Geo Energy Group announced that its net profit for the 3QFY2024 ended Sept 30 period dropped by 39% y-o-y to US$7 million ($9.4 million) from US$11.5 million a year ago.
This came on the back of lower sales volume and average selling prices (ASP), as well as finance costs driven from the group’s term loan facilities of US$220 million, which was drawn down in October 2023.
Meanwhile, the group’s revenue saw a 24% y-o-y decrease to US$84.3 million in 3QFY2024, due to lower coal prices (ICI4) averaging at US$51.64 per tonne, compared to US$52.07 per tonne in 1QFY2023.
Following adverse weather conditions, the group saw a decrease in production volume, delivering coal sales of 1.7 million tonnes for the quarter, down from 2.2 million tonnes in 3QFY2023. Coal from the group’s TBR, SDJ, and TRA coal mines stood at 1.1 million tonnes, 0.3 million tonnes, and 0.2 million tonnes, respectively.
Cash profit per tonne from coal mining was up at an average of US$12.04 per tonne, despite a decrease in ICI4 and ASP, due to better strip ratios following optimisation of mining plans and opening of mining pits in the first half of the year, says the group.
As a result, the group’s cash profit margin has improved to 24.4% in 3QFY2024 from 20% in the same period last year.
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The group’s other income saw a decrease of 53% y-o-y to US4.3 million, due to lower interest income following lower interest rates and lower foreign exchange gain during the quarter.
Geo Energy has since declared a third interim dividend of 0.2 cents per share. Together with dividends of 0.4 cent per share declared and paid for 1HFY2024, the group has declared 0.6 cent per share for the 9MFY2024.
Charles Antonny Melati, executive chairman and group CEO, says: “The group has been taking decisive steps towards unlocking the vast potential of the Group’s PT Triaryani (TRA) coal mine through the development of PT Marga Bara Jaya (MBJ) Integrated Infrastructure. The development of the Integrated Infrastructure has commenced and made good progress this quarter. Heavy equipment has been mobilised and deployed with land clearing and cut and fill works progressing on schedule. The Integrated Infrastructure is expected to complete by early-2026.”
Shares in Geo Energy closed 0.5 cents higher, or up 1.85%, at 27.5 cents on Nov 12.
