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GEO ENERGY RESOURCES LIMITED
| Annual Report 2014
The Group’s other income increased by US$2.0 million from US$1.4 million in FY2013 to US$3.4
million in FY2014, this was mainly due to a foreign exchange gain of US$2.4 million recorded in
FY2014. It was partly offset by a non-recurring gain of US$0.6 million from a repayment of amount
due to a related party in FY2013.
Finance costs increased by US$2.7 million, from US$2.5 million in FY2013 to US$5.2 million in
FY2014, mainly due to interest expense arising from the Medium Term Notes of S$100 million
issued in July 2014.
The Group’s net profit decreased by US$25.8 million from a profit of US$13.0 million in FY2013 to
a loss of US$12.8 million in FY2014, mainly due to the operating losses and higher finance costs.
Financial Position Review
As at 31 December 2014, the Group’s total equity decreased to US$108.0 million from US$122.3
million as at 31 December 2013. The Group’s current assets decreased by US$4.8 million from
US$84.7 million as at 31 December 2013 to US$79.9 million as at 31 December 2014. The
decrease was mainly due to a decrease in inventories of US$10.2 million, as a result of our efforts
to improve our working capital, and the decrease in cash and cash equivalents of US$4.5 million.
This was partially offset by the increases in trade and other receivables of US$6.1 million, as well
as the deposits and prepayments of US$3.8 million.
The Group’s non-current assets increased by US$54.9 million, from US$76.8 million as at 31
December 2013 to US$131.7 million as at 31 December 2014, mainly due to increases in (i)
property, plant and equipment of US$45.8 million; (ii) trade receivables of US$7.6 million; (iii)
deferred tax assets of US$1.6 million; and (iv) deposits and prepayments of US$0.7 million. This
was partially offset by the decrease in deferred expenditure of US$0.9 million, due to a non-
cash impairment allowance made in 4Q2014. The increase in trade receivables was due to a
reclassification arising from a change of payment term with the customers.
The increase in property, plant and equipment was mainly due to the addition of mining property
as a result of the acquisition of 66% shareholding in Borneo International Resources Pte. Ltd. for a
consideration of US$55.0 million. The increase was partially offset by the depreciation expense of
US$6.6 million and the disposal of property, plant and equipment with net book value amounting
to US$3.9 million.
FINANCIAL AND
OPERATIONS REVIEW
