Geo Energy Group announced that its earnings for the 1HFY2024 ended June 30 period dropped by 12% y-o-y to US$26.7 million ($35.7 million) from US$27.1 million a year ago. This brings basic earnings per share to 1.91 cents, 2% lower y-o-y.
This came on the back of revenue dropping by 29% y-o-y to US$169.4 million from US$239.8 million, despite maintaining stable coal sales of 3.2 million tonnes. The revenue decrease was mainly due to lower ICI4 prices averaging at US$56.13 per tonne in 1HFY2024, compared to US$70.46 per tonne in 1HFY2023.
The group also recorded higher general and administrative expenses and finance costs of US$6.2 million (1HFY2023: US$4.9 million) and US$9.9 million (1HFY2023: US$0.07 million) respectively in 1HFY2024 following the acquisition of PT Golden Eagle Energy Tbk in 2023.
Cash profit per tonne from coal mining for 1HFY2024 remained healthy at an average of US$11.94 per tonne (1HFY2023: US$15.69 per tonne), 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.
Furthermore, the group aims to improve its cost efficiencies through the continuous optimisation of its mining plan. The group’s cash profit margin remains relatively stable at 23% in 1HFY2024 (1HFY2023: 24%).
Geo Energy has declared a second interim dividend of 0.2 cents per share. This represents a dividend pay-out of 11.4%.
See also: IHH Healthcare’s 3QFY2024 patmi remains flat at RM534 mil
“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,” says Charles Antonny Melati, executive chairman and CEO of Geo Energy.
Shares in Geo Energy closed at 28 cents on Aug 8.
