(Yicai Global) June 2 -- PetroChina Co. [SHA:601857] said on May 30 that it plans to sell its 51 percent stake in Yueyang Natural Gas Co. for its original listing price of CNY10.2 million in the state-owned refiner's fifth divestment in two months.
PetroChina's decision to dispose of so-called zombie enterprises is partly due to its own poor performance. It posted a loss of almost CNY13.8 billion for the first quarter of this year, making it the biggest loss-maker among all listed companies. The company's debts totaled nearly CNY1.06 trillion at the end of March.
Yueyang Natural Gas has suffered heavy losses lately. It had a net loss of CNY1.38 million on operating income of just CNY6 million.
The last two subsidiaries sold by PetroChina, Nanjing Kunlun Gas Co. and Zhuzhou Kunlun Gas Co., also posted dismal earnings. The former, though shut down, is still running up losses -- CNY32,700 last year despite zero operating income. Zhuzhou Kunlun Gas had a loss of almost CNY6.6 million on revenue of CNY1.25 million.
Both units are also burdened with heavy debts, and many of its projects have been suspended. Liaoyang Petrochemical Co. and Lanzhou Petrochemical Co., both under PetroChina, also plan to give up a number of projects.
After the divestments PetroChina and Kunlun Energy Co. [HKG:0135], which is controlled by PetroChina, will benefit from the disposal of assets, and should see performance improve after.