- Geo Energy Resources (SGX:RE4)'s 3Q25 earnings were below expectations. 9M25 revenue and PATMI were 86%/56% of our FY25e forecast.
- Net profit declined 55% y-o-y to US$3.2mil despite a 100% jump in coal sales to 3.4mil tonnes. Earnings declined due to a 19% y-o-y fall in selling prices. It dragged cash profit per tonne lower by 45% to US$6.5 per tonne. A 0.1-cent Geo Energy's interim dividend was declared.
- - Read this at SGinvestors.io -
The Positive
Production continues to ramp.
- - Read this at SGinvestors.io -
The Negative
Fall in coal selling prices.
- The Indonesian coal price index (ICI4) declined by 18% from an average of US$51.6 in 3Q24 to US$42.10 in 3Q25. The fall in selling prices halved cash profit to US$6.56. This was despite the cash cost declining.
Outlook
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