PetroChina's stock is listed on the Shanghai Stock Exchange (601857.SS) and Hong Kong Stock Exchange (0857.HK). The company was first listed in the year 2000 and is one of the world’s largest oil and gas producers, headquartered in Beijing, China
PetroChina Shares Today (601857.SS)
PetroChina serves as the publicly traded arm of China National Petroleum Corporation (CNPC), China’s state-owned energy giant. Founded in 1999, PetroChina plays a pivotal role in the exploration, production, refining, and distribution of oil and gas, both domestically in China and internationally.
The company operates in upstream, midstream, and downstream segments, with interests in crude oil, natural gas, refined products, and petrochemicals.
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Oil & Gas Industry Comparison
PetroChina EPS and Revenue Breakdown 2020-2023
| Year | EPS | Annual Revenue |
|---|---|---|
| 2020 | $0.01 | $109.54 billion |
| 2021 | $0.07 | $134.16 billion |
| 2022 | $0.12 | $124.98 billion |
| 2023 | $0.12 | $175.03 billion |
PetroChina Dividend Yield
PetroChina’s stock surged between January 2023 and the first quarter of 2024, putting it back at levels last seen in 2015. However, a more recent dip has seen it trade more in line with its 2018/2019 levels, driven by economic concerns in China. As of October 25, 2024, the stock is trading around the CNY 8.39 level, pressured by economic concerns.
The company has a strong track record of dividend payments, making it appealing to income-focused investors.
Dividend Yield: 6.36%
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PetroChina Stock Price Forecast
Analysts’ outlook on PetroChina is overwhelmingly bullish, although there are a few with bearish views on the stock. Out of 20 analysts, 18 recommend a Buy, while two analysts have assigned the stock a Sell rating.
A View From The Bulls: As a major player in the global energy market, PetroChina should benefit from the increasing demand for oil and natural gas, particularly in emerging economies. While some have predicted a slowdown in demand over the next few years, analysts at Goldman Sachs predict global demand for oil will to grow for the next decade. According to a report by Goldman Sachs Research: “While some prominent forecasters have predicted oil demand will peak by 2030, our researchers expect oil usage will increase through 2034. That’s in part because of demand for oil from emerging markets in Asia and demand for petrochemicals.”
Focusing on PetroChina, the Chinese government's support for the energy sector and its efforts to promote energy security should help PetroChina's prospects, while the company recently said its “wind power and solar power business segments are developing rapidly.”
A View From The Bears: On the other hand, PetroChina faces several challenges that could dampen its investment prospects. The company's heavy reliance on the Chinese economy, particularly its state-owned nature, which exposes it to potential political risks and economic fluctuations within the country. Those economic risks have been seen recently. In addition, there is the case that oil demand will peak in 2030 as the energy landscape aims to shift towards renewable sources, which could impact the long-term demand for fossil fuels.
Average Analyst Consensus 12-Month Price Target: CNY 10.87
Our View: PetroChina offers a balanced mix of traditional and emerging energy investments, making it well-suited for investors seeking exposure to both oil and natural gas markets. The company’s focus on natural gas expansion aligns with global efforts to reduce carbon emissions, though it remains heavily dependent on crude oil for revenues.
PetroChina’s strong dividend yield appeals to income-focused investors, but volatility in global oil prices and geopolitical risks pose potential headwinds. Additionally, regulatory challenges in China’s energy sector could impact operations in the medium term.
Who Should Buy PetroChina Shares?
PetroChina shares will appeal to income-oriented investors looking for dividend stability and exposure to the global energy sector. The company offers growth opportunities through its expansion and investments in clean energy technologies.
However, the stock is not too suitable for those seeking rapid growth, as the energy sector is subject to price volatility and regulatory pressures.
Investors comfortable with long-term exposure to commodity cycles and geopolitical risks will find PetroChina attractive. However, those looking for lower-risk investments or faster returns may prefer companies with more diversified energy portfolios or a greater focus on renewable energy.
PetroChina presents a strong opportunity for dividends and provides exposure to China's increasing energy demand. However, investors should be aware of challenges such as oil price fluctuations and the country's economic climate. Those with a long-term investment perspective and a willingness to accept volatility in the energy sector may find PetroChina an attractive option for their portfolios.
