Dear Shareholders,

Resources Global Development has recently released its FY2023 results on SGXNet. For a quick overview, you may click here.

Our fleet expansion strategy continues to bear fruits, evident from the double-digit growth in revenue and gross profit from the Shipping business in FY2023. Trading business was affected by supply constraints and lower average selling price, arising from the downturn in Indonesia Coal Index.

Accordingly, the Group ended the year with lower revenue of S$105.6 million and gross profit of S$32.3 million. Gross profit margin at the Group level, however, improved by 10.1 percentage points to 30.5% in FY2023, driven by higher contribution from the higher value Shipping business.

To reward shareholders, the Group has declared a dividend of 3.5 Singapore cent per share for FY2023, subject to shareholders’ approval at the upcoming annual general meeting in April 2024.

With our first growth catalyst, Shipping Services, firmly in place, we are now ready to establish our second engine of growth – coal handling, which will involve both coal mining and coal trading.

Following shareholders’ approval in January 2024, the Group has since acquired all the issued shares in the capital of Batubara Development Pte. Ltd. (“Batubara Development”) which has interest in four coal mines in Central Kalimantan. The four coal mines, with estimated proven and probable reserves of 162 million tonnes of coal, would give us the steady coal supply that we need to propel the Group’s growth.

Diversifying into coal mining is transformational to our Group. We are adding another synergistic income pillar and creating a vertically-integrated business model, allowing us to capture margins across the entire supply chain – from source to customers. We intend to raise funds through the upcoming Placement of 10 million new ordinary shares, to fund the acquisition of Batubara Development.

We look forward to your continued support. If you have any feedback or questions, feel free to reach out to Adrian Hartanto at IR@rgd.sg.

Mr Francis Lee
Executive Director and CEO
13 March 2024