SINGAPORE (May 14): Golden Energy and Resources (GEAR) reported 1Q18 earnings increased by 40.7% to US$26.8 million ($35.8 million), compared to US$19.0 million in 1Q17.
Revenue for the quarter rose 90.7% at US$273.0 million from US$143.2 million a year ago.
This was mainly attributable to increases in revenue from the group's Coal Mining and Coal Trading divisions, partially offset by a decrease in revenue from its Non-coal Businesses.
The group's Coal Mining Division reported an 83.4% increase to US$237.3 million, mainly due to higher sales volume and higher average selling price.
Revenue generated by the group's Coal Trading Division increased 180.1% to US$35.3 million, mainly due to higher sales volume and higher average selling price.
Revenue from the group’s Non-coal Businesses comprises plywood sales as well as management fee income. Its revenue decreased by 67.7% y-o-y to US$0.390 million due to the absence of log sales and the decrease in management fee income received offset by an increase in plywood sales.
Cost of sales more than doubled from the previous year to US$157.1 million, bringing 1Q18 gross profit to US$115.9 million, 60.7% higher than US$72.1 million last year.
Selling and distribution expenses was 67.3% higher y-o-y at US$34.2 million, while administrative expenses were 71.4% higher at US$16.7 million.
Finance costs more than doubled to US$4.96 million from US$2.22 million in 1Q17, mainly due to the increases in trade financing charges in line with higher sales activities, and interest expenses as a result of the issuance of the group's maiden bond.
As at March 31, the group’s cash and cash equivalents stood at US$304.7 million.
Fuganto Widjaja, executive director and group CEO of GEAR says, “We look forward to delivering on yet another increased production output in the coming year and are pleased to note that our plan to expand PT Borneo Indobara’s processing capacity is well underway to support this.”
Shares in GEAR closed at 35 cents on Monday.
