14 May 2019 07:00
14 May 2019
Great Eastern Energy Corporation Limited
("Great Eastern" or "the Company")
Full Year Results Year ended 31 March 2019
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 2019.
| FY 2019 | FY 2018 |
Sales | 11.48 mmscfd | 10.69 mmscfd |
% change | 7% |
|
| FY 2019 | FY 2019 | FY 2018 |
Price ($/mmbtu)* | $ 10.43 | $ 11.31** | $ 10.90 |
* Pricing is based in Indian rupee ("INR")
** On constant currency basis
The INR depreciated by 8% against the US$ over the year (INR 64.45 / $ to INR 69.89 / $)
Financials for FY 2019:
| FY2019 | FY 2018 | |
| On constant currency basis |
| |
Revenue | $ 43.64m | $ 47.32m | $ 38.75m |
EBITDA | $ 27.87m | $ 30.22m | $ 22.28m |
Exceptional item (One time write off) | $ (0.75)m | $ (0.81)m | - |
PAT pre MTM / DTE* | $ 9.93m | $ 10.77m | $ 6.32m |
Cash Profit | $ 15.61m | $ 16.93m | $ 11.01m |
EPS** pre MTM / DTE | $ 8.30c | $ 9.00c | $ 5.30c |
Cash EPS** | $ 13.10c | $ 14.20c | $ 9.20c |
Net Debt | $ 69.61m | $ 75.49m | $ 86.80m |
Net Debt : Equity Ratio | 0.81 | 0.81 | 1.06 |
* 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
** Per GDR
· FY 2019 production was 16.70 mmscfd (FY18: 19.61 mmscfd). As announced on 29 November 2018, we have started replacing the pumps and the replacement programme is expected to be completed by June 2019. With the new pumps in place the Company expects the production to increase by ~3 mmscfd over a three month period.
· Shale gas and CBM reserves and resources in the Raniganj (South) block (as announced on November 15, 2018):
o OGIP of 6.13 TCF (best estimate) / 9.25 TCF (high estimate)
o 3P + 3C + 3U is 2,988.40 BCF (2.99 TCF)
Ø Undiscounted value of $13.78 billion
Ø Discounted value of $4.31 billion
· The Company is in the process of getting the final approvals and expects to start the initial shale gas exploration work by drilling core wells thereafter. Subject to the results obtained and analysed from the core wells, we then intend to drill an optimum number of pilot production wells.
Prashant Modi, Managing Director & CEO of Great Eastern, said:
"The revenues and sales volume continue to show good growth. We have a focused plan of further optimising production, as well as pursuing further exploration. With the continued growth of the Indian economy and stable government policies, demand for hydrocarbons in India continues to grow which is evident from the rising imports."
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 9.25 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.
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
Ciaran Walsh Corporate Finance Director +44 20 7614 5900
Chairman's Statement
Fiscal year 2019 the Indian economy is projected to achieve a growth rate of 7.2% against 6.9% last year.
Basic economic parameters have remained strong. Both fiscal deficit and current account deficit are within projected levels, which allow policy head room.
The Board is confident that the overall state of the economy will continue to remain robust.
The Company has achieved a strong financial performance and continues to drive future growth through increasing the production at the Raniganj (South) Block.
Great Eastern has contributed towards the national effort at reducing environmental pollution through use of clean fuel. By using gas in its own operations and by supplying gas to its customers, Great Eastern has helped improve the air quality and environmental footprint in the Company's operational area.
The Company has continuously engaged with the local community and raised their quality of life by organising medical camps, health initiatives, and sports activities, which have been widely appreciated.
The Company's second asset, Mannargudi block, is situated in the state of Tamil Nadu, and covers an area of 667 sq. km with 0.98 TCF Original Gas-in-Place. The block is currently under Arbitration with the Government.
Click on, or paste the following link into your web browser, to view the associated PDF document:-
http://www.rns-pdf.londonstockexchange.com/rns/8814Y_1-2019-5-13.pdf
GEEC.L (GEEC)