REG - Great Eastern Energy - Full Year Results Year ended 31 March 2022

Great Eastern EnergyAnnouncement

08/07/2022 07:16

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220708:nRSH7508Ra&default-theme=true

RNS Number : 7508R  Great Eastern Energy Corp Ltd  08 July 2022

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the
European Union (Withdrawal) Act 2018.  Upon the publication of this
announcement via Regulatory Information Service ('RIS'), this inside
information is now considered to be in the public domain.

 

8 July 2022

 

Great Eastern Energy Corporation Limited

("Great Eastern" or "the Company")

 Full Year Results Year ended 31 March 2022

 

Great Eastern Energy Corporation Limited (LSE: GEEC), the fully integrated,
pioneering Indian Coal Bed Methane ("CBM") Company, is pleased to
announce its Preliminary Results for the 12 months ended 31 March 2022.

 

Abridged Financials for FY 2022:

 

                                     FY 2022                                                              FY 2021
                                              On previous Depreciation basis  On constant currency basis
 Revenue                             $27.16m  $27.16m                         $27.27m                     $26.30m
 EBITDA                              $13.84m  $13.84m                         $13.90m                     $13.65m
 PBT / pre MTM / DTE*/ Depreciation  $8.39m   $8.39m                          $8.43m                      $6.73m
 Depreciation**                      $6.36m   $4.06m                          $6.39m                      $4.07m
 Tax                                 $0.40m   $0.80m                          $0.40m                      $0.25m
 PAT / pre MTM / DTE*                $1.63m   $3.53m                          $1.64m                      $2.41m
 Cash Profit                         $7.99m   $7.59m                          $8.02m                      $6.48m
 EPS*** pre MTM / DTE                $1.37c   $2.96c                          $1.38c                      $2.02c
 Cash EPS***                         $6.71c   $6.37c                          $6.74c                      $5.44c
 Net Debt                            $42.85m  $42.85m                         $44.20m                     $52.40m
 Net Debt : Equity Ratio             0.48     0.47                            0.48                        0.58
 Price ($/mmbtu)****                 $9.88    $9.88                           $9.92                       $9.81
 Sales (mmscfd)                      8.16     8.16                            8.16                        7.87

 

* 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

** Additional depreciation during FY 2022 is USD 2.30m

*** Per GDR

**** Pricing is based in Indian rupee ("INR")

$ - U.S. Dollar

 

· The full set of the audited financial statement is available at the
following link: https://www.geecl.com/financials.php
(https://www.geecl.com/financials.php)

 

·    As announced on 8 July 2022, while both 3P and 3C numbers have
increased, there has been a reduction in 1P numbers which has resulted in a
higher depreciation charge as per the accounting standards.

 

·    FY 2021 and part of FY 2022 were unprecedented years with the
COVID-19 pandemic, which had an adverse impact on Sales.  To mitigate this
impact, the Company had taken appropriate measures to optimize costs and
increase efficiencies. The cash profit has gone up by 23.77% on a constant
currency basis.

 

·    The average gas sales prices received remained strong, and the
Company continues to be profitable.  Encouragingly, operations continue to
grow with gas production increasing from an average of 15.18 mmscfd in FY 2021
to an average of 15.86 mmscfd in FY 2022, including choked production.

 

·    As announced on 11 November 2021, the Company continues to focus on
optimising its debt coupon rate and had been able to reduce the same from
10.32% in FY 2021 to 9.48% in the FY 2022.  This has now further been reduced
to 9.37% in the ongoing FY 2023.

 

·    The Company is profitable and cash generative and continues to
maintain sufficient liquidity to meet all of its financial obligations on
time.

 

·    Shale gas, and CBM reserves and resources in the Raniganj (South)
block (as announced on 8 July 2022):

 

 

§ Best estimate OGIP of 6.13 TCF

 

§ High estimate OGIP of 10.62 TCF

 

§ 3P+3C+3U of 3,628.19 BCF, i.e. 3.63 TCF

 

§ Undiscounted value of 3P+3C+3U: $29.36 billion

 

§ PV 5% value of 3P+3C+3U: $17.17 billion

 

§ PV 10% value of 3P+3C+3U: $10.94 billion

 

·      As announced on 23 June 2022, Company has executed an amendment
to its petroleum mining lease ("PML") for the Raniganj (South) block with
the West Bengal Government for exploration and production of Shale resources
along with CBM. The Company will now make plans for undertaking the initial
Shale core wells and, based on the results obtained, will then progress to
undertake a development plan to drill pilot Shale production wells.

 

·    As announced on 14 July 2021, GAIL (India) Limited partially
commissioned the "Jagdishpur - Haldia & Bokaro - Dhamra pipeline" on 6
February 2021.  Further work on laying the pipeline section to Kolkata is
underway and has made progress. The transportation tariff of this pipeline has
been fixed at INR 71.08/mmbtu ($0.96/mmbtu) including 12% of Goods and
Services Tax.

 

·    India's cumulative LNG imports for the year ended March 2022 was
lower by 7.8% compared with the corresponding period of the previous year.
As per the publicly available data, the long term delivered LNG price in India
in March 2022 was $15.95/mmbtu as against $12.20/mmbtu in March 2021.
 Transporting this gas to the eastern region via the above-mentioned pipeline
would entail additional transportation costs mentioned above and other costs
to customers in eastern India.  Great Eastern believes the resulting gas
sales price ex-pipeline to customers in eastern India will be in sync with its
current average selling price and, together with the pipeline, will allow
Great Eastern to sell additional gas sales volumes to new customers that will
be financially attractive.

 

Prashant Modi, Managing Director & CEO of Great Eastern, said:

 

"With the amendment to our PML enabling us to move forward with our Shale
program and the significant uplift in the resource and reserves, it provides a
fantastic growth opportunity for Great Eastern.  Moreover, gas sales prices,
revenue, and sales volume have largely remained resilient.  Our cost cutting
measures and increasing efficiencies have yielded results.

 

Energy prices have exceeded pre-pandemic levels with international oil prices
currently above $100 per barrel along with strong gas prices worldwide.

 

With the steps being taken by the government to accelerate the growth of the
Indian economy, demand for hydrocarbons in India is and will continue to grow,
where development of indigenous gas reserves like those held by Great Eastern
can make a meaningful contribution.

 

On 7 July 2022, we were delighted to announce our inaugural ESG Report. At
Great Eastern, we have found it imperative to establish a channel for
communicating and aligning our stakeholders with our values, and the steps we
have been taking to combat issues such as, but not limited to, environmental
damage, social injustice, and governance."

 

 For further information please contact:

 Great Eastern Energy Corporation Limited                    www.geecl.com (http://www.geecl.com/)

 Yogendra Kr. Modi     Executive Chairman                    +44 (0) 20 3470 0470
 Prashant Modi         Managing Director & CEO
 Jonathan Keeling      VP - Investor Relations               +44 (0) 7717 559 522

 SP Angel Corporate Finance LLP                              +44 (0) 20 3470 0470

 Rob Rees
 Richard Hail
 Caroline Rowe

 

About the Company

 

A fully integrated gas production, development, and exploration Company in
India. Gas is being produced from the Raniganj (South) block in West Bengal,
which covers 210 sq. km with 10.62 TCF of Original gas in place.  The
Company's second license is the Mannargudi block in Tamil Nadu, which covers
667 sq. km with 0.98 TCF of Original gas in place.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  FR SSSFIWEESELW