The group is the leading supplier of drilling services to Australia’s coal and coal seam gas (CSG) industries. It is also Australia’s largest builder of long-distance gas pipelines.
On 30 May, AJL downgraded its full year guidance and flagged asset sales in an attempt to get its debt under control.
AJL said that due to a combination of legal expenses, restructuring costs, and difficult trading conditions, it now expects an FY11 underlying EBITDA of $19 million – $21 million.
Indeed, AJL has been one of the shares to sell over the past 6 months due to these problems.
The latest guidance compares to AJL’s previous forecast of an EBITDA of $32 million – $36 million.
AJL suspended its shares from trading as it assesses various capital restructuring proposals.