AJ Lucas Group (AJL)

Business description

AJ Lucas has investments in the exploration and commercialisation of shale gas in the UK through licence equity interests and a stake in Cuadrilla. AJL also has two Australia-based operating business units: Drilling Services (LDS) and Engineering & Construction (LEC).

Stock data

Market cap.A$262.5m
Last closeA$0.35
High / Low (52 weeks)A$0.5 / A$0.2
Stock market listingAU
Forecast net debt (A$m)56
Forecast gearing ratio (%)46
TeamResources - Oil & Gas
SectorOil & Gas

Price performance

Relative *2.9(1.2)21.4

* % Relative to local index

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Company news

Investment summary

AJ Lucas offers investors exposure to the most advanced UK shale appraisal programme in the UK. Current activity is focused on a drilling campaign at Preston New Road where the company has approval to drill and test up to four horizontal wells. Prior to appraisal, which is aimed at reducing technical and economic uncertainty, we utilise a probabilistic approach to valuation estimating a 67% chance of commercial success for UK shale (NPV15 >0) with a net P50 risked value of A$0.92/share. At a group level, incorporating AJL’s operating business units and net debt, we derive a P50 (mid-case) valuation of A$0.86/share.

Last updated on 09/04/2018

Y/E Jun Revenue (A$m) EBITDA (A$m) PBT (A$m) EPS (fd) (c) P/E (x) P/CF (x)
2016A 126.0 (2.4) (12.7) (4.93) N/A N/A
2017A 122.6 (8.7) (36.3) (6.67) N/A N/A
2018E 122.1 (5.4) (23.7) (3.46) N/A N/A
2019E 97.3 1.1 (12.0) (1.89) N/A N/A

Last updated on 09/04/2018

Latest research

Dominant Bowland shale position

Initiation | Oil & Gas | 09/04/2018

Latest video

Bitesize briefing – AJ Lucas Group

Key management

Phil Arnall, Chairman
Austen Perrin, CFO
Marcin Swierkowski, Company Secretary

Company address

Level 6, 1 Elizabeth Plaza
North Sydney, NSW
+61 (0) 2 9490 4000
View website