Resources Global reports 34.6% increase in 2HFY2022 earnings of $12.0 mil

Earnings for the FY2022 stood at $20.1 million, 35.8% higher y-o-y, thanks to the higher revenue, interest income and other income. This was also offset by higher administrative costs and tax expenses.

Earnings per share (EPS) for the 2HFY2022 and FY2022 stood at 13.3 cents and 22.4 cents respectively.

FY2022 revenue grew by 34.3% y-o-y to $179.0 million as revenue from the company’s segments grew. Revenue from its coal trading business rose by 25.6% y-o-y to $142.2 million mainly due to a 39.5% y-o-y growth in the average selling price (ASP) of $108.5 per metric tonne (MT) in FY2022. Revenue from the coal shipping services segment grew by 82.8% y-o-y to $36.8 million as shipping volume increased by 45.5% y-o-y to 5.6 million MT in FY2022. The higher revenue for the segment was also due to higher freight rates during the year.

Gross profit grew by 43.9% y-o-y to $36.5 million while gross profit margin (GPM) increased by 1.4 percentage points to 20.4% in FY2022.

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Interest income rose by 47.4% y-o-y to $302,274 due to higher cash amounts placed with financial institutions for time deposits during the FY2022.

Other income surged by 2.7 times to $121,828, from $44,414 previously. This was mainly contributed by the jobs growth incentive (JGI) grant, short-term rental income from the company’s newly-purchased office unit in Singapore and the reversal of over-accrual of the post employee benefits liability based on actuarial report.

As at Dec 31, 2022, cash and cash equivalents stood at $20.0 million.

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A final cash dividend of 3 cents per share has been recommended, verus one cent paid last year.

Shares in Resources Global closed flat at $1.14 on March 1.