Lucror Analytics

Lucror Analytics is a leading credit and ESG research specialist and a provider of technology solutions for differentiated fixed income strategies. Our roots are in bottom-up fundamental credit analysis with a specialization in high yield corporate credits from Europe, Asia and Latin America. We are one of few research specialists integrating ESG considerations with fundamental credit research through a dedicated ESG platform. Our ESG assessment covers five key criteria: Disclosure, E,S, & G Pillars, Controversies, ESG Impact on Credit and ESG Momentum.

Recognizing the importance and value-add of Factor Investing in fixed income, Lucror developed the Smart Quant Navigator (SQN), an intuitive platform that helps clients devise and implement factor-based strategies ranging from pure quant to active fundamental, with integrated ESG.

Our company has been at the forefront of developments in the fixed income markets, identifying opportunities and consistently delivering new products and value-adding solutions to clients. Lucror has close relationships with the largest and most reputable asset managers, family offices, hedge funds, investment and wealth managers globally.

High Yield Experts

Senior Credit Analyst, Lucror Analytics

Trung Nguyen

Senior Credit Analyst

Debt Capital Markets

Geo Energy Resources / Debt Capital Markets

We view Geo Energy as “High Risk” on the LARA scale, primarily due to its extremely limited track record, high operational risk, and very high acquisition risk. In 2016, the company was transformed from a coal services provider into a coal producer. Operational risks are high due to the use of a single coal mining contractor (BUMA), the two small mines (adjacent in one location), and an asset-light business model (mostly outsourcing). Geo Energy does not own any assets in the supply chain, such as hauling roads, jetty, or barging. Therefore, it cannot ensure smooth operations. Both mines operate under IUP licenses, which have a shorter tenor and are subject to higher risks than those owned by larger coal miners such as Kideco (Indika Energy) and Adaro. The company's reserves are small, and it seeks to acquire more mines using the proceeds from the USD Notes issuance. It is also considering entering the thermal power plant business. Our Credit Bias is “Positive”, due to the continued ramping-up of mines, especially the new TBR mine. We view Geo Energy’s corporate governance as “Weak“ on the LAGA scale. The company is majority-owned and controlled by its founders Charles Antony Melati, Dhamma Surya and Huang She Thong. Neither of them had experience in the coal mining industry prior to setting up Geo Energy in 2010. The business is family-run, with family members on the Board and in management positions.

We view Geo Energy as “High Risk” on the LARA scale, primarily due to its extremely limited track record, high operational risk, and very high acquisition risk. In 2016, the company was transformed from a coal services provider into a coal producer. Operational risks are high due to the use of a single coal mining contractor (BUMA), the two small mines (adjacent in one location), and an asset-light business model (mostly outsourcing). Geo Energy does not own any assets in the supply chain, such as hauling roads, jetty, or barging. Therefore, it cannot ensure smooth operations. Both mines operate under IUP licenses, which have a shorter tenor and are subject to higher risks than those owned by larger coal miners such as Kideco (Indika Energy) and Adaro. The company's reserves are small, and it seeks to acquire more mines using the proceeds from the USD Notes issuance. It is also considering entering the thermal power plant business.  Our Credit Bias is “Positive”, due to the continued ramping-up of mines, especially the new TBR mine.  We view Geo Energy’s corporate governance as “Weak“ on the LAGA scale. The company is majority-owned and controlled by its founders Charles Antony Melati, Dhamma Surya and Huang She Thong. Neither of them had experience in the coal mining industry prior to setting up Geo Energy in 2010. The business is family-run, with family members on the Board and in management positions. 

Geo Energy - New Issue Assessment - Lucror Analytics