Infrastructure and resources sector service provider AJ Lucas has downgraded its full year guidance and plans a $15.5 million placement.
The company on Thursday revised downwards its underlying earnings forecast for the current financial year from more than $50 million to between $32 million and $37 million.The change was attributed to recent wet weather in Queensland, which resulted in the company's entire rig fleet in the state being idle at various times.
AJ Lucas also said it had identified parties willing to subscribe to a placement of shares at $1.35 per share to raise $15.5 million.
The company earlier this year did not raise the full $51.3 million it sought via a rights issue and sought to make up the shortfall through the placement.
The funds are to be used to reduce debt servicing costs and improve the company's liquidity.
The capital raising is part of a recapitalisation plan that will include that sale of some or all of its drilling business.
Shares in AJ Lucas inched one cent higher to $1.12.
© AAP 2012
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