Aj Lucas Group Limited · ASX:AJL
Aj Lucas — H1 FY2011 Earnings Presentation
17 slides from Aj Lucas's earnings presentation, Feb 28, 2011
Slide 1: AJ Lucas Group Limited FY2011 Half Year Results
For personal use only AJ Lucas Group Limited FY2011 Half Year Results 28 February 2011
Slide 2: Contents
Contents For personal use only • Overview • Financial Results – Drilling Division – BC&I Division • Balance Sheet • Cash Flow • Investments • Strategy & Outlook
Slide 3: Overview
Overview For personal use only • Group revenue up 38.3% to $229.8M • Underlying EBITDA of $3.2M • Operating cash flow of $25.6M • Result impacted by: – Unseasonal rainfall – Infrastructure constraints – Project delays – Settlement of Minerva dispute • Drill rig fleet operating at full capacity • Bal
Slide 4: Financial Results
Financial Results For personal use only FY11 FY10 Change Operational performance impacted by: $M $M $M % - Wet weather 10.8 - Infrastructure constraints 3.6 Revenue 229.8 166.1 38% - Project delays 6.2 Underlying EBITDA 3.2 (17.8) 118% Reported EBITDA 2.9 42.5 (93%) Reconciliation of Reported to Und
Slide 5: EBITDA (Underlying)
EBITDA (Underlying) $M For personal use only Improved operational 10.0 performance 5.0 16.0 3.20 (17.8) 0.0 (5.0) (10.0) 6.5 (15.0) (2.9) 2.0 (2.0) 1.0 (20.0) 0.4 Investment in new water initiatives plus plant under-recovery (25.0) Reduction in shared services and corporate costs
Slide 6: OH&S Performance
OH&S Performance For personal use only TRIFR LTI = Lost Time Injury MTI = Medical Treatment Injury RWI = Restricted Work Injury TRIFR = Total Recordable Injury Frequency Rate
Slide 7: Drilling Division: Financial Result
Drilling Division: Financial Result EBITDA budget variance analysis $M For personal use only $M FY11 FY10 Change Budgeted EBITDA 22.8 Sales 97.1 100.4 (3%) – Wet weather impact (10.8) EBITDA 6.8 9.5 (29%) – Client deferrals (3.8) EBITDA / Sales 7.0% 9.5% – Commissioning costs (1.4) Reported EBITDA 6
Slide 8: Drilling Market Leader: Balanced Activities
Drilling Market Leader: Balanced Activities For personal use only Historical Revenue by Service Type: Jul 2008 to Dec 2010 Total Revenue: $507.1 Million Strong Market Share by Sector 2% 8% 34% 16% Well Services Market Business Unit Market Lucas Share UIS Exploration coal CSG Exploration 60 32 53% NS
Slide 9: Drilling: Work On Hand
Drilling: Work On Hand For personal use only Work tendered from 1 July 2010: Order Backlog (31/12/10) Division $M $M Exploration - QLD 62.8 32.6% Total won 165.1 46% Exploration – NSW Remaining prospective 161.1 44% (Including CSG) 59.4 30.8% Total lost 36.0 10% Production 30.8 16.0% Directional dri
Slide 10: BC&I Division: Financial Result
B C & I Division: Financial Result For personal use only EBITDA budget variance analysis $M FY11 FY10 Change $M $M % Budgeted EBITDA 11.3 Sales 132.7 65.7 102% – Delays on projects won (3.6) EBITDA 1.1 (20.6) 105% – Old project write-off (2.2) – Delays in awarding of projects (2.4) EBITDA / Sales 0.
Slide 11: BC&I Outlook
B C & I Outlook For personal use only • Record tender activity • Availability and timing of government works affected by change of Government and Federal budget cut-backs • Substantial increase in oil, gas and water infrastructure works expected: – QLD CSG export projects – Irrigation and water infr
Slide 12: Balance Sheet
Balance Sheet For personal use only Dec-10 Jun-10 Finance debt analysis $M $M $M Bank Debt 8.9 Net current assets* (124.2) (75.3) Leases (P&E) 36.6 Property 11.0 Non-current assets 320.1 320.5 RCPS 43.8 Total 100.4 Non-current liabilities (20.1) (52.0) Equity 175.8 193.2 Debt maturity profile $M Net
Slide 13: Cash Flow Movement
Cash Flow Movement Focus on managing For personal use only working capital $M Operations $25.7M Investing ($10.8M) Financing ($10.1M) 50.0 45.0 40.0 35.0 Drilling rigs 30.0 Bowland Prospect 25.0 $2.5M deferred 20.0 Acquisition Instalment 15.0 10.0 5.0 0.0
Slide 14: Cuadrilla Overview
Cuadrilla Overview For personal use only • Amongst the largest land holdings in Europe outside majors (net 1.12m acres awarded, a further 0.5m acres pending) • Proven management team and highest quality technical team, multiple decades of experience • Vertically integrated to control all aspects of
Slide 15: Cuadrilla - Current Status
Cuadrilla - Current Status For personal use only • Bowland – Preese Hall well completed with frac operations started – Grange Hill drilling operations commenced (15 January 2011) and currently at a depth of approximately 6,000 feet – 2011 / 2012 drilling schedule modified to bring forward two furthe
Slide 16: Strategy & Outlook
Strategy & Outlook For personal use only • Continue to focus on core technical strengths of Lucas, taking advantage of emerging opportunities • Business efficiency reviews in Drilling and BC&I, combined with ERP rollout 1 July 2011 • Balance sheet review being undertaken – Need to strengthen balance
Slide 17: For personal use only
For personal use only This presentation has been compiled by AJ Lucas Group Limited from sources it believes to be reliable. However, it is not warranted as to its completeness or accuracy. This presentation is not an offer to sell or a solicitation to buy any securities. As it is prepared for gener