EANS-News: H1 2013 record operating and financial performance - strategic investments fuel further profitable growth

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Subtitle: • Revenues increased by 33.2% yoy to EUR 210.1 million in
H1 2013 • EBITDA up 55.8% yoy to EUR 52.7 million, with the EBITDA
margin expanding to 25.1% from 21.4% in H1 2012 • Net income more
than tripled to EUR 21.2 million yoy • 2013 investment program of EUR
45 million and new capacity additions are on track • CEO Manfred
Kastner reiterates outlook: “C.A.T. oil continues its profitable
growth story and is fully committed to its FY 2013 objectives.”

quarterly report

Vienna, 30 August 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, achieved record results in H1
2013. The Company boosted its revenues by 33.2% yoy to EUR 210.1
million (H1 2012: EUR 157.8 million) and EBITDA by 55.8% yoy to EUR
52.7 million (H1 2012: EUR 33.8 million). The EBITDA margin widened
to 25.1% compared to 21.4% in H1 2012. Net income more than tripled
to EUR 21.2 million yoy (H1 2012: EUR 6.7 million). Despite the
weakened Russian rouble, C.A.T. oil reiterates its guidance for
Fiscal Year 2013 based on a strong growth in demand for oilfield
services, the Company's solid order book and the progress in
execution of the 2013 investment program.

Manfred Kastner, C.A.T. oil CEO, commented: "Top operating
performance, lean and efficient organizational structures and
strategically tailored investments according to our customers' needs;
that is what C.A.T. oil stands for. Our performance in the first half
of the year clearly demonstrates that we have set up and executed the
right expansion programs at the right time. C.A.T. oil continues its
profitable growth story and is fully committed to its FY 2013
objectives."

Swift business expansion

C.A.T. oil grew its consolidated revenues by 33.2% yoy to EUR 210.1
million (H1 2012: EUR 157.8 million) primarily driven by a
combination of new capacity additions and higher utilization of
existing rigs and fleets, the increased job size and complexity as
well as the favorable price environment. The total service job count
went up by 11.3% yoy to 1,866 jobs (H1 2012: 1,677 jobs) and the
average per job revenues increased by 19.7% yoy to TEUR 113 (H1 2012:
TEUR 94).

C.A.T. oil has introduced new operating and reportable segments since
1 January 2013: Well Services (fracturing, cementing and completion
services) and Drilling, Sidetracking and IPM (Integrated Project
Management). In H1 2013 C.A.T. oil pushed its Well Services' revenues
by 29.4% yoy to EUR 113.2 million (H1 2012: EUR 87.5 million) due to
a 10.6% yoy gain in the service job count to 1,754 jobs (H1 2012:
1,586 jobs) and a 17.0% yoy rise on the average per job revenue to
TEUR 65 (H1 2012: TEUR 55). The increase was primarily attributable
to highly dynamic fracturing operations during the reporting period.
Drilling, Sidetracking and IPM segment's revenues increased by 40.4%
yoy to EUR 96.0 million (H1 2012: EUR 68.3 million), reflecting a 30%
increase in the Company's sidetracking capacity during the reporting
period compared to the end of 2012 as well as the higher utilization
of existing operating capacities. The total drilling and sidetracking
output was up 57.7% yoy to 134 thousand meters (H1 2012: 85 thousand
meters).

Profitability advanced as operating costs lagged behind the top line
growth

Despite strong business expansion, cost of sales went up only 28.5%
yoy to EUR 170.7 million (H1 2012: EUR 132.8 million) as the Company
stayed focused on tight cost control and operating efficiency. As a
result, C.A.T. oil boosted its earnings before interest, tax,
depreciation and amortization (EBITDA) by 55.8% yoy to EUR 52.7
million (H1 2012: EUR 33.8 million), with the EBITDA margin expanding
by 3.7 percentage points to 25.1% (H1 2012: 21.4%). The Company's
earnings before interest and tax (EBIT) came in at EUR 27.2 million,
up 109.5% yoy (H1 2012: EUR 13.0 million). The EBIT margin widened to
13.0% (H1 2012: 8.2%).

Net income more than tripled

C.A.T. oil more than tripled its net income to EUR 21.2 million
during the reporting period (H1 2012: EUR 6.7 million). The Company's
net financial result stood at EUR -1.3 million (H1 2012: EUR -2.6
million) due to foreign currency exchange losses of EUR 0.3 million
(H1 2012: EUR 1.0 million) as well as net interest expenses of EUR
1.0 million (H1 2012: EUR 1.7 million).

Strong cash generation and solid balance sheet

The Company's funds from operations went up by 52.8% yoy to EUR 43.8
million (H1 2012: EUR 28.7 million) on the back of higher pre-tax
profit and depreciation. Concurrently, cash flow from operating
activities advanced 111.6% yoy to EUR 47.6 million (H1 2012: EUR 22.5
million) primarily reflecting the increase in funds from operations
and higher working capital turnover. The Company's capital
expenditures were up by 140.4% yoy to EUR 31.1 million (H1 2012: EUR
13.0 million) owing to progress in execution of the 2013 capital
expenditure program of EUR 45.0 million. In H1 2013, C.A.T. oil added
5 new rigs to expand its sidetrack drilling capacities by around 30%
to 22 rigs as of 30 June 2013 from 17 rigs as of 31 December 2012.
Cash flow from investing activities was a net outflow of EUR 29.1
million (H1 2012: 11.7 million) and cash flow from financing
activities was a net outflow of EUR 6.8 million (H1 2012: EUR 12.5
million).

As of 30 June 2013, cash and cash equivalents increased by 37.1% to
EUR 53.2 million as of 30 June 2013 (31 December 2012: EUR 38.8
million) and net debt (interest-bearing liabilities less cash and
cash equivalents) contracted 67.8% to EUR 3.8 million (31 December
2012: EUR 11.8 million). The Company maintained a solid balance sheet
with an equity ratio of 61.8% as of 30 June 2013 (31 December 2012:
67.0%).

Management reiterates guidance for 2013

C.A.T. oil proved once again its capability to deliver on its targets
during the reporting period. The Company significantly enhanced its
top- and bottom-line results and progressed executing its EUR 45
million capital expenditure program intended primarily to enlarge its
sidetrack drilling and fracturing capacities. In addition to the
successful expansion of its sidetrack drilling capacity by 30% during
the reporting period, the Company expanded its fracturing capacity by
around 10% in August. All new equipment stays highly utilized and
will contribute to the Company's FY 2013 results.

The Company is encouraged by buoyant oilfield service market dynamics
in Russia and Kazakhstan and remains optimistic that this trend will
sustain during the second half of the year. Even though the Russian
rouble, in which the prevailing majority of C.A.T. oil's service
contracts is denominated, has devalued relative to the euro by around
9% year-to-date (effective date: 30 June 2013), the Company's order
book went up to EUR 404 million (assuming a revised average
rouble-to-euro exchange rate of 42) at the end of August. Therefore,
the Company reiterates its FY 2013 guidance for revenues of EUR 405
to 425 million and EBITDA of EUR 95 to 105 million (based on the
rouble-to-euro exchange rate of 42).

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, a very effective method of well stimulation by cracking rock
formations with pressurized fluids, in Russia and Kazakhstan.
Following its IPO in 2006, 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. Sidetrack drilling is
a term used to describe drilling of a new wellbore from the upper
section of an existing well. In 2011-12, the Company launched the
next phase of its growth and diversification strategy and set up high
class drilling operations as a third core service offering. High
class drilling is the classical technology of drilling vertical,
inclined and horizontal wells for extraction of oil and gas. In
total, the Company has already invested more than EUR 400 million in
growth and diversification since its IPO in 2006. Following the
successful set up of high class drilling in 2011-12, C.A.T. oil
introduced its new segment reporting in 2013 clustering its
activities in "Well Services" (fracturing, cementing and completion
operations) and "Drilling, Sidetracking and IPM (Integrated Project
Management)". 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 H1 2013 weighted average
headcount stood at 2,641 people, most of which are based in Russia
and Kazakhstan.

Key financial figures for H1 2013

[million EUR]

H1 2013 H1 2012 Change (%)
Revenues 210.2 157.8 33.2
Cost of sales 170.7 132.8 28.5
Gross profit 39.5 25.0 57.8
EBITDA 52.7 33.8 55.8
EBITDA margin (%) 25.1 21.4
EBIT 27.3 13.0 109.5
EBIT margin (%) 13.0 8.2
Net income 21.2 6.7 218.7
Earnings per share (EUR) 0.434 0.136 218.7
Equity Ratio (%) (1) 61.8 67.0

Cash flow from
operating activities 47.6 22.5 111.6
Cash flow from
investing activities -29.1 -11.7 148.3
Cash flow from
financing activities -6.8 -12.5 -46.0
Cash and cash equivalents (1) 53.2 28.3 88.0

Total job count 1,866 1,677 11.3
Per-job revenue (thou. EUR) 113 94 19.7
Employees 2,641 2,428 8.8

(1) As of 30 June 2013 and 31 December 2012 respectively

Key financial figures for Q2 2013

[in million EUR]
Q2 2013 Q2 2012 Change (%)
Revenues 111.2 82.5 34.9
Cost of sales 89.5 66.9 33.8
Gross profit 21.7 15.5 39.6
EBITDA 28.7 19.8 44.4
EBITDA margin (%) 25.8 24.1
EBIT 15.7 9.0 74.2
EBIT margin (%) 14.1 10.9
Net income 14.0 4.2 237.4
Earnings per share (EUR) 0.287 0.085 237.4

Cash flow from
operating activities 41.5 13.4 208.7
Cash flow from
investing activities -15.1 -6.1 148.4
Cash flow from
financing activities -10.5 -3.1 239.7

Total job count 994 877 13.4
Per-job revenue (thou. EUR) 112 94 19.0

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