Wednesday, September 4, 2013

Non-executive director Jim Rogers takes initial stake in Geo Energy Resources

Written by Gwyneth Yeo  
Monday, 02 September 2013 15:18
International investor James Beeland Rogers Jr, better known as Jim Rogers, has started building his direct stake in Geo Energy Resources. On Aug 22, Rogers acquired 1.7 million shares in the coal mining and trading company at 35.5 cents each. The acquisition was Rogers’ first direct investment in Geo Energy, bringing his direct interest in it to 0.15%.

He is also deemed interested in another 0.17% of the company, owing to an agreement with executive chairman Charles Antonny Melati, granting Rogers a call option over two million of Geo Energy shares belonging to Melati. The call option’s exercise price is 35 cents a share, with an exercise period of 10 years, starting from Jan 1, 2015. Rogers was appointed a non-executive director of Geo Energy in December 2012.

For 2QFY2013, Geo Energy reported a 7% increase in earnings to US$5.1 million ($6.51 million) from a year ago on the back of a 25% increase in revenue to US$32.2 million. Group revenue rose from the increase in coal production and sales from its mining concessions in Kutai Barat in East Kalimantan, increase in equipment rental income, and additional revenue from mining services and coal trading, despite lower average selling prices of the coal it produced at its mining concession.

Gross profit margins fell 8 percentage points to 30% on the back of lower margins commanded by its coal trading and mining services business, compared to the coal sales from its cooperation contracts, which were terminated in September 2012, and its East Kalimantan mining concession.

Jakarta-headquartered Geo Energy, listed on the SGX Mainboard in October 2012, raised about US$63.7 million in net proceeds. It planned to use the proceeds for the acquisition of additional mining equipment and machinery, the construction of a jetty and barge loading facilities for the mining licences it has already obtained, potential M&A, and working capital. On the first day of trading, more than 323.2 million of its shares changed hands, and it closed at 43.5 cents, more than 33.8% above its offer price of 32.5 cents. The stock closed at 36.5 cents on Aug 28.

Meanwhile, Lee Ee, chairman and managing director of Progen Holdings, has been purchasing shares in the air conditioning and ventilation company. From Aug 16 to 26, Lee bought more than six million shares of the company, at prices ranging between 14.5 cents and 15.3 cents each. His latest acquisition of 878,000 shares at 14.6 cents each on Aug 27 brought his final direct shareholding in the company to 35.6 million shares, or 13.1% of the company. Lee is also deemed interested in the 913,000 shares, or 0.3% of the company, owned by his spouse, Koh Moi Huang.

Progen Holdings, which Lee founded more than 30 years ago, does the design, supply, installation and maintenance of air-conditioning and mechanical ventilation systems. Its services are used in industrial, commercial and residential developments in both the public and private sectors.
 For 1HFY2013, group revenue rose 15.5% to $5.97 million from a year ago as earnings rose 27.4% to $646,000. Group revenue was boosted by the 26.9% increase in revenue to $4.1 million for its largest business segment, products and installation.

That segment saw increased activity from two projects valued at $3 million each, and increased sales in equipment and installation for shorter- term projects. But revenues from its two smaller business segments are lower compared with 2012. Its services and maintenance business segment saw a 4% decline in revenue to $261,000. Rental income from its investment properties fell 3.6% to $1.6 million, after the termination of a tenancy agreement for its Riverside Road property in mid-2012.

Publish date: 02/09/13

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