 296,566.78M
Operating income 87,841.09M 39,596.53M 72,660.61M 183,412.68M 146,822.90M
Income before tax 69,458.52M 47,946.05M 54,334.60M 124,513.34M 107,705.05M
Net income 43,809.53M 9,180.26M 26,288.07M 62,818.69M 51,799.57M
EBITDA 314,558.53M 300,472.84M 352,662.40M 429,813.44M 393,300.06M
Diluted EPS 0.23 0.05 0.14 0.34 0.28
Dividends Per Share 0.10 0.06 0.15 0.20 0.15
Total Assets 2,857.06B 2,673.80B 2,886.60B 2,783.47B 3,057.02B
Total liabilities 1,252.95B 1,142.32B 1,228.40B 1,176.83B 1,441.42B
Total equity 1,407.99B 1,326.52B 1,432.75B 1,384.14B 1,376.04B
Operating cash flow 310,512.72M 302,020.99M 411,044.34M 405,397.11M 397,443.39M
 Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019
Revenue 250,767.70M 222,265.66M 277,170.83M 335,867.62M 340,359.83M
Gross Profit 31,669.24M 23,704.76M 28,908.49M 44,961.38M 37,850.57M
Operating income 11,330.57M 5,101.03M 9,324.05M 23,401.80M 18,738.88M
Income before tax 8,959.41M 6,176.65M 6,972.39M 15,886.77M 13,746.30M
Net income 5,650.96M 1,182.64M 3,373.37M 8,015.09M 6,611.13M
EBITDA 40,574.72M 38,708.47M 45,254.80M 54,840.31M 50,196.56M
Diluted EPS 0.03 0.00 0.01 0.04 0.03
Dividends Per Share 0.01 0.00 0.01 0.02 0.02
Total Assets 368,646.63M 344,866.67M 369,258.59M 355,517.58M 392,338.17M
Total liabilities 161,668.39M 147,336.64M 157,139.58M 150,310.38M 184,992.89M
Total equity 181,673.63M 171,094.89M 183,280.09M 176,789.40M 176,601.92M
Operating cash flow 40,052.85M 38,907.91M 52,746.56M 51,725.01M 50,725.37M

Valuation Measures

Dec 2019
PER12.35
ROA1.77%
ROE3.75%
Operating margin5.50%
Profit margin1.94%

Key executives

  • President & Executive Director: Liang wei Duan
  • Chief Financial Officer: Shou Ping Chai
  • Vice President: Long De Sun
  • Vice President: Jinghui Tian
  • Vice President: Xiao Ling

Shareholders

  • The Vanguard Group, Inc. (3.4%)
  • BlackRock Fund Advisors (2.7%)
  • Dimensional Fund Advisors LP (1.7%)
  • China State-Owned Assets Supervision & Admn Commission (1.3%)
  • State Street Global Advisors Asia Ltd. (1.0%)
  • Hang Seng Investment Management Ltd. (1.0%)
  • BlackRock Advisors (UK) Ltd. (0.6%)
  • Hermes Investment Management Ltd. (0.6%)
  • FIL Investment Management (Hong Kong) Ltd. (0.5%)
  • BlackRock Investment Management (UK) Ltd. (0.5%)

Contact Details

  • Website:http://www.petrochina.com.cn
  • Address: No. 9, Dongzhimen North Street, Dongcheng District, Beijing, 100007, China
  • Phone: +86.10.59986223

Related Companies

  • Phoenix Energy Holdings Ltd. (Canada)
  • Petrochina Hong Kong Co. Ltd.
  • Forever Glowing International Pte Ltd.
  • PetroChina Co., Ltd. (Lubricating Oil Branch)
  • Daqing Oilfield Construction Group Co., Ltd.
  • PetroChina Co., Ltd. /Huabei Petrochemical Branch Co./
  • Petro China Co., Ltd. Jilin Petrochemical Branch
  • PetroChina & CRMSC Oil Marketing Co., Ltd.
  • Petrochina Co. Ltd. /Yunnan Refinery/
  • Jilin Petrochemical Co.
  • Sichuan Shengda Chemical New Material Co., Ltd.
  • Brion Duvernay Gas Partnership
  • PetroChina International Iraq FZE Iraq Branch
  • PetroChina International Jabung Ltd.
  • PetroChina Coalbed Methane Co., Ltd.
  • Petrochina Co., Ltd. /Shangluo Luonan Sales Branch/
  • PetroChina Co., Ltd. /Shandong Sales Branch/
  • China National Petroleum Marketing Co., Ltd.
  • PetroChina International Investment (Australia) Pty Ltd.
  • PetroChina North China Marketing Co.
  • Petrochina Northeast Marketing Co.
  • PetroChina International Middle East Co.
  • Aershan Drinks (Beijing) Co., Ltd.
  • PetroChina International (Canada) Trading Ltd.
  • PetroChina Sichuan Petrochemical Co. Ltd.
  • PetroChina Kelamayi Petrochemical Co.
  • PetroChina Huabei Oilfield Co.
  • Daqing Oilfield Co., Ltd.
  • PetroChina Talimu Oilfield Co., Ltd.
  • BP-Petrochina Fuels JV

Competitors

  • China Petroleum & Chemical Corporation Class H
  • Rosneft Oil Co.
  • Gazprom PJSC
  • SK Innovation Co., Ltd
  • Petroleo Brasileiro SA Pfd
  • CNOOC Limited
  • Cenovus Energy Inc.
  • Indonesia Energy Corporation Limited
  • Petro Matad Limited
  • Qingdao Copton Technology Co., Ltd. Class A
  • Fuchs Petrolub SE Pref
  • Tourmaline Oil Corp.
  • Blue Energy Limited
  • GrafTech International Ltd.
  • Leigh Creek Energy Limited
Last Updated on 6 Jul, 2020

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