INDONESIAN coal producer Geo Energy Resources posted a 2 per cent decline in net profit to US$26.7 million for its first half year ended Jun 30, from US$27.1 million a year ago.
Revenue for the period was down 29 per cent to US$169.4 million from US$239.8 million.
This was primarily due to lower Indonesian Coal Index price for 4,200 gross-as-received coal (ICI4), averaging at US$56.13 per tonne in the first half, compared to US$70.46 per tonne in H1 2023, said the company in a bourse filing on Thursday (Aug 8).
Earnings per share stood at US$0.0191 for the half year, down from US$0.0194 the previous year.
General and administrative expenses rose 27 per cent to US$6.2 million following the acquisition of Golden Eagle Energy Tbk in 2023. This was in addition to significantly higher finance costs of US$9.9 million, as compared to US$67,611 in the first half of 2023.
A second interim dividend of S$0.002 per share was declared, payable on Aug 29. This represents a dividend pay-out of 11.4 per cent. In May, the company had declared and paid an interim dividend of S$0.002 per share.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Cash profit per tonne from coal mining for the half year remained healthy at an average of US$11.94 per tonne, compared to US$15.69 per tonne in the same period last year, despite lower ICI4 prices.
“This is in part due to the group’s resilient cost model where its cash cost decreases along with lower ICI4 prices,” said Geo Energy, adding that it aims to improve its cost efficiencies through the continuous optimisation of its mining plan.
Charles Antonny Melati, executive chairman and chief executive officer of Geo Energy, noted that the company has recalibrated its mining plan in two of its coal mines – SDJ and TBR – to open more pits and ramp up its coal production in the second half year, in anticipation of seasonally heavier rainfall in the first half.
“Starting from July 2024, coal sales have increased as planned, with the country going into its drier climate. As at the last week of July 2024, our production has averaged at 35,000 tonnes per day, which translates to over a million tonnes per month, just from SDJ and TBR coal mines,” said Melati.
“Moving ahead, we will continue to take proactive steps to expand our value proposition within the energy value chain and position our business model towards our vision of becoming a billion-dollar energy group,” he added.
Shares of Geo Energy closed Thursday down 1.7 per cent or S$0.005 to S$0.285, before the results.
