- AJ Lucas Group’s (AJL) share price has more than tripled after the company revealed it was back in the black
- The drilling services provider released its half-year report on Monday, showing a net profit of $9.9 million
- It’s a stunning result considering AJ Lucas ended the previous corresponding period with a net loss of $10.3 million
- The strong turnaround is being credited to an outstanding domestic performance and lower losses from its U.K. operations
- AJL has released its outlook for the second half of FY21, predicting the strong growth will continue
- Following the half-year results release, shares in AJ Lucas Group increased by almost 300 per cent to top 10 cents per share
- Company shares are currently trading up 232 per cent at 8.3 cents
AJ Lucas Group’s (AJL) share price has more than tripled after the company revealed it was back in the black.
The drilling services provider released its half-year report for the 2021 financial year on Monday, revealing a net profit of $9.9 million for the period.
Comparatively, AJ Lucas ended the previous corresponding period with a net loss of $10.3 million.
The stunning $20.2 million turnaround is being credited to an outstanding domestic performance and lower losses from its U.K. operations.
“The result reflected the strong operational performance of Lucas Drilling during the half despite revenue being impacted by COVID-related and other interruptions to clients’ operations,” CEO Brett Tredinnick said.
AJL’s earnings before interest, taxes, depreciation and amortisation increased by 63.5 per cent year on year, while revenue dropped 20.9 per cent during the six months to December 31.
“The drop in revenue in the period was more than offset by the increase in earnings resulting from a better mix of more technical, higher yielding drilling as well as the various operational and corporate efficiency measures taken,” the CEO added.
“The group is now better positioned to maximise growth opportunities and
better withstand any possible future shocks,” Brett concluded.
Along with the 1H results, the company has also released its outlook for the second half of FY21 — predicting the strong growth will continue.
“The drilling division recorded a strong first half, and these results are expected to continue in the second half of the year with the demand for metallurgical coal demand remaining robust,” Brett explained.
Following Monday mornings half-year results release, shares in AJ Lucas Group increased by almost 300 per cent to top 10 cents per share
Company shares are currently trading up 232 per cent at 8.3 cents at 1:04 pm AEDT.