PetroChina is worth less than its energy reserves

Better prospects: A worker checking the pipelines at a PetroChina oil field on the outskirts of Guang’an, Sichuan province. Analysts say prospects for PetroChina is set to surge 42% over the next year. — Reuters

SINGAPORE: PetroChina Co looks cheap on many levels, perhaps none more so than comparing it to the value of its reserves beneath the Earth’s surface.

By plotting its enterprise value against reserves, China’s state-run oil and gas champion is the cheapest among global energy firms tracked by Sanford C. Bernstein & Co. Its shares have sunk 14% in Hong Kong this year to trade almost at the lowest since 2005. That’s despite a 19% gain in crude prices.