Petro-king Says Court Fee Ruling on Subsidiary Won’t Hit Finances

Petro-king Oilfield Services Ltd. ( (HK:2178) ) just unveiled an update.

Petro-king Oilfield Services Ltd. has disclosed an appeal ruling in a litigation involving one of its subsidiaries, in which a Shenzhen court ordered the subsidiary to pay RMB16.63 million in technical service fees plus interest and approximately RMB176,573 in combined court acceptance fees. The amount awarded is lower than the plaintiff’s original claim, and all other claims and counterclaims were rejected.

The company said these technical service fees had already been accrued as ordinary business expenses and will be settled using internal resources, so no material adverse impact on its operations or financial position is expected. The subsidiary’s frozen bank deposits of about RMB28.9 million may be unfrozen after the payments are made, and legal advisers consider a potential retrial application by the plaintiff to have a low chance of being accepted, though investors are urged to exercise caution.

More about Petro-king Oilfield Services Ltd.

Petro-king Oilfield Services Ltd. is an oilfield services provider focused on supplying technical solutions and related services to the energy sector, with operations conducted through various subsidiaries. The group’s business model relies on providing technical service work for clients, for which service fees are a routine part of its ordinary course of operations.

Average Trading Volume: 47,654,741

Technical Sentiment Signal: Buy

Current Market Cap: HK$402.3M

See more data about 2178 stock on TipRanks’ Stock Analysis page.