EANS-News: C.A.T. oil successfully boosts revenues and earnings in 9M 2012

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Subtitle: • Revenues increased by 17.5% yoy to EUR 246.3 million
supported by the record high Q3 revenues • EBITDA grew by 28.1% yoy
to 58.8 million and the EBITDA margin widened to 23.9% • Setup of new
conventional drilling accomplished and 2012 investment program
expanded • Full Year 2012 guidance reiterated

quarterly report

Vienna, 29 November 2012 (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 third quarter and the first nine months of 2012. The Company
demonstrated strong operating and financial performance driven by a
vital customer demand, the improved price mix, and positive
contributions from the new conventional drilling service. Backed by a
historic quarterly high in revenues in Q3, C.A.T. oil increased its
revenues by 17.5% yoy to EUR 246.3 million on a nine months basis. At
the same time the Company's earnings before interest, tax and
depreciation (EBITDA) surged by 28.1% yoy to EUR 58.8 million in 9M,
resulting in the EBITDA margin expansion to 23.9%. Concurrently, the
net income improved by 20.5% yoy to EUR 15.2 million. Based upon the
strong performance in the first nine months of the year, robust
market fundamentals and favorable current operating activity levels,
C.A.T. oil has reiterated its guidance for FY2012. In addition, the
Company decided to expand the 2012 capital expenditure program to
accommodate down payments for the expansion of its sidetracking and
fracturing operating capacities in fiscal year 2013.

Manfred Kastner, CEO of C.A.T. oil, commented: "We have very good
news to report, both, from a financial and operational perspective.
The previous quarter was the strongest Q3 in our Company's history:
With revenues at EUR 88.5 million we achieved a new all time
quarterly revenue high accompanied by one of the best EBITDA margin
performances ever. While running at full speed in our traditional
services, we finalized the setup of our third core service: All the
nine new drilling rigs are now operational. C.A.T. oil possesses a
well balanced portfolio of specific, yet complimentary services,
which makes us a reliable and strategic partner for the key oil and
gas producers in Russia and Kazakhstan. Based on our strong
performance we reiterate our outlook for fiscal year 2012."

Strong revenue boost

The Company's revenues went up by 17.5% yoy to EUR 246.3 million on a
nine month basis (9M 2011: EUR 209.7 million) and 18.5% yoy to EUR
88.5 million in Q3 (Q3 2011: EUR 74.7 million). The rise was
primarily driven by strong customers' demand, the higher job size and
complexity and favorable pricing mix. The new conventional drilling
service which was successively implemented in the course of the year
generated profitable contributions and, therefore, accelerated the
Company's positive momentum. The average per job revenue went up by
17.5% yoy to TEUR 95 in 9M (9M 2011: TEUR 81) and 24.7% yoy to TEUR
100 in Q3 (Q3 2011: TEUR 80). On a nine month basis the total service
job count stayed effectively flat yoy at 2,561 jobs (9M 2011: 2,578
jobs) and declined by 5.0% yoy to 884 jobs in Q3 (Q3 2011: 930 jobs)
as more complex jobs involved longer execution time.

Cost base reflects scale effects and strict cost management

Cost of sales increased by 15.8% yoy to EUR 205.3 million in 9M 2012
(9M 2011: EUR 177.4 million) driven by the higher job size and
complexity, the share of sidetracking jobs on a turnkey basis and the
new drilling business. However, cost of sales lagged behind the
top-line growth due to strict cost management and economies of scale.
The Company's total weighted average headcount increased by 4.0% to
2,469 employees in 9M (9M 2011: 2,373 employees) primarily due to the
latest hires for the new high class conventional drilling.

Strong EBITDA and EBITDA margin development

The Company's EBITDA jumped by 28.1% to EUR 58.8 million in 9M (9M
2011: EUR 45.9 million) and 32.4% yoy to EUR 25.0 million in Q3 (Q3
2011: EUR 18.9 million). The EBITDA margin expanded substantially to
23.9% yoy in 9M (9M 2011: 21.9%) and reached an impressive level of
28.3% yoy in Q3 (Q3 2011: 25.3%). The strong profitability underpins
the exceptional performance, which is based on solid revenue growth
and high cost efficiency. Earnings before interest and tax (EBIT)
increased by 33.4% yoy to EUR 24.8 million in 9M (9M 2011: EUR 18.6
million) and the EBIT margin widened to 10.1% yoy in 9M (9M 2011:
8.9%).

Net income increased by 20.5% in 9M

C.A.T. oil increased its net income by 20.5% yoy to EUR 15.2 million
in 9M (9M 2011: EUR 12.6 million) and 48.4% yoy to EUR 8.6 million in
Q3 (Q3 2011: EUR 5.8 million). The development was bolstered by the
improved financial result, which amounted to EUR -2.3 million (9M
2011: EUR -3.1 million) and EUR 0.4 million in Q3 (Q3 2011: EUR -3.3
million).

Ongoing strong cash generation

Funds from operations went up by 28.0% yoy to EUR 51.7 million in 9M
(9M 2011: EUR 40.4 million) and cash flow from operating activities
staged a 53.4% yoy increase to a net inflow of EUR 46.2 million (9M
2011: net inflow of EUR 30.1 million) due to the Company's strong
operational performance and consistent working capital management.
Capital expenditure decreased by 77.0% yoy to EUR 19.0 million (9M
2011: EUR 83.0 million) reflecting the maintenance capital
expenditure mode the Company operated during the reporting period.
Cash flow from investing activities was a net outflow of EUR 17.6
million (9M 2011: net outflow of EUR 81.8 million). Cash flow from
financing activities was a net outflow of EUR 29.8 million (9M 2011:
net inflow of EUR 52.3 million) driven by an early redemption of
long-term borrowings and an increase in cash dividend paid.

As of 30 September 2012, cash and cash equivalents amounted to EUR
30.2 million (31 December 2011: EUR 30.4 million) and net debt was
EUR 29.4 million, down 41.7% from EUR 50.5 million as of 31 December
2011. C.A.T. oil maintained healthy balance sheet with an equity
ratio of 65.7% as of 30 September 2012 (31 December 2011: 62.3%).

Objectives reiterated for FY 2012

Based on the strong performance in the first nine months of the year,
C.A.T. oil reiterates its targets for FY 2012: The Company expects
revenues in the range of EUR 300 to 320 million and an EBITDA in the
range of EUR 67 to 73 million (based on a rouble-to-euro exchange
rate of 40).

Business expansion in 2013

In response to solid market fundamentals and customers' growing
demand for the Company's services, C.A.T. oil has decided to invest
in additional capacities: Compared to the 2012 level, the
sidetracking and fracturing operating capacities will be further
expanded by 20% to 25% and by 7% to 10% respectively in 2013. To this
end, the Company has increased its 2012 capital expenditures program
by EUR 20.0 million to EUR 50.0 million and budgeted the 2013 capital
expenditures at EUR 45.0 million, of which EUR 20.0 million are
intended for the new capacity and the balance is due to maintenance
capital expenditures.

Manfred Kastner added: "One of C.A.T. oil's key success factors is
its strong market position as well as the trusted and long-standing
relationship with customers. Although the European financial and
sovereign debt crisis impacts economies, particularly in Southern
Europe, we continue to operate in highly dynamic markets. There is a
lot of additional potential for our services in Russia and Kazakhstan
that is why we decided to further expand our business. We will
prudently invest in additional sidetracking and fracturing capacities
by adding up to 5 sidetrack drilling rigs and 1 fracturing fleet in
the course of 2013. This allows us to further grow our business and
to capitalize on our longstanding activities and our strong position
in Russia and Kazakhstan."

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 providers of
oil and gas field services in Russia and Kazakhstan and is listed on
the Frankfurt Stock Exchange (SDAX). C.A.T. oil offers a wide
spectrum of services to increase the lifecycle of an oil field or to
make unexploited oil fields accessible. The Company's growth is
driven by the following factors: Existing oil fields need to be
stimulated due to shrinking oil and gas resources in order to
optimize capacities. Simultaneously, idle wells are reactivated or
made accessible through new methods in order to deploy wells to their
maximum. Additionally, C.A.T. oil has established conventional
drilling as third core service which allows to access completely
unexploited oil and gas reserves. Since its foundation in 1991 in
Celle, Germany, C.A.T. oil has built up a leading hydraulic
fracturing services business in Russia and Kazakhstan. Following its
IPO in 2006 the Company has invested more than EUR 250 million in
additional services and capacities: sidetrack drilling has become the
Company's second core business. In 2011, the Company initiated a
comprehensive investment program with a volume of EUR 150 million,
focusing on the set up of high class conventional drilling as third
core service offering. The new service line will be fully installed
in 2012. C.A.T. oil's portfolio also includes cementing and seismic
services. With its state-of-the art technology the Company clearly
differentiates itself in its core markets as the equipment allows for
very time-efficient and effective deployment. C.A.T. oil's customer
base includes the leading Russian and Kazakh oil and gas producers
amongst them Gazprom, KazMunaiGaz, LUKOIL, Rosneft and TNK-BP. C.A.T.
oil has a long-standing relationship with these customers and has
been a reliable service provider since its market entrance in the
early nineties. The Company has its headquarters in Vienna. In 9M
2012, the Company employed an average of 2,469 people, most of which
are based in Russia and Kazakhstan.

Key financial figures for 9M 2012

[million EUR]

9M 2012 9M 2011 Change in %
Revenues 246.3 209.7 17.5
Cost of sales 205.3 177.4 15.8
Gross profit 41.0 32.3 26.9
EBITDA 58.8 45.9 28.1
EBITDA margin (%) 23.9 21.9
EBIT 24.8 18.6 33.4
EBIT margin (%) 10.1 8.9
Net income 15.2 12.6 20.5
Earnings per share (EUR) 0.312 0.259 20.5
Equity Ratio (%) 65.7 62.3

Cash flow from
operating activities 46.2 30.1 53.4
Cash flow from
investing activities -17.6 -81.8 -78.5
Cash flow from
financing activities -29.8 52.3 >-100
Cash and cash equivalents (1) 30.2 30.4 -0.5

Total job count 2,561 2,578 -0.7
Per-job revenue (thou. EUR) 95 81 17.3
Employees 2,469 2,373 4.0

(1) As of 30 September 2012 and 31 December 2011 respectively

Key financial figures for Q3 2012

[in million EUR]

Q3 2012 Q3 2011 Change in %
Revenues 88.5 74.7 18.5
Cost of sales 72.6 61.4 18.2
Gross profit 16.0 13.3 20.1
EBITDA 25.0 18.9 32.4
EBITDA margin (in%) 28.3 25.3
EBIT 11.8 8.7 36.8
EBIT margin (in%) 13.4 11.6
Net income 8.6 5.8 48.4
Earnings per share (in EUR) 0.176 0.118 48.4

Cash flow from
operating activities 23.7 14.1 68.9
Cash flow from
investing activities -5.8 -38.4 -84.8
Cash flow from
financing activities -17.2 34.7 >-100

Total job count 884 930 -5.0

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
Kärtner 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