| Since its listing on SGX in 2012, Geo Energy Resources has operated as a coal producer in Kalimantan and South Sumatra. It has acquired mining concessions to boost production and currently holds four. To date, the group has sold 76.3 million tonnes of coal, generating approximately US$1.1 billion in cash profits, says CFO Adam Tan at a 1HFY25 results briefing. In 2023, Geo Energy took steps to elevate its business. It acquired a majority 58.65% stake in PT Golden Eagle Energy Tbk, gaining control over the PT Triaryani (TRA) coal mine, and a 63.7% interest in PT Marga Bara Jaya (MBJ). Largely untapped, the TRA mine boasts 273 million tonnes of 2P reserves and 385 million tonnes of resources, positioning it as a cornerstone for future production growth. These acquisitions are synergistic: MBJ is developing a 92-km integrated haul road and jetty infrastructure project, designed to handle up to 40-50 million tonnes of annual throughput. This setup will enable faster and cheaper transport of coal from the TRA mine to the jetty. |
A long distance (92 km) needs to be covered in transporting coal from the TRA mine to the upcoming MBJ jetty. From there, over several days coal will be moved by tug and barge along a meandering river to reach mother vessels (200-300 km).
Now, Geo Energy has unveiled yet another strategic move -- it would acquire two vessel companies to transport coal from the jetty at the end of the MBJ road to mother vessels shipping it to clients.
 "Barging is very, very difficult to obtain, especially in such a big scale. If you want to do big business, you must have your own fleet." -- Philip Hendry, Chief Operating Officer of Geo Energy. |
Vessel leasing works for small volumes (like Geo's current 10-12 million tons of coal a year), but scaling to 40-50 million tons with the TRA mine and third party mines? Forget it.
As it ramps up coal production at the TRA mine, Geo Energy plans to expand its fleet of tugs and barges substantially over the next few years.
River traffic can be a nightmare—narrow channels mean one breakdown halts everything, and can potentially wipe out a lot of profit, says Mr Philip Hendry, the Chief Operating Officer of Geo Energy.
Owning the fleet also ensures quality control, preventing costly disruptions.
"This is something that we must do... it's not an option. It's going to pay back in a short period of time."
The acquisitions of the vessel businesses, combined with the road-jetty infrastructure position, Geo Energy as a monopoly in the region with owners of neighboring mines holding 2 billion tons of coal reserves showing keen interest in using the facilities due to significant cost savings.
| The vessel deal |
On August 27, 2025, Geo Energy proposed to acquire 51% stakes in PT Trans Maritim Pratama (TMP) and PT Bahari Segara Maritim (BSM).
These integrated Indonesian shipping companies specialise in logistics for commodities, including coal and other products from coal to nickel, iron ore, sand, and equipment.
They own a combined fleet of 54 vessels—27 tugboats and 27 barges— with capacities of 5,000 to 10,000 tonnes.
The deal totals US$127.5 million for the 51% equity. Details below:
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TRANSACTION BREAKDOWN – Low Cash Impact |
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Component |
Details |
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US$23.5m Cash |
Low upfront cash outlay (19% in cash) |
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US$18m Assignment of Receivables |
Non-cash settlement using existing receivable balances of Geo Energy, eliminating credit risk |
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US$86m Share Issuance |
Shares issued at a premium ($0.40, +13% VWAP), which mitigates dilution impact; 1-year moratorium underscores firm belief in long-term value of Geo Energy shares |
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33.33% acquisition from Charles Melati (the IPT component) |
Fully settled by share issuance |
Interestingly, the deal came about while the two companies were in the midst of pursuing their own IPOs.
The vendors agreeing to be paid largely in Geo Energy shares means they anticipate meaningful upside from the stock, as well as the possibility of their companies (TMP and BSM) being floated in the future.
The MBJ infrastructure could also be IPO-ed, as its earnings potential from internal cost savings and third-party usage could result in US$1 - 1.5 billion in valuation, as previously reported.
Shareholder approval is required for the vessel business transactions as they are a major transaction and involve an "interested person" (Executive Chairman Charles Antonny Melati as a seller in part).
Integrating TMP and BSM strengthens Geo Energy's value chain, and controlling a captive market of potentially US$220-280 million annually in transshipment fees, according to Geo Energy. This acquisition is a strategic pivot toward high and secure growth from June 2026 when the MBJ road and jetty are scheduled to be completed. Giving the broad picture, CFO Adam Tan said: "The supply of good quality, low ash, low sulphur coal is starting to deplete in Kalimantan, and some of the major mines are slowing down production and their reserves are coming down. But Sumatra still has good quality coal assets but not the infrastructure, so that's why we build the MBJ infrastructure which then becomes the key to unlock a lot of this very valuable resource." And Mr Hendry says: "The future is very, very bright for Geo." |
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