In this article, we will discuss the 15 most valuable government-owned companies in the world. You can skip our detailed analysis of these companies, and go directly to 5 Most Valuable Government-Owned Companies in the World.
Created by governments in order to partake in commercial activities on their behalf, government-owned companies (GOCs) are legal entities that are typically earmarked to participate in specific commercial activities. Apart from commercial ventures, GOCs are also involved in selling physical resources, mostly to trading bodies and other companies, and management of government resources, providing an avenue to governments through which they can be accountable for extractive resources. Their legal status can be varied, from being part of a government to stock companies with a state as a regular stockholder. Government-owned companies have become increasingly prevalent across the globe, especially prolific in countries like China, New Zealand, Saudi Arabia, South Africa, India, Russia, and the United States, where the number is in the thousands.
Major players in multiple economies, government-owned companies take up 55% of the total infrastructure investments in emerging and developing economic markets. Many GOCs operate globally, as multinationals, with shares among the 2000 largest corporations doubling 20% over the last decade, due to the rise of government-owned corporations in emerging markets. According to the International Monetary Fund (IMF), the value of government-owned companies’ assets worldwide is reported to be $45 trillion as of 2020, the equivalent of half the global GDP. Some of the largest government-owned companies include Freddie Mac Company (OTC:FMCC) and Fannie Mae Company (OTC:FNMA) in the United States, Saudi Aramco (XSAU:2222.SR) in Saudi Arabia and Eskom Holdings SOC ltd in South Africa, among others. Many public transportation systems and utilities are provided by government-owned companies, alongside multiple postal services and mining operations.
Let us now look towards the 15 most valuable government-owned companies in the world. The following list ranks the most valuable government-owned companies according to their total assets for the year 2020, and makes use of the revenue generated for that same year.
15. China National Offshore Oil Corporation
Total Assets: $111.69 billion
Headquartered in Beijing, China National Offshore Oil Corporation (CNOOC) is one of the largest national oil companies in the People’s Republic of China, with a focus on the exploration and development of crude oil and natural gas in offshore China. The CNOOC Group has 6 key business segments: exploration and development of oil and gas, technical services, chemical and fertilizer production, power generation, and insurance services. As of 2020, the company reported revenues amounting to $24.08 billion and ranks among the Fortune Global 2000 companies. With total assets of $111.69 billion, China National Offshore Oil Corporation ranks 15th on our list of the most valuable government-owned companies in the world.
14. Federal Deposit Insurance Corporation
Total Assets: $118.6 billion
The Federal Deposit Insurance Corporation is a United States government-owned corporation, which provides deposit insurance to depositors in American commercial banks as well as savings banks. As of 2019, the Federal Deposit Insurance Corporation provided deposit insurance at over 5,256 institutions within the US. The FDIC also observes and regulates certain financial institutions for safety and soundness, alongside performing consumer protection operations and managing the receiverships of failed banks.
13. Petróleo Brasileiro S.A. – Petrobras (NYSE:PBR)
Total Assets: $190 billion
Headquartered in Rio De Janeiro, Brazil, and known through its acronym Petrobras, Petroleo Brasileiro SA (NYSE:PBR) is a Brazilian government-owned multinational corporation specializing in the petroleum industry.
The company operates in several sectors, including the refining and marketing sector, which overlook the logistics and trading operations of crude oil and products, exploration and production sector, involved with the development and production of crude oil and liquified natural gases (LNG) in Brazil and internationally, as well as the gas and power sector, responsible for the trading of natural gases, alongside the trading and generation of electric power. As of 2020, Petrobras reported crude oil production of nearly 2.27 million barrels per day, a 4% increase from the previous year.
12. China Communications Construction Company (HKSE:1800.HK)
Total Assets: $200 billion
China Communications Construction Company (HKSE:1800) is a majority government-owned, publicly-traded, multinational construction and engineering corporation involved primarily in the design, construction, and management of infrastructure and assets, including highways, airports, marine ports, high-speed railways, and subways. As of 2020, the corporation employed over 133,000 people, with over 7.4% working as technicians.
11. Canada Mortgage and Housing Corporation
Total Assets: $240.64 billion
Headquartered in Ottawa, Ontario, Canada Mortgage and Housing Corporation (CMHC) is a Canadian government-owned company and is the largest Crown Corporation in Canada. The corporation’s primary objectives include providing mortgage liquidity, providing assistance in affordable housing developments, and presenting insight, information, and advice to the Canadian government and the Canadian housing industry. As of 2020, CMHC reported 94,000 housing units purchased across Canada through the corporation’s homeowner insurance products and over 173,647 rental housing units insured.
10. China Mobile Limited (HKSE:0941.HK)
Total Assets: $250 billion
China Mobile Limited (HKSE: 0941) is a Chinese government-owned company that provides communication services in all 31 provinces, autonomous regions and directly administered municipalities across mainland China and Hong Kong, boasting the largest communications customer base in the world, with over 942 million mobile customers in 2020 and 210 million wireless broadband customers in 2020. The company’s operations focus mainly on mobile voice and information services, provision of wireless broadband, and communication services.
9. Electricite de France S.A (EPA: EDF.PA)
Total Assets: $361.80 billion
Electricite de France S.A (EPA: EDF), commonly referred to as EDF, is a French multinational electric utility company that is largely owned by the State of France. Headquartered in Paris, EDF operates a varied portfolio of 120+ Gigawatts of energy generation capacity throughout Europe, North America, South America, Asia and Africa. Specializing in electrical engineering and distribution, with operations including electricity generation, energy trading, alongside power plant design and construction. Its power generation technologies range from nuclear energy, solar energy, biomass, hydropower and geothermal energy, among others.
8. China National Petroleum Corporation
Total Assets: $390 billion
Headquartered in the Dongcheng district of Beijing, China National Petroleum Corporation (CNPC) is a major government-owned company with governmental administrative functions, involved in the oil and gas industries. The parent company of the second-largest oil producer in the country, PetroChina (NYSE: PTR), CNPC operates over 26 refineries with a combined processing capacity of 152 million tonnes per year, with overseas production activities spread across 38 countries in Africa, South America, and the Asia-Pacific.
7. Saudi Arabian Oil Company (XSAU:2222.SR)
Total Assets: $510.4 billion
The Saudi Arabian Oil Company (XSAU: 2222), also known as Saudi Aramco, is headquartered in Dhahran. One of the largest companies in the world based on revenue and market capitalization, the company not only has the world’s second-largest proven crude oil reserves but also the largest daily oil production of all oil-producing companies in 2020. Managing over 100 oil and gas fields in Saudi Arabia, the company owns 288.4 trillion cubic feet of natural gas reserves and is ranked as the 5th largest public company in the Fortune Global 2000 list of 2020.
6. State Grid Corporation of China
Total Assets: $680 billion
Commonly known as State Grid, the State Grid Corporation of China is a China government-owned electric utility company headquartered in Beijing. State Grid distributes electricity in over 26 provinces, covering around 88% of the Chinese national territory and serves approximately 1.1 billion people in the country.
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Disclosure: None. 15 Most Valuable Government-Owned Companies in the World is originally published on Insider Monkey.