Aj Lucas Group Limited · ASX:AJL
Aj Lucas — RBS 2010 Asia Pacific Oil and Gas Conference
34 slides from Aj Lucas's conference presentation, Sep 16, 2010
Slide 1: AJ Lucas Group Limited
For personal use only AJ Lucas Group Limited September 2010
Slide 2: Overview
Overview For personal use only • Diversified mining services, building, construction and infrastructure group • Focus on technical, innovative, environmental, engineering solutions • Ongoing focus on continuous improvement in safety & quality • Sector focus: energy, water & waste water, public infra
Slide 3: Activities
Activities For personal use only Drilling Services Building, Construction & Operations & Maintenance Infrastructure • Underground • Water & waste water • Facilities management • Exploration • Gathering systems • Asset management • Production • Pipelines/hydrotesting – oil & gas • Geotechnical • Tren
Slide 4: High Calibre Clients
High Calibre Clients For personal use only Oil & Gas Engineering and Construction Water & Waste water Coal CSG Civil & Building APA Group Queensland Government BMA-BHP Billiton Arrow Energy Hyundai Mitsubishi Alliance Santos Sydney Water Anglo Coal AGL Sydney City Council Epic
Slide 5: Drilling Division
For personal use only Drilling Division
Slide 6: Drilling Services
Drilling Services For personal use only • Acknowledged industry leader – coal and CSG only • Integrated, full service offering # of Rigs DRILLING DIVISION REVENUE – Exploration 56 ($M) To 30 June – SIS 6 Balanced fleet = stability and strength – Production 4 – Underground 8 – Workovers 4 204.3 203.2
Slide 7: Lucas-Xtreme: Next Generation Rigs
Lucas-Xtreme: Next Generation Rigs For personal use only Dual Purpose Rigs (Coil and Pipe) • 50/50 JV with Xtreme Coil Drilling Corp • Drilling cost savings estimated at 50% of conventional methods • Well drill time reduced to 2 days (vs 3-5 days) • Features: – Continuous coiled tubing with zero con
Slide 8: Domestic Customers - Drilling Services
Domestic Customers - Drilling Services For personal use only
Slide 9: Building, Construction & Infrastructure Division
For personal use only Building, Construction & Infrastructure Division
Slide 10: BCI Divisional Overview
BCI Divisional Overview For personal use only • Industry leader in each activity – Water and gas pipelines – Specialist civil engineering – Mechanical & electrical – Building – Water & waste water projects • C, D&C, EPC and EPCM • World leader in trenchless technologies (incl. HDD) • Key alliances a
Slide 11: BCI – Recent Projects
BCI – Recent Projects For personal use only • Australian focused Existing Projects • Offices in Sydney, (Not including Melbourne, water) Brisbane and Perth • Key local relationships • Project management and self performance • Tier 1 quality projects • Specialist engineering expertise
Slide 12: Internationally renowned HDD capability
Internationally renowned HDD capability For personal use only Ma Wan Island, Hong Kong. Lucas HDD brought water, waste water, power and telecoms across the harbour
Slide 13: The Gorgon Project – a case study
The Gorgon Project – a case study For personal use only • Australia’s largest resource project - $50 billion • Key features: – Sub-sea pipelines – Shore approach to land gas – Cross island and mainland pipeline – LNG plant – Wharf facilities – Accommodation – CO2 re-injection Source: Chevron
Slide 14: Southern SeaWater Desalination Plant
Southern SeaWater Desalination Plant For personal use only • Alliance design, construction and operation of WA’s second desalination plant for Water Corporation • 2 Stage project – each capable of delivering 50GL per year • Major component of the total project value $955 million (Stage 1) • World cl
Slide 15: Investments
For personal use only Investments
Slide 16: Investments – Oil & Gas
Investments – Oil & Gas For personal use only • Cuadrilla Resources (40.93%) – E&P junior in shale gas and liquids space in selected areas of Western Europe – Riverstone investment of $US58m in February 2010 – Fully funded 10 well programme – Only fully integrated unconventional player in Europe – P
Slide 17: Investments – Oil & Gas
Investments – Oil & Gas For personal use only • Philosophy with oil and gas plays revolves around world demand for transportable liquids • Hence all plays relate to either oil, liquids or elephant shale gas plays • Unconventional plays with view to prove science, demonstrate methodology and early ex
Slide 18: Cuadrilla Resources
Cuadrilla Resources For personal use only • Search for unconventional hydrocarbons (principally shale gas and liquids) in Europe • Amongst the largest land holdings in Europe outside majors (net 1.12m acres awarded, a further 1.3m acres pending) • Proven management team and highest quality technical
Slide 19: Cuadrilla European Plays
Cuadrilla European Plays For personal use only
Slide 20: Cuadrilla – Preese Hall Site
Cuadrilla – Preese Hall Site For personal use only
Slide 21: Cuadrilla Resources – Management Team
Cuadrilla Resources – Management Team For personal use only Chris Cornelius (CEO and Founder), over 20 years international experience well service and E&P sectors. Former Engineering Manager of NOWSCO Well Service Inc. and Technical Director of Evergreen Resources, founded Cuadrilla as a standalone
Slide 22: Cuadrilla Resources – Management Team (cont’d)
Cuadrilla Resources – Management Team (cont’d) For personal use only Mark Miller (General Manager and VP Operations) was the President of Eastern Reservoir Service (ERS), a leading US testing company prior to it acquisition by UTI Inc in 2005. Prior to forming ERS he was a regional manager for Schlu
Slide 23: Monument Prospect Location
Monument Prospect Location For personal use only • Acreage not previously drilled • Highly prospective • Successful wells drilled recently in close proximity • Drilling permits Gulf of Mexico obtained – plan to drill in October
Slide 24: Financial Review
For personal use only Financial Review
Slide 25: Financial Performance
Financial Performance For personal use only $M FY10 FY09 Change $M FY10 FY09 Revenue 358.5 499.2 (28%) Reported EBITDA (before minority interest) 58.0 201.6 EBITDA (before Profit on sale of ATP651/Gloucester Basin (93.0) (221.1) 58.0 201.6 (71%) minorities) Fair value remeasurements - Cuadrilla (8.7
Slide 26: Divisional Overview
Divisional Overview For personal use only Drilling BC&I $M FY10 FY09 Change $M FY10 FY09 Change Sales 203.2 204.3 1% Sales 155.3 287.4 (46%) EBITDA 23.7 34.5 (32%) EBITDA (19.5) 10.1 (293%) EBITDA / Sales 11.6% 16.9% EBITDA / Sales (12.6%) 3.5% Order Book 149.2 170.1 (12%) Order Book 180.5 166.5 8%
Slide 27: EBITDA (Underlying)
EBITDA (Underlying) For personal use only FY2010 EBITDA - Underlying Overheads $0M Utilisation ($10.8)M Execution ($17.6)M 37.1 (13.3) 40 35 4.3 (1.6) 30 (2.7) (4.5) 25 (6.3) 20 (5.5) $M 15 (12.1) 10 5 (4.6) 0 (5) (10)
Slide 28: Cash Flow Movement
Cash Flow Movement For personal use only FY2010 Cashflow Operations ($2.2)M Investing Outflows ($104.0)M Financing ($81.7)M 250 98.5 (4.6) 8.4 (6.0) 200 (29.4) (19.4) 150 (59.5) $M 96.3 100 4.3 (11.6) (52.4) 50 (14.1) (3.6) 6.9 0
Slide 29: Balance Sheet
Balance Sheet For personal use only $M FY10 FY09 • Finance Debt analysis $M – Bank debt 11.4 Cash 9.3 96.3 – Leases (P&E) 32.6 Total assets (1) 452.1 515.0 – Property 11.2 – RCPS 43.6 Borrowings 101.3 168.6 – Def purchase consideration 2.5 Total liabilities 258.9 315.2 – TOTAL 101.3 Equity 193.2 199
Slide 30: Outlook
For personal use only Outlook
Slide 31: Outlook - Operations
Outlook - Operations For personal use only • Prospects for drilling very good – oil and gas, CSG and coal • Demand from oil and gas, mining and water expected to increase substantially in 2011 and continue increasing thereafter • New management in BC&I already impacting positively plus impact of sta
Slide 32: Outlook - Investments
Outlook - Investments For personal use only • UK investments have commenced drilling – first indications of prospects expected Q1 2011 • East Texas to commence drilling • Strong partners introduced/being introduced in all the plays • Expect to commence to realise on investments by end 2010
Slide 33: For personal use only
LUCAS WN Wz me ethicalinvestor tl
Slide 34: 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
AJ Lucas Group — RBS 2010 Asia Pacific Oil and Gas Conference on 6ix