The share price of Great Eastern Energy (GEEC) has slumped alarmingly after the Indian rupee plunged to an all-time low against the dollar. The rupee’s decline meant that the interim out-turn for Great Eastern, an integrated coal bed methane producer on the subcontinent, was hit on two fronts: operating costs rose by nearly a fifth to $9.76m (£5.95m); while earnings were decimated by an $8.98m charge relating to negative currency movements on derivative instruments.
But the currency falls masked a largely creditable operating performance. Great Eastern’s revenues were up by 21 per cent on a constant currency basis, while net profits (pre mark-to-market adjustments) were up by two-thirds to $7.14m. Overall production capacity has increased by 23 per cent since the June full-year announcement to 21.3m cubic feet per day (cfpd). Shareholders can also take heart from the fact that average sales for last month hit 10.1m cfpd - a 40 per cent gain on the May performance.