Deals
PetroChina's Slump Seen Ignoring Value of Oil Pipeline Spinoff
- China seeking to strip energy companies of pipeline assets
- Pipelines potential "goldmine" worth half current share value
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PetroChina Co.’s slump to the lowest in six years may be ignoring the potential value from spinning off its huge pipeline network as part of the country’s energy industry reforms.
Shares of China’s biggest oil and gas producer are trading in Hong Kong at the lowest since the global financial crisis, reflecting a plunge across the industry as oil prices collapse. The company, which has lost more than 45 percent in the past year, closed Monday at the lowest since March 2009. The stock isn’t reflecting the “goldmine” of its 77,000-kilometer (47,855-mile) pipeline network, according to Laban Yu, a Hong Kong-based analyst at Jefferies Group LLC. Shares were trading down 0.5 percent at HK$5.69 at 1:34 p.m. local time.