Geo Energy Group, established in 2008, is a low-cost coal producer with high-quality mining assets working in partnership with world-class business associates. Geo Energy owns five coal mining concessions through its subsidiaries and a ready-for-development integrated infrastructure for handling coal logistics and transportation to the domestic and export markets.
1. What does Geo Energy do, and what are its key business segments?
We are one of Indonesia’s major energy groups, focused on low-cost production of strategically located premium coal assets which have low-ash and low-sulphur characteristics. Our focus lies on acquiring new mining concessions to increase production quantity and diversify coal sourcing, owning four mining concessions through our subsidiaries in Kalimantan and South Sumatra in Indonesia.
We own a 49% equity stake in PT International Prima Coal in Kalimantan, Indonesia, as a joint venture with a state-owned coal mining company and one of the largest coal producers in Indonesia. In addition, we also have a 63.7% stake in PT Marga Bara Jaya (MBJ), an infrastructure company developing integrated infrastructure projects with a targeted road haulage capacity up to 40-50 million tonnes per year, which can support the growth plans of our PT Triaryani (TRA) coal mine to increase production of up to 25 million tonnes per annum over the next few years. This allows the group to diversify its revenue stream as an infrastructure provider and expand its value proposition within the energy value chain.
2. Why is Geo Energy’s integrated infrastructure central to its growth strategy?
The group’s Integrated Infrastructure project (comprising a state-of-the-art 92 km haul road and associated jetty in South Sumatra), by our subsidiary MBJ, is central to Geo Energy’s growth strategy. It enables increased production capacity at the TRA coal mine (up to 25 million tonnes per annum) and logistical cost savings of over US$10 ($12.83) per tonne. Leasing the remaining haulage capacity to neighbouring mines with over two billion tonnes of reserves also generates recurring revenue.
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MBJ thus supports value creation at the TRA mine and provides a strategic market route for third-party producers in the region. The project positions Geo Energy as a higher-margin coal producer and infrastructure provider, supporting its goal of becoming a billion-dollar market capitalisation energy group.
3. How does Geo Energy’s integrated infrastructure strengthen its value proposition in Asia’s energy industry?
MBJ is a significant infrastructure project for Sumatra’s natural resources sector, providing market access to over two billion tonnes of reserves and supporting the group’s TRA coal mine with a production capacity of up to 25 million tonnes per year.
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The project aims to improve supply chain efficiency, cost-effectiveness and sustainability, contributing to long-term stakeholder value and stable cash flow for Geo Energy as an infrastructure provider.
The group has signed non-binding term sheets with major mining groups for long-term MBJ capacity usage, generating recurring toll-like revenue and supporting its infrastructure monetisation strategy. Geo Energy has also entered into non-binding agreements with potential investors for MBJ, with investment decisions expected by the end of 2025.
4. What is the group’s current dividend policy?
Geo Energy has a dividend policy of at least 30% of the group’s profit attributable to owners of the company (subject to capital requirements).
Committed to rewarding shareholders, we have declared an interim dividend of 0.25 Singapore cents per share in 1Q2025, which is 25% higher than 1Q2024’s interim dividend of 0.2 cents per share. And in 2Q2025, 0.1 Singapore cent per share was declared. In the last three years, we have declared and paid a dividend of S$0.120 per share.
5. What are Geo Energy’s focused markets and why? Are there plans to expand beyond these markets?
In 2024, the group exported about 65% of our coal production through offtake agreements with Macquarie Bank, Trafigura, and EPR Asia, with the remainder sold to Indonesian buyers. These partners distribute coal to markets in China, South Korea, India and Asean, with China as the largest destination.
The group’s coal assets, noted for low ash and low sulphur, are in demand among regional power and steel sectors for their “eco-coal” properties. Indonesia is the main exporter of low-CV thermal coal, ranging from 3,400 to 4,200 kcal/kg GAR, which makes it a preferred choice for importers across Asia. In addition to competitive pricing, Indonesia benefits from its geographical advantage, with significantly shorter transport times to China and India compared to other regions. This proximity allows Indonesian exporters to secure spot deals for urgent shipments more efficiently.
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The group remains focused on serving the Asean region, aligning with market demand and operational advantages.
6. Geo Energy’s cost model moves in tandem with the ICI4 Index. What is the outlook for coal prices over the next six to 12 months?
Wood Mackenzie has forecasted ICI4 prices to be around US$48 per tonne for the remainder of 2025. Nevertheless, for 2026, Wood Mackenzie forecasted ICI4 prices at the average of US$51 per tonne while M42 Futures Index forecasted an average ICI4 of US$46 per tonne.
Geo Energy’s cost model, which aligns its cash costs with ICI4 prices, is complemented by long-term offtake agreements with major trading firms. These contracts help reduce exposure to fluctuations in the spot market. Additionally, the company has diversified its business by investing in MBJ’s Integrated Infrastructure, which offers a toll-based income stream that is not directly tied to coal prices.
In summary, Geo Energy’s approach — linking costs to market prices and diversifying revenue sources — helps mitigate risks associated with coal price volatility.
7. What coal demand trends is Geo Energy seeing in key markets such as China and Southeast Asia, and how could changes in energy policy or industrial activity impact its sales outlook?
We believe that the market outlook for coal remains positive as it continues to supply over one-third of global electricity generation and remains a key part of the energy mix, particularly in emerging economies.
Coal-fired power plants offer stable, reliable electricity and help maintain grid security, especially where renewable infrastructure is still developing. In Southeast Asia, coal is the most accessible and cost-effective option to meet growing energy demand due to economic and population growth. Its ability to be stockpiled also ensures energy security. Overall, coal remains an important component of the global energy mix.
8. What are Geo Energy’s key sustainability initiatives?
Geo Energy places sustainability at the core of our operations, focusing on responsible mining that balances economic growth, environmental care and community welfare.
The group acquires mining assets with low ash, low sulphur coal to provide a more environmentally friendly and affordable energy source for the less affluent population. We avoid operating in high biodiversity or protected areas and commit to post-mining land rehabilitation where required.
Geo Energy supports local economic development by sourcing labour and supplies locally, creating jobs and opportunities for surrounding communities, particularly through the development of the MBJ Integrated Infrastructure.
Environmentally, we aim to minimise mining impacts and promote resource efficiency, aligning with ISO14001:2015 Environmental Management Systems and implementing an Environmental and Social Management System (ESMS) across all assets. Our MBJ integrated infrastructure also adopts green solutions such as EV charging and battery swapping stations to reduce environmental impact and carbon emissions.
9. What value does Geo Energy offer to its shareholders and potential investors?
Geo Energy owns and operates high-quality, low-cost coal assets characterised by low ash and low sulphur content. Our mining concessions are located in Kalimantan and Sumatra, Indonesia and feature attractive coal qualities. Mining operations are subcontracted to the largest Indonesian mining services companies, allowing us to leverage external expertise and operational efficiency. We have established offtake agreements with major international commodity traders, including Trafigura (SDJ’s offtaker), Macquarie Bank (TBR’s offtaker) and EP Resources (TRA’s offtaker), and sell 25% of our output directly to domestic customers in compliance with Indonesia’s Domestic Market Obligation (DMO) regulation.
Geo Energy also owns integrated infrastructure such as hauling roads and jetties, allowing the group to diversify its revenue stream by collecting fees for electric truck (EV) charging as well as toll and jetty usage from principal users upon the completion of the construction of the integrated infrastructure.
10. Why should investors take a closer look at Geo Energy?
Geo Energy possesses a depth of expertise and proven capabilities in owning and operating coal mines with an established presence in Indonesia, coupled with a strong customer base in the Asia Pacific.
Financially, we have achieved robust financial performance, consistently demonstrating strong revenue growth year-on-year. In 1H2025, Geo Energy nearly doubled sales volume, boosting revenue by 71% and achieving a net profit of US$20.1 million with cash profit per tonne remaining strong at an average of US$10.19 per tonne.
Geo Energy’s management team, with extensive experience across mining, trading and finance, has driven a successful transformation from a small-scale operator to a top 10 Indonesian coal mining company.
The company’s adherence to high standards of corporate governance, evidenced by listings on the Singapore Exchange and Indonesia Stock Exchange and multiple industry accolades, underscores our credibility. Geo Energy is also part of the Singapore FTSE ST Index series. Securities firms cover Geo Energy with ‘Buy’ recommendations and target prices up to 69 cents as of July 2025, further cementing its position as a premier energy player in Asia.
10 in 10 – 10 Questions in 10 Minutes with SGX-listed companies
Designed to be a short read, 10 in 10 provides insights into SGX-listed companies through a series of 10 Q&As with management. Through these Q&As, management will discuss current business objectives, key revenue drivers, as well as the industry landscape. Expect to find wide-ranging topics that go beyond usual company financials.
This report contains factual commentary from the company’s management and is based on publicly announced information from the company. For more, visit sgx.com/research. For more company information, visit https://www.geocoal.com.
Emelia Tan is director of research and FinLit at SGX Group
