The capitalization of China’s biggest oil producer PetroChina
reached $352.8 billion during Thursday trading in Shanghai, surpassing
ExxonMobil as the world’s most valuable energy company for the first time since
2010.
The market cap of America’s Exxon reached $352.6
billion in Shanghai Thursday trading, Bloomberg reports. PetroChina’s market
cap has gone up 13.81 percent in the last 12 months while Exxon’s market value
has fallen by 14 percent, following the slumps in oil prices. Moreover, the Chinese
company’s Class-A shares have gained 61 percent since last April. The last time
PetroChina was more valuable than Exxon was at the close of trading on June 25,
2010, according to Bloomberg.
“PetroChina has multiple positives at the moment: it’s
got a reform story, it’s also listed in Hong Kong, and China has more freedom
for mainland fund managers in the works,” said Mark Matthews head of Asia research at Bank Julius Baer &
Co. in Singapore. “China is
also planning to transfer stakes in state-owned enterprises away from their
regulator, which will on the whole be positive for SOEs,” he added.
Oil companies across the world have been facing difficult times
since crude prices started to plunge last summer. ExxonMobil’s adjusted net
income of $6.3 billion in the fourth quarter was the lowest since a loss in the
final three months of 2009, according to Bloomberg data. PetroChina’s net
profit was $1.8 billion in the same period.
The Shanghai Composite closed at its highest level in seven years
on Thursday gaining about 88 percent over the past year as the best performer
among major indexes. Meanwhile, the Chinese yuan has declined 0.1 percent
versus the dollar in the past year.
PetroChina is the listed arm of state-owned China National
Petroleum Corporation (CNPC), with almost all of its operating profit coming
from the exploration and production sector along with a small contribution from
its natural gas and pipeline unit.
Source: RT
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