Geo Energy Resources Limited: FY2025 Financial Results & Strategic Review

Geo Energy Resources Limited released its unaudited consolidated financial statements for the year ended 31 December 2025. The Group, a leading Indonesian coal miner, reported strong operational growth, strategic acquisitions, and robust dividend payouts amidst ongoing capital investments and industry shifts. Below, we analyze the key financial metrics, performance trends, management commentary, and notable corporate actions disclosed in the report.

Key Financial Metrics & Performance Comparison

Historical Performance Trends

• Sales Volume: Coal sales volume surged 62% to 12.8 million tonnes in FY2025, from 7.9 million tonnes in FY2024, as a result of optimized mining plans and advanced overburden removal[[20]].
• Revenue: Revenue soared 40% YoY, driven by volume rather than price as global coal prices softened.
• Profitability: Despite the rise in revenue and volume, net profit margin narrowed to 4.9% in FY2025 from 9.3% in FY2024, mainly due to higher effective tax rates and lower other income (absence of exceptional gains from previous year).
• Cash Profit Margin: Maintained at above 22%, supported by a resilient cost model linked to coal price index.

Exceptional Items & Asset Changes

• FY2024 included a \$15.4m gain on sale of receivables and a \$5.9m gain on bargain purchase from the MBJ acquisition, which did not recur in FY2025.
• Significant asset additions in FY2025: \$129.3m invested in MBJ infrastructure, \$41.2m for Triaryani mine expansion.
• Investment property was reclassified as PPE at fair value in December 2025.

Strategic Corporate Actions

• Acquisition of Logistics Businesses: In January 2026, Geo Energy acquired 51% stakes in PT Trans Maritim Pratama and PT Bahari Segara Maritim, securing logistics capacity and enhancing operational margins.
• MBJ Infrastructure Progress: 77% completion as of February 2026; on track for June 2026 finish. Infrastructure will support up to 40-50 million tonnes per annum, enabling TRA production ramp-up and providing recurring toll income.
• Disposal: PT Bumi Enggang Khatulistiwa divested in July 2025.

Dividend Payouts

• FY2025 total dividend: 0.55 SG cents/share (interim: 0.25 + 0.1 + 0.1; final: 0.1).
• Decreased from FY2024’s total dividend of 0.7 SG cents/share.
• Dividend yield supported by strong cash flows, though payout ratio is lower due to ongoing capital investments.

Chairman’s Statement

“The Group near-doubled its profit before taxes from US\$25.2 million in 2024 to US\$49.1 million in 2025, mainly driven by the increase of sales volume delivered of 62% from 7.9 million tonnes in 2024 to 12.8 million tonnes in 2025… The Group has successfully completed the acquisition of 51% of the issued shares in both PT Trans Maritim Pratama and PT Bahari Segara Maritim, the shipping businesses based in Indonesia. The acquisition allows the Group to secure key logistics capacity and maintain control over the entire logistic transportation process… On 22 February 2026, the development of the MBJ integrated infrastructure has achieved 77% completion and is on track to be completed by June 2026… With a targeted capacity of up to 40-50 million tonnes per annum, MBJ’s integrated infrastructure will allow the Group to progressively increase its TRA’s coal production to 20-25 million tonnes per annum and yield substantial logistical savings for TRA’s coal operations. In addition, the Group will be able to diversify and generate recurring revenue stream as an infrastructure provider with the remaining haulage capacity.”

The tone is positive, emphasizing volume growth, strategic expansion, and future recurring income, but acknowledges the need for continued capital investment and shareholder approval for dividend payouts.

Industry & Macro Commentary

• Coal remains critical for global electricity, with China’s demand hitting record highs in 2025.
• Indonesian coal supply is forecasted to contract in 2026 due to government production caps, potentially supporting prices.
• Geo Energy’s coal grade is favored by buyers in China and India due to low emissions and logistical advantages.

Share Capital & Corporate Actions

• Exercise of share options: 13.4m new shares issued in 2025, total options outstanding reduced to 14.9m.
• Treasury shares: 5.4m released for option exercise, no major buybacks in 2025.
• Subsidiary capital placement: \$13.1m raised via Golden Eagle Energy Tbk private placement.

Cash Flow & Balance Sheet

• Operating cash flow strong at \$96.8m for FY2025.
• Investing cash outflows high (\$123.2m), reflecting major capital projects and acquisitions.
• Financing inflows positive (\$14.8m) from loan drawdowns and subsidiary share issuance.
• Cash and bank balances remain robust at \$105.1m.
• Bank borrowings increased due to new loan facilities for expansion.

Forecasted Events & Outlook

• MBJ infrastructure completion in June 2026 expected to unlock higher production and recurring toll income.
• 2026 coal production and export quotas subject to government approval, pending as of report date.
• Coal price outlook turns positive for 2026, with ICI4 rebounding to \$53/tonne.

Conclusion & Investor Recommendations

Geo Energy Resources delivered strong operational results and revenue growth in FY2025, driven by a sharp increase in coal sales volume. Strategic acquisitions and infrastructure investments position the Group for future growth, recurring income, and margin improvement. However, net profit margin narrowed due to higher taxes and absence of exceptional gains. Dividend payout ratio decreased, reflecting ongoing capital expenditure requirements.

• For current holders: Maintain a positive bias and consider holding, as the company is executing well on expansion and cost optimization. The outlook is favorable due to industry supply contraction and price recovery, but monitor government approvals and execution risks around MBJ infrastructure completion.
• For prospective investors: Consider accumulating on dips, especially as the Group is poised for higher production and logistical margin gains in 2026. However, be mindful of capital investment cycles and regulatory risks that could affect short-term earnings and dividend payouts.

Disclaimer: The above recommendations are based strictly on information contained in the company’s official financial report for FY2025. This is not financial advice. Investors should conduct their own due diligence and consult with a licensed advisor before making investment decisions.

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