AJ Lucas wallet hit by floods, delays

UNSEASONAL rain and flood conditions in Queensland and delays in approvals have prompted AJ Lucas to report that earnings before interest, tax, depreciation and amortisation for the six months to December 31, 2010, were only around $3 million.
AJ Lucas wallet hit by floods, delays AJ Lucas wallet hit by floods, delays AJ Lucas wallet hit by floods, delays AJ Lucas wallet hit by floods, delays AJ Lucas wallet hit by floods, delays

Courtesy AJ Lucas

Staff Reporter

This compares with reported EBITDA of $42.5 million for the same period the previous year though underlying EBITDA was a $17.8 million loss.

AJ Lucas added the results were also affected by a delay in approvals to the start of infrastructure projects and the Gorgon horizontal directional drilling due to logistics associated with getting equipment to Barrow Island.

However, the company expects more favourable conditions in the 2011 calendar year as Queensland coal seam gas and water infrastructure projects that have not yet started or have been delayed begin.

Full-year EBITDA for the 2010-11 financial year is expected to be in the range of $32-36 million, although still down from the $58 million reported in the previous financial year.

AJ Lucas said its drilling division has a full order book for at least the next 12 months due to heavy demand for thermal and coking coal.

Its building, construction and infrastructure business is experiencing record tendering activity in anticipation of the expected final investment decisions of the CSG projects, water shortages in Western Australia, and increased oil and gas activity in Australia generally.

The company plans to increase services in 2011 to take advantage of increased opportunities in oil and gas, water and waste water, resources, and public infrastructure.

Shares in AJ Lucas were down 2.4% this morning to $2.39.

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