INDONESIA: Indonesian coal producer Geo Energy Resources reported a record revenue of US$220.3 million for the first six months of this year, due to an increase in sales volume and a higher average selling price.
Its first-half revenue increased 37 per cent from US$160.6 million in H1 2020, the mainboard-listed firm said in a filing on Wednesday night.
Geo Energy said: “Coal prices have remained strong as the demand for power continues or has even increased during challenging economic times, sparking a surge in prices in China and East Asia. Soaring hot weather in North Asia added to the strong demand due to the industrial recovery from the pandemic.”
Indonesian miners also continued to enjoy additional export demand for coal from China, amid Beijing’s continuing ban on Australian coal, the company added.
Geo Energy ran up record sales at two of its mines, SDJ and TBR, in Indonesia’s south Kalimantan province, from buyers in China and East Asia.
Net profit stood at US$48.1 million, down 28 per cent from US$66.5 million in the corresponding period last year. However, excluding the gains from Geo Energy’s repurchases of its senior note, the company posted a net loss of US$8.7 million in H1 2020.
This “complete turnaround” in H1 2021 from the year-ago net loss was driven by higher average selling prices and sales volume, as well as a decrease in other expenses and finance costs, Geo Energy said.
Geo Energy’s board declared a second interim dividend of 0.5 Singapore cent per share, with the payment date to be announced later. There was no dividend in the previous corresponding period.
Charles Antonny Melati, executive chairman of Geo Energy, said the group has been looking to diversify into new businesses and expand its revenue streams, to reduce its reliance and exposure on coal price volatility and to achieve its sustainability goals.
The group has applied to increase the production quotas in 2021 for the SDJ and TBR mines, so that it can achieve higher production in the second half of this year and raise the full-year target to 12 million tonnes.