Geo Energy Resources Ltd. · SGX:RE4
Geo Energy Resources — H1 2022 Earnings Presentation
22 slides from Geo Energy Resources's earnings presentation, Aug 11, 2022
Slide 1: 1H2022 Results Presentation
1H2022 RESULTS PRESENTATION 11 AUGUST 2022 TUNG KUM HON CEO/DIRECTOR
Slide 2: Forward Looking Statements
Forward Looking Statements This announcement contains statements that are, or may be deemed to be, “forward looking statements” which are prospective in nature. These forward looking statements may generally be identified by the use of forward looking terminology, or the negative thereof such as "pl
Slide 3: Operational and Financial Performance
1H2022 Operational and Financial Performance Revenue of US$368.3 million, EBITDA of US$162.6 million and net profit of US$106.0 million, despite the ban on coal export in January 2022 GEO © G E O E N E R G Y R E S O U R C E S
Slide 4: Key Operating Matrix
1H2022 Key Operating Matrix Highlights 1H2020 2H2020 1H2021 2H2021 1H2022 % change (B – A) / 6 Months – 30 Jun 2022 (A) (B) (A) In Mt Key Performance Sales volume 5.0 5.7 5.4 6.0 5.2 (4) Indicators Increases in ASP (74%) Export 3.5 4.4 3.6 4.9 3.3 (8) and production cash cost DMO 1.5 1.3 1.8 1.1 1.9
Slide 5: Key Financials
1H2022 Key Financials Highlights % change 6 Months – 30 Jun 2022 1H2020 2H2020 1H2021 2H2021 1H2022 (B – A) / In US$M (A) (B) (A) Income Statement Key Performance Indicators Revenue 160.6 146.1 220.3 421.6 368.3 67 1H Revenue of US$368M, EBITDA 27.6 29.4 77.5 193.4 162.6 110 despite the temporary co
Slide 6: Key Financials
1H2022 Key Financials Highlights 30 Jun 31 Dec 30 Jun 31 Dec 30 Jun % change 6 Months – 30 Jun 2022 In US$M, unless otherwise 2020 2020 2021 2021 2022 (B – A) / stated (A) (B) (A) Balance Sheet Key Performance Indicators Total debt (1) 134 60 62 4 3 (7) Early redemption of US$ Cash and bank balance
Slide 7: Key Financial Ratios
1H2022 Key Financial Ratios Highlights 1H2021 1H2022 6 Months – 30 Jun 2022 Cash Profit (US$/tonne) 14.92 31.49 Key Performance Cash Profit Margin (%) 36.4 44.3 Indicators Net Profit Margin (%) 22.0 28.8 Higher cash profit and net profit margins. Net Asset Value - Group (SG cents) (1) 24.3 37.6 Earn
Slide 8: Key Financial Ratios
1H2022 Key Financial Ratios Highlights 30 Jun 2021 30 Jun 2022 6 Months – 30 Jun 2022 12-month trailing EBITDA (US$M) 106.9 356.0 Key Performance Net Cash (US$M) 21.7 173.3 Indicators 0.2 0.5 Net Cash / EBITDA (times) Optimised capital structure and enhanced Debt / Equity (times) 0.3 0.01 shareholde
Slide 9: Financial Highlights
1H2022 Financial Highlights Highlights 500 In US$M 6 Months – 30 Jun 2022 450 • Revenue increased by 67% to US$368M from US$220M in 400 368 356 1H2021, driven by higher average selling price. 350 • 12-month trailing EBITDA increased by 233% to US$356M 300 273 from US$107M in 1H2021 due to increased
Slide 10: Revenue
1H2022 ASP lowered Revenue Highlights by DMO sales, which have Sales by countries (US$M) price cap at 6 Months – 30 Jun 2022 US$38 per ICI4 coal price as at 10 Aug tonne 2022 was US$77.83 per tonne, down US$8.06 per 100% tonne from 1H2022 90% 30 Sales volume (Mt) Coal prices (US$/Mt) 112 80% 7 70% 6
Slide 11: Highlights
1H2022 Highlights • The Group sold a total of 5.2 million tonnes of coal during the period, mainly comprising 2.3 million tonnes of 4,200 GAR coal from the SDJ coal mine and 2.8 million tonnes from the TBR coal mine. This was a 4% decrease from 5.4 million tonnes in 1H2021 mainly due to the coal exp
Slide 12: Highlights
1H2022 Highlights • Net profit was US$106.0 million (1H2021: US$48.5 million), driven by higher ASP and lower finance costs from the full redemption of the USD Bond in October 2021. • The Company is declaring second interim dividend of S$0.02 per share for 2022, totaling interim dividend of S$0.04 p
Slide 13: Cost of Sales
1H2022 Cost of Sales Highlights Cost of sales (US$M) Components 6 Months – 30 Jun 2022 • Production cash cost increased by 52% to US$39.63 per 216.9 5% 0% tonne due to certain of the Group’s costs linked to coal 150.6 price. 32% US$217 M • Increase in total cost of sales (1H2022 : US$217M; 1H2021 :
Slide 14: Other Income / Expenses
1H2022 Other Income / Expenses Highlights General and Administration expenses (US$M) Other income (net) (US$M) 6 Months – 30 Jun 2022 3.5 4.7 4.7 • Higher net other income in 1H2022 mainly due to reversal of provision of effect of legal claim against a 1.3 subsidiary of US$2.5M previously recognised
Slide 15: Net Profit
Gross profit 1H2022 increased by US$81.7M in 1H2022 Net Profit Highlights (In US$M) 250.0 148.0 6 Months – 30 Jun 2022 66.3 Reduction in 6 200.0 months finance costs by US$2.6M • Increase in net profit to US$106M from US$49M in 1H2021. The higher tax is mainly 150.0 due to increase in profit from op
Slide 16: EBITDA
1H2022 EBITDA Highlights (In US$M) 300.0 6 Months – 30 Jun 2022 250.0 65.0 148.0 • EBITDA for first half increased from US$78M in 1H2021 to US$163M in 1H2022, largely driven by the increase in 200.0 revenue following the increase in ICI4 prices, slightly offset 2.4 0.3 162.6 by higher cash cost of p
Slide 17: Cash Flow
Cash Flow 1H2022 400.0 (In US$M) Highlights 350.0 162.6 (38.0) ( 62.8 ) 6 Months – 30 Jun 2022 300.0 • Cash and bank balances decreased to US$177M 0.4 ( 2.9 ) ( 72.1 ) from US$191M as at 31 Dec 2021, mainly due to 250.0 dividend payments of US$71M and taxes paid of 190.6 200.0 US$63M. These are offs
Slide 18: Share Performance
Share Performance 12-Month Total Shareholders Return (TSR) of 117% 18 GEO © G E O E N E R G Y R E S O U R C E S
Slide 19: Share Performance
Share Performance Key Data Total Shareholders’ Return(1) Closing (10 Aug 2022) Day Range 5 Day 7% S$ 0.440 52 Week Range S$0.430 – S$0.445 Market Cap 1 Month 28% 0.440 SGD 10 August 2022 0.230 – 0.580 S$620M Shares Outstanding Public Float 3 Month 7% NA 41.95%(2) BETA Rev. Per Employee YTD(4) 63% NA
Slide 20: Industry Outlook
Industry Outlook 20 GEO © G E O E N E R G Y R E S O U R C E S
Slide 21: Industry Outlook
Industry Outlook Coal Price • There were signs of an improvement of Chinese domestic coal prices as spot prices for China’s domestic thermal coal started to gain some support on seasonal demand. • ICI price was US$77.83 per tonne as at 10 August 2022, with the SGX M42 Futures Index indicating an ave
Slide 22: Thank You
Thank You For more Information, please visit www.geocoal.com © G E O E N E R G Y R E S O U R C E S