PetroChina market value reaches US$420bil

By The Star

HONG KONG: Shares in Asia's top oil and gas company, PetroChina Co Ltd, jumped 10% yesterday on optimism about its fourth-quarter performance, putting the Chinese company on par with General Electric as the world's second most valuable firm.

The surge in the shares to an all-time high of HK$18.34 gave the state-backed energy producer a market value of as much as US$420bil, rivalling GE, the world's most highly valued listed company after Exxon Mobil.

PetroChina has soared some 60% since the start of September as Chinese media reports of big new discoveries fuelled voracious demand for the stock.

“We believe after the company's A-share listing (in Shanghai) is launched next month, PetroChina is likely to announce a number of substantial oil and gas discoveries,” said Citigroup energy analyst Graham Cunningham in a research report. “We thus expect strong short-term (23 months) share price performance.”

PetroChina added to the optimism yesterday with third-quarter production data showing it had pumped more oil and gas while managing to pass price increases on to customers.