Highlights

  • Revenue for the quarter reached $31.4 million, representing 26% of the FY26 full-year result.
  • Australian Operations EBITDA was $6.3 million, while Group EBITDA came in at $6.0 million.
  • Drilling activity improved from the June quarter, which had been affected by geotechnical issues at a key client's site.
  • In the UK, conventional gas opportunities continue to be progressed while the hydraulic fracturing moratorium remains in place.

AJ Lucas Group Limited (ASX:AJL) has released its quarterly activity report and Appendix 4C for the period ended 30 September 2026. The company, which provides drilling services in Australia and holds onshore gas interests in the United Kingdom, described the quarter as "a robust beginning to the year," with activity in its Australian business improving from the previous quarter.

Quarterly Performance Overview

Group revenue for the quarter was $31.4 million, compared with $35.7 million in the same quarter of the prior year, and equated to 26% of the FY26 full-year result. Australian Operations delivered EBITDA of $6.3 million, which represents 37% of the FY26 full-year figure for that segment.

Group EBITDA was $6.0 million. The prior-year comparison of $32.6 million included a one-off $25.9 million UK dispute settlement; excluding that item, prior-year quarterly EBITDA was $6.7 million. The company noted the financial information has not been audited or reviewed.

Australian Drilling Activity Improves

The Australian business recorded a stronger quarter compared with Q4 FY26, when revenue was $24.0 million and the division posted an EBITDA loss of $1.2 million. That earlier period was affected by geotechnical issues at a key client's underground longwall operation.

Net cash used in operating activities was $4.6 million for the quarter, which the company mainly attributed to the higher level of drilling activity compared with Q4 FY26. Receipts from customers totalled about $29.1 million during the period.

UK Gas Interests and Funding Position

In the UK, the moratorium on hydraulic fracturing remains in force. AJ Lucas stated that conventional gas opportunities on its onshore licences are unaffected and are being progressed. Site restoration continued at the Preston New Road site in Lancashire, while electricity generation from the conventional gas well at Elswick continued to generate revenue.

At quarter end, the company held cash of about $5.9 million and had $6.4 million in unused facilities, giving total available funding of $12.3 million. Its senior syndicated facility matures in May 2027, while the maturity of the related-party Kerogen loan has been extended to 30 September 2027. The company estimated a funding runway of about 2.6 quarters based on the current operating cash outflow.

Key Takeaways

  • AJ Lucas reported $31.4 million in quarterly revenue, with Australian drilling activity recovering from a weaker June quarter.
  • Underlying EBITDA was broadly comparable to the prior year once the one-off UK settlement is excluded.
  • UK activity is centred on conventional gas, site restoration at Preston New Road and power generation at Elswick.
  • Debt maturities in 2027 and the funding runway remain key points in the company's financial position.