C.A.T. oil AG

EANS-News: C.A.T. oil AG
Business model verified - record operational and financial results in full year 2013

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Subtitle: •  Revenues increased by more than one fourth yoy to EUR 426.6 million

•  EBITDA up 43.6% yoy to EUR 114.9 million – efficiency gains boost EBITDA
margin by 3.1 percentage points to 26.9%

•  Net income surged by more than 140% yoy to EUR 50.8 million

•  Proposed dividend of EUR 0.35 per share, up 40% from the previous year level

•  Outlook 2014: revenues in the range of EUR 420 to 450 million and EBITDA from
EUR 113 to 121 million based on the underlying assumption of more than 10% yoy
rouble devaluation

•  CEO Manfred Kastner: “Our strong numbers in 2013 underscore the first year of
all our core services, fracturing, sidetracking and drilling, in full operation,
and clearly confirm our strategy of focusing on efficiency and portfolio
optimization.”

annual result

Vienna (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,
delivered superior operating and financial results in 2013: C.A.T.  oil  boosted
its revenues by more than one fourth yoy to EUR 426.6 million (2012:  EUR  336.8
million) and EBITDA by 43.6% yoy to EUR 114.9 million (2012: EUR  80.0  million)
as the EBITDA margin widened by 3.1 percentage points to  26.9%  (2012:  23.8%).
Net income surged by more than 140% yoy to EUR  50.8  million  (2012:  EUR  21.0
million). Along with sound top- and bottom-line  growth  C.A.T.  oil  rolled-out
and  accomplished  its  2013  investment  program  to  reinforce  its  operating
platform and pave the way for further business expansion. Despite  the  elevated
geopolitical and macroeconomic uncertainties C.A.T. oil stays firmly adhered  to
its profitable growth strategies residing upon its high-class  service  offering
tailored to the needs of the Russian oil industry.

Manfred Kastner, CEO of C.A.T. oil, commented: "We  look  back  at  yet  another
exciting year following  the  successful  implementation  of  the  new  drilling
service in 2012. Our strong results in 2013 underscore the  first  year  of  all
our core services, fracturing, sidetracking and  drilling,  in  full  operation,
and clearly confirm  our  strategy  of  focusing  on  efficiency  and  portfolio
optimization. Having surpassed our bottom-line targets, we  revealed  the  great
potential of our Company, its strengths and capabilities.  Building  upon  these
fundaments we are  determined  to  archive  further  profitable  growth  in  the
future."

Top-line growth at the record level

Driven by high operating activity and capacity utilization levels as well  as  a
favorable service mix, C.A.T. oil's consolidated revenues went up by  26.7%  yoy
to a new record of EUR 426.6 million (2012: EUR 336.8  million),  in  line  with
the Company's guidance for 2013. The strong  demand  growth  for  the  Company's
services is witnessed by a 16.3% yoy hike in the total job count to  4,006  jobs
(2012: 3,444 jobs), whereas an 9.7% yoy rise in the average per job  revenue  to
TEUR 106 (2012: TEUR 97) underscores the strengthened price environment and  the
higher average job size and complexity.

The Company's Well Services segment boosted its revenues by  23.9%  yoy  to  EUR
227.4 million in 2013 (2012: EUR 183.6 million) mainly due to  a  strong  upturn
in the Company's fracturing job count on the back of  a  burgeoning  demand  for
multi-stage fracking services during the reporting  period.  Multi-stage  fracks
surged to 16%  of  the  Company's  total  frack  jobs  (2012:  2%)  as  Russia's
horizontal drilling  footage  increased  62%  yoy  in  2013,  according  to  the
government agency CDU TEK. The segment's job count increased  by  16.5%  yoy  to
3,772 jobs (2012: 3,237 jobs), whereas the average per job revenue rose by  6.3%
yoy to TEUR 60 (2012: TEUR 57).

Drilling, Sidetracking and IPM segment's revenues staged a 30.4% growth  yoy  to
EUR 199.5 million (2012: EUR 153.0 million). The increase was primarily  fuelled
by a 43.1% yoy expansion in the Company's drilling and sidetracking  footage  to
302 thousand meters (2012: 211 thousand meters). The segment's job count was  up
13.0% yoy to 234 wells and sidetracks (2012: 207 wells and sidetracks),  whereas
the share of horizontal wells and  sidetracks  rose  to  48%  of  the  Company's
overall drilling and sidetracking mix (2012: 38%).

Efficiency and cost management drive profitability

Despite swinging operating activity levels and the greater average job size  and
complexity, the Company's cost of sales was up only by 20.7% yoy  to  EUR  341.2
million during the reporting period (2012: EUR 282.7  million).  Driven  by  the
new staff additions to sidetracking and drilling operations, C.A.T. oil's  total
weighted average headcount rose by 10.0% yoy to  2,773  employees  (2012:  2,522
employees). Thanks to the continued focus on efficiency gains  and  strict  cost
management, the  Company's  earnings  before  interest,  tax,  depreciation  and
amortization (EBITDA) staged a significant increase of 43.6% yoy  to  EUR  114.9
million (2012: EUR 80.0 million). Thereby, C.A.T. oil surpassed the  upper  part
of its EBITDA guidance range of EUR 105 to 110  million  for  2013.  The  EBITDA
margin widened to 26.9% in 2013 from  23.8%  in  2012.  The  Company  more  than
doubled its earnings before interest and tax (EBIT) to EUR 64.6  million  (2012:
EUR 32.1 million), resulting in the EBIT margin of 15.1% (2012: 9.5%).

Net income advanced by more than 140%

The Company's net financial result improved to EUR -1.9 million  from  EUR  -2.3
million a year ago, primarily reflecting foreign  currency  exchange  losses  of
EUR 0.7 million (2012: gains of EUR 0.7 million) and net  interest  expenses  of
EUR 1.1 million (2012: EUR 3.0 million). Thereby, the Group's net income was  up
141.7% yoy to EUR 50.8 million in 2013 (2012: EUR 21.0 million).

Sound balance sheet and plenty of funding capacity

C.A.T. oil's funds from operations increased by 34.1% yoy to EUR  100.1  million
(2012: EUR 74.7 million) and cash flow from  operating  activities  went  up  by
28.0% yoy to  EUR  107.4  million  (2012:  EUR  83.9  million).  Driven  by  the
successful implementation of the 2013 investment program aimed at  expansion  of
the  Company's  operating  capacities  by  30%  for  sidetracking  and  10%  for
fracturing, capital expenditures surged 71.6% yoy to  EUR  64.7  million  (2012:
EUR 37.7 million). Cash flow from investing activities was a net outflow of EUR
62.1 million (2012: net outflow of EUR 35.3 million) and cash flow from
financing activities was a net outflow EUR 45.7 million (2012: net outflow of
EUR 39.4 million).

As of 31 December 2013, cash and cash equivalents amounted to EUR 42.6  million,
representing an increase of 9.9% from EUR 38.8 million as of 31  December  2012.
The Company had net cash of EUR 24.6 million as of 31 December 2013 compared  to
net debt of EUR 11.8 million as of 31 December 2012. The Company's equity  ratio
improved to 71.4% as of 31 December 2013 from 67.0% as of 31 December 2012.

Proposal for a 40% yoy increase in dividend per share to EUR 0.35

To share the 2013 success with the Company shareholders,  the  Management  Board
and the Supervisory Board will propose a dividend of  EUR  0.35  per  share  for
2013 at the AGM on 13 June 2014. This represents an increase of 40% compared  to
the previous year's dividend and a payout ratio of around 34%,  well  above  the
Company dividend policy's minimum payout of 20%.

Confident outlook despite geopolitical uncertainties

Based upon encouraging industry trends and healthy demand for C.A.T. oil's high-
class services, the management looks ahead  at  the  current  Fiscal  Year  with
confidence and  optimism.  Despite  Russia's  economic  growth  slows  down  and
geopolitical tensions over the Crimean crisis  aggravate  the  Russian  currency
weakness relative to the euro,  the  demand  growth  for  oilfield  services  in
Russia remains robust in 2014.

Supportive operating environment has become evident in the Company's order  book
development for 2014 and beyond. As of the end of April,  C.A.T.  oil's  rouble-
denominated service orders were up 27% yoy for 2014 and 71% yoy for 2014-16.  In
euro terms, though, the order book increased only 6% yoy to EUR 415 million  for
2014 from EUR 392 million a year ago and 42% yoy to EUR 754 million for  2014-16
from EUR 530 million a year ago.  The  underlying  assumption  for  the  average
rouble-to-euro exchange rate  is  48  for  2014  and  2014-16  compared  to  the
exchange rate of 40 a year ago.

Against the backdrop of the record order book, C.A.T.  oil  expects  the  FY2014
revenues in the range of EUR 420 to 450 million and EBITDA ranging from EUR  113
to 121 million (based on the average rouble-to-euro exchange rate of 48).

C.A.T. oil reiterates its 2014-16 investment program of EUR 390  million  aiming
at  expansion  of  operating  capacities  by  33%  for   fracturing,   55%   for
sidetracking and 170% for drilling by the end of 2016 compared  to  the  end  of
2013.


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 2006-08 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 450 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  Rosneft,  Lukoil,  Gazprom  Neft,  Tomskneft  VNK,  Slavneft,
Russneft 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 2013 weighted average
headcount stood at 2,773 people, most of which are based in Russia and
Kazakhstan.



|Key financial figures for FY 2013                                          |
|[million EUR]                  |FY 2013       |FY 2012       |Change (%)   |
|                               |              |              |             |
|Revenues                       |426.6         |336.8         |26.7         |
|Cost of sales                  |341.2         |282.7         |20.7         |
|Gross profit                   |85.4          |54.0          |58.0         |
|EBITDA                         |114.9         |80.0          |43.6         |
|EBITDA margin (%)              |26.9          |23.8          |             |
|EBIT                           |64.6          |32.1          |100.8        |
|EBIT margin (%)                |15.1          |9.5           |             |
|Net income                     |50.8          |21.0          |141.7        |
|Earnings per share (EUR)       |1.041         |0.431         |141.7        |
|Equity Ratio (%)[1]            |71.4          |67.0          |             |
|                               |              |              |             |
|Cash flow from operating       |107.8         |81.0          |33.1         |
|activities                     |              |              |             |
|Cash flow from investing       |-62.1         |-35.3         |75.7         |
|activities                     |              |              |             |
|Cash flow from financing       |-45.7         |-39.4         |16.1         |
|activities                     |              |              |             |
|Cash and cash equivalents [1]  |43.0          |35.9          |19.9         |
|                               |              |              |             |
|Total job count                |4,006         |3,444         |16.3         |
|Per-job revenue (thou. EUR)    |106           |97            |9.7          |
|Employees                      |2,773         |2,522         |10.0         |

-----------------------

[1]    As of 31 December 2013 and 31 December 2012 respectively



|Key financial figures for Q4 2013                                          |
|[million EUR]                  |Q4 2013       |Q4 2012       |Change (%)   |
|                               |              |              |             |
|Revenues                       |103.6         |90.4          |14.6         |
|Cost of sales                  |82.4          |77.4          |6.4          |
|Gross profit                   |21.3          |13.0          |62.9         |
|EBITDA                         |29.0          |21.2          |36.8         |
|EBITDA margin (%)              |28.0          |23.4          |             |
|EBIT                           |16.2          |7.3           |121.1        |
|EBIT margin (%)                |15.6          |8.1           |             |
|Net income                     |12.6          |5.8           |117.6        |
|Earnings per share (EUR)       |0.258         |0.119         |117.6        |
|                               |              |              |             |
|Cash flow from operating       |27.6          |32.2          |-14.4        |
|activities                     |              |              |             |
|Cash flow from investing       |-24.0         |-17.8         |35.2         |
|activities                     |              |              |             |
|Cash flow from financing       |-0.3          |-30.5         |-99.0        |
|activities                     |              |              |             |
|                               |              |              |             |
|Total job count                |1,068         |883           |21.0         |
|Per-job revenue (thou. EUR)    |97            |102           |-5.3         |



Further inquiry note:
Thomas Krammer Tel: +49(0)69-92037-183 Email: thomas.krammer@fticonsulting.com
Steffi Fahjen Tel: +49(0)69-92037-115 Email: steffi.fahjen@fticonsulting.com

end of announcement                               euro adhoc 
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company:     C.A.T. oil AG
             Kärntner Ring 11-13
             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
 

 


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