RNS Number : 6745S
Great Eastern Energy Corp Ltd
27 June 2018
27 June 2018
Great Eastern Energy Corporation Limited
("Great Eastern" or "the Company")
Full Year Results Year ended 31 March 2018
Great Eastern Energy Corporation Limited (LSE: GEEC), the fully integrated, leading Indian Coal Bed Methane (CBM) Company, is pleased to announce its Preliminary Results for the 12 months ended 31 March 2018.
Highlights:
Operational and Corporate:
· FY 2018 average production increased 19.5% to 19.61 mmscfd (FY17: 16.41 mmscfd)
· Sales :
FY 2018
FY 2017
April - May 2018
April - May 2017
Average sales (mmscfd)
10.69
8.66
12.06
8.44
% change
23%
43%
FY 2018
FY 2017
Average Price ($/mmbtu)*
$ 10.90
$ 10.07
*Pricing is based in Indian rupee ("INR")
The INR gained by 4% against the US$ over the year (INR 67.09 / $ to INR 64.45 / $)
· Updated reserves and resources as announced on March 2, 2018
· Original-Gas-In-Place reconfirmed at 2.62 TCF
· 3P of 594.70 BCF with a NPV @ 10% of $ 1.07 billion, undiscounted at $ 3.53 billion
Financials for FY 2018:
The Company has surpassed its revised financial targets as announced on March 2, 2018
FY 2018
FY 2017
Revenue
$ 38.75m
$ 28.82m
EBITDA
$ 22.28m
$ 13.29m
PAT pre MTM / DTE*
$ 6.32m
$ (1.89)m
Cash Profit
$ 11.01m
$ 2.55m
EPS pre MTM / DTE*
$ 5.30c
$ (1.60)c
Cash EPS
$ 9.20c
$ 2.10c
Net Debt
$ 86.80m
$ 93.53m
Debt:equity Ratio
1.11
1.13
* MTM (Mark to Market) is on account of the restatement of the foreign currency loans; DTE (Deferred Tax Expense) is on account of difference in depreciation rates used for financial accounts and tax accounts and other expenses like exchange fluctuation / MTM
Outlook:
· Continue to increase production further
· New gas pipeline of GAIL (India) Limited providing connectivity to Kolkata expected to be in place by end of 2019
· Under the Open Acreage Licensing Policy ("OALP") the company will look for opportunities
Prashant Modi, Managing Director & CEO of Great Eastern, said:
"The Company has witnessed a tremendous growth in revenues and this gives us confidence for the future. Recent liberalisations in policy framework and further pipeline infrastructure being created will provide a big boost to the industry in general. With the Indian economy being robust, energy demand is expected to remain buoyant."
About the Company
The Company is a fully integrated gas production, development and exploration Company in India, providing gas to the growing industrial region of West Bengal. Gas is being produced (Coal Bed Methane gas) from the Raniganj (South) license area, which covers 210 sq. km, with 2.62 TCF of Gas-in-Place.
The Company's second asset is the Mannargudi license situated in the state of Tamil Nadu in India, which covers an area of 667 sq. km and 0.98 TCF Gas-in-Place.
For further information please visit www.geecl.com
For further information please contact:
Great Eastern Energy
Yogendra Kr. Modi Executive Chairman +44 20 7614 5917
Prashant Modi Managing Director & CEO
Arden Partners
Steve Douglas +44 20 7614 5900
Paul Shackleton
Chairman's Statement
India has emerged as the fastest growing major economy, mainly on the back of stable political and forward looking economic policies of last four years.
With India's continuing commitment to using cleaner fuels like natural gas, the Company will have a robust growth environment.
Additionally, the government has introduced further reforms and liberalised exploration policies which offer wider areas for growth of upstream operators. The company is hopeful of converting these opportunities for further expansion.
The Board is confident that the overall state will remain robust for the foreseeable future.
The Company has been able to achieve substantial increase in its revenue and other financial parameters. Total revenue stood at $ 38.75m in FY 2018, while EBITDA was $ 22.28m for the FY 2018. The Company has a net debt of $ 86.80m as at 31 March 2018 with a debt:equity ratio of 1.11.
Great Eastern has contributed towards improving the environment in its command area with the use of clean energy. Additionally, it has engaged actively with the local community and raised its quality of life in its area of operation by organising medical camps, health initiatives and sports which have been widely appreciated.
The Company's second asset Mannargudi license is situated in the state of Tamil Nadu, southern India and covers an area of 667 sq. km with 0.98 TCF Gas-in-Place. The block is currently under Arbitration with the Government.
With the new infrastructure coming up and the Indian economy growing at a robust rate, we are confident that the demand for energy will continue to grow.
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