TIDMGEEC
RNS Number : 4504F
Great Eastern Energy Corp Ltd
07 November 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.
7 November 2022
Great Eastern Energy Corporation Limited
("Great Eastern" or "the Company")
Unaudited Half Year Results for the six months ended 30
September 2022
Great Eastern Energy Corporation Limited (LSE: GEEC), the fully
integrated, pioneering Indian Coal Bed Methane ("CBM") Company, is
pleased to announce its unaudited half year results for the 6
months ended 30 September 2022.
Abridged Financials for H1 FY 2023:
H1 FY 2023 H1 FY 2022
On previous On constant
Depreciation currency basis
basis
-------- -------------- --------------- -----------
Revenue $13.13m $13.13m $13.95m $13.42m
-------- -------------- --------------- -----------
EBITDA $5.85m $5.85m $6.22m $6.75m
-------- -------------- --------------- -----------
PBT / pre MTM
/ DTE*/ Depreciation $3.59m $3.59m $3.81m $3.87m
-------- -------------- --------------- -----------
Depreciation** $2.88m $1.89m $3.06m $2.04m
-------- -------------- --------------- -----------
Tax $0.27m $0.44m $0.29m $0.31m
-------- -------------- --------------- -----------
PAT / pre MTM
/ DTE* $0.44m $1.26m $0.47m $1.52m
-------- -------------- --------------- -----------
Cash Profit $3.32m $3.15m $3.53m $3.56m
-------- -------------- --------------- -----------
EPS*** pre MTM
/ DTE $0.37c $1.06c $0.39c $1.28c
-------- -------------- --------------- -----------
Cash EPS*** $2.79c $2.64c $2.96c $2.99c
-------- -------------- --------------- -----------
Net Debt $35.58m $35.58m $39.07m $47.96m
-------- -------------- --------------- -----------
Net Debt : Equity
Ratio 0.42 0.42 0.42 0.53
-------- -------------- --------------- -----------
Price ($/mmbtu)**** $10.25 $10.25 $10.89 $9.84
-------- -------------- --------------- -----------
Sales (mmscfd) 7.60 7.60 7.60 8.09
-------- -------------- --------------- -----------
* 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 H1 FY 2023 is $0.99m
*** Per GDR
**** Pricing is based in Indian rupee ("INR")
$ - U.S. Dollar
The Company had appointed S.N. Dhawan & CO LLP ("Firm") as
its auditors, a member firm of Mazars, an international audit, tax,
and advisory firm . The Firm has informed the Company that it had
applied for registration as Third Country Auditors to the Financial
Reporting Council ("FRC") in accordance with the laws and paid the
registration fee on 3 October 2022. The Firm is yet to receive the
registration certificate from FRC and is hopeful of receiving the
same soon.
The full set of the unaudited half year financial statement is
available at the following link:
https://www.geecl.com/financials.php
The Company is profitable, cash generative, and continues to
maintain sufficient liquidity to meet all its financial obligations
on time.
As announced on 8 July 2022, while both the 3P and 3C numbers
have increased, there has been a reduction in the 1P number which
has resulted in a higher depreciation charge as per the accounting
standards.
The average gas sales price received remained strong, and the
Company continues to be profitable. Given the current pricing
environment and renewals effected after the six months reporting
period ending 30 September 2022, the average selling price for the
full financial year ending 31 March 2023, and 31 March 2024, is
expected to be $12.77/mmbtu and $16.47/mmbtu respectively. (Pricing
is based in INR. INR:$ exchange rate assumed is as considered in
the six months reporting period ending 30 September 2022)
Gas production decreased from an average of 15.86 mmscfd in FY
2022 to an average of 15.58 mmscfd in October 2022, including
choked production. This is due to the natural decline in CBM wells.
To mitigate this decrease, as per the evaluation of DeGolyer &
MacNaughton ("D&M"), the Company plans to undertake an
efficiency capital expenditure program of $20 million in the next
financial year. This is expected to increase gas production from
the existing CBM wells.
The Company is further planning to undertake drilling of another
144 CBM wells starting in the next financial year. Thereafter,
subject to government approval, the Company may undertake drilling
of another 506 CBM wells as per D&M's evaluation. The total
expected investment of drilling these CBM wells is $700 million at
current costs, which is expected to be incurred over the next few
years. This is expected to further increase gas production from the
Raniganj (South) block.
The Company is exploring various fund raising options, including
but not limited to, any form of debt, equity, and/or farm-in, for
financing the above-mentioned estimated capital expenditures.
As announced on 8 July 2022, the Shale gas and CBM reserves and
resources in the Raniganj (South) block are as follows:
Ø Original gas in place ("OGIP"): High estimate of 10.62 TCF
Ø OGIP: Best estimate of 6.13 TCF
Ø 3P + 3C + 3U of 3,628.19 BCF i.e., 3.63 TCF
Ø Undiscounted value of 3P + 3C + 3U: $29.36 billion
Ø PV 5% value of 3P + 3C + 3U: $17.17 billion
Ø PV 10% value of 3P + 3C + 3U: $10.94 billion
As announced previously, the Company is making plans for
undertaking the drilling of 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.
Jagdishpur - Haldia & Bokaro - Dhamra pipeline: The section
up to Panagarh was commissioned on 6 February 2021 by GAIL (India)
Limited. Further work for laying the pipeline up to Kolkata is
underway and making progress. The transportation tariff of this
pipeline has been fixed at INR 71.08/mmbtu ($0.89/mmbtu) including
12% Goods and Services Tax.
As per publicly available data, the long term delivered LNG
price in India in September 2022 was $19.58/mmbtu as compared to
$13.41/mmbtu in September 2021 i.e., an increase of 46%.
Transporting this gas to the eastern region of India, via the
above-mentioned pipeline, would entail an additional transportation
cost as mentioned above and other costs to customers. Great Eastern
believes the resulting gas sales price ex-pipeline to customers in
eastern India will be in sync with its 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:
"Given the strong set of results coupled with a conducive
pricing environment, gives us greater confidence to go ahead with
our proposed capital expenditure program. With the amendment to our
Petroleum Mining Lease, enabling us to move forward with our Shale
program, and the significant uplift in the resource and reserves,
it provides the Company a fantastic growth opportunity.
With the steps being taken by the government to increase the
share of natural gas in India's energy mix along with the growth of
the Indian economy, the demand for hydrocarbons, especially natural
gas, in India will continue to grow. This provides a fantastic
opportunity to domestic producers like Great Eastern.
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
Yogendra Kr. Executive Chairman
Modi
Prashant Modi Managing Director & CEO
+44 (0) 7717 559
Jonathan Keeling VP - Investor Relations 522
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.
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END
IR FZMGMGVZGZZM
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