Aj Lucas Group Limited · ASX:AJL
Aj Lucas — Q3 2008 Earnings Presentation
13 slides from Aj Lucas's earnings presentation, Oct 22, 2008
Slide 1: AJ Lucas Group Limited Quarterly Update
For personal use only AJ Lucas Group Limited Quarterly Update October 2008
Slide 2: Agenda
For personal use only Trading Update Strategy Balance Sheet & Cash Flow CSG Strategy Outlook 2
Slide 3: Trading Update – Results: Quarter ended Sept 2008
Trading Update – Results: Quarter ended Sept 2008 For personal use only Revenue by Division EBITDA by Division $ million $ million 180 168.6 25 160 140 20 16.8 120 + 91% 119.7 15 + 75% 8.0 100 88.5 9.7 80 10 3.9 60 63.4 5 10.9 8.1 40 20 48.9 0 25.1 -2.3 -2.1 0 -5 Sept 07 Sept 08 Sept 07 Sept 08 Reve
Slide 4: Trading Update – Drilling
Trading Update – Drilling For personal use only Sector exposure – only coal and coal seam gas, no minerals Market leader with significant market share 88 rigs – substantially committed for next 18 months Buoyant demand – 8 additional rigs budgeted for 2008/09 Diversified customer base – all large co
Slide 5: Trading Update – Pipelines & Infrastructure
Trading Update – Pipelines & Infrastructure For personal use only Buoyant demand from water and energy sectors across Australia Awarded new pipeline contracts totalling $72 million Bonaparte contract substantially complete as required prior to rainy season (end October 2008) Additional works ($25m)
Slide 6: Strategy
Strategy For personal use only Overview Alignment with Government Sector selection Initiatives & Policy • Energy Building Australia Fund ($20bn) – • Water and wastewater Infrastructure priority • Infrastructure Broadband roll out ($5bn) – Marais Integrated full service provider Joint Venture Leverag
Slide 7: Strategy (cont)
Strategy (cont) For personal use only Integrated full service provider Infrastructure Infrastructure Operations Operations &&Maintenance Maintenance Pipelines Pipelines Drilling Drilling 7
Slide 8: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow For personal use only Strong balance sheet Institutional Placement of $29.1 million completed in July 2008 @ $5.30 per share Mitchell vendor placement of $15.0 million completed in August 2008 @ $5.67 per share All borrowings renegotiated in August 2008 – majority of facili
Slide 9: CSG Strategy
CSG Strategy For personal use only Overview Invest in early stage unconventional hydrocarbons applying drilling technology and knowledge of ground conditions Create significant shareholder value through commercialisation of coal seam gas resources Significant CSG asset portfolio created at low cost
Slide 10: CSG Strategy (cont)
CSG Strategy (cont) For personal use only Plan Recycling of investments to maximise return on investment Sale of ATP651 under consideration given gas requirements for Gladstone LNG projects Minor drain on current cash flow but strong interest in prospect “Hub” location at centre of Surat Basin enhan
Slide 11: Outlook
Outlook For personal use only Sector outlook very strong for all Company’s activities Drilling • Developing nation industrialisation to underpin demand for coal irrespective of global economic problems • LNG now a reality; CSG now a viable energy source • Gladstone LNG projects – progressing through
Slide 12: Outlook (cont)
Outlook (cont) For personal use only Investment in senior management personnel and systems to drive growth CSG restructuring to create substantial shareholder value and add to financial capacity to pursue growth opportunities On target to meet previous guidance of 2008/09 revenue of at least $600 mi
Slide 13: 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 genera