Sinopec Kantons to Liquidate Key Crude Oil Terminal Joint Venture and Book 2026 Loss

An announcement from Sinopec Kantons Holdings ( (HK:0934) ) is now available.

Sinopec Kantons Holdings has announced that its 50%-owned joint venture, Rizhao Shihua Crude Oil Terminal Co., Ltd., which operates crude oil jetty and ancillary facilities, has begun liquidation proceedings. As part of this process, Rizhao Shihua will sell certain operating assets and related facilities to independent third parties for about RMB2.41 billion, with the price based on an independent valuation and subject to state-owned asset supervision rules.

The board cites operational uncertainties at Rizhao Shihua as the reason for the move, arguing that liquidation and asset disposal will better protect the interests of the company and its shareholders. The group expects to recover cash roughly equal to the carrying value of its investment but, due to reclassification of cumulative foreign currency translation losses, anticipates recognizing an unaudited loss of around HK$127 million in 2026 when the liquidation and deregistration are completed, and has warned investors to exercise caution in trading its shares.

The most recent analyst rating on (HK:0934) stock is a Hold with a HK$4.50 price target. To see the full list of analyst forecasts on Sinopec Kantons Holdings stock, see the HK:0934 Stock Forecast page.

More about Sinopec Kantons Holdings

Sinopec Kantons Holdings Limited is an energy and petrochemical infrastructure company listed in Hong Kong, with operations focused on crude oil terminals, jetties and related logistics services. Through joint ventures such as Rizhao Shihua Crude Oil Terminal Co., Ltd., the group participates in crude oil jetty operations that contribute a meaningful share of its profit before tax.

Average Trading Volume: 1,957,641

Technical Sentiment Signal: Strong Buy

Current Market Cap: HK$10.79B

For a thorough assessment of 0934 stock, go to TipRanks’ Stock Analysis page.