Geo Energy expects profit jump in FY2026 on coal sales and prices

The Indonesian firm sold about 3.3 million tonnes if coal in the third quarter.

Indonesia’s Geo Energy Resources Limited expects its profit for financial year 2026 (FY2026) to increase substantially as higher coal sales volumes and selling prices combine with logistics cost savings from its PT Marga Bara Jaya (MBJ) infrastructure.

This comes as the group sold about 3.3 million tonnes of coal in the third quarter (Q3), close to the 3.6 million tonnes sold across the first two quarters of 2026.

“Higher sales volumes, combined with higher selling prices and significant logistics cost savings per tonne from the MBJ infrastructure resulted in a substantial increase in the Group’s profit margin per tonne and net profit,” it said in a statement.

The average Indonesian Coal Index Price for 4,200 GAR was about $76 per tonne in September, compared with $58.13 per tonne in the first half of this year.

MBJ’s road and jetty infrastructure reduced operational cash costs by about $11 per tonne for coal delivered through the infrastructure.

Geo Energy expects coal production and sales to increase in the fourth quarter (Q4) as its subsidiary PT Triaryani scales up volumes through MBJ.

The company will also begin using double-trailer haulage, with two trailers carrying a payload of up to 70 tonnes each, from October.

It expects the increase in volumes and cost savings to continue into Q4.

Its FY2026 outlook assumes coal prices remain at about $77 per tonne, based on the M42 Futures Index Price on 25 September, and that Triaryani’s volumes increase as planned.

Geo Energy is also finalising an investment by Resource Invest AG in a substantial stake in MBJ at a valuation of $1.5b.

“Both parties have made good progress in discussions on the transaction, and the Group is in the process of finalising the definitive agreement. A further announcement will be made once the definitive agreement has been signed,” it added.

The company said it has paid dividends quarterly over the past five years under its policy of returning at least 30% of net profit attributable to owners, subject to debt covenants and capital requirements.

It began a share buyback programme in July and had bought back 5.8 million shares as of the announcement.

The company said it intends to continue buybacks, particularly if it considers its share price to be undervalued.