Petrochina 0857

[winston]

not vested

F-Rated Duds to Ditch: PetroChina Company (PTR)

Ditch It Because: Volatile oil prices

PetroChina Company Limited (ADR) (NYSE:PTR) is a classic example of how the word China makes everything all right.

The Chinese economy is not in any better condition than any other developing economy. And there is renewed talk that oil can fall from its $50 range back to the low $40s. That hurts producers like China where oil is more expensive to get out of the ground.

Also, a recent report shows that U.S. inventories were not drawn down as much as expected in recent weeks. That’s a troubling sign because we are in the summer driving season. This means people — and businesses — are using less gas, which means there’s less shipping of goods and travel around the country.

All this spells even more trouble for PTR. Right now, investors have been whistling past the graveyard and expecting China’s economy to pivot and PTR will be a big winner. That’s why the stock is basically flat year to date.

But in March, PTR reported profits were down 67%, the lowest figures since 1999. It’s 4.3% dividend is no reason to be optimistic about this stock.

Source: Investor Place

[winston]

not vested

<Research Report>G Sachs Rates PETROCHINA (00857.HK) at Buy with Target Cut to $6.5

Goldman Sachs, in its report, said PETROCHINA (00857.HK)'s 3Q16 EBIT exceeded the broker's expectation, but so did income tax and minority interest. Hence, 3Q16 net profit was below estimates.

During the period, the revenue of RMB411 billion (down 4% yearly) exceeded the broker's estimate.

Goldman Sachs kept the rating at Buy with target price cut by about 3% to $6.5.

The broker said that for the Exploration and production (E&P) unit, the loss was narrowed to RMB1.5 billion, due to higher oil prices and lower output quarterly.

The broker forecasted the company's 4Q16 operating loss likely to be higher than that in 3Q16, due to lower oil and gas prices.

During the period, refining and chemicals profits fell by 47% quarterly; natural gas and pipeline profit fell by 4% quarterly and 39% yearly, as a result of higher loss from gas imports.

However, a potential gas price hike may pose upside risks to near-term profits.

Source: AAStocks Financial News

[winston]

<Research Report>UBS Lifts PETROCHINA (00857.HK) Target to $7.8; Rated Buy

UBS, in its report, said with the uncertainty over the gas market in the last 2-3 years, investors started to view PETROCHINA (00857.HK)'s gas exposure as more of a liability than an asset.

Indeed with the gas demand disappointment of 2014-2015 and uncertainties surrounding gas prices and pipeline restructuring, such perception is no surprise.

However, this could change. PETROCHINA is aiming to raise industrial gas prices by 10-20% starting from 20 November, and UBS believed that gas prices will be up yearly throughout 2017.

The broker lifted the 2016/2017 EPS forecast of PETROCHINA from RMB-0.11/RMB0.18 to RMB0.05/RMB0.25 respectively, and kept the rating Buy with target price lifted from $7.7 to $7.8.

Source: AAStocks Financial News

[winston]

not vested

<Post Result>Brokers' Latest Ratings & TPs on PETROCHINA (00857.HK) (Table)

PETROCHINA (00857.HK) shot up this morning. The company yesterday (24 August) announced the interim results ended June 2017. In accordance with International Financial Reporting Standards, the net profit leaped 22.9 times yearly to RMB12.676 billion, with an EPS of RMB0.069.

An interim dividend of 3.117 fen and special dividend of 3.809 fen were declared, marking a surprise.

The turnover amounted to RMB975.909 billion, up 32.05% yearly.

7 brokers updated their ratings and target prices:

Brokers/ Ratings/ Target prices (HK$)
Haitong International/ Buy/ 7.7
Jefferies/ Buy/ 7.5
JPMorgan/ Neutral/ 6.1
BOC International/ Buy/ 5.82->5.96
Deutsche Bank/ Hold/ 5.51
Credit Suisse/ Neutral/ 5
Citigroup/ Sell/ 4.2

Source: AAStocks Financial News

[winston]

not vested

Sep 26, 2017

<Research Report>UBS: PETROCHINA (00857.HK) To Put More Capital in Gas, Chemical Projects; Kept Buy

UBS said in its report that PETROCHINA (00857.HK)'s management delivered messages of active changes to the group at the non-trading roadshow in Europe with particular focuses on more efficient capital allocation, shareholder returns (dividend) and technological improvement etc..

PETROCHINA's management also planned to allocate more capital in gas and chemical projects and less in oil and road transport fuels.

UBS said the company had free cash flow of RMB 84 billion last year while the management said it will exceed that level this year.

UBS believed the free cash flow will help the group to implement friendly dividend policy and support share price. The rating was kept at Buy with target price of HK$6.9.

Source: AAStocks Financial News

[winston]

not vested

Sep 6, 2017

<Research Report>UBS Lifts PETROCHINA Target to $6.9; Rated Buy

UBS, in its report, believed that the market has underestimated the sustainable free cash flow and participation in natural gas market of PETROCHINA (00857.HK), saying that its payout ratio was lower than its counterparts which resulted in the underperformance of the stock starting from 2H14.

Hence, the research house believed that 1H17 payout was higher than expected which reflected that the management willingness to share the company's free cash flow.

While it is too early to predict whether PETROCHINA will declare special dividend or not, it is believed that interim dividend of RMB0.07 per share should be the minimum nominal payment during the forecast period.

UBS expected PETROCHINA to generate approximately USD12 billion to USD14 billion free cash flow each year in 2017 to 2019, supporting the expectation for at least USD4.5 billion of dividend payout annually.

The target price was lifted to $6.9 from $6.8 and the investment rating was Buy in terms of SOTP.

SINOPEC CORP (00386.HK) remained as the top pick for the research house.

Source: AAStocks Financial News

[winston]

not vested

Aug 25, 2017

<Research Report>M Stanley: PETROCHINA Results, Div Top Estimates; Rated Overweight

Morgan Stanley, in its report, said that PETROCHINA (00857.HK) upbeat results and improving dividend are major positives.

The oil company's 1H data confirmed that its gas profit was better than expected and hence a winter premium should be likely.

The research house set the investment rating at Overweight with a target price of $6.21.

Reportedly, PETROCHINA delivered 1H net profit of RMB12.7 billion, 15% above the high end of its profit alert range of RMB9-11 billion.

Interim plus special dividend totaled 6.926 fen, equivalent to a payout ratio of 100% or annualized dividend yield of roughly 3%.

Source: AAStocks Financial News

[winston]

vested

PetroChina controls some 20,000 petrol stations, and sold more than 62 million tonnes of gasoline last year, worth about 357 billion yuan at 2016 prices.

PetroChina is slightly less dependent on refining than Sinopec – gasoline sales made up roughly a fifth of revenues.

However, investors appreciate the higher margins the company earns from refining and other downstream operations when oil prices are subdued, as they are now.

Source: Reuters

[winston]

not vested

The Biggest Stock Collapse in World History Has No End in Sight

By Kana Nishizawa and Aibing Guo

PetroChina, the first $1 trillion company, has sunk since 2007
The oil producer will report third-quarter earnings on Monday

Ten years after PetroChina peaked on its first day of trading in Shanghai, the state-owned energy producer has lost about $800 billion of market value -- a sum large enough to buy every listed company in Italy, or circle the Earth 31 times with $100 bills.

If the average analyst estimate compiled by Bloomberg proves right, PetroChina’s Shanghai shares will sink 16 percent to an all-time low in the next 12 months.

PetroChina shares trade at 36 times estimated 12-month earnings, a 53 percent premium versus global peers.

The H shares, which account for less than 12 percent of PetroChina’s total shares outstanding and trade at a discount to their Shanghai counterparts, may rise 31 percent over the next year.

PetroChina could return a “huge” amount of cash to shareholders if it decides to start spinning off pipeline assets.

Source: Bloomberg

https://www.bloomberg.com/news/articles ... d-in-sight

[winston]

not vested

<Blue Chip Results>PETROCHINA (00857.HK) 1-3Q Net Profit Up 903% to RMB17.366B

PETROCHINA (00857.HK) announced the result for the first three quarters ended 30 September 2017.

During the period, in IFRS, revenue rose 26.7% yearly to RMB1.46 trillion; net profit surged 903% yearly to RMB17.366 billion; EPS amounted to 9 fen.

In 3Q17 alone, turnover rose 17.1% yearly to RMB481.795 billion; net profit soared 290.8% yearly to RMB4.69 billion; EPS amounted to 3 fen.

In 4Q17, it is expected that the global oil market will be basically balanced and the international oil prices will continue to fluctuate within a certain range.

The net profit attributable to equity holders of the company for 2017 is expected to increase substantially as compared with the same period of last year.

Source: AAStocks Financial News