Resources Global Development Limited posted net profit of S$8.33 million for the six months ended Jun 30, down 38.7 per cent year-on-year after a one-off disposal gain in the comparative period and softer margins in its Shipping Services arm. The bottom-line contraction came despite a 40.1 per cent jump in group revenue to S$71.08 million, powered by a sharp rise in coal sales volume and firmer coal prices.

Earnings per share fell to 0.26 Singapore cent from 1.62 cents a year earlier. The board did not declare an interim dividend, having paid a final dividend of 0.44 Singapore cent per share for FY2025 on May 26; no interim payout was announced for the period under review.

By segment, Coal Mining was the main growth engine. Revenue from the unit more than doubled to S$43.41 million (61.1 per cent of group turnover) as sales volumes surged 83 per cent to about 624,000 metric tonnes and benchmark ICI-4 coal prices improved. The segment delivered pre-tax profit of S$9.77 million, up from S$2.18 million a year earlier.

Shipping Services contributed S$27.43 million, 8.4 per cent lower YoY, as freight rates softened and port congestion lengthened turnaround times. Pre-tax profit from the division fell to S$3.90 million, with gross margin narrowing to 18.8 per cent from 38.2 per cent. Construction Services remained a minor contributor, booking S$0.23 million in revenue and a pre-tax loss of S$0.40 million.

Group gross profit improved 18.8 per cent to S$21.07 million, but the overall margin compressed to 29.6 per cent from 35.0 per cent, reflecting cost pressures in shipping and higher selling expenses tied to greater coal volumes. Administrative expenses climbed 44.5 per cent to S$6.02 million, weighed by foreign-exchange losses and higher professional fees. Finance costs eased 78.8 per cent to S$45,541 following loan repayments.

On the balance sheet, financial assets at fair value through OCI fell by S$38.12 million to S$48.91 million after a S$34.25 million mark-to-market loss on the group’s 15.49 per cent stake in Indonesia-listed PT Singaraja Putra Tbk. Net cash generated from operations rose to S$24.59 million, supporting a S$16.40 million increase in cash and cash equivalents to S$23.63 million.

The group advanced its restructuring plan in July, raising its effective stake in PT Paragon Karya Perkasa Tbk to 51.0 per cent and transferring several Indonesian subsidiaries to streamline its corporate structure. A remaining call option may lift its indirect interest in shipping unit PT Deli Pratama Angkutan Laut by end-2026. Management highlighted expectations of a continued production ramp-up at the PT TRIOP mine, which has a 2026 production quota of three million tonnes. Conversely, the shipping market is expected to face pressure from vessel oversupply and volatile fuel costs, while Indonesian regulatory changes on mineral exports could affect coal sales logistics in 2027.