SINGAPORE (Aug 14): Golden Energy and Resources (GEAR) has announced earnings of US$11.8 million ($16.0 million) for the 2Q ended June, reversing out of losses of US$1.2 million a year ago.
Revenue grew 54.9% to US$139.6 million in 2Q17, from US$90.1 million a year ago.
This was mainly due to an increase in revenue from the group's coal mining, and coal trading divisions.
GEAR’s coal mining business reported an increase in revenue to US$124.4 million in 2Q17, from US$79.0 million a year ago, on the back of higher sales volume and higher average selling price.
Revenue from its coal trading business improved by US$4.1 million to US$13.5 million in 2Q17, mainly due to higher average sales realisation price and an increase in sales volume.
As at end June, cash and cash equivalents stood at US$122.1 million.
GEAR has declared an interim dividend of 0.8 cent per share, to be paid on Sept 4. This is its maiden interim dividend declared since the completion of its reverse takeover (RTO) in April 2015.
“Looking forward, we remain focused in ramping up our coal production to ride on the current buoyant coal price and we believe that our low gearing and strong cash position will keep us well-poised in pursuing value accretive acquisitions,” says Fuganto Widjaja, executive director and group CEO of GEAR.
Despite the growth in renewable energy sources, the group says it continues to maintain a positive outlook for its coal business as it believes the global reliance on coal is set to remain for decades.
Shares of Golden Energy and Resources closed flat at 37.5 cents on Monday.
