On the evening of May 23, St intercontinental replied to the information disclosure regulatory inquiry letter of the Shanghai Stock Exchange on the company’s 2021 annual report, saying that the company has been actively looking for various channels to resolve debt risks, and some work has made important progress.
St intercontinental said that in order to improve the uncertainty of the current sustainable operation ability, the company plans to take the following measures: first, strengthen the production and operation management of the company’s main assets overseas oil fields, and improve the output and profits of the oil fields under the background of the continuous rise of international oil prices; Strengthen project budget management and strictly control costs and expenses.
Second, strengthen the communication with creditors of banks and non-financial institutions, and realize the understanding of all parties in combination with the progress of the company’s debt repayment plan. All major creditors fully understand the liquidity difficulties faced by the company and actively seek appropriate solutions. The renewal of loan restructuring will be completed for the duration debt, the execution of some overdue debt litigation has been terminated, and the debt pressure has been effectively mitigated.
Third, actively expand financing channels and financing methods, especially with the help of the overall warming trend of the international oil and gas industry, promote the refinancing of overseas projects, and seek various financing methods such as working capital loans and sales trade loans. The company has made important progress in this project. Relevant overseas financial institutions have completed several rounds of project due diligence procedures, and specific negotiation will be conducted on the financing plan in the future.
Fourth, actively coordinate creditors to realize the repayment of some debts by disposing of mortgages or pledges.
According to the announcement, by the end of 2021, the total principal and interest of St intercontinental interest bearing liabilities was about 4.772 billion yuan. Because the net profit before and after deducting non recurring profit and loss in the last three fiscal years, whichever is lower, is negative, and there is uncertainty about the ability of going concern in the financial and accounting report issued in the reporting period, the company’s shares have been warned of other risks. In the first quarter of 2022, the company realized a net profit of about 102 million yuan.
