Boeing sees big expansion CNPC mulls small-cap in long-haul air market oilfield services listing

Firm says nation may become first $1 trillion Move dovetails with possible plans to plus aviation market turn firm into strategic holding company

Boeing Co said on Tuesday that China China Nationalis now Petroleumthe most Corp, dynamic the market country’sfor international biggest oil and flights, gas and producer,it is very positive may use abouta small-capthe outlook companyfor the called growth Daqingof China’s Huake long-haulCo as a vehicle market, dueto listto strongits oilfield domestic services and overseasunit and travel avoid demand,an initial and a public rising middle offering, class. according Theto sources.plane manufacturer lifted CNPC,its which forecast ownsfor China, about 55 and percentsaid the of nation Daqingis likely Huaketo throughbecome the two first subsidiaries,country with is alsoan aviation considering market using exceeding the Shenzhen-listed$1 trillion in the next companytwo decades. for its Chinese equipment-makingairlines are estimated unit, said to the purchase people. There6,810 is airplanesno timeline valued forat $1.025the possibletrillion in listing,the next they20 years. said. Daqing Among Huake the board new deliveries, secretary Meng Boeing Fanli predicts and thata BeijingbasedChina will need spokesman5,110 newsingle-aisleat CNPC airplanes through 2035, accounting for 75 percent of the total, and China’s widebody fleet is to triple in size over the next two decades.

“As China transitions to a more consumer-based economy, aviation will play a key role in its economic development,” saidRandyTinseth,separately declined vice-president to comment.of marketing at Boeing CommercialDaqing Huake Airplanes. rose as much “Becauseas 8.6 travel percent,and transportation the biggest intradayare key services, advance we in expectthree to months,see passenger before traffic paring grow its 6.4 gain percentto trade annuallyup 3.7in China percent overat 26.44the next yuan20 years.” ($4.01) at Meanwhile,10:08 local low-costtime. The carriers CSI 300 and Index full-serviceof some of airlines China’s have largest been companiesadding airplaneslisted in and Shanghai expanding and new Shenzhenpoint-topoint slipped services0.2 percent. between smaller CNPC cities announcedto cater for so-calledboth leisure backdoor and listings business earlier travel this demandyear to inject from its a rising engineeringmiddle classunit in into China Xinjiangand throughout Dushanzi Asia. Tianli High & New Tech Co and In financialthe last businessfive years, assetsthe numberofsuch as Kunlun direct internationalTrust Co and flights Kunlun to Financialand from LeasingChina saw Co a into surge Shandong-basedof 150 percent. Direct Jinan flights Diesel Engine between Co. second-tier Chinese cities and overseas Randy Tinseth, cities CNPC have wouldbeen the be main the driving last among force of China’sthe growth.big three State-runTinseth saidoil the companies continuing to expansionlist its oilfieldof China’s services middle unit. class, China Petrochemicalcoupled with Corpnew relaxed merged visaits oilfield policies servicesand a wide assets range into of smallerwide body listedairplanes unit Sinopecwith new Yizheng technologies, Chemical capabilitiesFibre Co andin 2014. efficiencies, gives CNOOC Boeing Ltd, sufficientthe country’sreason to biggest expect offshorea very bright producer,future for took China’s China long-haul Oilfield market. Services Ltd Li public Xiaojin, in a professor2002. at the Civil CNPC Aviation Chairman University Wangof ChinaYilin in said Tianjin,in Februarysaid China theis expected to have a surge on international travel volume. By 2020, China is likely to witness 200 million international trips company annually. plans to spin off and “The list trendits of oilfield-servicesairlines to add more business. internationalThe listing flights dovetails between with first-tier plans Chineseto possiblycities transformand second-tierthe energy foreign giantcities, into and a vice-versa, strategic is holdinglikely to continue company to that grow won’t rapidly, managesince the day-to-daydirect flights operations betweenfirsttierof its subsidiaries.cities are nearly saturated, and A backdoordemand is listing keeps is growing.”a way to take a company public withoutOn the an other IPO hand,by movingdriven by assets China’s into growingan already-listede-commerce stock. business Waiting— already times the in largest China in for thea world traditional— air cargo listing is can expectedbe moreto become than a fourkey driveryears afterfor the a company continuous files growthan application,of aviation basedin China,on the with estimatedthe need numberfor 180of dealsnew freightersper year and and the 410 size convertedof the freighters.backlog.

In The the Chinapast five Securitiesyears, the express Regulatory delivery Commissionservices saw an this averageyear annualhas approvedgrowth rate 98 in IPOs their out totalof volume844 applicationsof 55 percent, it processedand sales revenuesas of Sept grew 1, by accordingan annualto data average from of the39 percent, commission. according to the State Post Bureau.

XCNPC would be We expect to see the last among China’s passenger traffic big three Staterun grow 6.4 percent oil companies annually in China.” to list its oilfield

vice-president of services unit. marketing at Boeing Commercial Airplanes

REUTERS XINHUA A Boeing employee uses a lift to get a view of an 787 engine during a media presentation at Boeing’s site in Everett. An employee of China National Petroleum Corp works at the company’s site in Huatugou, Qinghai province.