Geo Energy Resources Ltd. · SGX:RE4
Geo Energy Resources — Q1 2022 Earnings Presentation
23 slides from Geo Energy Resources's earnings presentation, May 12, 2022
Slide 1: 1Q2022 Results Presentation
REVENUE OF US$152 MILLION AND NET PROFIT OF US$40 MILLION DESPITE TEMPORARY COAL EXPORT BAN IN JANUARY, DECLARES AN INTERIM DIVIDEND OF S$0.02 PER SHARE 1Q2022 RESULTS PRESENTATION 12 MAY 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
1Q2022 Operational and Financial Performance Revenue of US$152.0 million, EBITDA of US$61.3 million and net profit of US$40.5 million, despite the ban on coal export in January 2022 GEO © G E O E N E R G Y R E S O U R C E S
Slide 4: Key Operating Matrix
1Q2022 Key Operating Matrix Highlights % change 3 Months – 31 Mar 2022 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 (B – A) / (A) (B) (A) In Mt Key Performance Indicators Sales volume 2.9 2.4 2.6 3.4 2.4 (17) Increases in ASP (60%) Production volume - FG 2.9 2.4 2.6 3.0 2.5 (14) and production cash cost (58%)
Slide 5: Key Financials
1Q2022 Key Financials Highlights % 3 Months – 31 Mar 2022 change 1Q2021 2Q2021 3Q2021 4Q2021 1Q2022 (B – A) / In US$M (A) (B) (A) Key Performance Indicators Income Statement Q1 Revenue of US$152M, Revenue 114.5 105.8 153.6 268.0 152.0 33 despite the temporary EBITDA 44.8 32.7 65.8 127.6 61.3 37 coal
Slide 6: Key Financials - Balance Sheet
1Q2022 Key Financials Highlights 3 Months – 31 Mar 2022 31 Mar 30 Jun 30 Sep 31 Dec 31 Mar % change In US$M, unless otherwise 2021 2021 2021 2021 2022 (B – A) / stated (A) (B) (A) Key Performance Balance Sheet Indicators Early redemption of US$ Total debt (1) 62 62 65 4 4 (2) Bond in Oct 2021, Cash
Slide 7: Key Financial Ratios
1Q2022 Key Financial Ratios Highlights 1Q2021 1Q2022 3 Months – 31 Mar 2022 Cash Profit (US$/tonne) 15.71 25.71 Key Performance Cash Profit Margin (%) 40.4 41.2 Indicators Net Profit Margin (%) 24.9 26.6 Higher cash profit and net profit margins. Net Asset Value - Group (SG cents) (1) 23.8 37.2 Earn
Slide 8: Key Financial Ratios
1Q2022 Key Financial Ratios Highlights 31 Mar 2021 31 Mar 2022 3 Months – 31 Mar 2022 12-month trailing EBITDA (US$M) 87.7 287.4 Key Performance Net Cash (US$M) 20.4 205.4 Indicators Debt / Equity (times) 0.3 0.01 Optimised capital structure and enhanced Total Shareholders’ Return (%)(1) 20.0 73.8 s
Slide 9: Financial Highlights
1Q2022 Financial Highlights Highlights 160 152 In US$M 3 Months – 31 Mar 2022 140 • Revenue increased by 33% to US$152M from US$115M in 115 1Q2021, driven by higher average selling price. 120 • 12-month trailing EBITDA increased by 228% to US$287M 100 from US$88M in 1Q2021 due to increased cash prof
Slide 10: Revenue
1Q2022 ICI4 vs ASP due Revenue Highlights to lower DMO ASP fixed by Sales by countries (US$M) PLN at 3 Months – 31 Mar 2022 US$38/Mt ICI4 coal price as at 10 May 2022 was US$89.68 per tonne, up US$7.37 per 100% tonne from 1Q2022 90% 16 30 Sales volume (Mt) Coal prices (US$/Mt) 80% 3.5 70% 100 93.44
Slide 11: Highlights
1Q2022 Highlights • The Group sold a total of 2.4 million tonnes of coal during the quarter, comprising 1.1 million tonnes of 4,200 GAR coal from the SDJ coal mine and 1.3 million tonnes from the TBR coal mine. This was a 17% decrease from 2.9 million tonnes in 1Q2021 due to the coal export ban by t
Slide 12: Highlights
1Q2022 Highlights • Net profit was US$40.5 million (1Q2021: US$28.5 million), driven by higher operating profit and lower finance costs from the full redemption of the Senior Notes in October 2021. • The Company is declaring an interim dividend for 1Q2022 of S$0.02 per share, representing 51% of the
Slide 13: Cost of Sales
1Q2022 Cost of Sales Highlights Cost of sales (US$M) Components 3 Months – 31 Mar 2022 95 • Production cash cost increased by 58% to US$36.63 per 6% 0% 74 tonne due to certain of the Group’s costs linked to coal price. 32% US$95M • Increase in total cost of sales (1Q2022 : US$95M; 1Q2021 : US$74M) d
Slide 14: Other Income / Expenses
1Q2022 Other Income / Expenses Highlights General and Administration expenses (US$M) Other income (net) (US$M) 3 Months – 31 Mar 2022 0.8 • Slight decrease in G&A due to lower depreciation 2.5 2.4 expense following early termination of office rental in Nov 2021. 0.3 • Higher net other income in 1Q20
Slide 15: Net Profit
Gross profit 1Q2022 increased by US$16.5M in 1Q2022 Net Profit Highlights (In US$M) 90.0 37.5 3 Months – 31 Mar 2022 80.0 21.0 Reduction in 3 70.0 months finance costs by US$1.3M • Increase in net profit to US$40M from 60.0 US$29M in 1Q2021. The higher tax is mainly due to increase in profit from op
Slide 16: EBITDA
1Q2022 EBITDA Highlights (In US$M) 100.0 3 Months – 31 Mar 2022 21.1 37.5 80.0 • EBITDA increased from US$45M in 1Q2021 to US$61M in 1Q2022, largely driven by the increase in revenue following - 0.1 61.3 the increase in ICI4 prices, slightly offset by higher cash cost 60.0 of production. 44.8 40.0 2
Slide 17: Cash Flow
Cash Flow 1Q2022 300.0 Highlights 250.0 61.3 (39.0) (In US$M) 3 Months – 31 Mar 2022 ( 2.7 ) 0.2 ( 0.5 ) ( 0.8 ) 209.1 • Cash and bank balances increased to US$209M 200.0 190.6 from US$191M as at 31 Dec 2021, driven by EBITDA offset against changes in working capital (high Trade 150.0 AR balance as
Slide 18: Share Performance
Share Performance 12-Month Total Shareholders Return (TSR) of 185% 18 GEO © G E O E N E R G Y R E S O U R C E S
Slide 19: Share Performance
Share Performance Key Data Total Shareholders’ Return(1) Closing (10 May 2022) Day Range 5 Day 14% S$ 0.495 52 Week Range S$0.485 – S$0.510 Market Cap 1 Month 3% 0.495 SGD 10 May 2022 0.200 – 0.580 S$697.4M Shares Outstanding Public Float 3 Month 43% NA 41.95% (2) BETA Rev. Per Employee YTD(4) 74% N
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: Coal Market
Industry Outlook Coal Market • Expected to remain strong amid supply disruption from the ongoing conflict in Ukraine. • The average estimates for the Newcastle coal price index were raised to US$150 per tonne in 2022 and US$125 per tonne in 2023, to reflect strong coal prices in the first quarter re
Slide 22: Industry Outlook: Green Energy
Industry Outlook Green Energy • The modern energy politics continue to focus on aspiration to achieve carbon neutrality. Coal and natural gas are the main fuels for electricity generation. • The global energy demand will increase by 14% by 2050, while the International Energy Agency’s (IEA’s) 2021 N
Slide 23: 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