|Bid||48.02 x 2200|
|Ask||0.00 x 900|
|Day's Range||48.52 - 49.39|
|52 Week Range||44.80 - 68.80|
|Beta (5Y Monthly)||1.32|
|PE Ratio (TTM)||11.03|
|Forward Dividend & Yield||2.33 (4.80%)|
|Ex-Dividend Date||Sep 11, 2019|
|1y Target Est||76.05|
(Bloomberg) -- Top executives at China’s leading energy companies are set for a power shake-up as the nation takes steps to reorganize and revamp its leadership and energy infrastructure.The executive changes at the state-owned giants come as the sector is under pressure to increase competition and boost domestic output in the face of growing dependence on energy imports. The government this week opened its upstream sector to foreign drillers and last month rolled out plans to spin off the nation’s pipelines into a new firm to allow more companies access to energy infrastructure.Dai Houliang, chairman of refining giant Sinopec Group, is set to be named the new chairman and party secretary of the country’s biggest oil firm, China National Petroleum Corp., according to people familiar with the matter. Wang Yilin, the current CNPC chairman, is set to step down and retire, they added.The top job in Sinopec Group, formally known as China Petrochemical Corp., will be taken by Zhang Yuzhuo, former chairman of coal colossus China Shenhua Energy Co., said the people who asked not to be identified as the information is private.Li Fanrong, deputy director of China’s National Energy Administration and former CEO of CNOOC Ltd., will be named as general manager of CNPC, said the people. Zhang Wei, current general manager at CNPC, will be appointed chairman of the newly-established national oil and gas pipeline company.The decision by China’s central government is set to be announced as early as this week. Nobody responded to emails or calls sent to CNPC and Sinopec’s press offices.State Grid Corp., China’s largest operator of electric networks, also named a new top executive, putting Mao Weiming in place as chairman and party chief.‘Major Change’CNPC is the nation’s largest driller and natural gas importer, and is the parent of PetroChina Co., while Sinopec Group is the world’s largest oil refiner by capacity and parent of China Petroleum & Chemical Corp. The appointment of the new CNPC executives will be especially positive for PetroChina, according to analysts at Sanford C. Bernstein & Co. including Neil Beveridge in a note to clients. Dai could help shape up the company’s struggling refining and petrochemical division, while Li’s stint at Cnooc proved him “one of the highest caliber CEOs within China’s oil and gas industry over the past decade.”“We view his appointment as a strong sign that significant reform could take place within the PetroChina which is undergoing major change with pipeline reform,” Beveridge said.Even as PetroChina and Sinopec have raised spending to boost output -- heeding calls from President Xi Jinping to bolster the nation’s energy security -- the country has become more dependent on foreign supplies.China’s dependence on overseas oil has grown from less than 50% in 2005 to nearly 75% by the end of last year as more than two decades of super-charged growth have made it the world’s biggest importer. China also became the world’s biggest natural gas importer in 2018, overtaking Japan after a government push for cleaner energy caused demand to surge.(Updates with analyst comments in 8th, 9th paragraphs.)\--With assistance from Dan Murtaugh.To contact the reporter on this story: Alfred Cang in Singapore at firstname.lastname@example.orgTo contact the editors responsible for this story: Serene Cheong at email@example.com, Dan MurtaughFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Broad new horizons in key markets are opening for the world’s energy companies. Don’t expect to see a land rush any time soon. China will allow all large domestic and foreign companies to apply for oil and gas exploration licenses that were previously only open to state-owned enterprises, the country’s resources ministry said at a briefing Thursday. In India, regulators will also let private and international companies bid for a group of coal blocks it’s putting up for auction starting this month, the country’s coal and mines minister Pralhad Joshi said this week, chipping away at a near-monopoly enjoyed by state-controlled Coal India Ltd.A decade or so ago, such announcements might have caused international energy companies to salivate with excitement. All the fear back then was that state-owned giants like Saudi Arabian Oil Co. and Petroleos de Venezuela SA controlled all the viable assets to fuel a coming era of ever-increasing fossil fuel demand, leaving listed businesses running out of reserves. How things have changed.For one thing, it’s national governments rather than independent companies that are now worried about supply shortages. China’s domestic oil production has fallen about 10% since peaking five years ago. India’s coal output is still edging up, but not fast enough to meet demand: Net imports have accounted for about a quarter of consumption in recent years, up from 10% a decade ago.Meanwhile, energy companies are awash with supply. The revolution in fracking means that America’s shale patch would count as one of the world’s top three oil producers if considered on its own. It briefly overtook Saudi Arabia for the number two spot behind Russia after an attack on the Gulf country’s oil facilities in September.Conventional oil and gas discoveries are booming, too, hitting a four-year high of 12.2 billion barrels of oil equivalent last year, according to consultancy Rystad Energy AS. Storied oil majors Exxon Mobil Corp., Total SA, BP Plc and Eni SpA chalked up some of the year’s best discoveries. On the demand side, consumption of petroleum may peak as soon as a decade from now, well within the lifetime of most conventional oilfields.As a result, the interests of fossil fuel producers and the energy-hungry governments seeking to attract them are fundamentally opposed. Beijing and New Delhi ultimately want to boost domestic output at all costs, and hope that foreign businesses can sprinkle some innovative magic that local giants can’t muster. International oil companies, on the other hand, are ruing a decade when they chased barrels to the exclusion of all else. They’re now much more focused on developing only the most profitable fields, wherever they’re to be found.It’s probably unfair to characterize the state-owned Chinese and Indian companies as lazy behemoths, too. PetroChina Co.’s capital spending is bigger than that of Exxon Mobil and BP put together, and about half the wells it drills each year are in the Changqing field, where most new development is in difficult formations similar to those in the U.S. shale patch. Coal India, likewise, is hampered by the fact that most of the country’s coal is high in ash and low in energy, and dependent on a creaky rail network to make it to power stations.The problem, instead, is that the remorseless facts of poor geology make it nearly impossible to develop domestic reserves profitably, especially when government targets are driving state-owned companies to increase output with little regard for cost.Take the Qingcheng field, a corner of the Changqing deposit that counts as PetroChina’s largest single shale find. Even after recent efforts to drive down costs, the internal rate of return for Qingcheng wells is now only 8% to 9%, Cathy Chan, an analyst at CCB International Holdings Ltd., wrote in an October note.It’s fanciful to think this would tempt foreign investors. Such returns barely cover PetroChina’s own cost of capital. In Texas’s Permian basin, comparably low returns were last seen in early 2016, when the local fracking industry was on the brink of collapse. IRRs of 20% to 40% are typical for unconventional petroleum in the U.S. Given the substantial political risks that come from operating in China these days, it’s very hard to see the attraction here for international energy businesses.The best path to energy security for China and India is to encourage their own renewable energy and electrified transport industries — an approach that will improve the health of their populations, reduce climate risks, and leave them far less dependent on imported fuels. That’s a much better idea than wasting money trying to get blood from a stone, or hoping that clever foreigners will be able to find hidden deposits where local talent has failed.To contact the author of this story: David Fickling at firstname.lastname@example.orgTo contact the editor responsible for this story: Rachel Rosenthal at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Moody's America Latina ("Moody's") today assigned a Ba1/Aaa.br Corporate Family Rating to Petrobras Distribuidora S.A. ("BR"). The outlook for the ratings is stable. BR ratings mainly reflect its market position as the largest fuel distributor in Brazil in terms of volumes sold, gas stations network and distribution logistics assets, along with its well-known brand names and adequate credit metrics.
Progress on the U.S.-China trade war has boosted Chinese stocks. Alibaba (NYSE:BABA) has broken out to a new all-time high, JD.com (NASDAQ:JD) has returned to mid-2018 levels and the iShares MSCI China ETF (NASDAQ:MCHI) has rallied nicely from August lows. All three are looking like great stocks to buy.For some investors, however, there's a catch: Few Chinese stocks pay a dividend. Income investors looking for stocks to invest in can get exposure to the region through a stock like Apple (NASDAQ:AAPL) or Starbucks (NASDAQ:SBUX). But, for those businesses -- as with many American companies -- China drives only a small portion of revenue and profits.Nonetheless, income investors looking for dividend stocks to buy to capitalize on the Chinese market do have some options. Unsurprisingly, these names do have risk. Yet, they have real rewards, too -- both in terms of dividends and the possibility of further appreciation if renewed optimism toward China persists.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Top-Tier Dividend Stocks for 2020 So, let's take a look at a few Chinese stocks to possibly get your hands on. 3 Dividend Stocks to Buy: Las Vegas Sands (LVS)Source: Andy Borysowski / Shutterstock.com Casino operator Las Vegas Sands (NYSE:LVS) offers potentially the best combination of income and exposure to the Chinese economy. LVS hiked its dividend around 2.6% in 2020 in its third-quarter report, and now yields nearly 4.5% at the current price. That increase was the company's eighth-consecutive annual raise.However, despite its U.S. domicile, Sands's results rely almost solely on Chinese demand at this point. Through the first nine months of 2019, nearly 60% of Adjusted Property EBITDA came from the company's operations in the Chinese enclave of Macau. Nearly another 35% comes from the Marina Bay Sands property in Singapore -- which too attracts Chinese gamblers.As noted before, there are risks. Sands' concession in Macau expires in 2022, and must be renewed. However, the odds of Sands failing to secure an extension are "remote," as credit analyst Fitch put it earlier this year. Also, the thawing of the trade war is a big positive on this front; there was the chance that LVS chairman Sheldon Adelson, a prominent supporter of President Donald Trump, could get his company drawn into the proverbial crossfire.But, as Fitch noted, it's also possible that authorities could raise the tax rate or require other adjustments. Any "hard landing" in China could send profits tumbling. And, the dividend payout ratio is nearing 100% -- meaning hikes going forward likely will be minimal.Still, there's a nice bull case here. Income investors should check out Wynn Resorts (NASDAQ:WYNN) as well, which raised its dividend 33% this year and yields 2.9%. PetroChina (PTR)Source: Gil C / Shutterstock.com PetroChina (NYSE:PTR) seems like the forgotten Chinese giant. It has the second-highest market capitalization among U.S.-listed companies based in China, behind only Alibaba. Yet, it receives a fraction of the coverage of other Chinese names.Additionally, there's an attractive combination of exposure to Chinese growth and dividend income. PTR shares are cheap, at barely 13x forward earnings, but -- like LVS -- there are risks.Unlike most U.S. companies, PTR's dividend is inconsistent in terms of its size and is only paid semi-annually. The yield based on 2019 distributions is over 4% and nearing 5%, but that may not be the case in 2020 -- particularly with earnings declining of late. PetroChina needs oil prices to hold up, as well. * 7 Vaping Stocks to Get into Ahead of the Crowd Income investors looking for consistency might look instead to names like BP (NYSE:BP) or Exxon Mobil (NYSE:XOM), the latter of which clearly has seen some support thanks to its dividend. Those looking to add growth or potential upside, however, might considering swapping out those established names for the higher-upside PTR. China Mobile (CHL)Source: testing / Shutterstock.com Shares of China Mobile (NYSE:CHL) already have bounced nearly 10% since hitting an 11-year low this month. They may rally further this week thanks to the so-called "Barron's bounce". That publication called out CHL stock as a cheap, yet dominant play this weekend -- and made a strong case in the process.After all, as Barron's pointed out, China Mobile has 10 times the customers of Verizon Communications (NYSE:VZ) or AT&T (NYSE:T). And, like those U.S. giants, it has a 5G catalyst on the way. Yet, by any measure, it trades at a substantial discount to its American counterparts.With a 4.5%-plus dividend yield, there's a nice income case here as well. And, if CHL stock does rise too sharply this week, investors can also look at smaller rival China Telecom (NYSE:CHA).Obviously, both Chinese telecommunications companies need their domestic economy to cooperate. But, if it does, the gains in both stocks in recent sessions could be the prelude to substantial upside in 2020.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 2019 Losers That Will Be 2020 Winners * 7 Safe Dividend Stocks for Investors to Buy Right Now * 5 Artificial Intelligence Stocks to Consider The post 3 Dividend Stocks to Buy for China Bulls Heading into 2020 appeared first on InvestorPlace.
Is PetroChina Company Limited (NYSE:PTR) a good bet right now? We like to analyze hedge fund sentiment before conducting days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage […]
PetroChina, one of the largest buyers of liquefied natural gas (LNG) in the key LNG demand growth market, has offered the lowest bid in an LNG tender in Pakistan, in a sign that the Asian market continues to be oversupplied
The "phase one" trade deal announced by the U.S. and China Friday saw many stocks jump, with investors breathing a sigh of relief as the U.S. pulled back on $160 billion in new tariffs that were ...
Moody's Investors Service says that the A2 issuer rating, the A2 senior unsecured debt rating and the stable outlook on these ratings of Kunlun Energy Company Limited (Kunlun Energy) are not immediately affected by the announced negotiations between Kunlun Energy and China Oil & Gas Pipeline Network Corporation (PipeChina). On 10 December, Kunlun Energy announced that it is in negotiation with PipeChina to inject some of its gas pipeline assets into PipeChina.
Higher oil and gas production and drop in lifting costs helped PetroChina's (PTR) exploration and production unit profit surge 32.9% during the nine months ended Sep 30, 2019.
(Bloomberg Opinion) -- Everything is awesome in financial markets. The sense that a trade deal may finally be on the cards sent stocks and crude soaring in the U.S. Thursday, while flight-to-safety trades such as bonds and gold slumped. Both sides seem to be moving toward a phase one agreement that would involve jointly reducing tariffs in return for vaguer concessions on the underlying issues.“If there’s a phase one trade deal, there are going to be tariff agreements and concessions,” White House economic adviser Larry Kudlow told Bloomberg.“If China, U.S. reach a phase-one deal, both sides should roll back existing additional tariffs,” China’s Ministry of Commerce spokesman Gao Feng said earlier.There’s a laconic warning buried inside both of those statements: “If.”It’s certainly possible that President Donald Trump is tiring of the trade war and as desperate to get an agreement on the table as Beijing seems to think. But the current febrile atmosphere appears to have left the fundamentals of this dispute behind. A single tweet from @realdonaldtrump could be enough to puncture the party mood.Consider some of the things you might expect to be seeing if a significant agreement was really in the works. China is well aware of the importance of the bilateral trade deficit in Washington, and one of the most promising areas for any agreement is to sharply increase imports of American agricultural and mineral products.Yet China's biggest oil producer, state-owned PetroChina Co., is behaving as if the opposite plan is underway. In results last week, the company reported its trailing 12-month capital spending rose to the highest level since 2014, thanks to a government push to lessen China’s dependence on imported fuel.PetroChina’s returns on invested capital are already the worst of the oil majors, and pressure to extract more oil and gas from China’s unpromising geology will make that situation worse. A country that was serious about balancing out the trade relationship with the U.S. and making the most productive use of state companies’ cash would be looking for ways to tap America’s energy boom instead.It’s a similar case with agriculture. China could increase its imports of poultry, beef, pork and other products by as much as $53 billion just by removing current constraints on trade, according to a study last year by Minghao Li, Wendong Zhang and Dermot Hayes of Iowa State University.If anything, that’s probably low-balling it: You could add $10 billion to the total just by taking soybean imports back to where they were before the current round of trade tensions cut that trade close to zero. One only needs to look at China’s trade data released Friday to see that the opposite is happening. The surplus with the U.S. may be narrowing, but on a global, trailing 12-month basis it was the widest it’s been since May 2017. Part of that is simply the weakness of domestic demand. But hosting jazzy import conferences won’t change the fact that President Xi Jinping’s praise of zili gengsheng, or self-reliance, is just as pointed a retreat from trade as Trump’s “Make America Great Again” mantra.All this comes before even touching on issues around intellectual property, technology transfer and state involvement in the economy, which were ostensibly the reasons for this trade war in the first place. China continues to make quiet progress on the first front as if the trade war wasn’t happening; and formal technology transfer is shrinking, too, although stories of outright industrial espionage abound. On the third point, the Chinese state is, if anything, becoming an even more dominant economic actor than it was hitherto.What about this backdrop makes a deal seem so imminent? Beijing appears unlikely to make the sorts of concessions on the main issues under contention that would allow Trump to present an agreement as a personal victory. Trump, for his part, is presiding over a stock market that — thanks in part to all the optimism about a trade deal — hits fresh records every day, giving him no incentive to sign on to a deal that looks like a climb-down.Right now, markets are behaving as if the whole structure of trade impediments built up over the past two years could start getting dismantled within weeks. It’s quite as likely that, in the white heat of a breakdown, the levies suspended last month are reinstated, only to be followed by the final round still due to kick in Dec. 15. Should that come about, the current exuberance could turn into a hangover awfully quick.To contact the author of this story: David Fickling at firstname.lastname@example.orgTo contact the editor responsible for this story: Rachel Rosenthal at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
China's natural gas demand is expected to rise by more than 300 billion cubic metres (bcm) between 2018 and 2035, or 30% of global volume growth, stoked by the country's push to shift to the cleaner fuel from coal, a senior executive of PetroChina said on Wednesday. "It's slightly cheaper than central Asian gas but PetroChina will still be making a loss as it (the price) exceeds that of domestic city-gate benchmark rates," Ling told Reuters, speaking separately on the sidelines of the Singapore International Energy Week.
China’s imports of Venezuelan oil have fallen to a nine-year low as major Chinese oil companies scramble to avoid fallout from tightening U.S. sanctions
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