Study On Valuation Of Petroleum Companies

The internationalizing step of China's petroleum companies accelerates since the Central Committee of CPC brought up the "going out" stategy in 2000. The overseas M&A and listing increases gradually. On the meantime of enjoying the internationalizing banquet, the Chinese petroleum companies are also subjected to the ordeal of internationalization. For the Chinese petroleum companies, no matter daily investment or strategical investment, no matter investors in capital markets or entrepreneurs, and no matter an integrated company or an oil field block, all of them need accurate valuation. Only by this way could they realize the ultimate goal of maximizing the enterprise value through the interacting of product business and capital operation.On the basis of summarizing enterprise valuation theories, this paper analyzes characteristics, siganificanse, contents, principles and procedures. Depending on the annual reports, financial statements and share price data of Sinopec and its peers, the paper forecasts future financial statements of Sinopec by means of basic financial analysis methods, such as comparative analysis, sales percentage analysis and DuPont analysis, uses DCF method, EVA method, real option model and market valuation method, and combines with sensitivity analysis, correlation analysis and regression analysis to evaluate the enterprise value of Sinopec. Meanwhile, the paper analyzes the value of oil and gas E&P sector of Sinopec with Black-Scholes model of real option method, compares the valuation results, and ecommends the major methods suitable for petroleum companies'valuation.