Geo Energy expects ‘substantial’ rise in Q3 net profit; shares up 7.1%
[SINGAPORE] Integrated coal mining group Geo Energy Resources expects a “substantial increase” in third-quarter net profit due to higher sales volumes, higher selling prices and “significant” logistics cost savings from subsidiary Marga Bara Jaya (MBJ).
Monday’s (Sep 28) profit guidance comes as coal continues to gain popularity in South-east Asia, with the region tapping the commodity for 47 per cent of power generation in 2024. This was up from 37 per cent in 2015.
Shares of Geo Energy rose as much as 7.1 per cent or S$0.04 on Monday morning to S$0.605.
The group on Monday also said that it and Resource Invest have made “good progress” in discussions for the Swiss private commodities investment company to take a US$1.5 billion “substantial” stake in MBJ. A term sheet was signed in May.
MBJ is a Geo Energy-owned Indonesian infrastructure and logistics company that develops and operates integrated coal transportation networks in South Sumatra. Geo Energy and ResInvest in May targeted an initial investment in Q3 2026, with the remainder in Q1 2027.
The transaction also relies on the entry into a new marketing joint venture between Geo Energy and ResInvest Commodities (RIC). RIC is a subsidiary of ResInvest and already serves as the coal offtaker for Geo Energy’s Triaryani coal mine.