Geo Energy?s Q1 revenue increases due to higher coal sales
Thursday, May 12 2016 - 03:30 PM WIB
SGX-listed Geo Energy Resources said its revenue increased by US$9.9 million from $2.9 million in the first quarter of 2015 (Q1 2015) to $12.8 million in Q1 2016 mainly due to higher revenue contribution from coal sales following the commencement of PT Sungai Danau Jaya (SDJ) mine operation production in December 2015, offset by lower revenue from mining services.
?We incurred a gross loss in Q1 2016 as we continue to experience soft coal prices and our profitability is further affected by non-cash depreciation and amortisation of deferred stripping costs amounting to US$1.8 million and US$0.2 million, respectively. Excluding these non-cash costs, our cash gross profit stands at US$1.9 million, out of which US$1.5 million is attributable to SDJ mine operation,? the firm said in a statement.
Other income decreased by $0.6 million, from $1.6 million in Q1 2015 to $1.0 million in Q1 2016, mainly due to reduction in forex gain by $1.4 million, offset by increase in interest income of $0.4 million and forfeited a deposit from a customer of $0.3 million.
General and administrative expenses decreased by $0.5 million, from $2.0 million in Q1 2015 to $1.5 million in Q1 2016, mainly due to cost cutting measures.
Other expenses remained at $0.2 million.
Finance costs decreased by $0.2 million, from $2.0 million in Q1 2015 to $1.8 million in Q1 2016, mainly due to lower amortized borrowing costs pertaining to the notes payable.
Depreciation increased by $0.8 million, from $1.2 million in Q1 2015 to US$2.0 million in Q1 2016, mainly due to depreciation of SDJ mining property, which commenced operation only in December 2015.
Income tax credit decreased by $0.8 million, from $0.9 million in Q1 2015 to $0.1 million in Q1 2016, mainly as a result of decreased tax benefits recognized in Q1 2016 as compared to Q1 2015, in tandem with decreased tax losses and increased non-tax deductible expenses from the Group, mainly attributing to the amortization of acquisition cost of SDJ during the current financial period.
Overall, the Group?s net loss decreased by $0.1 million, from $2.7 million in Q1 2015 to $2.6 million in Q1 2016.
Geo Energy owns SDJ which 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 province.
Another subsidiary called PT Bumi Enggang Khatulistiwa (BEK), the Mining Business License (IUP) owner of a 4,570 hectare coal mining concession area in Kutai Barat regency, East Kalimantan province, and subsidiary companies that are responsible for mining, as well as heavy equipment and machinery procurement and rental.
Editing by Johannes Simbolon