$Geo Energy Res (RE4.SG)$ Coal prices have continued to drif...

Coal prices have continued to drift down from pandemic highs.

Geo Energy's profitability is also dented by finance costs arising from US$220 m debt taken to finance M&A in 2H2023.

For the near term, coal futures look stable which could enable 2H2024 earnings to surge if Geo Energy successfully increases its production sharply.

What's perhaps alluring about the company to longer-term investors is a transformative plan it is executing. It will result in, from late 2025 or early 2026, its scale of operations and profitability being in an entirely different league from where it is now.