Golden Energy and Resources’ H1 earnings surge to US$279m on acquisition, higher coal prices
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Jude Chan
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GOLDEN Energy and Resources (Gear) on Friday (Aug 12) posted a 859.1 per cent increase in earnings to US$279 million for the first half ended June, from US$29.1 million in the same period last year.
Earnings per share (EPS) surged to US$0.11, from US$0.0124 in the year-ago period.
Group revenue trebled to US$2.4 billion in the first 6 months of FY2022, from US$806.7 million in the previous year.
The increase was largely due to 2 months’ contribution by Stanmore SMC – formerly known as BHP Mitsui Coal – following the completion of Gear’s acquisition of an 80 per cent interest in the company in early May.
An increase in the average selling price (ASP) of energy and metallurgical coal also contributed to the higher revenue.
Revenue from the Metallurgical Coal segment soared to US$1.1 billion in H1, from US$72.3 million in the year-ago period, largely attributed to the consolidated results from Stanmore SMC.
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Post-acquisition, revenue from the segment rose to 45 per cent of group revenue in H1, compared to 9 per cent in the previous year.
In a separate bourse filing before market open on Friday, Gear also announced that it is acquiring the remaining 20 per cent interest in Stanmore SMC.
The ASP in the Metallurgical Coal segment more than quadrupled to US$376.71 per tonne in H1, from US$88.80 per tonne in the year-ago period. Sales volume more than trebled to 2.9 million tonnes, from 0.8 million tonnes in the same period last year.
In the 2 months since acquisition, Stanmore SMC contributed to 1.8 million tonnes of this sales volume.
In the Energy Coal segment, the ASP increased to US$73.74 per tonne in H1, from US$42.71 per tonne in the previous year. Sales volume inched up to 18.1 million tonnes, from 17.2 million tonnes in the year-ago period.
Shares of Gear closed 1.9 per cent or S$0.01 higher at S$0.54 on Friday, before the results were announced.
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