EANS-News: C.A.T. oil 2012: Convincing top and bottom line growth on lucrative business expansion and diversification

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Subtitle: • • Top and bottom line results clearly surpass targets and
reach new peaks • Revenues up 20.0% yoy to EUR 336.8 million, EBITDA
increases by 46.5% yoy to EUR 80.0 million • Profitable growth
underpinned by the widened EBITDA margin to 23.8% in 2012 from 19.5%
in 2011 • Setup of high class drilling as third core service
successfully completed • Proposed dividend of EUR 0.25 per share
doubles the previous year dividend

annual result

Vienna, 30 April 2013 (euro adhoc) - C.A.T. oil AG (O2C, ISIN:
AT0000A00Y78), one of the leading providers of oil and gas field
services in Russia and Kazakhstan, today announced its results for
the Fiscal Year 2012. The Company's top and bottom line soared to new
historic highs on the back of swift business growth and
diversification. C.A.T. oil increased its revenues by 20.0% yoy to
EUR 336.8 million (2011: EUR 280.7 million), thereby exceeding its
revenue target range of EUR 300 to 320 million. Moreover, the Company
substantially strengthened its profitability, and confidently
surpassed its 2012 EBITDA guidance of EUR 67 to 73 million: EBITDA
rose by 46.5% yoy to EUR 80.0 million (2011: EUR 54.6 million). The
EBITDA margin expanded to 23.8% from 19.5% in the previous year.

2012 was a very successful year, also from an operational point of
view: Having proficiently accomplished its 2011-12 investment
program, C.A.T. oil has successfully built up its third core service,
high class drilling, and reinforced its already strong sidetracking
and fracturing platforms. Nine new state-of-the-art drilling rigs
were gradually put into operations and contributed to the Company's
outstanding performance in 2012.

Manfred Kastner, C.A.T. oil's CEO, commented: "Growth is important
and growth is what we all strive for. But this is only one side of
the coin. The other, and even more important one, is profitability.
Prosperous companies manage to combine both and that is what C.A.T.
oil did. Clearly keeping our objectives for 2012 in view we managed
to push our revenues and our EBITDA to EUR 336.8 million and EUR 80.0
million, respectively. We have thus surpassed our goals for 2012.
Additionally we bolstered our profitability and significantly
broadened our EBITDA margin. But what really makes 2012 a special
year is that at the same time we very efficiently expanded and
diversified our business into high class drilling. We have concluded
a crucial phase in our Company's history rounding up our service
portfolio thus being in a better position to take advantage of the
market opportunities than ever before."

Revenues up 20% mainly due to the greater job size and complexity

During the reporting period the Company's revenues topped at EUR
336.8 million, up 20.0% yoy compared to EUR 280.7 million in 2011
driven by a 2.3% yoy rise in the service job count to 3,444 jobs
(2011: 3,366 jobs) and a simultaneous increase in the average per job
revenue by 17.1% yoy to TEUR 97.0 (2011: TEUR 82.9). A strong
customers' demand, the greater job size and complexity and a
favorable pricing mix contributed to this development. Apart from
that, the new high class drilling service successively generated
first profitable contributions to the Company's top line growth in
the course of the year.

Cost base lagged behind the top-line growth on efficiency gains

In 2012, C.A.T. oil's cost of sales went up 16.4% yoy to EUR 282.7
million (2011: EUR 242.8 million) driven by the Company's strong
business expansion, in particular the higher operating activity
levels, the greater job size and complexity and the set up of the new
high class drilling service. The Company reduced its direct costs by
9.4% yoy to 83.3 million (2011: EUR 92.0. million) primarily due to
the improved efficiency of its sidetracking operations on a turnkey
basis and thus the lower third party costs. Depreciation expense rose
by 26.2% yoy to EUR 47.9 million (2011: EUR 38.0 million) mainly
owing to expansion of the Company's operating capacities. As a result
of the Company's fast business expansion during the reporting period,
general and administrative expenses went up 10.7% yoy to EUR 21.6
million (2011: EUR 19.5 million). The total weighted average
headcount grew by 6.9% yoy to 2,522 employees in 2012 (2011: 2,360
employees) primarily due to additional hires for the new drilling
business.

Significant growth in EBITDA and EBITDA margin expansion

The Company's earnings before interest, tax, depreciation and
amortization (EBITDA) climbed 46.5% yoy to a new peak of EUR 80.0
million in the financial year 2012 (2011: EUR 54.6 million). The
EBITDA margin substantially widened to 23.8% compared to 19.5% in the
previous year. The improved profitability stems from a combination of
the strong revenue growth and the Company's more favorable service
mix as well as its tight and efficient cost management during the
reporting period. Despite the higher depreciation expense, C.A.T. oil
posted a 93.4% yoy boost to its earnings before interest and tax
(EBIT) to EUR 32.2 million (2011: EUR 16.6 million) with the EBIT
margin rising to 9.5% (2011: 5.9%).

Net income up 210.9% yoy

C.A.T. oil's strong operational performance is further underlined by
a 210.9% yoy increase in the Company's net income to EUR 21.0 million
(2011: EUR 6.8 million). The net financial result improved to EUR
-2.3 million in 2012 compared to -6.2 million in the previous year,
reflecting foreign currency exchange gains of EUR 0.8 million (2011:
losses of EUR 5.0 million) as well as net interest expenses of EUR
3.0 million (2011: EUR 1.2 million).

Solid balance sheet

The Company's funds from operations rose by 61.0% yoy to EUR 74.7
million in 2012 (2011: EUR 46.4 million) and cash flow from operating
activities was up by 181.8% yoy to EUR 83.9 million (2011: EUR 29.8
million). With the bulk of the Company's 2011-12 expansion program
successfully executed in 2011, capital expenditures decreased by
65.9% yoy to EUR 37.7 million during the reporting period (2011: EUR
110.6 million). As a result, C.A.T. oil's free cash flow was a net
cash inflow of EUR 48.6 million in 2012 compared to a net outflow of
EUR 78.2 million in the previous year. The Company's cash flow from
investing activities was a net outflow of EUR 35.3 million (2011: net
outflow of EUR 108.0 million). Mainly driven by an early redemption
of long-term borrowings and an increase in cash dividend paid, cash
flow from financing activities was a net outflow of EUR 39.4 million
(2011: net inflow of EUR 73.7 million). As of 31 December 2012, cash
and cash equivalents advanced to EUR 38.8 million (31 December 2011:
EUR 30.4 million). The Company's net debt was down 76.7% to EUR 11.8
million (31 December 2011: EUR 50.5 million). At the same time the
Company once again strengthened its balance sheet with an equity
ratio rising to 67.0% as of 31 December 2012 (31 December 2011:
62.3%).

Proposal for a 100% yoy increase in dividend per share to EUR 0.25 At
the AGM on 14 June 2013 the Management and Supervisory Board will
propose a dividend of EUR 0.25 per share for 2012. This represents an
increase of 100% compared to the last year and a profit distribution
of 58%.

Promising outlook for 2013

Based on the vigorous performance in 2012, C.A.T. oil is very
confident in its outlook for the current Fiscal Year. Despite feeble
global economic growth, Company's home markets, Russia and
Kazakhstan, still bear material upside potential for oil and gas
field service companies: As the global oil consumption continues to
grow, the outlook for the oil price and, therefore, upstream
activities remain positive. Besides that, Russian oil and gas
producers are expected to further boost their upstream investments
that should result in the higher demand for oil and gas field
services and support the Company's profitable growth going forward.
C.A.T. oil reiterates its EUR 45 million capital expenditure program
for 2013 aiming at expansion of operating capacities by approximately
30% for sidetracking and 10% for fracturing by the second half of
2013 to address a positive outlook for the Russian oilfield service
market expansion and customers' strong demand for the Company's
services. The Company's positive view of the current year's business
prospects resides upon buoyant results of the 2013 tendering
campaign. As of 25 April 2013, the Company's order book for 2013
stood at EUR of 392 million (based on a rou-ble-to-euro exchange rate
of 40), an increase of 38% yoy. Moreover, the Company has already
secured long-term service orders, resulting in a total order book of
EUR 530 million, up 64% yoy, for a three-year period of 2013-15.
Based on these sturdy fundamentals, C.A.T. oil projects its FY2013
revenues in a range of EUR 405 to 425 million and EBITDA ranging from
EUR 95 to 105 million (based on a rouble-to-euro exchange rate of
40).

www.catoilag.com

Press contact:

FTI Consulting
Thomas M. Krammer
Phone: +49 (0)69 92037-183
Email: thomas.krammer@fticonsulting.com

Steffi Fahjen
Phone: +49 (0)69 92037-115
Email: steffi.fahjen@fticonsulting.com

About C.A.T. oil AG:

C.A.T. oil AG is one of the leading independent oil and gas field
service contractors in Russia and Kazakhstan and is listed on the
Frankfurt Stock Exchange (SDAX). C.A.T. oil provides a range of high
quality services, which enable oil and gas producers to extend
lifecycle of their fields or bring yet unexploited oil and gas
reserves to production.

Since its foundation in 1991 in Celle, Germany, C.A.T. oil has built
up a leading hydraulic fracturing service in Russia and Kazakhstan.
Having reinvested a large portion of proceeds from its IPO in 2006 in
growth and diversification, the Company developed a second core
service of sidetrack drilling in 2007-09 and has established a strong
presence in Russia's sidetrack drilling market. In 2011, the Company
embarked on a major investment program of EUR 150 million aiming
primarily at the setup of high class drilling operations as a third
core service offering. The new service was successfully installed in
2012 and is fully accretive from 2013 onwards. C.A.T. oil's service
portfolio also includes cementing services.

With the state-of-the-art and well-invested asset base, the Company
clearly differentiates itself by high quality services and operating
efficiency in its core markets. C.A.T. oil's customer base includes
the leading Russian and Kazakh oil and gas producers such as Gazprom,
Rosneft, Lukoil, TNK-BP and KazMunaiGaz. The Company has
long-standing relationships with these customers and has been a
reliable service provider since its market entrance in the early
nineties.

C.A.T. oil has its headquarters in Vienna. The Company's 2012
weighted average headcount stood at 2,522 people, most of which are
based in Russia and Kazakhstan.

Key financial figures for FY 2012

[million EUR]
FY 2012 FY 2011 Change in %
Revenues 336.8 280.7 20.0
Cost of sales 282.7 242.8 16.4
Gross profit 54.0 37.9 42.5
EBITDA 80.0 54.6 46.5
EBITDA margin (%) 23.8 19.5
EBIT 32.2 16.6 93.4
EBIT margin (%) 9.5 5.9
Net income 21.0 6.8 210.9
Earnings per share (EUR) 0.431 0.138 >100
Equity Ratio (%) (1) 67.0 62.3

Cash flow from
operating activities 83.9 29.8 >100
Cash flow from
investing activities -35.3 -108.0 -67.3
Cash flow from
financing activities -39.4 73.7 >-100
Cash and cash equivalents (1) 38.8 30.4 27.7

Total job count 3,444 3,366 2.3
Per-job revenue (thou. EUR) 97 83 17.0
Employees 2,522 2,360 6.9

(1) As of 31 December 2012 and 31 December 2011 respectively

Key financial figures for Q4 2012

[in million EUR]
Q4 2012 Q4 2011 Change in %
Revenues 90.4 71.1 27.3
Cost of sales -77.4 -56.4 18.3
Gross profit 13.1 5.6 >100
EBITDA 21.2 8.7 >100
EBITDA margin (in%) 23.4 12.2
EBIT 7.3 -2.0 >100
EBIT margin (in%) 8.1 -2.8
Net income 5.8 -5.9 >100
Earnings per share (in EUR) 0.119 -0.120 >100

Cash flow from
operating activities 37.7 -380.6 >100
Cash flow from
investing activities -17.8 -26.2 -32.2
Cash flow from
financing activities -9.6 21.5 >-100

Total job count 883 788 12.1
Per-job revenue (thou. EUR) 102 90 13.6

Further inquiry note:
Thomas Krammer
Tel: +49(0)69-92037-183
Email: thomas.krammer@fticonsulting.com

end of announcement euro adhoc
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company: C.A.T. oil AG
Kärntner Ring 11-13
A-A-1010 Wien
phone: +43(0) 1 535 23 20 - 0
FAX: +43(0) 1 535 23 20 - 20
mail: ir@catoilag.com
WWW: http://www.catoilag.com
sector: Oil & Gas - Upstream activities
ISIN: AT0000A00Y78
indexes: SDAX, Classic All Share, Prime All Share
stockmarkets: regulated dealing/prime standard: Frankfurt
language: English