AJ Lucas Group (AJL) H2 2024 earnings summary

Executive summary

• Achieved record earnings in Australian drilling operations, with strong demand for metallurgical coal driving growth and operational excellence.

• UK oil & gas operations maintained a low-cost presence, focusing on conventional gas production amid regulatory headwinds and asset write-downs.

• Continued investment in new equipment and workforce development, with a focus on safety, efficiency, and sustainability.

• Board and management transitions completed smoothly, supporting ongoing business initiatives and stability.

Financial highlights

• Group revenue rose 0.9% to $159.1 million for FY2024 compared to FY2023.

• Group EBITDA increased 23.4% to $29.2 million; Australian operations EBITDA up 19.9% to $31.2 million.

• Net loss after tax was $0.7 million, a significant improvement from the prior year's $153.3 million loss (which included a $157.3 million impairment).

• EBITDA margin for Australian operations improved to 19.6% from 16.5% year-over-year.

• No dividends declared for FY2024.

Outlook and guidance

• Strong metallurgical coal prices expected to sustain demand for drilling services; forward order book remains robust.

• UK strategy focuses on cost-effective licence compliance and pursuing opportunities for conventional gas revenue.

• Ongoing efforts to encourage removal of UK shale gas moratorium and to expand/diversify service offerings where appropriate.