- Geo Energy Resources (SGX:RE4)'s FY25 revenue exceeded expectations, but earnings were below expectations due to a significant change in tax rate. FY25 revenue and PATMI were 113%/70% of our FY25e forecast. Effective tax rate spiked to 63% (vs estimate 22%) due to a new taxable income computation on local coal price indexation rather than realised coal prices.
- - Read this at SGinvestors.io -
The Positive
Production jumps.
- 2H25 coal production increased 20% y-o-y to 5.9mil MT. The increase was largely due to TBR mine (+1.1mil) and TRA (+0.4). SDJ mine production fell by 0.5mil to 0.3mil in 2H25. It is expected to cease production in 2026.
The Negative
Spike in effective tax rate to 63%.
- - Read this at SGinvestors.io -
Outlook
- Read more at SGinvestors.io.
