MOSCOW (MRC) -- PetroChina Co. passed Exxon Mobil Corp. as the biggest energy company by market value for the first time since 2010, said Bloomberg.
As the attached chart shows, Exxon’s capitalization was USD352.6 billion through yesterday, compared with PetroChina’s USD352.8 billion as of 1:36 p.m. on Thursday in Shanghai. The Chinese company’s A shares surged about 61 percent the past year, versus Exxon’s 14 percent drop. PetroChina was larger by value most recently at the close of trading on June 25, 2010, data compiled by Bloomberg show.
The Shanghai Composite Index has gained about 88 percent over the past year, the best performance among major indexes tracked by Bloomberg, amid speculation the central bank will extend cuts in borrowing costs and on increased use of leverage to buy stocks. The Chinese yuan has declined 0.1 percent versus the dollar the past year even as most currencies weakened.
Earnings of both companies have been squeezed by the plunge in the price of oil. Exxon’s adjusted net income of USD6.3 billion in the fourth quarter was the lowest since a loss in the final three months of 2009, according to data compiled by Bloomberg. PetroChina’s profit was 11.1 billion yuan (USD1.8 billion) in the same period.
Almost all the operating profit in 2014 of PetroChina, which is 86.5 percent owned by state-controlled China National Petroleum Corp., came from the exploration and production sector, with small contributions from its natural gas and pipeline unit. The refining and chemicals unit had an operating loss last year.
PetroChina Company Limited, is a Chinese oil and gas company and is the listed arm of state-owned China National Petroleum Corporation, headquartered in Dongcheng District, Beijing. It is China's biggest oil producer.