SINGAPORE (Feb 28): Golden Energy and Resources (GEAR) swung back to profitability with full year earnings of US$21.8 million ($30.6 million), from a net loss of US$9.4 million a year ago.
This was driven higher revenue contribution across the group’s business divisions.
Full year revenue increased 9.3% to US$393.3 million, compared to US$359.8 million a year ago.
GEAR’s coal mining division, in particular, recorded higher sales volume, even as the average realised selling price increased to US$38.68 per metric tonne in 4Q2016, from US$32.89 per metric tonne a year ago.
As a result, revenue from this segment increased 9.7% to US$329.5 million in FY2016, from US$300.4 million a year ago.
As at Dec 31, 2016, cash and cash equivalents stood at US$79.1 million.
Looking ahead, GEAR says it continues to maintain a positive outlook for its coal business in view of expectations of a supply shortfall due to strong demand growth for thermal coal among Asia’s emerging markets.
“GEAR remains committed in its programme in maximising the group’s production capacity to meet growing demand for coal in both its domestic and overseas markets,” it says in a filing to SGX on Tuesday.
“With GEAR in a net cash position, we are poised for strong organic growth in production from our coal mines, as well as to look at additional strategic acquisitions which would be earnings accretive to the group,” says Fuganto Widjaja, the executive director and group CEO of GEAR.
Shares of Golden Energy and Resources closed 1 cent lower at 57.5 cents on Tuesday.
