Geo Energy Resources has reported a 37% jump in revenue to US$220.3 million for 1HFY2021, thanks to a higher volume of coal sold at higher prices.
Charles Antonny Melati, executive chairman of Geo Energy, calls 2021 an “exceptional” year for the coal market, with prices at record levels of US$69.53 per tonne as at Aug 2021. The average price fetched throughout 1H2020 was US$30.61, and for 1H2021, US$47.78 per tonne.
To capitalise on this “super cycle”, the company has applied to increase its production quota this year to near 12 million tonnes from 8 million tonnes last year.
While revenue was up, earnings for 1HFY2021 was down 28% y-o-y to US$48.1 million from US$66.5 million.
However, if the one-off gain from the early repurchase of a bond booked in 1HFY2020 was excluded, the coal miner was US$8.7 million in the red.
Geo Energy plans to pay a second interim dividend of 0.5 cents per share.
It is trying to explore new businesses so as to reduce the reliance on coal mining. It is also trying to form new joint ventures and eyeing possible acquisitions in related areas such as supply chain and logistics.
Geo Energy Resources closed Aug 11 at 27 cents, up 3.85% for the day and 42.11% year to date.
