SINGAPORE (Nov 13): Geo Energy Resources announced that its 3Q17 earnings increased 16% to US$8.6 million ($11.7 million) compared to US$7.44 million in 3Q16.
Revenue for the quarter was up by 32% to US$74.9 million from US$56.9 million a year ago, mainly due to increased revenue from coal mining as well as revenue from coal mining management services during the period.
The group sold 1.89 million tonnes of coal from the Sungai Danau Jaya (SDJ) mine in 3Q17, compared to 1.81 million tonnes sold in 3Q16, following a slight improvement in weather conditions in the third quarter.
The rainy season that had previously slowed down production in previous two quarters continued into the third quarter.
Similarly, cost of sales increased 33% to US$58.7 million compared to US$44.1 million last year.
Hence, gross profit came in at US$16.2 million, 27% higher than US$12.7 million in the previous year.
Other income dropped 98% to US$17,000 compared to US$717,600 last year.
General and administration expenses were up by 84% to US$2.99 million from US$1.62 million in the previous year.
Finance costs dropped 14% to US$1.32 million compared to US$1.53 million last year.
Tung Kum Hon, CEO of Geo Energy says, “As part of our business strategy, our Group will be constantly exploring opportunities to acquire additional coal mining concessions to complement our portfolio of coal mining assets and is also exploring opportunities to divest stakes in our coal mining concessions as a means to collaborate with strategic partners to build on our strength to optimise our geographic footprint and to raise capital as the Group pursue improved returns, while strengthening its capital base. Our Group will continue to forge forward into becoming one of the top ten coal producers in Indonesia.”
Shares in Geo Energy closed at 28 cents on Monday.
