(VIANEWS) – PetroChina, the Chinese state-owned producers of petrochemicals have pulled their listing out of the New York Stock Exchange amid rising tensions with regulators. The firm announced the change on August, together with Sinopec, Aluminum Corporation of China, and China Life Insurance, which are also state-owned. Both companies pointed to small trading volume for the US exchange, as well as the need for “considerable administrative burden for performing the disclosure obligations as necessary for maintaining the listing.” The US and Chinese governments have been arguing about how much the access US officials should get access to environmental and financial statements to be able to examine Chinese-owned companies.
Is PetroChina in trouble?
Despite being the largest producer of crude oil and gas in China, PetroChina is going through a tough year. China has clamped down on speculative trades, which has taken a toll on the company’s share prices.
Previous earnings data saw profits plunged 77%, and capital expenditure rose 25%. The company plans to exit the New York Stock Exchange and begin trading over the counter in the US.
There have been numerous reasons behind the company’s stock price going down. These include the collapse of the Chinese equity market, the drop in oil prices, and a clampdown on speculative trades.
The oil price crash in 2014 severely affected oil and gas giants across the globe. In fact, China’s CSI 300 Energy Index has dropped by 73 percent in the past decade. China is also undergoing a transition from a coal-based economy to an electric vehicle era.
There are several factors behind the decline in PetroChina’s stock price. The market thinks the company’s assets are worth less than what the company claims. There have also been reports of dual listings, which means that stock is sold to international investors in Hong Kong.
The Chinese government has been clamping down on speculative trades, and has imposed stricter controls on the financial industry. As a result, the company has lost $800 billion of market value.
There are several ways to calculate the intrinsic value of a company. Market value is different from book value, which is the value recorded on the company’s balance sheet.
The company’s return on equity, which measures the profitability of a business relative to shareholder’s equity, for the twelve trailing months is 8.9%.
PetroChina saw a sales increase of 59.9% in the most recent quarter, and 40.8% the following.
Morningstar, Inc. claims that the next dividend payment will be on Jun 15, 2022. The forward dividend rate for the year is estimated at 3.52%, and the forward dividend yield to be 7.55%.
Yearly Top and Bottom Value
Its 52-week low was $41.48 while in the NYSE.
Year-on-year quarterly revenue growth grew by 41.2%, now sitting on 2.84T for the twelve trailing months.
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