AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights:
- AJ Lucas marked considerable gains on ASX following an announcement on Friday (9 September 2022).
- AJL informed the market that the suspension on hydraulic fracturing has been now lifted in the UK.
- The company now looks forward to working with the UK government and regulators.
Capital goods firm AJ Lucas Group Limited (ASX:AJL) was buzzing in news on Friday (9 September 2022) as the shares of the company were spotted trading more than 18% higher right after the market opened. However, at around 10:30 AM AEST, the shares dropped to trade at AU$0.205 apiece, up 7.8% on ASX.
Nonetheless, the shares zoomed up in the morning as AJ Lucas shared an announcement via ASX that applauded the lifting of the moratorium on hydraulic fracturing, introduced in the UK in November 2019.
AJ Lucas, a specialist provider to the energy, mining and infrastructure sectors, stated that the company looks forward to working together with the UK Government and its regulators on setting safe and sensible limits on ground vibrations and planning and permitting systems that deliver beneficial and timely outcomes.
Lifting of moratorium on Hydraulic Fracturing in England
The moratorium on hydraulic fracturing was introduced in November 2019. The lifting of this suspension is seen as a sensible decision as it takes care of maximising UK’s domestic energy supply. This is important if the countries desire to conquer the ongoing energy crisis and reduce the risk of it recurring in the upcoming times.
As per the AGL release, the last few months have emphasised on the perils of rising dependence on costly and increasing emission gas imports. The UK was all set to import more than two thirds of its gas by the end of the decade. This might have caused more trouble as it might have resulted in supply shortage and price hikes.
Meanwhile, any sensible assessment of UK’s current energy supply, would suggest that the nation’s shift to Net Zero will need unrestricted use of gas until at least 2050. Hence, the concerned lifting would aid the country to move ahead towards self-sufficiency.
Also, AGL informed that an independent gas industry will trigger job creation in the UK besides generating tax revenues for central and local government. Also, this would help promote local communities.
Share price performance of AGL
On ASX, the company has gained 12.34% in last one year and has gone up 9.67% on year-to-date (YTD) basis. In last six months, the stock has lost 5.59% and in one month, it has shed off 18.30%.
