Sunshine Oilsands Reports CAD 19.70 Million Q2 Loss as West Ells Maintenance Halts Revenue

Bulletin Express
Aug 12

Sunshine Oilsands (HKEX:2012) recorded no petroleum sales for the six months to 30 June 2026 after production at its West Ells project was suspended for equipment maintenance.

Financial performance (April–June 2026) • Net loss attributable to shareholders widened to CAD 19.70 million from CAD 1.98 million in Q2 2025. • Excluding a one-off foreign-exchange impact, the quarterly operating loss increased to CAD 14.46 million (Q2 2025: CAD 2.10 million). • Operating cash outflow narrowed to CAD 1.00 million, an improvement on the CAD 2.47 million deficit a year earlier. • Finance costs rose sharply to CAD 13.14 million, compared with CAD 1.45 million in the prior-year quarter.

First-half 2026 highlights • Petroleum sales remained nil for the second consecutive year-to-date period. • Six-month net loss totalled CAD 40.35 million, more than triple the CAD 11.85 million loss in 1H 2025. • Total assets stood at CAD 735.28 million; total liabilities reached CAD 737.92 million, resulting in negative shareholders’ equity of CAD 2.64 million as at 30 June 2026 (31 Dec 2025: positive CAD 28.11 million). • Net current liabilities amounted to CAD 120.89 million.

Capital structure and liquidity • Finance costs year-to-date increased to CAD 26.66 million (1H 2025: CAD 4.56 million). • Senior notes totalled CAD 279.12 million (current and non-current), with interest accruing at 10% per annum. • Loans from related parties and shareholders reached CAD 58.30 million. • Cash and cash equivalents declined to CAD 0.74 million (31 Dec 2025: CAD 1.06 million).

Equity and share movements • In February 2026 the company issued 140.00 million new shares to settle debts of HKD 60.20 million (approximately CAD 10.86 million). • A supplemental placing agreement signed on 30 July 2026 proposes issuing up to 205.70 million shares at HKD 0.20 each, subject to shareholder approval.

Post-period event On 5 August 2026, a winding-up petition for US $0.66 million was filed against Sunshine Oilsands in the Hong Kong High Court; the company is seeking legal advice on the matter.

Audit status The Q2 and first-half 2026 results are unaudited but have been reviewed by the Audit Committee.

Management continues to assess financing options and debt-restructuring measures to address ongoing liquidity pressures.

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