Geo Energy reports lower revenue on weak coal market
Thursday, November 12 2015 - 01:56 AM WIB
SGX-listed Geo Energy Resources Ltd reported that revenue in the third quarter of this year (3Q2015) decreased by 20.73 percent to US$6.5 million from US$8.2 million in the corresponding period of last year amid lingering pressure in the coal market.
?Continued pressure in coal market contributed to the decrease in our top line,? the company, which operates coal mines in East and South Kalimantan, said in a statement Wednesday.
Gross loss narrowed to $0.1 million in 3Q2015, mainly due to better equipment capacity utilization for mining services, compared to gross loss of $5.4 million in 3Q2014 which included non-recurring operational costs to streamline manpower and reallocate our capacity utilization.
Other income mainly comprising forex gain and interest income, increased by $0.7 million, from $1.0 million in 3Q2014 to $1.7 million in 3Q2015, mainly due to an increase in forex gain.
General and administrative expenses decreased by $0.7 million, from $2.3 million in 3Q2014 to $1.6 million in 3Q2015, the decrease was mainly due to cost controls.
Other expenses increased by $0.7 million, from $0.1 million in 3Q2014 to $0.8 million in 3Q2015. The increase was mainly due to loss on disposal of old heavy equipment.
Finance costs remained stable at $1.9 million.
Depreciation decreased by $0.6 million, from $1.7 million in 3Q2014 to $1.1 million in 3Q2015. The decrease was mainly due to savings from disposal of old heavy equipment and other fully depreciated assets.
Income tax credit decreased by $1.3 million, from $2.6 million in 3Q2014 to $1.3 million in 3Q2015, mainly in line with the decrease in loss before tax.
?The group recorded a net loss of $1.4 million in 3Q2015 as compared to a net loss of $6.2 million in 3Q2014,? Geo Energy said.
Geo Energy owns PT Bumi Enggang Khatulistiwa (BEK), the Mining Business License (IUP) owner of a 4,570 hectare coal mining concession area in Kutai Barat, East Kalimantan, and subsidiary companies that are responsible for mining, as well as heavy equipment and machinery procurement and rental.
Another subsidiary called PT Sungai Danau Jaya (SDJ) holds a coal mining permit, giving it the exclusive right to mine, process and sell coal from the concession area located at the Sub-District of Angsana and Sungai Loban, Tanah Bumbu Regency, South Kalimantan.
Editing by Reiner Simanjuntak