SINGAPORE (Yosefardi) – Geo Energy Resources Limited, an Indonesian coal mining specialist, reported a 43% growth in revenue for the nine months ended 30 September 2013 (9M2013), from US$59.2 million in 9M2012 to US$84.7 million in 9M2013, maintaining its momentum of posting positive results.
The healthy growth in revenue also translated into a solid 13% increase in net profit to US$13.9 million, despite the current challenging coal price environment.
According to media report, the entire coal industry is faced with a very challenging environment, with most of Indonesia’s major coal mining companies reporting significant drops in their revenues during the first nine months of this year, despite boosting their sales volumes, as world thermal coal prices remained low. As a result, some companies experienced declines in profits while a few others went into loss positions during this period.
The Group’s healthy 43% increase in revenue to US$84.7 million was due mainly to the following factors; (i) increase in coal sales from BEK mining concession as a result of production ramp-up, (ii) additional revenue contribution from mining services and coal trading and (iii) growth in revenue from equipment rental.
The increase in revenue though, was partially offset by the termination of the Group’s coal cooperation contracts and the decrease in average selling price (ASP) from US$56.2 per ton in 9M2012 to US$39.9 per ton in 9M2013.
However, in the current 3rd quarter ended 30 September 2013 (3Q2013), the Group’s ASP has actually increased by US$6.3 per ton from US$42.9 per ton in 3Q2012 to US$49.2 per ton in 3Q2013.
The Group’s net profit grew by 13%, from US$12.3 million in 9M2012 to US$13.9 million in 9M2013, in line with the increases in both revenue and gross profit.