PetroChina's Cure Involves Halving Its Workforce, Says Bernstein
- China’s top oil firm employs more than five majors combined
- Market cap has plunged since firm topped $1 trillion in 2007
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Sanford C. Bernstein & Co. has a simple prescription to cure what ails PetroChina Co.’s share price: do less national service and pay more attention to investors.
The state-controlled giant, which holds its annual general meeting tomorrow, should focus investment on its best drilling projects, slash its bloated workforce, shut down refineries, curtail money-losing natural gas imports, and restructure management’s incentives so that they’re better aligned with shareholder goals, analysts including Neil Beveridge said in a note that included an open letter to Chairman Wang Yilin.