Driven by higher production volume, coal miner Geo Energy Resources has reported revenue of US$562.7 million for its FY2025, an increase of 40%.
However, as the company continues to invest heavily in preparation works for new mines and infrastructure, and with higher tax, earnings for the same period was down 26% to US$27.4 million.
The bottom line for FY2024 was distorted by a gain on sale on rights to receivables and the FY2025 earnings were weighed down by higher tax expenses.
The company plans to pay a final dividend of 0.1 cents, down from 0.4 cents in the year-earlier. Total dividend to be paid for FY2025 will be 0.55 cents.
Geo Energy sold a total of 12.8 million tonnes in FY2025, versus 7.9 million tonnes sold the year earlier.
The higher volume offset lower average selling price of US$46.07 per tonne in FY205, down from US$53.93 per tonne in FY2024.
With better efficiency, it managed cash cost per tonne of US$34.10 in FY2025, down from US$40.32.
However, cash profit per tonne was slightly lower at US$10.02 from US$10.37, mainly due to lower industry benchmark prices.
Geo Energy says the construction of a major haul road connecting its mines to a coastal jetty is 77% completed and on track to be ready by June.
See also: OUE slightly trims net loss to $279.1 mil; maintains final dividend at 1 cent per share
The road can help Geo Energy lift production at the mine served by this road to between 20 and 25 million tonnes per year, which produced just 2.6 million tonnes last year
Geo Energy has also gained exposure in the logistics of coal mining by taking a majority stake in two integrated shipping companies providing tugboats and barges.
In total, Geo Energy invested US$123.2 million in cash to pay for prep works for future coal production, acquisition of related businesses and also for road construction etc.
Charles Antonny Melati, the company's executive chairman and CEO, calls the FY2025 results a testament to his team’s execution capabilities.
"These results highlight the resilience of the group’s operations and reflect the unique strengths of the business model, disciplined cost structure and operational execution," he says.
Even as Geo Energy continues to invest "significantly", Melati says the company remains "firmly committed" to delivering sustainable value to shareholders, including through dividends, as the group advances towards its vision of becoming a billion-dollar energy group.
Geo Energy Resources shares closed at 42 cents on Feb 27, up 2.47%.
