PetroChina to sell natural gas company for CNY 72 million

It is reported that Petro China offered its wholly controlled subsidiary, Zhuhai Donghua Natural Gas Limited for sale at a price of CNY 72.07 million on the China Beijing Equity Exchange after years of poor performance. Donghua Natural Gas processes and sells natural gas. The company recorded 2010 sales revenues of CNY 315 million but incurred a loss of CNY 1.

9 million. At the end of 2010, the firm total assets hit CNY 112 million and net assets were CNY 64.64 million. The offer price of CNY 72.07 million was based on the appraised value of the firm s net assets as of March 2010. Buyers are limited to stated owned companies with registered capital of more than CNY 700 million.

At present, Petro China s domestic natural gas business is still operating at a loss with each cubic meter losing CNY 0.8.