Aj Lucas Group Limited · ASX:AJL
Aj Lucas — Shareholder Meeting (November 2011)
27 slides from Aj Lucas's shareholder meeting presentation, Nov 30, 2011
Slide 1: 2011 Annual General Meeting
For personal use only 2011 Annual General Meeting 30 November 2011 Macquarie Park, Sydney
Slide 2: 2011 Financial Results
For personal use only 2011 Financial Results
Slide 3: Financial Results
Financial Results For personal use only Project delays, residual integration costs and wet FY2011 FY2011 2010/11 weather contributed to the poor result FY2011 1st half 2nd Half FY2010 Change $'000 $'000 $'000 $'000 (%) Write downs and provisions associated with past Total projects totaling $8.4m
Slide 4: Divisional Results
Divisional Results For personal use only FY2011 FY2011 2010/11 Drilling result affected by unseasonal FY2011 1st half 2nd Half FY2010 Change wet weather $'000 $'000 $'000 $'000 (%) Drilling Margins tight in CSG and water sectors. Production drilling and Revenue 185,936 97,107 88,829 203,207 (8.5
Slide 5: Drilling - full service provider
Drilling - full service provider For personal use only Critical mass of 640 dedicated employees Drilling Division Revenue and 77 multi-purpose rigs $70,000 $60,000 $50,000 $40,000 Uniquely positioned in every major $30,000 $20,000 coal/CSG basin in eastern Australia $10,000 $0 Leveraging marke
Slide 6: BC&I – a more confident future
BC&I – a more confident future For personal use only Balanced business in core sectors. Many opportunities in pipelines, trenchless technologies, water treatment and HDD. Yarwun HDD and Moomba Sleeving Gladstone Area Gorgon HDD $4mm Waterboard $175mm $55mm Focus on leveraging core capabilities t
Slide 7: Recapitalisation Plan
For personal use only Recapitalisation Plan
Slide 8: Recapitalisation Plan
Recapitalisation Plan For personal use only Placement of 15% of share capital @ $1.35/share to raise $13.4 million (completed September 2011) Two year $86.5 million mezzanine loan facility at an interest rate of 8.0% for first 12 months, increasing thereafter Underwritten non-renounceable one
Slide 9: Effect of Recapitalisation
Effect of Recapitalisation For personal use only Restores net working capital to surplus Repays all amounts owing on RCPS and to ATO Substantially deleverages the Company – gearing ratio reduced from 51.1% to 38.2% Substantially reduces funding costs and improves cash flow Provides additio
Slide 10: Pro-Forma Historical Balance Sheet at June 2011
Pro-Forma Historical Balance Sheet at 30 June 2011 (after Recapitalisation) For personal use only Statutory Kerogen Cuadrilla Mezzanine Repay ATO and $'000 30/06/11 Placement Subscription Loan RCPS Buyback Rights Issue ANZ Pro-forma 2011 Current Assets Cash 1,348 13,389 (10,108) 85,000 (59,159) 49,8
Slide 11: Safety
For personal use only Safety
Slide 12: Industry Leader in Safety
Industry Leader in Safety For personal use only Lucas practices a proactive and vigilant safety culture. Our goal is to achieve an injury-free workplace. The company operates in a highly regulated environment with safety being an industry-wide challenge In addition to strict industry standards,
Slide 13: OH&S Record
OH&S Record For personal use only “Essentially, AJ Lucas do not “do lean”, lean is what AJ Lucas have become. They have become lean through great attitudes, effective systems, and an understanding of why disciplined behaviour allows more certain outcomes everyday by everyone in a great team environm
Slide 14: Safety Initiatives
Safety Initiatives For personal use only Initiatives Launched behavioural-based safety strategy – the Lucas Safety Zone Implemented Safety Leadership programme for Drilling Division Consolidated safety management system Implemented e-learning capacity within our training framework Mapped s
Slide 15: Investments
For personal use only Investments
Slide 16: European shale gas acreage
For personal use only 1,653,000 gross acres approved in Europe Pending application in excess of 1,000,000 acres in Poland, Holland and Czech Republic Bowland Shale Weald Basin Noordoostpolder “L” & “M” Blocks Gross numbers includes Lucas’ 293,190 Acres 202,000 Acres 202,000 Acres 446,000 Acres
Slide 17: Current Operations – Bowland
Current Operations – Bowland For personal use only Wells: 1. Preese Hall #1 2. Grange Hill #1 3. Becconsall #1 4. Anna’s Road #1 A. Thistleton #1 2 B. Hesketh #1 1 A C. Banks #1 Commercialisation plan being 4 worked on Hope to recommence fraccing in B Q1 2012 3 C Becconsall #1 being drilled.
Slide 18: Monument Prospect, Trinity County
Monument Prospect, Trinity County For personal use only 10% Net Profit Interest acquired for US$87.8 million in 2009-2011 90km north east of Houston, between the Eagle Ford and Haynesville shale deposits Total leased area of 62,595 acres Primary focus is recovery of liquids Gulf of Mexico
Slide 19: Monument Prospect Drilling & Seismic Results
Monument Prospect For personal use only Drilling & Seismic Results Major drilling activity has occurred in the vicinity of AMI: • Shell #1 Temple located 6 miles north of the AMI, drilled to a depth of 19,468 feet and bottomed in the Lower Cotton. • Hunt Moore (1976) was drilled by Hunt Oil, 9 mil
Slide 20: Outlook
For personal use only Outlook
Slide 21: Outlook
Outlook For personal use only Underlying FY12 EBITDA expected to improve to in excess of $50 million, subject to unseasonal wet weather and completion of the recapitalisation Strong order book in both BC&I and Drilling with majority of FY12 revenue secured Unprecedented pipeline of opportuniti
Slide 22: Outlook: Post Recapitalisation
Outlook For personal use only Post Recapitalisation Commercialisation of the first Cuadrilla asset expected during 2012 ERP Stage II “go live” in April 2012 Continuation of robust safety culture and fostering of strong relationships with clients and stakeholders Other corporate initiatives e
Slide 23: Disclaimer and Important Notice
Disclaimer and Important Notice For personal use only Information, including forecast financial information, in this presentation, should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities or other instruments in AJ Lucas Group Limited or any other
Slide 24: Consideration of Reports
Consideration of Reports For personal use only 2011 Directors Report 2011 Financial Report Independent Auditors Report
Slide 25: Resolution: Re-election of Director
Resolution 1 For personal use only That Ms Genelle Coghlan, who retires in accordance with clause 10.2 of the Company’s Constitution, be re-elected a Director FOR 38,898,475 93.90% OPEN 240,542 0.58% AGAINST 2,284,677 5.52% ABSTAIN 1,691,792 N/A
Slide 26: Resolution: Remuneration Report
Resolution 2 For personal use only That the Remuneration report for the financial year ended 30 June 2011 be adopted FOR 19,527,521 68.31% OPEN 119,529 0.42% AGAINST 8,940,132 31.27% ABSTAIN 2,132,729 N/A
Slide 27: Injury free. Everyday
Injury free. Everyday |