Geo Energy unit divests Indonesian coal assets for $23m

Upon completion, both SBJ and BEK will no longer be part of the Geo Energy group.

Geo Energy's subsidiary has agreed to sell its stake in Sumber Bara Jaya (SBJ) for $23m (US$18m) with Geo Energy ceasing its shareholding in Bumi Enggang Khatulistiwa (BEK), an SBJ subsidiary.

Upon completion of the sale, both SBJ and BEK will no longer be part of the Geo Energy group.

Geo Energy said that BEK is a non-core asset plagued by low production volumes due to operational and logistical challenges.

BEK has been unprofitable, incurring a cumulative loss of $768,225 (US$0.6m) from 2022 to 2024.

The divestment is expected to positively impact Geo Energy's financials with earnings per share projected to increase.