Geo Energy Resources Ltd. · SGX:RE4
Geo Energy Resources — FY2021 Earnings Presentation
24 slides from Geo Energy Resources's earnings presentation, February 2022
Slide 1: 2021 Results' Briefing
A RECORD YEAR WITH REVENUE OF US$641.9 MILLION, NET PROFIT OF US$179.1 MILLION AND TOTAL DIVIDENDS OF S$0.09 PER SHARE 2021 RESULTS’ BRIEFING 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: 2021 Operational and Financial Performance
2021 Operational and Financial Performance A record operational and financial performance, with record revenue of US$641.9 million, EBITDA of US$270.9 million, profit from operations of US$234.1 million as net profit surges to US$179.1 million Geo Energy is greatly undervalued with an Enterprise Val
Slide 4: 2021 Key Operating Matrix
2021 Key Operating Matrix Highlights % % change Key Performance change Q-o-Q Indicators Y-o-Y (4Q2021 Increases in ASP (102%) 2H2020 FY2020 2H2021 FY2021 (B – A) / vs and production cash cost (A) (B) (A) 3Q2021) (45%), both in line with higher ICI4 as certain In Mt costs are linked to index Sales vo
Slide 5: 2021 Key Financials
2021 Key Financials Highlights % change % change Q-o-Q Y-o-Y (4Q2021 2H2020 FY2020 2H2021 FY2021 (B – A) / vs Key Performance In US$M (A) (B) (A) 3Q2021) Indicators Income Statement Significant increase in revenue to US$642M Revenue 146.1 306.8 421.6 641.9 109 74 driven by higher coal EBITDA 29.4 57
Slide 6: 2021 Key Financials
2021 Key Financials Highlights % 31 Dec 31 Mar 30 Jun 30 Sep 31 Dec change In US$M, unless otherwise 2020 2021 2021 2021 2021 (B – A) / Key Performance Indicators stated (A) (B) (A) Repurchases and early Balance Sheet redemption of US$ Bond, Total debt 1 60 62 62 65 4 (94) resulting in US$14M reduct
Slide 7: 2021 Key Financial Ratios
2021 Key Financial Ratios Highlights 2H2020 2H2021 2020 2021 Key Performance Cash Profit Margin (%) 24.0 48.6 22.4 44.4 Indicators Net Operating (Loss) Profit Margin (%) (1.9) 31.0 (3.7) 27.9 Significant increase in cash profit and net Net Profit Margin (1) (%) 19.6 31.0 31.0 27.9 operating profit m
Slide 8: 2021 Key Financial Ratios
2021 Key Financial Ratios Highlights 31 Dec 2020 31 Dec 2021 Key Performance Indicators 12-month trailing EBITDA (US$M) 57.0 270.9 Optimised capital structure and enhanced Net Debt (Cash) (US$M) 7.8 (186.9) shareholders’ return, Net Debt (Cash) / EBITDA (times) 0.1 (0.7) with significant increase De
Slide 9: 2H2021 Financial Highlights
2H2021 Financial Highlights Highlights Record half-yearly 6 Months - 31 Dec 2021 Revenue and EBITDA 450 In US$M 422 • Revenue increased by 188% to US$422M from US$146M in 2H2020, driven by higher average selling price. 400 350 • 12-month trailing EBITDA increased by 375% to US$271M from 271 US$57M i
Slide 10: 2H2021 Revenue
2H2021 Revenue ICI4 coal price as at 23 Feb 2022 was ICI4 vs ASP due US$76.57 per tonne, to lower DMO ASP fixed by Highlights down US$6.68 per tonne from 2H2021 PLN at US$38/Mt 6 Months - 31 Dec 2021 Sales by countries (US$M) Highest half- yearly ICI4 coal price and ASP 100% 23 83 in last 12 90% Sal
Slide 11: 2021 Highlights
2021 Highlights • The Group achieved record revenue of US$641.9 million, an increase of 109% from 2020, due to the increase in sales volume and higher average selling price (“ASP”). The average ICI4 was US$65.85 per tonne in 2021, compared to US$29.29 per tonne in 2020. • The Group delivered coal sa
Slide 12: 2021 Highlights
2021 Highlights • The Group made an early redemption of all outstanding US$ Bonds on 10 October 2021 of US$60.4 million at a premium at 102% of its issued price and saved US$4.8M in annual financing costs. • On 8 December 2021, the Group announced a VALMIN JORC valuation of its coal reserves at US$7
Slide 13: 2H2021 Cost of Sales
2H2021 Cost of Sales Highlights Cost of sales (US$M) Components 6 Months - 31 Dec 2021 230 • Production cash cost increased by 84% to US$36.14 6% 0% per tonne due to certain of the Group’s costs linked to coal price, partially offset by fee adjustments to certain 118 32% costs following negotiations
Slide 14: 2H2021 Other Income / Expenses
2H2021 Other Income / Expenses Highlights General and Administration expenses (US$M) Other income/expense (net) (US$M) 6 Months - 31 Dec 2021 33.4 Included US$31M gain on repurchases • Increase in G&A due to staff bonuses given following the 10.6 of US$ Bond strong financial performance of 2021. 7.9
Slide 15: 2H2021 Net Profit
Gross profit 2H2021 increased by US$162.9M in 2H2021 Net Profit Highlights (In US$M) 350.0 2H2020 included US$31.4M gain on repurchases of US$ 6 Months - 31 Dec 2021 275.4 112.6 Bond. The remaining US$ 300.0 Bond was redeemed in Oct 2021, with premium of Reduction in 6 US$1.2M months finance • Signi
Slide 16: 2H2021 EBITDA
2H2021 EBITDA Highlights (In US$M) 275.4 300.0 6 Months - 31 Dec 2021 280.0 105.8 260.0 240.0 • EBITDA increased from US$29M in 2H2020 to a record 220.0 ( 2.9 ) 2.8 … US$193M in 2H2021, largely driven by the increase in 200.0 revenue following the increase in ICI4 prices, slightly offset 180.0 by hi
Slide 17: Cash Flow
Cash Flow 2021 400.0 Highlights 350.0 17.3 ( 9.9 ) ( 4.4 ) ( 0.6 ) ( 49.9 ) (In US$M) 300.0 ( 60.4 ) • Cash and bank balances increased to US$191M from US$53M as at 31 Dec 2020, driven by the high 250.0 EBITDA offset against US$49.9M dividends paid, ( 24.3 ) Free cash flow of 200.0 US$273M in 190.6
Slide 18: Share Performance
Share Performance 12 Months Total Shareholders Return (TSR) of 176% 18 GEO © G E O E N E R G Y R E S O U R C E S
Slide 19: Share Price Performance
Share Price Performance Key Data Total Shareholders Return1 Closing (23 Feb 2022) Day Range 5 Day 22% S$ 0.410 52 Week Range S$0.400 – S$0.415 Market Cap 1 Month 41% 0.410 SGD 23 February 2022 0.166 – 0.420 S$577.3M Shares Outstanding Public Float 3 Month 75% NA 38.45%2 BETA Rev. Per Employee YTD4 1
Slide 20: Industry Outlook
Industry Outlook According to an International Energy Agency report, coal consumption and production are expected to remain at elevated levels in next few years and not be replaced by renewable energy in the near future 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 • The quick rebound in coal demand in 2021 caused a mismatch between demand and supply as coal production failed to keep pace and grow in tandem. Coal production is set to rise to its highest ever levels in 2022 on the back of strong demand and normalise going forward. •
Slide 22: Coal Analysis and Forecast to 2024
Industry Outlook Coal Analysis and Forecast to 2024 • China and India account for two-thirds of the coal consumption in the world, which will greatly influence the global trend in next few years. In 2021, the coal consumption increased 4% in China, 13% in India, and 17% in the United States. • Coal
Slide 23: Industry Outlook: Green Energy
Industry Outlook Green Energy • Global coal consumption remains strong in 2022 despite some countries have announced Net Zero Carbon Emissions targets in 2050-2060. According to an International Energy Agency report, coal consumption and production are expected to remain at elevated levels in next f
Slide 24: Thank You
Thank You For more Information, please visit www.geocoal.com 24 © G E O E N E R G Y R E S O U R C E S