Public Sector Companies or Public Sector Enterprises are companies that are taken care of by the government of the respective country. The share of the government should be simple majority i.e. 51% or more.
Even though it is only thought that private sector companies can have huge turnovers and sales, public sector companies when driven well can actually reach the top with its huge labour and varied skill set. Here is a list of the top 10 public sector companies in the world in 2019.
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PetroChina is the oil and gas company headed by the Chinese Government. It has a large base of labour with up to 535 thousand people as employees. It has a sales of $215 Billion and has a net worth of $205 Billion. This company is involved in the refining of oil in its raw form, i.e. crude oil and also produces chemical and electrochemical products. It does all of this while promoting greenery and spreads awareness regarding reduction of environmental pollution. According to PetroChina, this can be achieved by optimum utilisation of all the resources we’re provided with as well as reducing discharge of harmful pollutants.
9. Bank Of China
Established long back in the year of 1912, Bank of China is one of the largest state-owned banks of China with assets worth up to sales worth $113 Billion. It is also the 5th largest bank in the world in terms of Market Capitalisation Value and operates worldwide. It provides financial services as well as the basic banking facilities to not only its citizens but also the government and other financial institutions in the country. Along with this, Bank of China also provides investment and insurance services. Formed as a replacement to an older bank Daqing, Bank of China is now the oldest bank in the country.
8. Wells Fargo
Wells Fargo is an American public sector company with its headquarters in San Francisco, California. Operating under the respective segments such as Community banking, Wealth management, Wholesale banking, etc, it provides banking facilities on a huge scale all over the world including asset management, mortgage loans and a lot more. As of 2016, it had revenues of $88.26 Billion and assets worth $1.9 Trillion. Also, Wells Fargo has its offices in 6 other countries and works under the First National Bank Charter issues in the USA.
ExxonMobil is based in Texas, USA. With sales of over $198 Billion dollars and market cap of $343 Billion, it is the world’s 5th largest company when it comes to oil and gas. It deals mainly with trading of international oil and gas. Not only that, it is also involved in exploring other such underground products and distributing them post processing, development and production of the same. The three segments it works under are : Chemical, Upstream and Downstream.
Sinopec, also known as the China Petroleum and Chemical Corporation Company is based in Beijing and was established in the year 2000. It is a petroleum and petrochemical enterprise group which also undertakes the importing and exporting of the same, including crude oil, refined oil, petrochemicals, etc. Sinopec is the largest company right now when it comes to petrochemical products and oil products.
5. State Grid
This public sector company based in China deals with energy supply in the country and also serves worldwide – it is the largest utility company in the world. It has a monopoly in that sector as well. It is currently helping in converting energy and transporting in to rural regions such as solar energy and wind energy to all parts of China. Not only that, it also takes initiatives to reform the utility in the entire country. It has a subsidiary known as Yingda International Trust.
4. Bank Of America
Bank of America is the second largest bank in the United States of America and is worth $89.7 Billion. It provides banking and financial services and is a multinational company assisting with corporate and investment banking. It has over 4600 retail financing centre and provides world-class services online, through mobile phones as well as through call centres. It was founded in the year 1904, has headquarters in 4 countries and has a revenue of over $90 Billion.
3. Agricultural Bank of China
With assets worth 13.2 Trillion CN, the Agricultural Bank of China provides international banking as well as financial services. It also deals with corporate loans, advances, deposits, Treasure operations, etc. Now, it has also spread to currency trading and corporate banking. It has now become a very dominant and prominent bank in rural areas for the amount of services it provides. It is also one of the ‘Big Four’ of China.
2. China Construction Bank
Founded in the year 1954, China Construction Bank is one of China’s ‘Big Four’ and is known to provide world-class services and deals with both corporate dealings as well as private equity and mortgage loans and services. Along with that, it also has a Healthcare Investment Fund to keep up with the advances in the healthcare sector of China. The interest rate cut made by the government initially hurt the revenue but now that CCB is spreading worldwide, it has risen up to be the second largest state owned bank.
1. Industrial and Commercial Bank of China
With net assets worth 22.3 Trillion CN, the Industrial and Commercial Bank of China is the world’s largest bank when it comes to assets and valuation. Also, the recent 2017 report that deals with market capitalisation has also announced that it is the most valuable banking company. ICBC provides banking and financial services worldwide, including consumers, investors and well as corporate companies. It mostly deals with private equity and mortgage loans. It recently started its robo-advisor services for asset management services.
Thus, even though people often claim that government is not efficient, does not work well enough and that it isn’t capable of being the world’s biggest companies sometimes, the above mentioned companies have proved the opposite. It might lack in revenue sometimes but it is never lacking in incentive and labour. When the government spends it revenue on such productive initiatives, it is bound to progress and make its way to the top.