10
GEO ENERGY RESOURCES LIMITED
| Annual Report 2014
Group’s continuous efforts to improve overall
transparency and corporate governance
standards.
Market outlook
Adaro Energy expected coal oversupply
to persist for at least another one or two
quarters, and the World Bank forecasted a
moderate decline in 2015
3
, before a gradual
recovery after that. The Indonesian government
has introduced a new regulation on the
registration of coal exporters, in an effort to
prevent excessive exploitation of coal, and to
stabilise supply. In terms of demand, although
coal demand from China may not recover
in the near future, given the current energy
consumption structure in China, coal will
remain as a major source of energy in the next
few years. The use of clean coal technology
could potentially strengthen the demand and
transform the overall outlook for coal as well.
In addition, compensating the lower demand
from China, the need to improve electrification
rate in India and certain ASEAN countries will
support coal demand in the medium term.
While challenges will likely stay, the lower cost
in coal production in Indonesia will put us in a
relatively advantageous position as demand
and supply rebalance. Our strategy to diversify
the business model along the industrial value
chain should provide some cushion in harsh
market conditions, and we will continue to
seek the opportunities to accumulate additional
coal reserves at a lower valuation; this will
strengthen our position as an integrated coal
mining group in the long term.
A note of appreciation
On behalf of the Board, I would like to
thank our employees for their efforts in their
respective positions that drove the Group
forward. I would also like to thank all my
fellow Directors for the contribution they have
made throughout the year, and thank all our
shareholders for your continued loyalty and
support. It’s your faith in us that spurs us to do
our utmost and pull through the challenges on
the market.
Mr Charles Antonny Melati
Executive Chairman
CHAIRMAN’S
MESSAGE
3
