AJ Lucas Hit by Softer Coal Demand but Boosted by UK Settlement

An announcement from AJ Lucas Group ( (AU:AJL) ) is now available.

AJ Lucas Group reported quarterly revenue of $28.5 million from its Australian operations, down from the prior year, while nine-month revenue also declined, reflecting weaker customer activity and weather disruptions. Australian EBITDA for the quarter fell to $4.1 million, but nine-month EBITDA improved to $18.1 million, and group nine-month EBITDA rose sharply to $42.3 million, aided by a UK settlement, even as the company continued to manage a growing related party loan under a discounted interest incentive.

Operationally, the third quarter was hampered by increased wet weather and subdued steelmaking coal demand, leading to suspended mining at two major client sites and deferred work programs in Queensland and elsewhere. In the UK, the ongoing moratorium on hydraulic fracturing remains in place, but AJ Lucas is advancing several conventional gas projects on its onshore licences, which could provide alternative growth avenues despite the regulatory constraints on fracking.

More about AJ Lucas Group

AJ Lucas Group is an Australian-based drilling and engineering services company focused on the resources and energy sectors. It generates revenue primarily from Australian operations serving mining clients, particularly steelmaking coal producers, and also holds onshore gas interests in the United Kingdom, where it is pursuing conventional gas opportunities.

Average Trading Volume: 961,677

Technical Sentiment Signal: Sell

Current Market Cap: A$15.13M

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