Daily Stock Analysis: PetroChina (PTR)

PetroChina Co Ltd, known by the ticker symbol PTR, is a large cap oil & gas integrated company in China and operates in the Energy business sector. This is my first report on PTR for my Viital stock portfolio or any of my six previous portfolios.

PetroChina, the national champion that inherited the majority of Chinese onshore oil and gas assets, has developed into an international supermajor. 

It produces more than 1.6 billion barrels of oil equivalent of oil and gas annually and has more than 1.2 billion barrels of annual crude oil primary distillation capacity and more than 22,000 service stations.


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The fluctuations in the prices of crude oil, refined products, chemical products, and natural gas have a significant impact on PetroChina’s revenue. State-owned China National Petroleum Corp is PetroChina’s controlling shareholder with a stake of more than 80%. The firm’s peers in China are Sinopec and CNOOC.

The company was founded in 1999 and is headquartered in Beijing, the People's Republic of China. 

Three key data points gauge any dividend equity or fund such as PetroChina Co Ltd  (PTR):

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money. 

PTR Price

PetroChina Co Ltd's price per share was $44.58 as of yesterday's market close. One year ago its price was $30.99. Therefore, PetroChina's share price rose $13.59 or 43.85% in the past year.

If PTR's stock trades in the range of $32.00 to $56.00 this next year, its recent $44.58 share price might rise by $8.42 to reach $53.00 by December 30, 2022. My estimate is $6.92 lower than the median of 1yr price estimates from four analysts who track PTR for brokerages.

PTR Dividends

PetroChina's most recent semi-annual dividend of  $2.01 was paid out November 8th, to shareholders of record October 8th. That semi-annual dividend and the one previously paid equal $3.37 annually and yield 7.56% per yesterday's 44.58 closing price. 

PetroChina Co Ltd  (PTR) has paid variable semi-annual dividends since October 16, 2000. That was 21 years in October.

PTR Returns

Adding the $3.37 annual estimated PTR forward-looking dividend to my $8.42 price upside estimate shows an $11.79 potential gross gain, per share, to be reduced by any costs to trade PTR shares.  

At yesterday's $44.58 price per share, a little under $1000 would buy 22 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.45 per share.

Subtract that maybe $0.45 brokerage cost from my estimated $11.79 gross gain per share results in a net gain of $11.34 X 22 shares = $249.48 for a 24.95% net gain on a $980.76 investment.

So it is that PetroChina Co Ltd (PTR) shows a possible 24.95% net gain including a 7.56% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in PetroChina Co Ltd  (PTR) could generate $75.60 in cash dividends alone. Note that a single share of PTR stock bought at yesterday's closing price was 44.58. Therefore, PTR share price is over one and one-half times less than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now is a prime time to pick up PetroChina Co Ltd  (PTR) shares. The estimated next-year dividend from $1K invested is 1.695 times PTR's single share price. Consider yourself alerted. It's a sign!      

All of the estimates above are speculation based on the past history of PetroChina Co Ltd  (PTR). Only time and money invested in this stock will determine its market value.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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