Aj Lucas Group Limited · ASX:AJL
Aj Lucas — FY2010 Earnings Presentation
22 slides from Aj Lucas's earnings presentation, Aug 30, 2010
Slide 1: AJ Lucas Group Limited Results Presentation
For personal use only AJ Lucas Group Limited Results Presentation 27 August 2010
Slide 2: Overview
For personal use only Overview Allan Campbell, CEO
Slide 3: Operating Results
Operating Results For personal use only Poor Result • Group revenue down 28% to $358.5M • Profit before tax down 105% to $8.2M Divisional Performance • Drilling – Revenue down 1% to $203.2M – EBITDA down 32% to $23.7M • BC&I – Revenue down 46% to $155.3M – EBITDA down 293% to ($19.5)M
Slide 4: Financial overview
Financial overview For personal use only A reconciliation of the reported result to the underlying result: $M FY10 FY09 Reported EBITDA 52.3 201.6 Profit on sale of ATP651 (93.0) (221.1) Fair value remeasurements Cuadrilla (8.7) - Equity accounted minority interests Cuadrilla 5.6 - Impairment of int
Slide 5: BC&I Overview
B C & I Overview For personal use only • EBITDA Budget Variance Analysis $M $M FY10 FY09 Change Sales 155.3 287.4 (46%) – Delays on projects won (4.3) EBITDA (19.5) 10.1 (293%) – Jobs lost (2.9) EBITDA / Sales (12.6%) 3.5% – Jobs deferred (6.5) Order Book 180.5 166.5 8% – Project Execution (6.9) – P
Slide 6: BC&I Overview: Challenging business environment
B C & I Overview For personal use only • Challenging business environment • Business uncertainty – Resources super profit tax – Federal budget constraints – General election • Schools projects • Extra provisions for legacy projects • Group reorganisation and management restructuring • BC&I new manag
Slide 7: Drilling Overview
Drilling Overview For personal use only • EBITDA Budget Variance Analysis $M $M FY10 FY09 Change Sales 203.2 204.3 1% – Wet weather (6.3) EBITDA 23.7 34.5 (32%) – Utilisation (4.5) EBITDA / Sales 11.6% 16.9% – P&E/depot costs (3.7) Order Book 149.2 170.1 (12%) – Revenue (3.5) (18.0) EBITDA $M 34.5 2
Slide 8: Drilling Overview
Drilling Overview For personal use only • Residual business integration costs • Upgrade of Mitchell drilling fleet • Changes of ownership of major CSG projects • Political and economic uncertainty in CSG space • Management and systems in place and working • Safety leaders forum producing results • C
Slide 9: Financial Analysis
For personal use only Financial Analysis Mark Summergreene, CFO
Slide 10: Financial Performance
Financial Performance For personal use only • Margin erosion $M FY10 FY09 Change – Poor project outcomes Revenue 358.5 499.2 (28%) – Provisions booked EBITDA (before – R&M on rigs 58.0 201.6 (71%) minorities) – Weather impact Q3 EBIT (before 30.2 177.7 (83%) • Revenue - timing minorities) – Project
Slide 11: EBITDA (Underlying)
EBITDA (Underlying) For personal use only FY2010 EBITDA - Underlying Overheads $0M Utilisation ($10.8)M Execution ($17.6)M 40 37.1 (13.3) 35 30 4.3 (1.6) (2.7) 25 (4.5) (6.3) 20 $M 15 (5.5) 10 (12.1) 5 (4.6) 0 (5) (10)
Slide 12: Cash Flow Movement
Cash Flow Movement For personal use only FY2010 Cashflow 250 Operations ($2.2)M Investing Outflows ($104.0)M Financing ($81.7)M 200 98.5 (4.6) 8.4 (6.0) (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 13: 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 14: Investments Update
For personal use only Investments Update Allan Campbell
Slide 15: Investments – Oil & Gas
Investments – Oil & Gas For personal use only 1. 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 –
Slide 16: 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
Slide 17: Cuadrilla European Plays
Cuadrilla European Plays For personal use only
Slide 18: Monument Prospect Location
Monument Prospect Location For personal use only Gulf of Mexico
Slide 19: Outlook
For personal use only Outlook Allan Campbell
Slide 20: Outlook
Outlook 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 stable managem
Slide 21: Outlook
Outlook 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 22: 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