Aj Lucas Group Limited · ASX:AJL
Aj Lucas — H1 FY2010 Earnings Presentation
23 slides from Aj Lucas's earnings presentation, Feb 26, 2010
Slide 1: Results first half 2009-10
For personal use only AJ Lucas Group Limited Results first half 2009-10 26 February 2010
Slide 2: Overview
For personal use only Overview
Slide 3: Financial overview
Financial overview For personal use only • Revenue – Down 43% to $166.1 million • Underlying EBITDA – ($17.8 million) • Reported EBITDA – $42.5 million • Net profit a:er tax – $5.7 million • Earnings per share – 8.8¢ • Dividends per share – nil • Extraordinary gain on sale of CSG asset – $93.6 millio
Slide 4: Challenges & disappointments
Challenges & disappointments For personal use only • General – Challenging business environment – Business uncertainty – UnsaGsfactory results – Tight cash flow – ConGnued management development – Major capital and long-‐term expenditures • Drilling – Revenue maintained in a Gghtening market – Poor
Slide 5: Successes for the half-year
Successes for the half-year For personal use only General • Management strengthened and renewed focus • IntroducGon of new systems and processes imminent • Named Sustainable Infrastructure Company of the Year by Ethical Investor Drilling • ConGnued upgrade of the drilling fleet through refurbishment
Slide 6: Positioned for the future
Positioned for the future For personal use only Financial • Balance sheet being de-‐leveraged • FinalisaGon of a number of longstanding contracts • Working capital posiGon improved with funds from ATP651 sale OperaCng • ConGnued rejuvenaGon of the drilling fleet • Renewed emphasis on safety, environ
Slide 7: People and Safety
People and Safety For personal use only Employee Numbers Safety performance Steady improvement 1,032 946 6.00 768 5.50 5.00 406 4.50 4.00 203 3.50 3.00 2006 2007 2008 2009 2010 Operations Total Trend Line LTIFR (FY2009) Rolling 12 Months
Slide 8: Financial Analysis
For personal use only Financial Analysis
Slide 9: Financial Performance
Financial Performance For personal use only • Margin erosion Dec 2009 Dec 2008 Change – Poor project outcomes Revenue $166.1m $292.8m -‐ 43% – Provisions booked – Hedging contract write off EBITDA (underlying) ($17.8m) $31.5m n/a – R&M on rigs EBIT $28.9m $238.5m -‐ 88% – Coal sector confidence weak
Slide 10: Revenue and profit
Revenue and profit For personal use only OperaCng Revenue $m EBITDA $m 44.1* 499.2 37.4 424.3 18.3 10.6 216.4 (17.8)* 171.3 166.1 2006 2007 2008 2009 2010 1st half 2nd half 2006 2007 2008 2009 2010 * Exl CSG asset sale / impairment 1st half 2nd half
Slide 11: Profit before tax
Profit before tax For personal use only A$m Profit Before Tax Total Profit A$m 20 70 12.4 (1.8) (1.2) (2.8) 60.2 10 (4.0) 60 (5.6) 0 50 (10) 40 (12.2) (20) 30 20.2 (30) 20 (40) 10 (24.8) (40.0) (50) 0
Slide 12: Cash flow movement
Cash flow movement For personal use only A$m 120 96.3 (0.7) (1.9) 100 (3.6) (4.0) (6.7) (9.3) 80 (9.9) (18.4) 60 (18.5) 40 (25.1) 20 (1.8) 0 (20)
Slide 13: Divisional Overview
Divisional Overview For personal use only EBITDA ($m) • Drilling Services 34.5 – 1st half impact of GFC in coal sector -‐ now improving – Rig uGlisaGon impacted by reduced client acGvity – now improving 20.4 – IntegraGon challenges conGnue but reducing – SubstanGal effort on safety with incidents tr
Slide 14: Divisional performance
Divisional performance For personal use only $m HY10 HY09 FY10 vs FY09 Sales 100.4 103.4 (3%) EBITDA 9.5 23.0 (59%) Drilling Services (incl O&M) EBITDA / Sales 9.5% 22.3% Order Book 204.8 166.6 23% Sales 65.7 189.4 (65%) ConstrucGon & Infrastructure EBITDA (20.6) 9.1 (326%) EBITDA / Sales (31.4%) 4.
Slide 15: Cash flow
Cash flow For personal use only OperaCng cash flow $m EBITDA 42.5 • Trade & other receivables Net Interest expense (4.2) include ATP651 receivable of 38.3 $98.5m due March 2010 Movement in working capital: • Creditors movement includes tax liability plus movement in Trade & other receivables (96.9) d
Slide 16: Balance Sheet
Balance Sheet For personal use only $m 2010 2009 • Debt analysis – Bank debt $66.1m Cash 2.0 96.3 – Overdrai $3.8m Total assets 515.1 515.0 – Leases (P&E) $32.4m Borrowings 151.7 168.6 – Property $3.6m – RCPS $43.4m Total liabiliGes 311.6 315.2 – Def purchase consideraGons $2.4m Equity 203.5 199.8 –
Slide 17: Outlook
For personal use only Outlook
Slide 18: Drilling
Drilling For personal use only Spreading our risk by sector and region Coal seam gas – 30% • ExploraGon Coal – 70% of the current business • ProducGon • Underground drilling • ExploraGon drilling Rigs are fully booked to the end • Coal mine degasificaGon of the financial year We conGnue to address key
Slide 19: Coal seam gas
Coal seam gas For personal use only • CSG’s share of Australia’s energy market is growing rapidly • Major export projects nearing FID Lucas offers a complete well-‐to-‐port CSG service • Drilling No other company is beoer placed • Well compleGon in this industry, with rigs, teams and • Gathering sy
Slide 20: Construction & Infrastructure
Construction & Infrastructure For personal use only Gorgon landfall project Port Botany OperaGons Centre • Australia’s largest HDD project Hunter Water • FEED currently underway Government schools and other public • PotenGal for addiGonal work infrastructure contracts Major opportuniGes Southern Sea
Slide 21: Lucas at work
Lucas at work For personal use only Clients AGL Anglo Coal APA Group Arrow Energy BHP Billiton BMA Chevron Eastern Star Gas Hunter Water Hyundai Jemena Metgasco Origin Energy Rio Tinto Santos Water CorporaGon Xstrata
Slide 22: For personal use only
For personal use only
Slide 23: For personal use only
For personal use only This presentaGon 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 presentaGon is not an offer to sell or a solicitaGon to buy any securiGes. As it is prepared for general ci