Sunshine Oilsands posts C$13m interim loss

PUBLISHED : Wednesday, 13 August, 2014, 11:07am
UPDATED : Wednesday, 13 August, 2014, 11:07am

Sunshine Oilsands reported on Wednesday an interim net loss of C$13.1 million (HK$92 million), a 20 per cent improvement on last year’s first half.

The Hong Kong- and Toronto-listed energy firm, based in the Canadian province of Alberta, specialises in extracting and processing oil sands.

It said the loss was generally attributable to administrative costs of C$9.1 million and finance costs of C$5.2 million.

Losses were offset by a C$6.6 million gain on the fair value adjustment on share warrants, the firm said in a stock exchange statement.

Sunshine declared roughly the same costs last year’s first half, but in that period it lost C$2.6 million on its warrants position.

The firm also disclosed negative cash flow of C$13.1 million this year’s first half, an improvement on the C$16.5 million cash outflow in the same period last year.

At the end of June, the company had a cash balance of C$24.4 million, compared with C$15.9 million at the end of December.

Sunshine sought a mandate to issue shares in mid-March, but a 70 per cent fall in the share price from the start of the year to mid-April forced management to change tack. The firm announced on Friday the issue of US$200 million of senior secured notes.

The company is backed by the asset management arms of Bank of China and China Life Insurance, sovereign fund China Investment Corp and oil major Sinopec.

Oil sands are a mixture of clay, sand, water and bitumen, a sticky, energy-rich substance. Sunshine plans to inject steam underground to liquefy the oil sands and pump it out.