Geo Energy Q1 net profit tumbles 60% to US$16 million on lower sales volumes
Tessa Oh
INDONESIAN coal producer Geo Energy Resources posted a 60.4 per cent fall in its net profit to US$16 million for the first quarter ended Mar 31, 2023, from US$40.5 million the year before.
This was mainly due to lower sales volume and higher production cash costs, the mainboard-listed company said in a business update on Friday (May 12).
Earnings per share, converted to Singapore dollar terms, stood at 1.44 Singapore cents for the first quarter, down from 3.86 Singapore cents the previous year.
Revenue for Q1 fell 13.3 per cent to US$131.9 million, from US$152 million in the year-ago period. The group attributed this to lower sales volumes, partially offset by higher average selling price through export sales.
An interim dividend of 0.5 Singapore cent per share was declared for the quarter, down from two Singapore cents the year before. The dividend will be paid out on Jun 8, after books closure on May 31.
Charles Antonny Melati, executive chairman and chief executive, noted that cash cost per tonne has increased to US$52.60 in the first quarter, from US$36.60 in the year-ago period.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
He attributed this mainly to the increase in royalty rates by the Indonesian government last September, and higher stripping ratios due to the geology of the mines. This contributed to the fall in net profit in the first quarter.
“We are making active progress towards value-accretive acquisitions of producing coal mines, to increase our reserves, production volumes, as well as achieve diversification,” said Melati.
“We are not only eyeing the growth of our revenue, but also an expansion of revenue streams towards building a sustainable business,” he added.
Shares of Geo Energy closed flat at S$0.29 on Friday, before the results were announced.
Copyright SPH Media. All rights reserved.
